Gloom and Doom Tuesday

Alrighty Folks

Its a gloom and doom time!

Get ready to watch some videos! Let me start by saying that I do not share all of the views of the following people highlighted here. However, I think its time that we start taking some of these more radical thoughts more seriously because I am extremely concerned that we are all watching our country literally go down the drain.

The first video here is titled "Geithner's Oligarchs". This is a must watch in my view. It features economist and risk managing consultant WILLIAM ENGDAHL. Dr. Engdahl does a nice job explaining why Turbo Timmy's plan will fail and end up costing the taxpayers billions. Essentially William explains that this is basically another backdoor bailout for the pigmen:




The second video below is a little more hard core but I gotta admit: I loved it! It features a guy by the name of Max Keiser and his rants on here are classic! His take home message: The "financial terrorists" must be stopped!:




Lastly, here is a video from trends forecaster economist Gerald Celente. This guy makes Peter Schiff sound like a bull! Gerald is predicting an economic collapse in the United states:





Bottom Line:

Two years ago I would have considered a lot of this to be tinfoil. Not anymore in my eyes folks. Washington and Wall St have lost their minds as far as I am concerned. Its becoming increasingly obvious that Wall St owns Washington. They are officially in bed together.

The current policies including the recovery plan do nothing but throw billions of dollars into the pigmen's pockets at our expense. The increasing threat of the oligarchs(elites) taking over this country must be taken seriously. If we allow this to happen it threatens the great way of life that this country now offers.

Capitalism and the free markets will no longer exist if this fraud rolls on. We are headed down a very dangerous path where the elite will take care of each other while the rest of us live like peasants. America will look much more like a third world country in this new reality.

Trading

I am starting to think that the market sentiment is starting to change. This bounce looks to be about over. Today's close was very bearish. We were up 170 points for most of the afternoon before selling off late in the day. I placed a few shorts on at the close.

We have continued to selloff in the after hours. The ES is down about 8 points. I am starting to become more bearish in the near term for a variety of reasons:

The banks are now admitting March has been humbling, anger around Wall St among the public is rising, and earnings and the jobs report start rolling out this week. Case/Shiller report was horrible today and reinforced that housing is in the toilet.

On top of all this, GM and Chrysler are likely heading into BK. Obama is going to take some serious heat at the G-20 by the economic powers of the world. Its pretty obvious that none of them are comfortable with our reaction to this economic crisis.

Can you blame them? Everyone knows that our policies including the recovery plan do nothing but stuff the banks with money at the expense of the taxpayers. The Fed/Treasury are doing nothing in terms of addressing the real problem which is a broke jobless consumer. Until the money starts flowing to the public instead of the bankers, this economic crisis is only going to worsen.

Adding to our troubles is the fact that the credit market continues to deteriorate. Everyone now basically keeps their fingers crossed and prays each time we have a bond auction now hoping that it doesn't fail

There has been quite a battle here between the bulls and the bears at the 800 level on the S&P. This war has been going on basically since last November. We had one run down to 666 but it quickly reversed.

My trading thesis has changed a bit. I thought there was a good chance that we would see one more wave up to S&P 900 before headed south. This still could happen for two reasons: The uptick rule change, and the potential changes in mark to market. Both of these could easily get us to 900 if the market buys it. I personally think its somewhat priced in. I would expect that any M2M rules changes would be mild because the risk of having hundreds of Enron's on Wall St is simply too high. We all know they can't be trusted!

I am no longer confident that we get to 900 given the news. If we break strongly below 800 here I believe we will break through the 666 low from a few weeks ago. We may see some resistance once we get there but I don't think it holds.

My longer term low for this bear market is now 450 on the S&P. I expect we see these levels before the end of the year.

If Washington's horrible policies do not change, we could head lower.

Lets hope we get some "real" change in Washington before we end up destroying ourselves.