Daily Insights – Tue 24 Jan, 2012

big al,
I have attached the writtings of steve downey from SC. He writes a daily tech forcast. I thought you might enjoy his comments about the State of Union speach.

Re: God’s Rule of Thumb
Inbox
x

Steve Dowdney stevedowdney@gmail.com
7:29 AM (1 hour ago)

to carlbdavis, elee1234, peregoff, sti106, Barbara, Bennett, Bill, Bill, Bob, Bob, Bruce, Carter, Charles, Christopher, Dann, Danny29115, Eric, Eric, Ernie, Fred, Ginna, Greg, Howard, J, Jan, Jay
I still am boiling from last night’s State of the Onion! It was another “we need to grow big Government bigger” to do…whatever-who cares! Bail, Train, Police, Punish, Tax! How close we are coming like the Bureaucracies of the Onion domed Evil Empire of the past. But my single opinion is as worthless as my vote cast in a pot of votes where 43% are on some kind of subsistence. But of this I know…things are changing. Maybe not complete for another decade but if there is to be a Union speech in Jan. 2022, it just might sound like a report from a much earlier time, a time when presidents captained light weight frigates instead of lumbering Panamax Cargo Carriers filled with Chinese junk.
In the mean time a first step was taken by China and India, the two emerging economic powers. They need oil and Iran has oil and Iran has a problem. Oil is traded in U.S dollars but with Iran’s sanctions bucks are worthless so the two economic super powers are going to buy oil with gold. It works! No diminishing currency value to favor trade, gold is of equal global value. What a country pays for gold is their problem. If they get their monetary house in order, its cheap, act like Greece, its near priceless.
Millions of Americans remain in eyeball high debt. They have unloaded the second car. Agreed to terms for lower credit card interest with a pay-off plan. And they continue to sell items-art-heirloom-valuable-just not quite necessary as compared to the alternative. This is the way of survival. The United States is no different than one of its people. It is eyeball in debt. And yet the plan is to get further????? I say START FRESH! Sell Hawaii for starters. Air power-Long range aircraft, drones, Cruise missiles and ICBM’s negate the need for a harbour. And, of course, as it will become as economics force it, change the Nation’s motto from “In God…” to “God helps those who Help Themselves.” After all this was the concept since the very beginning!

Yesterday was another worthless expense of stock watcher’s time. Volume was vacation light, the Dow barely wiggled, the RSI dropped to +3 and the RO to +20. Dow MACD lines might be getting ready to cross (a significant decline) while relative strength hit overbought levels and is backing. Both slow and fast stocastics remain in overbought territory. DowOBV did not mark the event. Graphs might be telling the story. Drawing a line from the May 2nd peak through the double July tops and onward to yesterday, the NASD, Dow and S&P are finding this a most difficult barrier to penetrate. Could be computer sell programs, could be old time tech analysis, could be fate. Whatever, it’s resistance and a near term issue. The markets might pull back and “second attempt-do it again” especially as we approach Superbowl 46. Gold got slammed as Euro investors fled to dollars. The buck was in need of a relief rally. It is now at the fifty day ma and bouncing while gold dipped under its 50 on the dollar s strength. Tricky! The dollar is in a bull market; gold is questionable. In summation, wait for the government to train you, bail you out ,pay your mortgage, excuse your debt, pay your college tuition OR begin to pare long positions, prepare for a next market move and get ready to help yourself-just like God intended.