Greece is in dire straits. California cancels $2 billion offering and moves closer to solvency. Everyone knows CRE is a falling domino except those pumping the stocks.  There is roughly $800 billion in high yield securities (lesser credits) maturing between now and 2014.  Indirects continue to shrink in the Treasury auctions. Bloomberg holds the mirror to the corpse’s mouth and sees the end. Can sovereign defaults be far away?

http://www.bloomberg.com/insight/america-tied-up-by-record-debt.html

Welcome to the broken clock.

EQUITY

The market seems to have thrown everyone a head fake yesterday (except here).  Zero Hedge suspects [...]

Charting is a bit like playing chess. Every technical analyst commands a particular repertoire of technical patterns, instruments, momentum indicators, resistance/support lines, trend biases, trading tools, etc. In the end we all somehow try to anticipate what will happen next – or at least attempt to consider various scenarios of what could happen at what stage if x happens or y will not. From there you plan your next move – and you better anticipate how the market will react to it. If you get married to a particular idea it’s checkmate in three moves or less. Which happens when you fall in love with a particular wave count and refuse to consider other [...]

Pay attention to the $200 billion just handed over to the FED by congress and the treasury. It’s not what it seems.  I saw a piece on ZH, that has since disappeared, that seemed to imply that the $200 billion was a vehicle for removing liquidity from the market. This warrants further investigation, and could be how the FED “persuades” congress to ease off on the audit and provide more QE – with an equity market push-down no less. Tick. Tock. Tick. Tock.

 EQUITY

I expect today to be green. This means that SPX will close above yesterday’s close at 1094.60. I have no overarching reason for this other than the fact that 3 red days in a row is a [...]

Michael Davey/CD… with a brief look at bellwether Goldman Sachs (GS)

A picture tells the story. The 200-day crossed the 50-day on GS at mid-month, suggesting any emotional rise a reasonable short-term trading opportunity for attacking short. With a head-tail developing on the day, a GS short entry, with the above moving averages as closing-basis benchmarks, looks rather textbook.

That means you’ll lose money trying to short this, I’m sure enough…so don’t try this at home. But for the sake of selling textbooks I think it is worth noting/following.

Regards

Mole here: Michael alerted me to some very interesting [...]