I don't think that one day makes a lifetime. A 45.00 correction in gold doesn't bother me as I was happy to see it go from 800 to 1200. I never imagined it would reach such heights. Today my stock is down and tomorrow it may go up. A wise man once told me that the pendulum never stops.
I love looking at charts, but they tell the past not the future. Someone said the markets are emotionally driven, but if 70% is transacted by computers, then only 30% can be emotional transactions. Do our 30% emotional trades move the computers or do the computers move us?
This past week was for profit taking or sitting it out. I would wager that most of the money in the market is slow moving, dumb money i.e. pension funds and 401ks.
Chicken Little is streetwise and speaks volumes as she is dealing with real problems that face many real Americans. Groceries, healthcare costs, taxes and shrinking savings. If the banks offered 6% I wouldn't even bother with the market and she might not be here.
I am forced into the market through necessity. I do not count on the government and have never taken advantage of their free money scams like cash for clunkers and 8k incentives to buy new homes. That 8k will be wiped out by deflation in a years time. A house is a roof over your head not an investment.
I buy PMs for insurance as many of the rest of you do. The end of the world is not near no matter what you read on the blogs. If the whole world economy blows up, a new economy will replace it. Maybe it will be better and bring real values back into our lives. Maybe we are just too big for our britches. Maybe the US is not "too big to fail."
I don't expect that the Social Security and Medicare ponzi scheme can last much more than 10 years without wholesale printing by The Fed. So Obama stands before the TV and hands us platitudes and tells us to eat cake. In the meantime the GOM turns into a giant tar pit. This is his Katrina moment.
So take it easy folks as the markets will gyrate daily. Smell the roses, spend time with your loved ones, go on a picnic, lay out on the hammock with a cold drink because as I am sure the sun will rise tomorrow, the markets will go up and down. I'll finish this post with the final segment of The Beatles song The End.