Stop Happy Time

This market has an unusual way of taking the wrong side of the market players out. Now that everyone is an expert on middle east policy and oil it is time to look elsewhere.

What would surprise current market participants most? a) A medium term rally in the dollar b) A correction in gold and oil c) A major rally in the emerging markets lead by China and Brazil. We are impressed with the general markets ability to self correct and rotate. Financials and emerging markets have stopped going down after three years of correction....and are truly out of favor....our criteria for buys.

Saudi Arabia burns 300,000 barrels per day to generate electricity for itself...think of the money lost to not be able to export such a commodity...they like the rest of the world are turning to natural gas as quickly as possible. Are there too many bears in natural gas land?

1/3rd of Americans are now dependant on hand outs from the government. The $30 to 70 billion in "cuts" being talked about in congress is not even a rounding error...the states can't even remotely get close to balancing their budgets. Remember this is the end of socialism...it will die and thousand cuts...but die it will....raising taxes is not the solution..the governments don't even know where they are spending the money now...the size of the math, as we have said, has moved beyond any ones ability to manage it.

The federal government lost $223,000,000,000 last month, the largest monthly deficit in history!

The NFL reported that concussions rose 21% last season over 2009. And that a recent report suggested that former NFL players are 19 times more likely to develop Alzheimers or other memory related diseases than other men between ages of 30 and 50. And they want to play more football per season now??

Never fight the tape work with it.

Danny Boy seen here taking it all in.