Wednesday, May 12, 2010

CNBC Is Assuring Us Everything Is Back to Normal

It is hilarious, really, to check the headlines of the mainstream financial news media like CNBC. Right now, these headlines inhabit the front page (of no specific order):

Cramer: 5 Stocks Powering This Market Higher

Mr. Cramer was reportedly saying just last Friday after the "flash crash" that he would put his money in CD... He has proved himself to be a total contrarian indicator, yet again. So what is he peddling now? Apple, Deckers Outdoor,, Intuitive Surgical, Chipotle. As if nothing happened. Move along, nothing to see here.

Fast Money: Gold Making Double Tops?

According to Fast Money, technical analysts are huffing and puffing about "double top" in gold chart which is bearish. Uh huh.

Technical analysis? We now know what happens when algo bots disappear. Good luck with TA.

Gold Price May Still Have a Way to Go: Analysts

So, which is it? The article is rather devoid of solid analysis. What's more interesting is this Zero Hedge's article that Europe is running out of gold and silver due to exploding demand from the concerned citizens over there.

Dont Fight the Fed - Power of Central Bank Preserved

The Senate voted to keep the Fed in charge of smaller banks. Combine that with the very narrow audit, and you should join CNBC in congratulating the Fed for the successful lobbying - the Fed got all it wanted. So much for "reform".

My moment of insight about the US market a while back - that it will just keep going up because all these large companies listed on the stock exchanges are safe, backstopped by the taxpayers - can now extend to the global markets. The entire world is on hook to save the EU governments and large multinational bankers who lend them money.

After last Thursday's mistake of revealing what's underneath the veneer floor that we stand on - it was like staring into a dark, bottomless elevator shaft - algo bots have been scolded by the financial authority (the Fed comes to mind) never to do that again. Bad bots, you're bad bots!

With the likes of Cramer, they are inviting you, retail investors, to put your money in the stock market. Trust us, your money is in good hands.


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