Lets have a peak at Autozone ticker AZO again this morning.
Note the highlighted area on the chart. Recently I targeted this for readers which at the time was a decent looking outside reversal or bearish engulfing candle Dec 6. I also made note of the heavy volume which came into the stock the same day. The stock gapped up the next day only to reverse yet again on even larger volume. So what does this all mean?
Well I guess it means you should ignore the chart and just buy the dip.
Do you remember back in late 2008 when the market was in free fall? Do you remember the boobs and boobs in chairs on CNBC hauling in technician after technician trying to read the charts of a market none could make sense of while popping Prozac with a brandy chaser?
You see the charts are not necessary when the market is going up because you just buy the dip. No one needs the charts when the market is going up...... that is, until is isn't anymore.
Anyone catch the USA Today article Experts Agree: Get over your fear and get back into stocks. Some things never ever will change.
In other news, not that anyone cares mind you, bank closure Friday continues on in unabated fashion with 6 more this past weekend. This now brings the total for the year now up to 157. But hey its not a problem of of solvency, its simply a liquidity problem. Just ask any Nobel prize winning economist !
In other useless news, It appears that the muni bond market is finally getting some attention from the mainstream media as the 60 minutes piece Sunday highlighted some of bank analyst Meredith Whitney's concerns. If you have been like many others out there following the idiot bloggers you know that many like Mish Shedlock have been all over this for quite a long time.
Of course the sell side shills on Wall St. can't see her 'numbers working' in Whitney's negative scenario which shouldn't be shocking as they couldn't see the numbers working in the housing bubble or the dotcom bubble. Caveat emptor to all those Pavlovian dogs managing other people's money out there.
I laugh at how the focus in the media are in denial about the real issue here. They dance around the issue highlighting symptoms like how the states are in arrears on their bills due to revenue shortfalls while ignoring the elephant in the room, the unfunded liabilities in these golden plated pension plans for these 'civil servants'. Complete denial regarding the real issue. The issue of INSOLVENCY.
What do you think is going to happen when the cops, firefighters, EMT's, bus drivers, teachers, DMV workers, post office workers et al realize those pension statement numbers they have been receiving in the mail are a mirage?
Given this debacle unfolding in municipal finances over here or lack thereof rather you might want to take a peek around you on your local street or community to survey the landscape and see how the sides will be draw up.
Speaking of municipal finances anyone notice the activity in Greece and the UK? O know the stock market doesn't pay attention so for it and those caught up in Dancing with the Stars or Survivor it seems the students in the UK are rioting over a 200% increase in tuition fees from 4,500 to about 14,000 pound sterling.
Over in Athens, the Greeks seemed to be miffed at a 2 year increase in the retirement age and responded with Molotov cocktails and mass protests.
Amazing how shocked everyone seems to be when the heroin junkie goes ape shit in response to his free supply being cut off? Of course those brilliant lawyers we elect as politicians always are shocked at anything that happens as they skipped taking Introduction to Unintended Consequences 101 for sure.
Those brain dead mainstream media types who regurgitate what they are told to print no doubt do as well. Actually I'd be shocked as all get out as well were I too in a Ritalin/Prozac/Ambien induced fog as well. Sadly I am not.
This is all just the tip of the 'austerity measures' iceberg in my opinion, the appetizers if you will. I wonder what the reaction over there will be when the real austerity measures, the entrees are unveiled? I gotta give them credit over there thought, they don't sit on their ass and take it, maybe Idol wasn't on this week, not sure which?
Over here we borrow to give a tax break out. Gotta love Ivy league finance. Hey, lets call up Lloyd Blankfein over at Goldman and if hes not too busy doing God's work - and just maybe if his puppeteer 'the oracle' Warren Buffett gives his permission -he can canjur us up a massive trillions dollar muni-refi deal involving inverted interest rate credit default swaps based on the Indian Rupee/Polish Zloty spead.
Yeah thats it !
Or maybe it might be easier for us to simply get a neg am adustable rate HELOC on the Constitution since we don't use it anymore and post the Bill of Rights as collateral for that trillion dollar inverted interest rate, Rupee/Zloty credit default swap.
Doesn't that should stunningly brilliant? Hey, lets ask the folks down in Jefferson County Alabama how brilliant it sounds.
Yesterday I was stopped out of AZO at $272.22 for a loss of 1 3/4 pts on 1 unit short.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
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Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
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