The FREE Investment Newsletter That Really Works!
On Sunday we spelled out all the reasons that the market looked poised for a roll over, or in other words a significant correction. Monday looked bad, Tuesday was worse, then Wednesday they came out of the clear blue and bought up everything. All the folks that were short, scrambled to cover and that sent the market soaring. But today, there was NO follow through what so ever and by 11 am we had plunged 200 points.
The Water Problem
Water is the most amazing fluid on earth, and yet we take it for such granted that no one gives it a moments thought. It isn’t just the “cool” facts about water that make it intriguing; such as the fact it is one of the only substances that exists in three states, being liquid, solid and gas without needing extreme temperatures to create each state. Water for instance is the only natural substance found in all three physical states at the temperatures that naturally occur on Earth.
But water is much more than “some wet stuff” we use to drink, cook and bathe. Studies have shows that water actually has a form of memory. Water can dissolve more substances in it than any other material known to man. Water is somewhat unique as it is one of the very few materials that increases in volume as it freezes. By expanding in volume by up to 9%, the density of water in its solid state is lower than it is in its liquid state. This gives ice the ability to float.
Today ( Wednesday) we learned that mortgage applications fell another 4% last week. That certainly doesn't jive with the new home sales that they say rose 18%. How can that be? It's really pretty easy folks. The middle class has no money and can't afford a mortgage any more. They're beaten up. But the rich, who have been gifted by the Fed's with all manner of stock gains are so flush with cash, they are buying new homes like they're going out of style.