Thursday, January 26, 2012
Wow ehh? Who woulda thought that 6 weeks after the Dec 12 cross-over( usually a calendar quarter, but hey its an election year so everything is possible with every-one pumping......) of the rate that the world was consuming Short Term Treasury Notes ( less than 1 yr)(chart is upside down), that the RISK appetite started galloping. Funny, when everyone is so depressed, no one wants to believe anything good. Good ? Well, it might be, for now we have the US in recovery, the CRASH in the Euro post-poned and everything looks rosy, well sorta....... Now it usually takes One Calendar Quarter for the changes to show up, but everyone was in a hurry this year as the Monsters are both big (US Election) and fast (Euro-Crash). These monsters are not dead, not by a darned long shot, but right now, are temporarily at bay. For Now !!
Is it a trap ? ? Yes it is in the long term sense that if you find yourself lulled into a false sense of security that "Everything is OK", you will eventually get hurt very badly. If you use this to take trading profits, you will be fine......Yes, Virgina, we still got a problem - Houston, you listening ? ?