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Playing the Ponzi
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Why “Playing the Ponzi”? I view the entire monetary and financial system as something of a Ponzi scheme. Starting with currency that is created as debt, and running straight through a global economic model that is based on infinite growth in a finite world. This won’t end well. I’d go a step... More
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Playing the Ponzi
  • Near bottom of range… buy time? 0 comments
    Jul 29, 2011 10:52 AM | about stocks: SPY, QQQ

    The markets have been exceptionally choppy, and have traded down hard in the last week.  This has caught me off-guard a bit.  But, though I am very much a long-term bear, I see this is more of a “buy the dip with a tight stop” situation, than a “get out of dodge” moment.  The S&P has traded down to its 200 day moving average (though both the Nasdaq and Dow are better off):

     

    Another bullish (imho) sign is that technology, which as led throughout this last 3 year rally, has significantly outperformed the S&P over the last month.  This indicates to methat there remains a bullish undercurrent that still believes in the global growth story.  The chart below is QQQ divided by SPY, showing how the QQQ (Nasdaq) index has outperformed the S&P recently.

    Also, things like copper, high yield bonds, and consumer discretionary have held up relatively well.  All of these things combined temper my pessimism for the moment and make me suspect that the “end” is not at hand… yet.

    Stocks: SPY, QQQ
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