Fiefdoms

One of the first things I saw this morning on my Twitter stream was a story written by Michael Pettis on Nouriel Roubini's excellent EconoMonitor blog.

Pettis said "I am surprised that no one seems to be discussing the very adverse Japanese impact on the future development of global trade balances." He then laid out the Japanese problem in all its eerie familiarity.

Sorry dude. Kyle Bass as been all over the "Japanese Problem" for months now, almost to the point of saturation.

Michael Pettis is a professor at Peking University's Guanghua School of Management, where he specializes in Chinese financial markets. What is it about academia that makes people continuously seek to establish and defend fiefdoms? I only recently learned of Benoit Mandelbrot's attempt to claim Ralph Elliott's theory of the Wave Principle as his own. Now I find this. I'm sure there are many other instances that escape me this early in the morning.

Pettis could simply credit Bass and he'd instantly add credibility to his argument. Perhaps they could even share their findings. Information would multiply and knowledge would increase.

Fiefdoms suppress knowledge. I'd like to suppress fiefdoms.

I'll now suppress my desire to suppress and instead get on to business. During the overnight session, futures double topped but did so while exceeding the 78.6% level which has me wondering if we're setting up for yet another triangle or wedge-building session before new highs.

Yesterday the S&P bounced off a measly 23.6% Fib level. So the best scenario at this point might be an A-B-C correction down to the 1385-1390 area. Only an extension below 1380 would shake my tree.

As an update to the AAPL trade, I don't think it's quite ready yet.