Today's Video Update: Rearranging The Deck Chairs On The Titanic

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 2nd of April.

Rearranging The Deck Chairs On The Titanic
Yesterday, it was reported that a “a company owned by in-laws of Cypriot President, Nicos Anastasiades, withdrew millions from Laiki Bank on March 12 and 13," according to an article published in Cypriot newspaper, Haravgi. Today we are learning that Michael Sarris, the finance minister of Cyprus, has resigned. I expect we will be seeing more revelations coming out of Cyprus in the days and weeks ahead. I believe that Cyprus is the tip of the iceberg and is the catalyst of destruction in Europe. With unemployment in Europe officially at 12% and unemployment for young people in Spain at 55%, one can only think it's a matter of time before things erupt into civil disobedience. Europe cannot grow itself out of this mess and the austerity measures being demanded provide little to no hope for Europe to survive. Under its present economic and political circumstances, I think it's only a matter of time before the ship goes down with no lifeboats!

Is This Guy Nuts?
North Korea says it will restart reactors to use in expanding its nuclear weapons arsenal. I do not think Kim Jong Un, the anointed leader of North Korea, is in charge here. Could it be China pulling the strings, so they can test and see how far they can push Washington? This is not a positive and is a dangerous game in anyone's book. We want to monitor this very fluid situation to see how it effects western and Asian markets.

Watch Today's Video Update Here

And The Beat Goes On
On this side of the Atlantic, the beat goes on as the Fed continues to feed the market beast by providing cheap money. This will be a major concern of the markets in the months to come. If we have poured all of this money into the market and we are seeing little or no growth, what can we expect in the future when the money dries up? It's an ugly thought.

There Is An Answer
Many noted economists are saying that the current upswing in the market can't go on, as we are fundamentally digging ourselves into a debt hole. All of which we don't disagree with, however the market is going higher and that is the most important thing for any investor. It is important to realize that things do change and the very best way to detect change is with technical analysis tools. Fundamentals are important, but fundamentals don't ring a bell at the top of the market like technical analysis does. When the market finally comes to grips with reality and the fundamental problems that are underlying the economy, we will be out on the sidelines, or short this market, thanks to our Trade Triangle technology.

2 Stocks On The Move:
ABBOTT LABORATORIES (ABT)
BGC PARTNERS (BGCP)

Watch Today's Video Update Here

POTENTIAL CHAOS AHEAD
May 19th – Debt Ceiling Suspension Expire

Have a great trading day,

Adam Hewison
President, INO.com
Co-Creator, MarketClub

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Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.

6 thoughts on “Today's Video Update: Rearranging The Deck Chairs On The Titanic”

  1. Adam,
    How about a review of the S&P sectors for Wednesday. Telecome, XLB ,XLI, and XLK are under perfroming SPX. Does this have any implications for the market for the rest of the year?

    Appreciate.

  2. One note on this: "Many noted economists are saying that the current upswing in the market can't go on, as we are fundamentally digging ourselves into a debt hole."

    You cannot trust the market to understand what economics are really best for the country. If you rank the periods between Presidential Election night and Presidential inauguration day over the last century you should in theory see smart money dictating the direction of the market based on the new economic information on who just got elected. What you actually see is Herbert Hoover is number 1 by this measure with a sixteen percent increase.

  3. While the northern Europeans have been building Life Boats for the Titanic for decades they've been quickly yanked and converted to pleasure craft by their southern brothers and sisters. Just ain't a good long term plan.

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