We Need More Irreverance

The market moved beyond our lower Dow projections yesterday, once again trying to test bottoms, based on horrifying retail sales, and ongoing FEAR in the market. We saw bottom moves to 8538, and will now reproject potential downturn. It appears nothing is working to stop this.

We made a second buy to our November call, and missed entry on this massive downswing. The bloodbath appears far from over. Manufacturing came in soft, retail came in soft, and now that oil is dropping.

We've hit 9 of 10 of our last trades profitably, through this shocking disaster, and may now have our second potential loss. Every time we miss an opportunity for profit, such as a 700 point swing day, it's because we are incapable of charting irrationality and FEAR as we are seeing it. As I told subscribers today, I never worry about what I didn't buy, I worry about what I did buy:)

Last week in a meeting I said "we need more sacrilege in the world". Several people "raised their eyebrows" and asked me to explain, and another person in the room said it more "softly" than old Floyd, using the word irreverence.

Using irreverence settled the room down, but it got me thinking.

1. We MUST question authority. (What authority got us in the mess we are in?)

2. WE MUST have more cynicism, and less "belief". (The economy is sound, and there is no recession-Bernanke 90 days ago)

3. We MUST distrust more, not trust.

4. We MUST have more disrespect of "rules", until they are proven to us to be valid.

Part of our issue as a country is that we believe "newsbites". We believe "doctrines" or our religion, and don't see that others may see things differently.

In other words, we judge, or try to influence others.

This is much like "bringing democracy" to the Middle East, a brazen, rude and utterly ridiculous thing to even consider, and NOT in our rights. We were not asked to do this.

This is much like trying to legislate abortion, when it is a personal and religious decision, and has NOTHING to do with our courts or law.

And, this is much like our current babbles on economics, where we are led by "soundbites" of what each candidate will do. What is sad is that the soundbites have become the medium, and now many people actually believe that Obama worked with a terrorist, or will raise taxes.

It is the same "reverse logic" that Karl Rove won the second term presidency for Bush on, the "bad blood" and "who do you trust to help us with terrorists" angle.

It holds true for the stock market. Having a bit less "trust" and a bit more cynicism is what you pay me to teach you. Question authority.

Be more irreverent. Trust fewer facts. Believe less, question authority. This is what is necessary to have a thinking society.