by Mark Pierce III
Looks like its official.
The U.S. Bonar crumpled in a heap last night as all the 400:1 leveraged Forex Gamers hugging onto the “words” and promises of all the Fed Govenor Bullhorning about “we support the strong dollar” got shanked. Effective immediately, all asset classes of every race, stripe, color, gender, and ethnic origin could be locked in a Full Scale Meltup Mode.
Look no further than the REITs, undoubtedly treated as the safe haven asset class of choice; and the homebuilders, which have been accumulated with a vengeance by the “smart money” types lately.
I wonder if we will reach the Wheelbarrow Stage where simple items such as door handles and mailboxes are stolen to be carted off to the scrap house to be exchanged for food?
Perhaps the currency breakdown is a bear trap, and the PigMen will reverse it next week in a Searing Rally? I wouldn’t put it past them, as it will be the fastest money made in the shortest timeframe.
It could be that stocks are shanked also, only for a brief correction. No doubt, a clothesline event will crank the put/call ratio back up to 1.40 for 4 days in a row.
Bears will be yelling “4-year cycle top”. Tim Wood will be rushing out to trade in his Hyundai for a Lexus. Mc”Huge” will be spamming with the usual giant plunge arrows. Prechter will be pounding out “I told you so” EWI updates.
Then the PigMen will McQueen U-Turn the tape once again for the Christmas Rally and End of Year Greenprint to assure Walled Struck of obscene bonuses and payouts.
Emergency board meetings will be held to permit instantaneous stock option grants provided at the low of the day for all CEO’s who are prepping their retirements by gunning the Stock Option Wealth Engine.
In the meantime, there were repeated reports of “pandemonium” and “chaos” at the various retailers today. No doubt, Joe Sixpack is expecting $1.75/gal. gasoline, forever rising 401(k) accounts, continued wage inflation, infinite mortgage refi possiblities with the launch of the “Rent to Own” interest-only 100 year mortgage in 2007. Therefore, they are buying more goods with a vengeance, pushing the trade deficit higher and higher, while foreign central bank reserves reaching such huge levels, they have no other choice but to recycle the money back into Treasuries, mortgage-backeds, U.S. Stocks, and all the other AAA-rated instruments backstopped by the full faith and credit of the Bernanke Helicopter Squadron.
Mark Pierce III is a commercial banker, and trades for his own account in stocks. The views expressed are those of the writer only, and not necessarily those of The Wall Street Examiner, its publisher, editors, or staff. The purpose of this article is for education and information only, and should under no circumstances be construed as an invitation to purchase or sell securities. Neither the writer nor The Wall Street Examiner undertake to update this article. Readers are urged to consult with a qualified financial professional before making any investment decision.
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