Near the Highs of the Year - Market Analysis for August 13th 2012 by Singaporeseeds

 The past 2 weeks had been really exciting. I traveled to Detroit where I met with my friend and we surveyed Michigan properties together. It was mind-blowing to see properties selling at 30 cents to the dollar and going for yields at around 25%. He had been flipping properties there since 2008 and as of today, he had made 20,000% returns on his money.

Afterwards I drove to Niagara Falls through Ontario, Canada and struck the majestic Falls off my bucket list. Will post a video of it later.

Then it was to Kingston, New York where I met my long-time trading buddy who is working there and then onwards to New York City.

At New York City, I was gazing at the big banks there and fooling around with the ex-Merrill Lynch bull and wondered how it would be like to run a bank. Over the next few days, I just can’t get the thought out of my mind. It will be really fun to make money from nothing but obviously you will need expertise, knowledge and the capital for it. And I’ve not checked but I assume you need a license for it.

Anyway that was exactly a week ago. Over the last 7 days, I thought that if I am to start a bank and also succeed, it cannot start it in a developed country. The established players will destroy me before I can start an office. So it has to be somewhere unsaturated, where people are still foreign to the concept of leverage and then get someone who has experience in bank operations into this with me. And if it is not a developed country, I would definitely need someone with connections to get the license. Lastly would be the capital.

For the capital, I’ve come up with a list of people whom I can call up. So that part’s settled. I’ve also decided on the country and also know a couple of people whom I know have the power and connections to get almost anything they want. So what’s lacking now is someone with expertise but as a person who believes in divine intervention and believes that he’s doing God’s work, I just have a feeling that I will meet this person soon.

Daily chart for S&P

 

Daily chart for Dow

 

Daily chart for NASDAQ

 

Anyway nothing much has happened over the last 2 weeks. We are still overbought with low volume. Seems like this has been the case over the last 5 weeks and the market is waiting for something to move it in either direction. From my charts, the uptrend has ended last week but I think we should only see movement after this Wednesday.

Daily chart for the Dollar

 

The dollar dropped as expected and is starting to get oversold. There is a strong support around 81.6. We should see it stay above.

Daily chart for Gold

 

Gold is still forming a base with no breakouts either way. However my longer term charts is telling me that the chance of a breakout upwards is more likely.