Category: Financial Markets 2010
The analysis published under this category are as follows.Saturday, October 23, 2010
U.S. Screwflation Nation - Ben and Tim at it Again! / Stock-Markets / Financial Markets 2010
Strong dollar? Hahahahahahahahahahahaha....That is was the answer to a question I had this summer when I met with an unnamed Treasury official whose name might rhyme with Jimothy. The unnamed official nearly fell off his chair laughing when I said "So, does the US still have a strong dollar policy?" It was meant as a joke. I was sitting at Treasury with Yves Smith, John Lounsbury, Steve Randy Waldman and a couple of other writers on Aug 16th, with the dollar at 82.5, down from 88.7 in May. I mentioned in my Aug 17th post that, based on my meeting at Treasury: "we’re certainly not going to be expecting a "strong dollar" policy." At the time, I summed up the meeting saying:
Read full article... Read full article...
Friday, October 22, 2010
Avoiding The Trip to Q.E. Hell / Stock-Markets / Financial Markets 2010
“Quantitative Easing will some day be looked back upon as we now look at healing the sick through bleeding back in the 1700s. It is terrible economic policy, in fact should be considered criminal activity. Criminal for many reasons, such as debasing the value of the Dollar, but more importantly because it will be the final nail that destroys our economy. Wall Street is the key beneficiary. Households (consumers) which account for 70 percent of GDP, and small businesses, which account for 70 percent of employment, will not benefit from this fraudulent activity by the Federal Reserve. Where on earth is it right for someone to print trillions of Dollars out of thin air and then buy legitimate legally binding debt instruments in exchange for this printed paper? Anyone else doing this would be arrested and thrown in jail, with the key tossed into the deep blue sea&h
Read full article... Read full article...
Thursday, October 21, 2010
What's Next for the U.S. Dollar, Stocks and Gold? / Stock-Markets / Financial Markets 2010
The equities market reversed to the upside Wednesday posting a light volume broad based rally. Remember light volume tends to have a neutral to upward bias on stocks, But it was mainly the sharp drop in the dollar which spurred stocks and commodities higher.
Read full article... Read full article...
Tuesday, October 19, 2010
Jim Rogers on Rebel Economics, Gold Refuge and Krugman Should Resign / Stock-Markets / Financial Markets 2010
Whenever you print money, people look for a refuge, gold, Paul Krugman Should resign, He doesn’t know anything about economics. and neither does President Obama.
Read full article... Read full article...
Monday, October 18, 2010
SP500 & Natural Gas Short Term Trend Charts / Stock-Markets / Financial Markets 2010
The broad markets along with metals have been on fire but in the last two weeks we have seen the sentiment become stronger. The extreme bullishness we are seeing has made it difficult for low risk swing traders to get in on the action simply because there have not been many sizable pullbacks. Instead the prices have been inching their way higher with very minor pullbacks before surging again.
Read full article... Read full article...
Saturday, October 16, 2010
Stock Market Bubble and Gold Stalls at New High / Stock-Markets / Financial Markets 2010
Consumer Prices in U.S. Rise 0.1% in September
(Bloomberg) The cost of living in the U.S. rose less than forecast in September, indicating companies are keeping a lid on price increases to stoke demand.
The consumer-price index rose 0.1 percent after 0.3 percent gains in the prior two months, figures from the Labor Department showed today in Washington. Economists projected a 0.2 percent gain, according to the median forecast in a Bloomberg News survey. Excluding volatile food and fuel costs, the so-called core rate was unchanged for a second month.
Friday, October 15, 2010
U.S. Dollar Makes New Lows, Inflation Unplugged / Stock-Markets / Financial Markets 2010
The dollar is making new lows.
As I’ve been saying all week(s) that is the story that is driving the market. Still people interview me and ask me how high I think the markets can go which is kind of silly because, as I keep trying to explain, the markets aren’t going anywhere, the only variable is the currency they are priced in. Why do people not get this? Why do financial writers not get this? Why do TA guys not get this? Why does nobody talk about this in the MSM?
Tuesday, October 12, 2010
Unequal Global Trade Competition, Trichet Talks Tough at High Noon / Stock-Markets / Financial Markets 2010
Anti-Claud is coming to town!
You’d better not print, you’d better not ease you’d better not contract or your wages will freeze - Jean Claude Trichet is coming to town… The EU’s Central Banker has a lunch meeting at the NY Economic Club and there is no one who knows better when Bernanke’s sleeping and when the recovery is fake, so we’d better pay attention, for the country’s sake! THIS is the most powerful banker in the World, not the hollow Bankster puppet we have setting US policy, and Trichet has fought easy money tooth and nail -even as the US embraced it this year.
Monday, October 11, 2010
Meaningless Market Monday - Rethinking that Round Earth Idea / Stock-Markets / Financial Markets 2010
What if the World is flat?
It sure looks flat. You have to go to space to see that it's round, even in an airplane it looks pretty flat, doesn't it? Well, fiat currencies are like that too. We talk about Quantitative Easing as if the World is flat because Americans (who are trained to be self-centered to the point of Xenophobia from birth) don't think of their connections to other counties on this planet. To understand the American investor is to look at this map and understand that it is not a joke...
Saturday, October 09, 2010
Stock Market Rallys on Hot Air / Stock-Markets / Financial Markets 2010
U.S. Payroll Drop Tops Forecast on Teacher Firings
(Bloomberg) The U.S. lost more jobs than forecast in September as local governments fired teachers and other workers in response to declining tax revenue. Payrolls fell by 95,000 workers after a revised 57,000 decrease in August, Labor Department figures in Washington showed today. Private employers added 64,000 jobs, less than forecast. Wages and the workweek stagnated.
Friday, October 08, 2010
Investor Opportunities to Profitably Escape Paper Wealth Destruction During 2011 / Stock-Markets / Financial Markets 2010
“…All told, the Fed has bought $20 billion worth of Treasuries in this fashion, $11.15 of which it purchased last week alone. With this kind of weekly money pumping in place, Bernanke and pals don’t need to continue their “behind the scenes” games (like the options expiration week money pumps).
Read full article... Read full article...
Monday, October 04, 2010
Welcome to My Inflation / Deflation Nightmare / Stock-Markets / Financial Markets 2010
So what’s all the hubbub about a nightmare? The charts are now confirming we are looking at significant inflation moving forward, and the price increases to go along with this, meaning we are staring down the barrel of an inflationary depression dead ahead. And make no mistakes about it; this will be a nightmare for the average citizen, literally wiping out the middle class financially in the process. First, via completive devaluations, monetizations, and the likes, the pace at which the cost of living will continue to shoot higher, which is what breaking out precious metals are signaling; and then, volatility in asset prices will reemerge, wiping out the savings of the average investor / pensioners going the other way (what the simple minded term deflation), leaving the masses increasingly in dire straits coming from both directions.
Read full article... Read full article...
Monday, October 04, 2010
Financial Markets Analysis on Stocks, Dollar, Gold and Silver / Stock-Markets / Financial Markets 2010
This week we saw civil unrest in Europe as the situation deteriorates in Greece, Ireland, Spain, Portugal and Italy. It seems that the man on the street resents paying for the excesses of previous governments. People have been conditioned to expect the government to pay for things like education, medicine and retirement benefits since they paid a significant portion of their income into that government in the form of income tax. That was the trade off, and now they feel like they've been betrayed. In America the story is a little bit different in that we paid in less tax but received bubbles in return. These bubbles created the illusion of wealth and they made us feel good about ourselves. Unfortunately the biggest bubble of all is debt, used to finance all the other bubbles, and it is about to topple the empire.
Read full article... Read full article...
Monday, October 04, 2010
Gold Stocks, SP500 and U.S. Dollar Turning Points, What’s Next? / Stock-Markets / Financial Markets 2010
Investors around the globe are concerned with the economic outlook, not only with the United States but with virtually every country. This has caused not only investors but banks and countries to start buying gold & silver in order to be protected incase of a currency melt down in the coming years.
Read full article... Read full article...
Saturday, October 02, 2010
Stock Market SPX Topping Pattern Appears Complete / Stock-Markets / Financial Markets 2010
FDIC Has Another Slow Week. - The FDIC Failed Bank List announced two new bank closures this week. Lenders in Florida and Washington collapsed today, pushing the number of U.S. bank failures to 129 for the year, as financial firms suffer losses on loans tied to real estate.
Read full article... Read full article...
Saturday, October 02, 2010
Investors refuse to be suckered back into the stock market / Stock-Markets / Financial Markets 2010
U.S. Postal Service Had $6 Billion Loss in 2010
(Bloomberg) The U.S. Postal Service, whose request for a rate increase was turned down this week, had a $6 billion loss in the fiscal year that ended yesterday, Postmaster General John Potter said.
The agency, which sought permission from its regulator to raise rates an average of 5.6 percent, had forecast a loss of $7 billion in the 2010 fiscal year. The loss is before a $2 billion non-cash adjustment for workers’ compensation liability, which is increasing because of lower interest rates, Potter told reporters today in Washington.
Read full article... Read full article...
Saturday, October 02, 2010
Investors Surmounting the Wealth Destruction Dollar Debasement Juggernaut / Stock-Markets / Financial Markets 2010
“The Dollar's decline is a result of the "quantitative easing" the Fed has been stepping up recently. Quantitative Easing is a fancy term for printing fiat money and exchanging it for long term good and garbage securities held by Wall Street firms, as part of the president's Working Group's activities. The money has debased the value of the Dollar, and found its way into commodities, stock and bond markets. At some point here, stocks will no longer remain in an uptrend, as the Dollar's debasement takes its toll.
Read full article... Read full article...
Friday, October 01, 2010
David Tepper's Unrestrained Optimism on Prospects of Fed Money Printing / Stock-Markets / Financial Markets 2010
Billionaire David Tepper, one of the most successful hedge fund managers in the world, attracted much attention in a September 24th CNBC appearance by presenting such unrestrained optimism that even the normally buoyant network hosts were somewhat surprised. In a rare interview, Tepper argued that all asset classes would go higher no matter if the US economy recovers or not (with the possible exception of the US dollar). His faith is derived from the belief that even if the US economy deteriorates and fails to raise markets through organic growth, the Fed will certainly step in with enough liquidity to push up stock and bond prices.
Read full article... Read full article...
Thursday, September 30, 2010
Market Tipping Points for Commodities, U.S. Dollar, Gold and Yuan / Stock-Markets / Financial Markets 2010
Now that Summer just ends, the Summer doldrums of inactive markets abates. What is next?
One thing that concerns me is a repeat of quasi bubble peaking behavior in general commodities – as well as gold in my view, as the USD also shows a bit of weakness after a year long rally to the low 80’s on the USDX. Also of a bit of quandary is the Yuan’s strength, and a bit of competitive currency devaluation amidst the other major currencies, with the Yen peaking a bit and foreboding a further unwind of the Yen carry trade?
Read full article... Read full article...
Thursday, September 30, 2010
Market Report on SP500, Crude Oil, Gold and U.S. Dollar / Stock-Markets / Financial Markets 2010
Wednesday the market didn’t tell us anything new. The equities market is still over extended on the daily chart but the market is refusing to break down. Each time there has been seen selling in the market over the past two weeks, the market recovers. Equities and the dollar have been trading with an inverse relationship and it seems to drop every in value each selling pressure enters the market, which naturally lifts stocks.
Read full article... Read full article...