Investors Crawl Back Into The Market - Don't Do It!

"U.S. stock investors, reeling from four straight weekly losses, are entering the coming week's market torn between confidence in the global economic recovery and fear that foreign governments' actions will bring the rebound to a sudden halt." [MarketWatch]

As is often the case, the best part about MW is the comments section. This is a highly manipulated market and investors are best to ignore much of the news and concentrate on the numbers. Friday's pump in the last hour of the US markets was a return to one of the features of last year's market slump. Just look at this 6-month graph of the SP 500. The market has fallen through its 50-day moving average (now at 1,110) and we are likely to see a testing of the 200-day moving average (at 1,020) sometime this month as options expire. The above article seems another bit of pump-and-dump inspired propaganda. To blame other governments for getting sucked into a 'Made in the USA' monetary collapse seems churlish at best.



Anybody who thinks that market manipulations are just a sad conspiracy theory from amateur traders, then have a read of this article about Goldman Sachs, published in 2009 by Zero Hedge. This is also backed up by a Bloomberg article on GS trading profits.

It is also rather amusing that Americans are trying to blame European governments when it is allegedly American speculators who are causing the problem. This blog post is in French (you can all read French, right?) and wonders why Greece has been targetted when it seems better able to meet its debt obligations than the USA. But what we are seeing is a financial war. Defending the US dollar by attacking other currencies seems to be in order. The idea of being an investor seems to fly out of the window when market moves are based on covert strategies. That's why the only thing one can really trust are the numbers. Yes, it means being slightly behind the curve, but much better than believing every conflicting news story.