I'm buying in the pre-market. With any luck, the S&P will get to the 1665 area before it stages a reversal. The reversal could eventually take the markets to new highs.
However, should it get below 1660, the contracting trendline will break and open up other more bearish opportunities. I still think the decline has been a sloppy and overlapping one. It's up to the market to agree or disagree.
Bullish scenarios would begin to get problematic below 1628.05. But I'm prepared for that with large OTM put positions that I would rather get out of at this point, but I would put others on at higher level if given the chance.
Boehner dug in his heels over the weekend. It's about time. The whole "no negotiation" strategy is a bluff in my opinion. It is weakness masquerading as strength, and it's un-American.
The default fear is completely overblown, yet is being used by the Treasury and the administration to scare people, while scapegoating the other side. I will say one thing: these folks are masters at media deception, and they get ample assistance to spread their bullshit.
There is more than enough money to pay our debt. There is simply not enough money to keep the government on its current spending trajectory unless they keep raising taxes.
My thesis is that this is the perfect foil for the Fed to hide behind. What better way to avoid recrimination from raising interest rates than by having the government do it instead and then blame it on the other side of the aisle.
Watch the 10-year note. Watch 1660. Watch your wallet. I'll be taking a chunk of cash out of the bank this week, just like I did back in 2008.
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