Remember way back when in 2008 when the banking crisis’s happened? Do you recall that the S&P rating company had AAA ratings on all the Banks and Brokerages that failed or covered up their balances sheets? Now go to present day August 18, 2011, what happen a few weeks ago? The S&P rating company downgraded the USA rating from AAA to AA+ and even though they made mistakes on the books of 2 trillion dollars, they went ahead with the downgrade. Well do you think the USA government took it personally? YES ! Today the Department of Justice announced that the S&P is under investigation of covering up the books of many Banks during the past crisis in order to help the banks save face. DOH !!! Careful who you pick on and make sure you are right when you do it.
In market news, we are getting that pullback today in stock market and they are collapsing quickly. Maybe a little to quickly. We will have a new pivot high created today because we are going to likely close below $1184.36. This is good but only temporarily. What needs to happen now is that we do not close below $1101.54 that dates back to August 9th. If the markets can hold an close above this everyday and start climbing and close above $1208 then we will have a new pivot low that is higher than the August 9th pivot low and we will have a new uptrend starting. This is way early and all theory, so do not go throwing all your retirement monies into the market yet. Remember, we do not try to catch bottoms or tops, but try to ride trends.
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