Red Alert. Dangerous Market ahead. Euro bank initiates NO SHORT RULE. Update 5/18/10

Marc's Notes:

The markets look anemic if not downright dangerous now as the Greek contagion is spreading. The brief bounce in the DOW lasted one day after the European Bank violated its own rules about bailing out individual countries by agreeing to now bailout Greece. This is a Greece bailout but really a bank bailout as many banks hold Greek debt. Another bank bailout!
The bond market guys know “It wont be enough”, something I have been saying for months if not over a year. Even with the bailout of close to one trillion, they know if you add Greece with Portugal, Spain, Italy and Ireland, a trillion wont do it.

And these countries citizens now see by rioting they can get bailout money so the door is now wide open for everyone to riot to get funds. The European Bank just effectively destroyed the EURO and its validity by adopting our CENTRAL BANKS playbook. Now the EURO will be printed like every other currency. Witness the destruction of paper currencies world wide. Tonight the German bank announced a NO SHORT SALE rule on Euro debt and banks (effectively). Similar to what we did here in the US last year. Shameful.
This is a blatant affront to free markets and shows how desperate they are.

Because I am rushed and will be offline for a few days, this update will be short, forgive me.

I will be back online Sunday. (Personal matters). I am sorry I cannot update you in the next few days as I expect it will be exciting and frightening.

Here is what to expect.

Markets probably won’t like this new short sale restriction rule.

 I am raising alert to RED. Crash alert is flying. The FEDS will be in the market buying. Another meltdown could be materializing.

This week will be volatile if not downright ugly. Make sure you have mental stops on most on your stocks as indicated in past newsletters. Stop orders got stolen from many investors last week in the 1000 point crash. The system failed. I suggested you remove all automatic stops and just sell at a certain point. This market may be setting up for a real ugly downdraft.

Gold and silver should be fine in the long run so add physical at any time. Hold our gold funds and do not sell these. Hold your interest rate funds. Hold your bank accounts.
Hold your foreign currencies. You will most likely see many of these fall some if the DOW starts hard down but don’t be concerned with these holdings. They are insurance.
Oil will get rocked as it is now. Natural gas is holding relatively well but will go lower as well if the market crashes down further.
The US Dollar will rally some but those are its beginning death dance. Add contrary funds we recommended earlier and hold these. Do NOT hold bonds except short term US bonds. The bond market is about to get killed as I have been warning you.

The markets are dirty. The governments are crooked and in bed with the banks. This whole thing has gotten and is getting out of hand as I told you it would.

“You aint seen nuthin’ yet”

Prepare. Take the steps. See past newsletters, especially the past 20 or 30. (On the website).

Prepare or prepare to get hammered.


Other notes:
Pledge drive this week on KVMR. Money Matters Membership is available all week for a 250.00 pledge to KVMR and includes access to all shows, all portfolios with all updates.

I strongly suggest you take us up on this. This market is about to get ugly. Crisis,  the “sequel” is coming to a market near you.
You can pledge for this membership website access ON ANY SHOW during the drive or on the website  KVMR.ORG. The access is good until the fall pledge drive. Those who received this membership in January will have to resubscribe as your membership is about to expire.

Those wishing to consult in person with me can email JEN by responding to this email at MONEYMATTERS@kvmr.org. She will be retrieving all emails.

I wish all of you a safe week.

God Bless our Country.

Marc