The Moment The Economic Recovery Died: Impressions From XHB
I am an official Independent. I want to make that point clear right at the start, I am not a Democrat.
I don't care much for Fox News, Bill Oreilly, class of Republicans who place politics in their analysis of gold.
I do not think any stock trader has got to allow political partiality to sway their technical analysis. But when two political parties are doing battle over the economy and it is having an impact on the stock market, you've got to include political parties in your analysis.
Democrats are trying their best to boost the economy before the November elections to get votes while Republicans are doing their best to hinder any policy that could improve the economy before the November elections.
That statement is not actually a political bias declaration, it is just the way it is.
Republicans are currently jamming movement on a bill to boost the economy, save jobs for teachers and police, and help people buy their first home; another bill that would hold oil corporations accountable for any disasters they cause by removing the current $75 million liability cap; and most recently the extension of unemployment benefits.
In the past 3 weeks, 3 million people have been booted off unemployment: that is about 1.2 million people a week.
Major media outlets recently reported that for every job opening at McDonald's there are 300 to 500 applications turned in. Lots of the people applying for jobs at McDonald's hold college degrees.
I have personally contacted Republicans in the Senate which have said the basis for why so many people are on unemployment is not because of the economy but because of their own indolence and reluctance to work at jobs like McDonald's. I would like them to lead by example, you know, really prove to us ordinary people how it is done. I have challenged those same Republicans that have made these odious statements, to leave their jobs in the Senate and to go get a job at McDonald's. I thought leading by example was the Republican method. I have even extended the challenge to Rush Limbaugh considering that he has made the same accusations hostile to the majority of trustworthy, hardworking Americans who are out of work right now. Not a single Republican in the Senate, nor Rush Limbaugh has accepted my challenge. The screener on the Rush Limbaugh radio program hung up on me in fear that my challenge would expose the hypocrisy in the Republican party.
Yet again, I am not a Democrat. I just see a horde of prosperous power thirsty elites criticizing the common folk and I want them to put up or shut up. If it is so easy to downgrade your standard of living and how much you make, to go get a job at McDonald's, why don't you go do it? Right, that's what I thought you yacht riding, $500 for a hairdo, manicure, and back massage, pansies.
Unemployment in my city, Clovis California, just went above 16%.
I see the Republicans forcing a super majority on pretty much any legislation that could play a role to an improving economy going into the November elections.
I'm trying my hardest not to be biased about this subject and to just tell you the facts.
You need to consider this battle between the two parties into account when you are talking about the stock chart of the SPDR S&P Homebuilders ETF (XHB) and the chance that we will go into a double dip recession because according to this stock chart, that is exactly where we are eventually going.
Perhaps the most troubling indicator I see on the daily chart of the SPDR S&P Homebuilders ETF (XHB) is the Burial Cross. The chart tells us that the Burial Cross will happened next week.
Although everything I have just told you is more the long term trend. Short term, we have set up into a nice swing trade with a bounce off upper channel resistance. The coming leg down move is almost picture perfect. Any stock trader shorting the market right now is going to get at least a week of a nice downward sell off in the markets.
In this episode I examine the great swing trade trend channel on the SPDR S&P Homebuilders ETF (XHB) and why now is the moment in time to go short this market for a quick 5% to 10% profit.
Article Source: FxTradingStock.com
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You have to know which way a stock is trending to time your entry, you need to read this fantastic article on a highly profitable trade technique on stock market and incredible video at stock market analysis
by: Sam Stoker
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Date: Sat, 24 Jul 2010
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