So if you\u00e2\u20ac\u2122re keeping score this means that the public school systems and what will overwhelmingly be the public healthcare system are both good enough for the rest of us but apparently not so when it comes to elitist politicians that are hell-bent on marching towards some smiley-faced hybridized version of socialism and fascism.\u00c2\u00a0 But again, don\u00e2\u20ac\u2122t worry, because none of this will hinder the recovery that we\u00e2\u20ac\u2122re supposed to believe will launch as soon as we save by spending a few more trillion that we don\u00e2\u20ac\u2122t have on healthcare and phantom climate change.\u00c2\u00a0 We just seem to be getting more and more dependent on our friends in government all the time.\u00c2\u00a0 Maybe we need to rename the holiday \u00e2\u20ac\u0153Dependence Day\u00e2\u20ac\u009d to bring it more in tune with our modern times.\u00c2\u00a0 Or perhaps we could act more like Citizens of the World and call it \u00e2\u20ac\u0153Scandinavian Model Day\u00e2\u20ac\u009d since we\u00e2\u20ac\u2122re on the precipice of completely adopting the spirit draining policies that were pioneered by those countries after spending too much time staring at the Aurora Borealis while at the same time\u00e2\u20ac\u00a6\u00c2\u00a0 (Let\u00e2\u20ac\u2122s keep this above board)\u00c2\u00a0 Again, the irony is that in some ways those countries, and even more so to the south in La France and Deutschland, are actually moving away from their pasts and towards our past as we\u00e2\u20ac\u2122re running from our past to embrace their pasts that they\u00e2\u20ac\u2122re running from.<\/p>\n
Anyway Cap and Trade really isn\u00e2\u20ac\u2122t that big of a deal.\u00c2\u00a0 It\u00e2\u20ac\u2122s only calculated to be the largest increase in American History.\u00c2\u00a0 But it does come at a good time too so take heart.\u00c2\u00a0 History has proven time and again that raising taxes during tough economic times tends to spur on even deeper levels of recession.\u00c2\u00a0 This takes the sting out of the fact that 300 pages of Cap and Trade law was dropped on the House with 12 hours remaining until the vote thus providing not nearly enough time to review it.\u00c2\u00a0 Which works out nicely since the wildly successful Stimulus bill was handled in nearly the same way.\u00c2\u00a0 The bottom line is that capitalism works and we need to look no further than Goldman Sachs and GE that stand to benefit enormously from their campaign contributions.\u00c2\u00a0 The latter will be the recipient of an enormous series of Green technology largess from the government and the former gets to keep writing the laws and to set up the new market for trading carbon credits.\u00c2\u00a0 Clearly all is working as it should.\u00c2\u00a0 We can see Adam Smith\u00e2\u20ac\u2122s likeness beaming proudly from somewhere up in the soon to be sparkling clean luft.<\/p>\n
With all of these tailwinds at the back of the recovery chatter it\u00e2\u20ac\u2122s no wonder that stocks are jamming higher on nothing more than luft as we head into this weekend\u00e2\u20ac\u2122s fireworks displays.\u00c2\u00a0 Expect this continue for as long as gravity can be kept at arm\u00e2\u20ac\u2122s length or the boys decide to get their summer going at full swing.\u00c2\u00a0 Just as the market staged an enormously rally in front of the financials needing to issue equity for capital, we won\u00e2\u20ac\u2122t be surprised if things end on a high note as the marketers need to sound all the right notes to entice people back into investing in the stock market just in time for the green shoots recovery tour of 2009.<\/p>\n
The Technical Picture:<\/strong><\/p>\n Above is a current chart of the SPYs that we\u00e2\u20ac\u2122ve updated somewhat from last week.\u00c2\u00a0 Not surprisingly since the crew was able to halt the slide last week we\u00e2\u20ac\u2122ve witness and rebound in the yellow cumulative Advance\/Decline line.\u00c2\u00a0 We also bring your attention to the 2 ellipses that we\u00e2\u20ac\u2122ve drawn in.\u00c2\u00a0 The higher one highlights the new 52 week highs that are occurring and not surprisingly that has jumped significantly after starting to tail off for a while.\u00c2\u00a0 This can probably best be described by this philosophy: \u00e2\u20ac\u0153Nothing is worth doing unless done well.\u00c2\u00a0 Therefore, if you\u00e2\u20ac\u2122re spending capital to mark things up then mark them the hell up.\u00e2\u20ac\u009d Or so it goes.\u00c2\u00a0 This is just garden variety market manipulation at this point though however so the SEC and FINRA will of course look the other way, especially when we consider just how many important players are probably engaging in this at present.\u00c2\u00a0 Besides, there\u00e2\u20ac\u2122s no recognizable poster boy\/girl for them to pin the wrap on at this stage.\u00c2\u00a0 They need a Martha Stewart or Bernie Madoff to emerge to fit their purposes.\u00c2\u00a0 Anyway, the lower eclipse is drawn to include Monday morning\u00e2\u20ac\u2122s volume.\u00c2\u00a0 If you can\u00e2\u20ac\u2122t see it, do not worry, as it is practically non-existent.\u00c2\u00a0 But that\u00e2\u20ac\u2122s exactly why the hundreds of 3 to 4% upside moves that we\u00e2\u20ac\u2122ve seen thus far today are possible.\u00c2\u00a0 Smart sellers are backing off and letting our axe-grinding bulls \u00e2\u20ac\u0153do their thing\u00e2\u20ac\u009d as panicking shorts scramble to end the pain.\u00c2\u00a0 During phases like this it can get wild so try to use that to your advantage if you\u00e2\u20ac\u2122re riding airy longs and try to hold on tight if you\u00e2\u20ac\u2122re on the wrong side as this thing could deflate just as quickly after it has run its course.\u00c2\u00a0 The final warning though is that what starts as an illegitimate fraud doesn\u00e2\u20ac\u2122t always remain one.\u00c2\u00a0 The future news cycle, one that earnings and politics laden, and the rush to invest new capital at the start of a new month and a new quarter can serve as powerful catalysts if this levitation can last long enough so keep your eye on upside resistance that we\u00e2\u20ac\u2122ve noted in our prior Week Ahead\u00e2\u20ac\u2122s.<\/p>\n","protected":false},"excerpt":{"rendered":" \u00e2\u20ac\u0153They\u00e2\u20ac\u2122re baaaaaack\u00e2\u20ac\u00a6.\u00e2\u20ac\u009d, the correction that seemed to have been unfolding was suddenly halted late last week and our friends with a vested interest in where stock prices are marked at, only a certain times mind you, seem to be back in control of the message.\u00c2\u00a0 With the second quarter about to close out and with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-184","post","type-post","status-publish","format-standard","hentry","category-week-ahead"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=184"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/184\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=184"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"http:\/\/www.cheapiv.com\/images\/spy20090629.jpg\")
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