October 2, 2011
Weekly Market Outlook
By Keith Schneider
by Keith Schneider
OK, so things do look fairly iffy here in the US. Does anyone really think that the Senate and Congress will agree on some bipartisan proposal to solve our budget issues and long term infrastructure problems? Will the Republicans allow the current President to score any points before the upcoming election? It looks like critical decisions will be put on hold for another year while mainstream America stays mired in debt and foreclosure. There is some good news though. If you thought think things are bad here, think about Russia. Just when we thought the big Russian bear was now capitalistic (OK, Oligarchical) and no longer a threat, the KGB is back! And it’s not for a 4 year stint, rather 12 long years. Putin, after a face lift and Botox injections, will take back the “Presidency”. I guess he thinks nobody will recognize him or his old KGB tactics with $200k of cosmetic surgery. Clearly, we are not as dysfunctional here and the voting machines work most of the time. In Russia, you could be a billionaire one day and a penniless inhabitant of prison the next.
Meanwhile, the markets are not happy; sentiment indicators show a world on edge and the US Equity Markets are hanging on to critical support levels since the S&P downgrade. Most foreign markets have broken down already. Europe is in even worse shape, as a Greek default and possible Euro disintegration looms. There are rumors that Germany has ordered state of the art printing presses for the creation of new Deutsche Marks. I don’t necessarily believe that, as they can take the old ones they used in 1920’s out of storage.
Forget the rumors and let’s go to the video and see what the charts are telling us.
Have a great weekend!
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