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Thursday, October 15, 2009

Comments on market

The sky is the limit for the market, until the USD comes into crisis mode. I expect market rally straight into Saturday, SPX 1120 is last resistance level. A break above that, needs rethinking of what the heck I am thinking.

But in general, a few items. NOTHING has been corrected, all the financial problems still exist. All that has changed is two things.
1) Government printing trillions of dollars to fund banks
2) Government changed the laws to not require banks to value assets according to what they sell at. Banks can value assets as they see fit.

For example, 3rd quarter foreclosures on homes jump 23% in Q3. One out of every 136 U.S. households received a filing. A “shadow inventory” of 7 million properties are in the foreclosure process!

So, this market can run for a bit, if past Monday it's time I go all cash and hang up my hat for a while.

One troubling sign (from Karl's pay video) is the Municipal fund market is having issues. In a soaring market, one wouldn't expect this.

Below the IQI chart, is USD chart. Dollar is entering dangerous area. I am starting to think the government will let the dollar hit 69 before acting. If so, the market may go much higher in the mean time.

From WebSurfinMurf's Financial Blog


From WebSurfinMurf's Financial Blog

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