Wednesday, April 29, 2009

A little story ...

Friday: 1
Monday: 2
Wednesday: 6
Friday: [insert number here]

Taking the above pattern and assuming a base of 19 units the number we should be seeing on Friday is 18 (one extra special unit that is immune to anything so please count it out) . From a technical analysis perspective Wednesday we saw the breakout to finally hit 6 on the range and we are now ready to shoot for new highs with the absolute top at 18.

Honestly, I am speechless, how can one justify making such statements. First the banks are profitable, then we realize they are not, next they are all well capitalized, now its 6 that need more cash. Forget about the number 6, think about how it was presented. Officials stated that all banks passed and only one needs more capital, a day later "well I am not going to say I was wrong, but its 2 banks now that need more capital. woops". Waking up on Wednesday I figured "hmmm, 2 really was a bit too optimistic, I think I will go with 6 today."

What will they say tomorrow, on friday, next week? Who is even held accountable for anything that is being presented?

I have to admit, I have seen quite a lot of stuff when it comes to policies and administration but this one will go into my personal history books.

Just had to make this my little morning rant. Will post more charts and real analysis soon.

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