Today Is A Perfect Day To Show You How Stupid The Stock Market Is

Be honest, even if you have no interest in the stock market, you must occasionally wonder why in hell it continues to go up even though the world around you is deteriorating. Although there are hundreds of reasons for this, today poses a perfect example to show you how stupid most of these stock market moves are.

This morning, a report called Case-Shiller housing index was released. This report is the most respected report on housing market data in the US. Mr. Shiller is actually a professor at Yale and a good old school economist. The Shiller housing data showed that housing prices fell 4% since this time last year and that the housing market is stuck in a horrible slump.

In addition, a report called the consumer confidence index showed that US consumers are getting more pessimistic. The index basically tracks how optimistic or pessimistic the average consumer is feeling. A bad consumer sentiment is usually negative for the stock market because it means people are going to buy less stuff.

Let’s recap that quickly: We learn right before the market opens this morning that US housing data is terrible. On top of that, Professor Schiller does an interview on the Bloomberg and says that he is very pessimistic about the whole US economic outlook. Finally, we get data showing that the US consumer is not feeling very confident when it comes to buying items that are optional.

Let’s look at what the stock market did today: Despite all of the bad data, the stock market took off in a positive direction and never looked back. If you have any logic in your mind you are probably asking yourself, “Why the hell would the market go up with all this bad data?”

The Answer: Despite all of the rioting, car burned, tear gas shooting, and protesting in Greece today, word on the street is that the Greek government is going to cut its budget in a huge way and not implode the euro currency (for now).

The Stock markets move up today had nothing to do with whether my life, your life, or even the Greek citizens’ lives are going to be better financially in the future. The news that the Greek government is going to cut all of the services to its’ people simply means that the big global banks can continue to play corporate monopoly for the time being. I say this because Portugal, Spain, and probably Italy will all be threatening the euro all over again in a week or two.

So now you see how stupid the stock market has become. It is not about picking a company that you think will do well or not do well in the future and investing in it like people used to do. Now it’s a live, instant action video game that seems to only trade on whether short term information means the folks on Wall Street will have a job the next day.

www.navigatethezoo.com Calling out stupid stock traders all over the world. P.S. to all the traders reading this, keep playing chicken on the euro and write me a nice sob story when it blows up in your face.