If You Can’t Say Anything Good - Keep Your Mouth Shut!

Last week I was invited to the Federal Reserve in Miami for Dinner and a Seminar, The Filet was excellent! The subject matter made me uneasy as I came to realize that there is a bit of a disconnect between the realities on the ground and the knee jerk reactions taking place in Washington. 

I would like to report that the end is near for our economic troubles - however I think I will just let the Fed and the Treasury do what it does - they have some good ideas and they do seem to be taking action - although it all seems to be symptom based and observational in nature -  versus leadership based, and proactive. I was vocal about the need to address the root of the problems - Like getting people into real mfg jobs creating and installing solar panels and hydrogen-electric-propane vehicles… getting us off the oil and utility companies nipple, etc….

Retroacttive Tax Deductions - Stimulus Plan II

One suggestion I made at the Fed meeting was an idea to return the tax deduction for using credit - retroactively - for all those people teased into spending to keep the worlds economy humming? I heard Ben Bernanke today mention that he was in favor  of a second stimulus package.

Another Idea: Recall All Dollars - Before They Start The Printing!

Another Idea I blurted out (befoe they took the microphone away from me) was to recall all US paper currency and replace them with new certificates - this would have an immediate effect of temporarily flushing/wiping out the underground - unreported economy. Might as well create some new certificates as long as they are going to have to start printing a whole lot of them soon!

Technical Analysis - Dollar - Canadian Poised for a Triangle Break?

The US Dollar - Canadian - 4 Hour Chart shows a nice example of a Triangle pattern with a very strong supportive trend line and a well defined resistance line on top. The Fibonacci Retracements and Extensions are lining up with the Triangle Pattern’s potential projected price targets. 

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

Looking for a Bottom? -  Catching A Falling —— 

Last week is indicative of the type of headlines and panics worthy of a possible bottom. I’m usually looking for the scapegoat being handcuffed and paraded infront of  televsion cameras - last time I think it was Martha Stewart and some cable television guy …

However - this trader understands that most market bottoms usually come in with a thud, and I am just not convinced that we have heard it yet - although a 40 foot crater at the Pakistan Marriott is a telling sign - nothing for us to worry about…

Photo ops of the entire US Government represented by The Treasury, The Federal Reserve, The Speaker of the House, and the Senate - at the Presidents Invitation to…. spend 700 Billion to prop up a “house of cards”  that the president just recently learned was a bit bigger than his. 

Are We There Yet?  A Look at The Vix and S&P 500

Currency Markets Acting Well Technically - Hypoyhetically - Not Speaking

Currency Traders with their heads in the sand and only watching the charts may be doing quite nicely, as the trend and momentum trading is nothing less than excellent…. There are other issues that are currently hypothetical that I will not delve in to, but the possibility of extremely unexpected surprises are possible that might affect the currency markets and the way many of us trade…

The Week That Was and… Will Be?

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Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

Systemic Risk at Hand

9pm Sunday and all is not well - The “systemic risk” that Hank Paulson and the US Treasury and Federal Reserve has been trying to ward off may be at hand. 

Reports are coming across fast and furious - one that there may be an emergency rate cut! Separating the rumors from fact is necessary - but until the dust settles - volatility seems to be certain as the official news is leaking out.  Panic is thick!

Watching the currencies - the dollar has dropped some - but things are tenuous. A flight to safety is making me think gold. Interesting how gold was driven so low last week.

Is This the Bottom?

Uncertainty in situations like this often signal a bottoming process that is fraught with twists and turns like a unknown roller coaster or a runaway train.  A calm head is needed to weather the storm.  Smart moves will be rewarded.

End of Investment Houses and Broker Dealers?

In a surprise move, Bank of America is rumored to have bought Merrill Lynch and John Thain may join Lehman Brothers employees in packing his desk.  It appears the two giants that will cease to exist come Monday. There is talk that this is the beginning of the end of the Big Investment Houses and Broker Dealers. 

Reading the wires - AIG is looking to sell Billions in Assets looking for support from Ben Bernanke and the Federal Reserve.

Unprecedented and Historic

CNBC is working with full staff Sunday night - same as when Bear Stearns was bailed out. Reports that the Treasury and FED are taking equities as collateral…

Market News International reporting that the FED is “Launching several initiatives to support the markets” and that the CFTC has made a rare statement late Sunday night that it is protecting Lehman’s commodity and futures customers and they are in touch with international regulators to help maintain stability of the markets.

The Wall Street Journal is saying the American Financial System is Being Shaken to it’s core”

Stay Tuned… Trade Safe… Trade Smart… or get out of the way…

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