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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (7355)	6/7/2006 10:56:09 PM
From: John Pitera	Respond to of 33421

Hi Bob, Sorry for the delay in my response. I don't think the new treasury secretary brings any "gift" to the economy. One of my Old FX trading friends from Chase commented that "bush is already done with his domestic policy, Paulson has been brought in to manage economic crises." I agree with that, the situation is grim(as AG mentioned today) and bearish for equities and credit spreads over the balance of this year and 2007 that we'll undoubtedly be collecting up funds to exhume Junius Pierpont Morgan from the beyond and pleading him to perform the type of "miracle" resue he performed with the Wall Street Bankers in 1907. Or 1895 when he and August Belmont had to arrange a 40 million dollar loan in Gold Bullion from the Rothschild Banks of Europe to keep the US Govt. from going into default. you make some more "glass is half-full" points. A Treasury Secretary from GS knows how to get this done,and then surprise the market with it - as Rubin before him did so effectively. Is not the potentially biggest surprise to come down the road, a new joint plan that takes and install moral hazard into the value of the Dollar. My principle concern is that the Global Central Banks are draining money away and the contraction in asset Values is sending lots of Dollars, Euro's, AUD's, Rupee's, Yuan etc. away..... as the FNN anchor used to muse many years again... the money has been repatriated and..... *Gone to Money Heaven* Now the SPX did close just below it's 200 DMA, which is at 1260 and the DJIA is still above it's 200 DMA which is at 10871. So Let's see if the DJIA holds the 10870 level and the SPX finds it's rally legs at 1245-50. But IMO that would just afford an opportunity to short stock at slightly better levels. Heck China's off 5.3% today, biggest decline in 4 years. what are those Rydex bear fund symbols..... -ng- JP