THE FAIRYTALE RECOVERY

Well here we are sitting on the Golden Cross and the markets loving it. The 50 day moving avg has crossed the 200 and it has everyone sitting up. The big thing here is out of the last 14 recessions 13 put in a 19.2% gain the following 12 months after such a cross. So it really is a big indicator .

Now for the killer blow .

The one time that it failed was, you guessed it 1938. I think that this time the Golden Cross was manufactured. We have seen very low volume. Each day we have seen the big buy the market at the close along with big pops at support levels which would indicate the computers were kicking in as they were programmed to. We know that of late a lot of people in companies are selling into this rise so who's buying? Well I think it's Government Sachs . The idea is if we get the markets up we create wealth and in the end we save the world. Well I'll have you know this Algorithmic Trading could be the downfall of this very plan that they are using. It has indeed dragged many to the market with their own systems triggering their buy signals . But what happens when someone spots that the Devil himself is pegged to the Cross. Yep they run for the exit only to fall through the trap door to Hell.


We have some clever company insiders selling into this rise. Who would blame these captains of industry cashing in as they know better than anybody how things stand on the ground. According to the latest figures from Bloomberg $800m took flight from the market, the first time money left the market in some time. This number is important as the latest figures show that Americans are saving more now. I wonder if in fact this $800m is the same cash that's been saved.

I have noted from many stock bulletin boards that many are having a nice ride up with the market. The one thing that stands out with many of these traders is they are ready to short this to the floor on the expected turn. If the computers kick in with their sells and these traders get to work I'm thinking there is a Hell after all.


A FAIRYTALE RECOVERY INDEED .