Thursday, August 4, 2011

Can you hear me now?

You asked for the truth and I told you
Through their own words
They will be exposed
They've got a severe case of
The emperor's new clothes
The emperor's new clothes
- Sinead O'Connor 1990

The tide is out and we can see who is swimming nekked. QE is gone, cash is flowing out and with them both go liquidity. Whatever propped up the market for the past two years is toast.

Perhaps now the psychology of crowds and organic supply and demand for stocks will return to "normal," whatever that is, market analysis will be what it once was.

For now, the technicals are singing their sweet song - well, sweet for the bears, anyway.

1 comment:

MrWave4 said...

Hi Michael,
Looks like what you been saying over the last few months is starting to become reality. I agree Govt around the globe have no more ammo & markets should return to normal. Any thoughts on targets (sep 10 low) to start with ?