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Thursday, December 8, 2011

Market Thought... getting old

Thanks to ECB, the market acted on its resistance.  The SP500 is near the 360SMA, and the 10yr is at a potential low-end support.

Everyone already knows the end-of-the-world is coming. Reduced Chinese inflation be damned. Increased rail freight demand be damned. Nice US economic data be damned. (Whatever happened to the hedgies and ECRI projecting a US led recession? I guess their indicators need to be reassessed.)

The cat and mouse game the ECB is playing is getting old, despite their words and actions are completely opposite.  I guess the big boys got into the habit of simply listening to words and headlines over the past few months, that they forgot about what really matters.  Actions speak louder than words.

So we are left with the decision, end-of-world type of instability or the ECB keeps doing what they have been doing (despite their mere words of contradiction)?

I wonder how much longer the market will listen to the boy that cries wolf.

On a side note Corn maybe indicating a bottom for agriculture, and since fertilizer names (like POT) generally follow Corn, POT maybe interesting here.

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