The Violent Selloff

Commentary: Let us begin the most violent week in recent market history. Both of the attached Bloomberg articles summarize well:
Making Sense Of Thursday's Violent Market Selloff

and

THE RICH GET RICHER

http://www.huffingtonpost.com/2011/08/04/irs-incomes_n_918458.html



Historically August has been the worst Do month from 11988 to 2005, but was up the last 4 years.


And for today: The average man is always waiting for something to happen to him instead of setting to work to make things happen. For one person who dreams of making 500000 lbs, a hundred people dream of being left 50,000 pounds.-AA Milne, author of Winnie The Pooh

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Market makers speculate in large blocks using computer algorithms to buy 10000 options in Apple so that they can sell proportionately the same proportionate number of contracts; they electronically manipulate the market
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*The world is not in any form of balance and in down cycles, this is bad news. The market was fully invested when this happened, showing that not many believed or saw what was to occur.
*If the S$P bottoms near 1139 or the Nasdaq near 2200 we'll continue in weekly negative cycles for several weeks, with only the chance of a bounce.
General Projections: Gold is only showing weakness, in spite of a negative cycle, but is only a sell cycle at 1625; Silver continues to hold up. It's a sell signal if it closes below 39.

SEPT crude his 86.50. It may short term bounce but even oil looks as if it down.

We have taken profit in the past week in all our U.S. Bonds. Let's use Nennner:
30 year-tops at 142 could hit 148
10 year-tops at 132.20, could hit 134
5 year upside to 124

Natural Gas remains just an overall short term crap investment. It can't break it's own pattern.

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Quite simply we have shit in our own shit. And walked all over the stuff for years, beginning to even think that plastic purses were worth $600. And that the same rich people, that we are making richer.

I will take me sometime to overcome what we have done too ourselves as a nation. There is little to say but to begin to regroup, and to wonder who did it to us.



Take especially prudent risk.