256. Have the Investors Gone Mad?

As I look at the technical charts and compare them to the political and economic news across the world, I can only wonder whether the investors have gone mad. My charts still indicate 3-4 weeks of upward movement at least. Yet, the continuous Billions of Dollars the Democratic congress is pushing through via Job bills amidst Portugal's downgrade and Greece crisis dragging the Euro down confuses me. As the world problems continue to burn the other side of the world (Euro Zone), our largest importer, the dollar continues to gain strength against the Euro pushing commodity prices down and American exports down. The additional protectionism verbal battle over the price of the Yuan is background noise at the moment, but will play a more important role should any actions be taken by America -- note, the imbalance of trade is always a finger-pointing issue when world economies are under attacked by their own foolish spending and financial controls. What was that? An insinuation that America is spending too much? Oh no, we being the biggest debtor nation says we need to spend more and more to keep the number one spot. With over 20% of GDP in debt, compared to 9% in the 70's, when do we QUIT! We're following closely in Greece's shoes BUT have nobody but the IMF to bail us out -- and that would be UGLY for everybody, meaning not just We the People folks. Plus, what all the rumbling lately about the Housing Market again flailing? Well, for the last 3 months it has, right back to the slightly straight line growth, if you want to call it that, before the government threw the taxpayer money away -- just like the Cash for Clunkers. Too Big to Fail? Is America too Big to Fail? What if we run out of special money paper and ink?

So, how do we play the market? "Play" being the correct word at the moment. We certainly aren't "investing" (meaning long-term) at the moment. I would continue to be a bias technical gambler at the moment looking at 11,200-11,300, but with a safety parachute by my side and a quick release sell lever. As I said earlier, the ride might continue another 3-4 weeks. Ignore the Yuan, the Euro crisis, the home market issues, the government spending, the Health Care bill lawsuits. Put on your gambler's hat and keep you cards close to your chest. Sucker in some chips and get up AND WALK later (don't forget this latter piece of advice). I'm predicting huge summer doldrums. Not a gambler? Drop back ten and punt while you can. Don't forget to plan long-term too when taxes are higher -- take your long-term gains this year and start over with your hold strategies if that is your strategy.