Wall Street: The Stupidest People On Earth (Continued)

My auditors have told me that there is almost no way my accuracy percentage can go up any further, even though this blog has not been shown to be wrong since the spring of 2998 (when my prediction that McCain would LOSE the Republican nomination was proven wrong, and my predicton that Hillary would win the Democratic nominatin was proven wrong). Of course, I was RIGHT before almost EVERY other conservative--including Limbaugh--in recognizing that conservatives HAD to come out for Romeny, BEFORE IOWA, in order to stop McCain. I digress. Since I can never reach 100%, the present accuracy ratinng of 99,8% is almost impossible to raise.


Thus, my continue accuracy with regard to WALL STREET--ever since last October--can no longer raise the accuracy rating. Nevertheless, my unbroker stream of correct calls, IN FORESIGHT, remains. I have been especailly good at calling the stupdidity of the Stupidest People on Earth (otherwise known as Wall Street people, and others in what is laughinglyl known aws our financial "system", such as commodity traders).


You will remember that I recently declared that BOTH the stock markets and the oil market were in price BUBBLES--ridiculously overpriced in terms of economic reality. I have further been one of the only people to correctly inform you that economic reality has NOTHING to do with movements in these markets anymore (if it ever did). These are COMPUTER GAMERS at work, and the Stupidest People on Earth.


Since I declared these price BUBBLES to exist, what has happened. Well, I never said I could call these turns exactly, but witin a week of my final call declaring BUBBLES in these markets, the markets started down. Oil has gone down 6 consecutive days. The stock market is now well back within its normal trading range for the Standard and Poors 500 of 800-900. The stock market (and I am virtually the only one tellng you this) has traded in that basic range since last OCTOBER, although it has not climed above 900 THREE TIMES since the middle of last October. I bet you believed--YOU FOOL YOU--some of those media people who said that the big rise in stocks this last quarter was SIGNIFICANT. I was virtually the ONLY ONE telling you that it was little different than the RALLIES up to the moment of Obama's election last November, and at the end of last year, into January.


Okay. I was right. The BUBBLES have BURST. That did not stop some f the Stupidest People on Earth from contnuing to BUY even as the price bubbles became obvious. That INCLUDES THAT IDIOT, JIM CRAMER. But what happens now.



I again tell yo8u. If someone says they can tell you exactly what will happen in the stock market tomorrow, he is either a liar or a FOOL (one of the Stupidest People on Earth).


I can tell you that, if you are a trader (as you have to be, unless you are simply long term investing on a dollar averaging basis, in which case these fluctuations should mena little to you), it is MUCH better to buy NOW than to buy when the markets are in obvious price BUBBLES. In other words, I would not label you one of the Stupidest People on Earth if you decided to use this pullback as an opporunity to buy.


Problem: We are still rapidly heading toward the end of July. I AGAIN remind you that the stock market has suffered a MAJOR DECLINE in the period frmm the end of July to the beginning of October, EVERY YEAR since at least 1994 (and pretty consistently before that). That makes this an extremely DANGEROUS time for a trader to buy stocks. The economy is NOT "improving" substantially, and the stock market is still trading near the TOP of that 800-900 point basic range. So you MIGHT get a rally. But it is a DANGEROUS time, and scoks are probably still too high for economic reality.


The price of oil is definitely divorced totally from economic reality. It is too high. However, this fantasy world of commodity trading has become so MUCH a computer gaming atmosphere, that there is no way to predict what fantasy will drive the computer gamers next. I had no problem calling the price a BUBBLE as the price approaced 70. In terms of economic reality, however--in terms of supply and demand--oil is STILL in a price BUBBLE. That does NOT mean that the price will continue to god down I think it would continue down in a RATIONAL fianancial world. But these are the Stupidest People on Earth, existing in a fantasy world of COMPUTER GAMING. I have no doubt that oil CANNOT rise MUCH from here. That is because any such inflationary pscyhology will SHUT DOWN the econmy pretty quickly. In fact, Obama policies have made it certain that ANY signs of a supposed economic recovery will SHUT DOWN that recovery. Thus, the Stupidest People on Earth MIGHT be able to spark further BUBBLES in the price of oil, but they will be SHORT LIVED. Short of BIB problems in Saudi Arabia and Iran, the price of oil is TOO HIGH from the standpoint of economic reality.


In short, it is better to buy the stock market NOW, than it was. It is still a DANGEROUS time. Oil is still in a price bubble, but the market in oil (see entry on the ROGUE BROKER) is so insane that any short erm price movement is possible. Playing the commodity markets, OR commmodity stocks, you are simply playing ROULETTE. That is safer if oil is trading at $35 dollars a barrel than it is if oil is trading at $60 a barrel (as now).