War on Wall Street

In my opinion the anger is misplaced and illustrates how the left wastes a lot of bullets.  You can read this blog every day and in my mind see a progressive approach to solutions and actions.  In the current situation it would be a much better use of resources to rally against the justice department and the House of Representatives.  There is no question that more of Wall Street should have been indicted but in reality the crisis was the culmination of bad thinking.  It started with Greenspan, then was embraced by the Bush Administration as a way out of the 9/11 economic crisis and the public bought it in spades, borrowing against their home equity to buy new and more houses.  It is time to get real, sure the Wall Street types are greedy, that is why they are not in the Peace Corp., but to scream against that gets nothing accomplished other than putting the anger about the economy on the cable news in a negative context.

Moving on to the the markets.  First, maybe the protesters should start investing/trading with a cynical /contrarian view towards Wall Street and the financial press.  This week it would appear that a significant low was put in the markets. The popular S&P 500 index is now in a 1105 to 1185 trading range with a swingpoint at 1145, right near where the market is now.  The big trends point lower, so selling at the upper levels of the range will be warranted.  Economic number are getting slightly better and will be supportive on selloffs. 

Interest rates may be the canary in the coal mine, this week we may have seen the cycle low.  IF this is true it will further the long dollar short gold relationship.

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