Morning Audibles 6.28.10 - We're from the GOVERNMENT, and we're here to help!

On SURVIVOR CAPITAL over the weekend...

We're from the Government and we're here to help...

(after we tax you $1 billion for security and you pay out bloated pensions)

--- (reprinted from 6.27.10 - by Andy T)

Good Evening Survivor Captialists,

I must be honest here--my heart just wasn't into looking at markets after this weekend's World Cup matches, with both the  US and England getting bounced.  (More on this later.)

In terms of markets:

-  Too many people are talking about the developing head and shoulder top on the S&P 500.  I hate when that happens because it increases the chances it won't develop.  It seems like a pattern likely to disappoint and frustrate over the next several weeks.

-  I see more choppy upward-bias correction coming in the S&P this week.  It's difficult to visualize the market falling hard around the quarter end.  It seems fitting that "new money" must flow in before the next meaningful correction lower.

- The DXY looks like it needs more time to correct lower.  It could chop as low as 80 and still be considered bullish.  So, keep the powder dry there.

Some USA/England World Cup Thoughts....

The U.S. Team just looked “gassed.”  I think the intensity of the last couple of games finally caught up with them.  Jozy Altidore, in particular, looked in need of better conditioning and diet.  At times he looked clumsy and slow.  If the U.S. could have ever developed a real striker to go with Dempsey, Donovan and Bradley, they would have gone deep in this Tournament.  What is up with the early goals against the U.S?   I have to blame the coaching for that kind of letdown.  What kind of instructions was the team given for the first several minutes of the match?  It seems like, given the tendency to let down early, the coaching instructions would be to play tighter and more defensively minded in the opening stanza.  Instead, we get this looser game and defenders letting down.  Terrible.

England?  Perhaps it’s time for them to completely rethink the approach to fielding World Cup teams.  It’s pretty clear these Premier League “Superstars” just don’t play together well.  The old adage about too many chefs in the kitchen spoiling the stew is spot on here.  Sure, they were robbed of a goal today, but the German side looked much crisper and dynamic as they played as a “team,” and not a collection of superstars.  The better side advanced.

The Germany v. Argentina match this Saturday should be fantastic.  

Market Update 27 June 10