Jeff  Carter

You ever buy snake oil from a snake oil salesman?

If your broker calls you this evening or tomorrow and tells you this is another chance to buy the market, laugh at them. The European eruption is only beginning, and China hasn’t even begun to melt down yet. You are going to have plenty of time to have more buying opportunities. That’s why the market will probably get cheaper.

This is a comment driven market, not a data driven market that relies on fundamentals. Traders don’t watch earnings or business data, they wait for some politico in Brussels, London, Washington DC or somewhere else to open their mouth.

Then they react.

They put trades on, not investments. Few people are doing actual investing in this market. The only real way to do that is buy entire companies and assume all the risk of operations.

The only silver lining to all this volatility is that it’s hard to imagine the US economy getting any worse. If we actually put the right economic policies in place we might be able to tread water while the rest of the world stabilizes. However, currently we have the wrong policy makers in place at 1600 Pennsylvania Avenue, and the wrong party controls the Senate. But, the clock is ticking to November 2012.

Yes, the doldrums in the US are the Democrats fault. They have been leading this mess since they took control of Congress in 2006.

Jeff Carter

Jeffrey Carter is an independent speculator. He has been trading since 1988. His blog site, Points and Figures was named by Minyanville as one of The 20 Most Influential Blogs in Financial Media.