"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Saturday, July 28, 2012

We've Been Here Before

So now what?  The Olympics are underway and London's underwater, so is the US, Eurozone Nations, and the very arbitrary institutions that have been created to prop up the ailing capitalist countries.  We have a computer driven price discovery mechanism that discounts organic management value added and earnings potential in favor of battling out somebody else's machine for that sub-penny pricing capability which may net $0.0099 in arbitrage.

Given the joyous earnings divergence, it would be safe to say there is the potential for some early Q3 volatility.  Take a look at the comparison of daily price levels for the S&P 500 in 2011 with the S&P 500 in 2012.

So it makes plenty of sense that the S&P 500, which finished last year up 0.0032%, would follow 2011's daily gyrations in near perfect symmetry.  Usually things of this sort are just cleaver and intriguing coincidences but consider this timely update courtesy of @Not_Jim_Cramer: