Longer Term, We're Screwed.................

In my last post we touched on the importance of the recent election and what the results are starting to tell us about how America has changed.  The one over-riding issue that I came away with was this question:

What the hell is going to happen when the entitled one's (free phones, free food stamps, free everything) start to elect themselves to Congress. Right now they are dependent on the enablers that currently occupy the seats of Government who trade free stuff for votes. 

This is a provocative article by a Jewish Rabbi, Steven Pruzansky, from Teaneck, N.J. It is a thoughtful explanation of how our nation is changing. The article appeared in The Israel National News.

"Obama’s America is one in which free stuff is given away: the adults among the 47,000,000 on food stamps clearly recognized for whom they should vote, and so they did, by the tens of millions; those who – courtesy of Obama – receive two full years of unemployment benefits (which, of course, both disincentivizes looking for work and also motivates people to work off the books while collecting their windfall) surely know for whom to vote. The lure of free stuff is irresistible."

"That engenders the second reason why Romney lost: the inescapable conclusion that the electorate is ignorant and uninformed. Indeed, it does not pay to be an informed voter, because most other voters – the clear majority – are unintelligent and easily swayed by emotion and raw populism. That is the indelicate way of saying that too many people vote with their hearts and not their heads. That is why Obama did not have to produce a second term agenda, or even defend his first-term record. He needed only to portray Mitt Romney as a rapacious capitalist who throws elderly women over a cliff, when he is not just snatching away their cancer medication, while starving the poor and cutting taxes for the rich."

My italics in the paragraph above highlight what I think is the most important thing this election has shown us. The scales in America have now tipped to the side of the ill informed and ignorant and elections that follow will be decided not on the issues but the freebies and keeping the status quo. This is why it is necessary to pay attention to what is happening in Greece and Europe. Here is where you will find the prelude to what eventually is coming to the United States. Think problems like losing your hard earned savings and pensions won't change the way you need to invest? Start paying attention to the mobs in the streets of Europe.

The current Government has voiced their opinions of what needs to change in America. The idea of taking from those that have and giving to those who feel the system entitles them to get whatever they need for free, is the new mantra. One of the next topics we'll touch on is the train wreck that is the US Education system which is at the root of most of our current problems.

Now for the charts.  The stock market, it would seem, is oblivious to any bad news and only the good news that is filtered through the main stream media seems to reach WallStreet.

The market has still not shown its hand  as to where its going. We've seen a couple of days of up and down movement on low volume. The red zone on the SPX chart is the overhead resistance level and today the index poked its head into the zone. We've had 3 previous attempts to move higher so the next few days should tell us if its higher or much lower.

The TRIN is in neutral at present with no clear signal for now.

Stay light on your feet for now.