May
(down)
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Starting with the Greece Sovereign debt mess and the resultant mess in Europe as well. Incidentally we have also the British Rotal Wedding and the assassination of Terror Leader number 1, Osama Bin Laden. Oil tanked. Silver went into a nose dive.
June
(up)
------
Greece passed the austerity measures albeit temporarily admidst protest and howling by the people for the mess the politicians created, thanks in large part to the Euro, whose members are unequally yoked !
However, it was still good news, market rallied !
July
(Down)
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The contagion effect seems to spread to America. Bad things don't come singly. Financial market is really nervous and fragile any rally is short lived. July in America witness the clowning of the congress circus and the white house ring master. S&P wasn't much impressed, brought the curtain down or risk it's own credibility, downgraded US debt a notch still good by any standard but unacceptable nevertheless for the King, market dived.
August/September
(Dwn/Sideways)
------------------------
Has been thrawling within a 1000 pts fly zone with 11,000 more or less the pivot, while the debate continues about jobs, growth and debt admits more dire problem in Europe. Its pretty bleak but bulls and bears are tugging each other.
G7 finance ministers has met over the 9/11 10th anniversary weekend.
Obama has a $400+ billion economic plan.
(Obama : The Better Hobson's Choice)
At this stage a plan is better than no plan. In fact the GFC has derailed this "Infrastructure" plan. It was the platform of Obama's campaign, he is but just coming back to it, the Infrastructure I-Bank is waiting to be ignited so is the $1Trillion from Chinese Sovereign fund. The impasse is not so much whether It will work, but what it's implication are on America's sovereignty even if it's just financial sovereignty. Which actually has been eroding. Just consider this, if an emerging African nation like Nigeria, can start considering Chinese Yuan as their valid trading and global currency and is going to convert 10% of their national foreign reserves to Chinese Yuan, it's a different era and a different modus operandi.
All in All, with respect to 11,600(resistance) and 10,700(support) I call for a bottom and vote with Obama's Infrastructure plan. Look the banks have called your loans and now taking back jobs, the next rescue if its just for numbers sake would have to be Infrastructure which GFC has just but temporarily derailed it. Or just look at Europe, for all the hype about the domino effect if the Sovereign debt crisis, it is but a huge Infrastructure play.
This is a Wave 4 Buy on the Weekly Chart !
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