Wall Street: The Stupidest Peoople on Earth Strike Again

Yes, since October I have proven to you, in entry after entry, that the people on Wall Street (including the traders) are the Stupidest People on Earth.


Yes, the "market" is making one of those computer rallies today based solelyon HYPE and momentum. The economic news is NOT that "good". Then there is a change in "mark to market" rules--too late to do any good, and too late to accomplish anything but DOOM Geitner's "plan" for purchase of "toxic" assets). Then there was the G20, predictable, announcement that the "world" is abandoning free market capitalism in favor of central planning (economic fascism: "socialism with a capitalist veneer"). This is BAD news (not good news). Then there is that trillion dollars or so now promised to the IMF (International Monetary Fund to help out "distressed" countries) and the World Bank. More spending.


The Dow was recently up 300 points, and the NASDAQ up even more (pecentage). I have told you before that only the Stupidest People on Earth invest at the top of these rallies, or indeed any day when the Dow is already up 200-300 points. This is a computer gaming, MOMENTUM rally--0FICTION (unless you SELL, and don't buy). You are branding yourself one of the Stupidest People on Earth if you buy NOW, with the Dow already up 300 points. If you were going to buy (as a trader, since 401(k) people should be investing monthly, without regard to what the market is doing short term), you should have done it on MONDAY (or early Tuesday), when the market had PULLED BACK. Or you should wait for the likely pull back from this probably irrational rally. If you buy with the Dow already up 300 points, and after the market went up 152 yesterday, then you are simply confirming that you are as stupid as the Wall Street traders continuing to buy at the top of these rallies: one of the Stupidest People on Earth, in other words.


Nope. I have no opinion on whether the market "should" or "should not" go up (although I have an opinion that we are headed for eventual disaster). However, the magnitude of these rallies is IRRATIONAL--SPECULATING on present HYPE rather than economic reality (ven future reality). It is really worse than that, as Wall Street presently trades on COMPUTER PROGRAMS--unrelated to economic reality at all.


P.S. Above not proofread or even spell checked, since I have said it all before. Message to all people, including computer traders, who continued to buy today after the Dow was already up 200: You are one of the Stupidest People on Earth. Yes, I understand that many of these people are playing musical chairs, counting on being able to "get out" before the "correction". In the end, however, that kind of computer gaming destroys the stock market, which is now trading as little on reality as it did in 1929 (true for some time). Remember that the Dow went above 9,000 right before the election, only to go back to NEW LOWS on November 20. Then it went above 9,000 again in the rally that ended in early January, only to go to NEW LOWS again. I can't tell you whehter we will go to new lows from here, but I can tell you that the MAGNITDUE of these rallies is IRRATIONAL--not justified by real economic visibility.