The Real Reason We Are Going Into A Double Dip Recession

I'm a registered Independent. I need to make that clear right at the start, I'm not a Democrat.

I do not care much for Fox News, Sean Hannity, brand of Republicans who place politics in their analysis of gold.

I do not feel any trader should let political favoritism to sway their technical analysis. However when two political parties are doing battle over the economy and it is having an effect on the stock market, you've got to incorporate political parties in your analysis.

Democrats are trying their best to boost the economy before the November elections to win votes while Republicans are doing their best to block any policy that could boost the economy going into the November elections.

This account is not really a political prejudice statement, it is just the way it is.

Republicans are presently blocking progress on a bill to boost the economy, preserve jobs for teachers and police, and help people buy their first house; another bill which would hold oil companies liable for any disasters they cause by removing the current $75 million liability cap; and most recently the extension of unemployment benefits.

In the last 3 weeks, 3 million people have been booted off unemployment: that's about 1.2 million people a week.

Major media groups recently reported that for every job opening at McDonald's there are 300 to 500 applications handed in. Many of the people applying for jobs at McDonald's hold university degrees.

I have personally contacted Republicans in Congress which have stated that the logic for why so many people are on unemployment is not because of the bad economy but because of their own slothfulness and refusal to work at jobs like McDonald's. I would like them to show the way by way of example, you understand, truly prove to us ordinary people how it's done. I have challenged those same Republicans that have made those insulting statements, to leave their jobs in the Senate and to go and get a job at McDonald's. I was of the opinion that leading by example was the Republican method. I've even extended the challenge to Rush Limbaugh considering that he has made the same accusations in opposition to the majority of trustworthy, hardworking Americans who are out of work right now. Not a single Republican in the Senate, nor Rush Limbaugh has accepted my challenge. The screener on the Rush Limbaugh radio program hung up on me in fear that my challenge would expose the double standards in the Republican party.

Again, I am not a Democrat. I just see a horde of well-off power thirsty elites criticizing the ordinary folk and I wish for them to put up or shut up. If it is so easy to downgrade your standard of living and how much you make, to go get a job at McDonald's, why don't you go do it? Sure, that is what I thought you yacht riding, $500 for a haircut, manicure, and back massage, pansies.

Unemployment in my city, Fresno California, just went above 16%.

I see the Republicans forcing a super majority on pretty much any legislation that could play a role to an improving economy going into the November elections.

I am trying my hardest not to be biased about this problem and to just report to you the facts.

You have to consider this battle between the two parties into account when you are talking about the stock chart of the SPDR S&P Homebuilders ETF (XHB) and the probability that we will go into a double dip recession because according to this stock chart, that's precisely where we are ultimately headed.

Conceivably the most troubling indicator I see on the daily chart of the SPDR S&P Homebuilders ETF (XHB) is the Burial Cross. The chart says that the Burial Cross will happened next week.

However everything I have just told you is more the long term trend. Short term, we have set up into a good swing trade with a bounce off upper downtrend channel resistance. This coming leg down move is just about picture perfect. Anyone shorting the stock market right now is going to see at least a week of a nice downward sell off in the markets.

In this video I examine the awesome swing trade trend channel on the SPDR S&P Homebuilders ETF (XHB) and why now is the moment to go short this market for a quick 5% to 10% profit.