Tuesday, November 10, 2015
Trump vs Sanders, Establishment Rule still in Control / ElectionOracle / US Presidential Election 2016
Even if you believe that anti-establishment candidates are resonating with the general electorate, it would be a terrible mistake to think that the power exerted by the actual establishment is at a tipping point. Frankly, the system cares little what the people think and voting is nothing but an annoyance in the true culture war that is being waged and won by the money cartel and their media tools. Imagine a presidential race between Donald Trump and Bernie Sanders? Might make for big ratings, but will never happen within a political party structure where both Republicans and Democrats are sucking from the same venomous collectivist moo juice.
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Tuesday, November 10, 2015
Stock Market 70 RSI Pullback For Now...No Distribution Yet.. / Stock-Markets / Stock Markets 2015
When markets get overbought they will ultimately need to pull back. The pullback can feel very bad since they can be intense due to the very overbought nature of all the key oscillators from RSI's to stochastic's to MACD's. When markets are strong and they get overbought, since the market behaved so well, most aren't prepared for the type of selling a simple overbought pullback can bring. Today surely didn't feel good. Nasty!
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Monday, November 09, 2015
The War on Cash is Real / Interest-Rates / Central Banks
Stocks have rallied over the last 10 days in part by ECB President Mario Draghi’s statement that if push comes to shove, the ECB will push interest rates even further into negative territory (NIRP).
This represents just another round in the War on Cash, first implemented by the Central Banks in 2008.
It’s a little known fact that the cause for the gut-wrenching collapsing in late September-October 2008 was due to a significant portion of investors trying to move their money out of money market funds.
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Monday, November 09, 2015
Stock Markets Discover That Higher Interest Rates Are Bad / Stock-Markets / Stock Markets 2015
US stocks opened down hard today, in part because China released some truly horrendous trade numbers over the weekend, but also because the imminence of a US interest rate increase is starting to sink in. For anyone with rudimentary math skills, higher interest rates are a clear and present danger to what is now a variable-rate (and therefore really fragile) world.
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Monday, November 09, 2015
Is Japan's Wicked Economic Winter Almost Over? / Economics / Japan Economy
Economic blossoms may bloom again in the Land of the Rising Sun
The winter season is a common metaphor for a bleak period in someone's life: Borrowing a line from Shakespeare, John Steinbeck titled his final novel "The Winter of Our Discontent."
Nikolai Kondratieff used "winter" to describe the worst part of an economic cycle. Indeed, the famous Russian economist used all four seasons as metaphors for the four natural phases of expansion and contraction that an economy goes through in 50 or 60 years.
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Monday, November 09, 2015
Retired Investors: Apply a Value Investing Strategy and Earn More Income and Higher Returns / Companies / Investing 2015
Value investing produces safe, powerful long-term results, but it is often misunderstood. This is why most of the greatest investors that have ever lived have employed some form of value investing as an integral part of their overall stock investing strategy. However, the term, concept or strategy called value investing does not necessarily universally apply. Like many financial terms and concepts, there are many nuances that pertain to the general concept of investing for value in common stocks.
On the other hand, there is some common ground that theoretically applies to all value investing approaches. At the core, value investors are looking for investment opportunities in companies that they believe the market is currently undervaluing. Additionally, most value investing strategies are attempting to exploit disconnects that occasionally occur between a company’s stock price and its true underlying fundamental value.
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Monday, November 09, 2015
U.S. Manufacturing Renaissance Turns Into the Dark Ages / Economics / US Economy
The October ISM Manufacturing Index, which has been the official barometer of the U.S. manufacturing sector since 1915, came in with a reading of just 50.1. This was a level barely above contraction.
Of the 18 industries surveyed in the Regional Manufacturing Survey, 9 reported contraction in October: Apparel, Leather & Allied Products; Primary Metals; Petroleum & Coal Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Machinery; Transportation Equipment; Wood Products; and Computer & Electronic Products.
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Monday, November 09, 2015
Stock Market Sell Signals in the Making / Stock-Markets / Stock Markets 2015
SPX is approaching its 17-day Moving Average at 2068.26. Just beneath it is the 200-day Moving Average at 2063.50. A decline beneath them would give us a sell signal (confirmed beneath 2063.50). There may be a bounce here, so be aware that SPX may pull back before making the total commitment beneath the 200-day Moving Average. Nonetheless, this appears to be a good entry point, as we will see with the next charts.
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Monday, November 09, 2015
U.S. Jobs NonFarm Payrolls +271,000; Is the Game Changing? / Economics / Employment
I can already tell NFTRH 368 is going to be a flowing thing because there is a lot of on-point material to talk about. So the usual standard charts will be minimized in favor of trying to get a good read on what is in process in the markets, in policy and in the economy.
Specifically, given the October Payrolls data, its effect on interest rates and the US dollar we seem to be back to a point similar to where we were 1 year ago when we used a strong USD (and corresponding weak Yen and Euro) to plot bullish trade possibilities in Japan and Europe, and a bearish environment for US exporters.
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Monday, November 09, 2015
Western Central Banks Playing with Hyper Inflationary Fire / Interest-Rates / Central Banks
There are various examples in history of when national currencies have been debased so much that confidence in those currencies have been lost to such an extent that the nominal value of hard assets and productive assets in those currencies have gone up in a parabolic fashion. The grandaddy of currency debasement was the reichsmark during the Weimar Republic period in the early 1920s Germany. There are present day examples of currency debasement and rising local stock prices like Argentina and Venezuela but we will focus on the German example.
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Monday, November 09, 2015
Pieces of the Puzzle Lining Up for Potential Stock Market Crash / Stock-Markets / Financial Crash
Good Morning!
The SPX Premarket appears flat as I write, while the futures are down 5 points. While I cannot explain why the difference, there is no substantial effect of one over the other at this time.
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Monday, November 09, 2015
Dow Stocks Index Soars, Doctors of Doom Wrong, What's Next? / Stock-Markets / Stock Markets 2015
"As the ostrich when pursued hideth his head, but forgetteth his body; so the fears of a coward expose him to danger." ~ Akhenaton
We prepared our subscribers for the market pullback; crash if you believe the naysayers, well in advance of the event. While they chanted from the top of their lungs that the end of was close at hand, we broadcasted an opposing message. We welcomed this carnage phase and recognized for what it truly was; opportunity is knocking in disguise and refused to fall for this silly ploy. The same monotonous theme has been repeated decade after decade with the same miserable consequence, one that is bound to bring you one step closer to the dog house.
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Monday, November 09, 2015
Does the Bell Toll for the Fed? / Politics / US Federal Reserve Bank
Last week Federal Reserve Chair Janet Yellen hinted that the Federal Reserve Board will increase interest rates at the board's December meeting. The positive jobs report that was released following Yellen's remarks caused many observers to say that the Federal Reserve's first interest rate increase in almost a decade is practically inevitable.
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Monday, November 09, 2015
Gold Price Breakdown Could Result in Slide to $800 / Commodities / Gold and Silver 2015
The predictions made in the recent past for the dollar to rally and gold and silver to drop have proven to be correct. Gold has now dropped for 8 days in a row as we can see on its 3-month chart below, which common sense dictates is increasing the chances of a bounce soon, especially as Commercial short positions eased significantly last week and gold is arriving at a support level in an oversold condition. Gold is oversold relative to its moving averages, which are in bearish alignment.
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Monday, November 09, 2015
Silver Price Forecast Plunge to as Low as $10 / Commodities / Gold and Silver 2015
The last update posted on 18th October called a top in silver, and that is what it turned out to be. On its 3-month chart we can see that silver broke down from a small Head-and-Shoulders top at the end of October and then went into a steady day after day decline with the result that it has dropped now for 7 trading days in a row. While it could drop further towards or to the support shown, it is getting short-term oversold and is increasingly likely to bounce soon. As with gold this weakness was triggered by dollar strength, with the dollar rising sharply on Friday in response to a stronger than expected jobs report which the market thinks makes an interest rate rise more likely.
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Monday, November 09, 2015
China’s Central Bank Buys Another 14 Tons of Gold … Bullion Falls To 3 Month Low / Commodities / Gold and Silver 2015
- PBOC declared gold reserves now about 55.38 million troy ounces or 1,722.5 metric tonnes
- Central bank gold rose to $63.26 billion by end-month – less than 2% of $3.53 trillion FX reserves
- China disclosed on July 17th that its gold holdings had surged 57% since 2009
- China officially owns around 1,720 tonnes of gold – true total figure likely much larger
- China’s total gold holdings much higher as also owns gold in CIC
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Monday, November 09, 2015
SPX, USD and Gold Charts Analysis / Stock-Markets / Financial Markets 2015
With momentum starting to diverge and stocks late in their daily cycle it's probably better to sell into a breakout above the all-time highs than buy a breakout.
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Monday, November 09, 2015
It’s Now, or Never for Yellen, Impact on Gold and Stocks / Stock-Markets / Financial Markets 2015
It has been seven years in the making, but now the Federal Reserve may be finally ready to lift interest rates from zero. There has been a myriad of reasons to not hike, multiple false starts and huge ongoing debates on what the right course of US monetary policy is, but from the Fed’s point of view the time is at last right to increase rates.
Yellen had said just this week that the Fed meeting in December would be live if the data supports a move, that the Fed is monitoring the data, and that the Fed thought it could be appropriate to move in December. Then, a +271k NFP print is released to all but seal the deal.
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Monday, November 09, 2015
As Credit Cards Interchange Cap Looms, Keep a Close Eye on Fees / Personal_Finance / Credit Cards & Scoring
The latest research by Moneyfacts.co.uk can reveal that credit card providers are anticipating the effects of the upcoming EU cap on interchange fees by taking a long, hard look at their credit card fees, rewards and interest rates.
On 9 December, credit and debit card processing fees, which are paid by a retailer’s bank to the cardholder’s bank for each purchase, will be capped at 0.30% and 0.20% respectively. The idea behind the change is that businesses will no longer have to pass excessive fees onto their customers.
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Monday, November 09, 2015
The Big Silver ETF - Silver and Physical Inventory Part 2 / Commodities / Gold and Silver 2015
In a follow up to last week's excerpt from out recent Q&A with Ted Bulter, questions were asked warehouse movement in other commodities and about the big ETF...
Are you seeing the frantic movement of metal in other commodities markets?
Do you believe the ETF’s are actually backed by physical metal?