Blogger strikes again with this paragraph glad to almost be done with it I can't get the left justify to work, my apologies for the poor aesthetics.
This is something I rarely do but I am going to do it tonight, I told you so! I mentioned that it was more important to determine how the FED would react to the situation over seas than whether or not it had any larger economic consequences or not. We have to keep in mind this is not the normal free market we are all used to having. This market is completely controlled by the US Fed and it's minions. They are always going to stay in front of any crisis they see developing and today was certainly no different. You can see when you look at this market from this perspective today was a non-event completely.
There has been a lot of talk about how this situation in Cyprus is not a big deal because of all the illegal tax dodgers that supposedly have money in the banks there. I am going to assume that everyone who makes that point has names of specific account holders and how much illegal money they have there. Otherwise that is nothing more than conjecture. It may well be right but consider this, what if half the account holders are criminals which would be an astounding percentage. That would still leave half the customers who woke up to a smothering tax. I am going to also assume that anyone making those points would also be fine if they woke up tomorrow morning and either 7% or 10% of their money in their bank accounts had been arbitrarily confiscated. If you are ok with taking a hit like that than you are right to make those points. However, I doubt very seriously virtually anyone would be willing to take that hit. It seems the vote has failed so the tax for the moment is dead but the problem is still there.
"Don't worry this can never happen here in the US." Really? There are prior instances of bank holidays ( not presidents birthday's ). There have been days where banks have been closed to slow down runs on them in this country. I am not predicting anything. What I am saying is that never say never. We had periods where our own government confiscated Gold has everyone forgotten that already?
The point to be made here is that it things get bad enough all bets are going to be off. We are already seeing liberties being attacked like never before, is it really such a stretch to imagine our government just taking money out of your bank accounts? There has been talk already of forcing portions of retirement plans into government bonds, folks the ground work is being layed for all sorts of sinister things that could follow. It is also possible everything will be completely fine and there is nothing to worry about. I just know I am going to put a plan in place and nobody is going to know what it is other than my wife. It is not a panic plan by any stretch. It is essentially the equivalent of a stop loss on the situation.
One other thing, in a situation like this, do you really think Gold is worth anything? If we get to a point where money is just taken by the government they are also going to take anything else they think might be of value. If by chance Gold happens to be that asset they will take it to. They already have once before for god sakes!
Enough on this now back to the markets. I am struggling to find really good setups this week so far to trade from. The Grains seem to be somewhat in between. The metals are a mess pattern wise to me. I also see nothing in the Currencies other than the Dollar Index is in the zone for a potential double top with COT selling. I don't see a daily trade in that market.
The Bond market has gotten itself back up into a potential sell zone area but my short term indicators are pretty bullish right at the moment.
I have been recording videos for my web site and I think I have some good things if the darn thing is ever done. At this point I have almost stopped asking. I think the problem has been that the people we are using do web sites for big companies with huge budgets and are squeezing us in during the odd spaces of time they have in between big projects. As a result we are getting good quality but poor response time. Oh well I guess I deserve it so it is what it is.
Let's stay patient, when I lose my patience I lose my money generally.