Stock market should be stabilize for a while in 7000 range

Dec.03, 2008 in Market Outlook

Clearly an extension of yesterday’s “Buffer Rally.” As bad as the news is going to be later in the week, they’re putting as much distance on 7,999 as possible to pad anticipated losses.

The market should have already been trading in the 7K range, but two days of criminal, manufactured “gains” have put a nice 500 point buffer on 7K. They certainly have the horsepower to limit losses to less than 500 points, as they’ve proven time and time again, so as dire as the news may be, they’ll protect 8K.

I’m sorry to say, but the FED has established an artificial reef (bottom) at 8K. At this point, I seriously doubt if the US Stock Repository will fall below that level again, and if it does, it will quickly “recover”.

I hate to disappoint the bears, but if the FED won’t let the market head back to 7K, there’s no way in heck they’ll let it drop to 6K, or 5K. It’s obvious by now that they’ll backstop it no matter how dire things get, and it will be held captive until things catch up, which could be 3-5 quarters or more. I suggest we all ignore the news/data, because the US Stock Repository has, and will continue to do so.

I’m sure hard working American’s will appreciate that they were prevented from being able to invest at a level that the market should have decided for itself, instead of some fraudulently manufactured FED-determined level. That may have helped them recover from devastating losses, but this artificial reef the FED has in place will reduce possible future returns by 50% or more. Ready for another 10 years of ZERO RETURNS, against a backdrop of 10% inflation?

Folks should go to prison for this, including everyone at the SEC for letting this happen in broad daylight.

I wish a billionaire would get irritated enough to sue this out of the market, and completely unravel this legalized, criminal theft of retirement monies from innocent American workers.

Did you like this? If so, please bookmark it,