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Market Is At The Cliff Edge

  • Written by Syndicated Publisher No Comments Comments
    October 9, 2013

    The made-in-Washington crisis continues.

    So far markets have shown little fear.

    That may add to the problem this time.

    Congress, the U.S. Federal Reserve, and indeed central banks around the world, have repeatedly demonstrated that it takes a market plunge to scare them into coming to their senses, settling their differences, and taking action.

    We saw it repeatedly in Europe as each crisis in the Eurozone developed, and resulted in the various factions arguing and blaming endlessly, until markets plunged and panicked them into action.

    We saw it with the Fed each time the economic recovery stumbled. It waited each time until plunges in the market scared it into rushing in with more QE.

    We saw it with the last battle over raising the debt ceiling in 2011. It took a 20% plunge by the S&P 500 to get Washington’s attention.

    And we now have the market sitting at the edge of a cliff, looking undecided, while Congress and the administration are still just throwing mud-balls at each other and acting like 8 year-olds.




    At the same time, Gallup’s Economic Confidence Index fell 12 points last week to –34, its worst reading since the Lehman Brothers bankruptcy in September, 2008.

    And investors are finally getting more alarmed and have the market sitting right at critical support levels.

    To read my weekend newspaper column click here:  Sell In May And Re-Enter When-

    Subscribers to Street Smart Report: In addition to the charts and recommendations in your secure area of this blog, the in-depth mid-week Markets Update will be in your secure area of Street Smart Report.com tomorrow.

    Images: Flickr (licence attribution)

    About The Author – Sy Harding, Street Smart Report

    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

    It provides two model portfolios as guides. One is based on ourSeasonal Timing Strategy, one on our Market-Timing Strategy.

    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

    There is the Street Smart School of online technical analysis ‘seminars’,commentaries to keep you ‘street smart’ about Wall Street, and much more.