Monday, September 07, 2015
China FX Reserves and CNY Implications / Currencies / China Currency Yuan
China FX reserves fell $94 bn to $3.56 tn in August, posting the biggest decline on record, tell us a little more than just China is slowing.
We already know that a key reason to the decline in reserves is China's selling of reserves, such as US treasuries, in order to support the CNY, preventing it from falling rapidly after last month's devaluation announcement.
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Monday, September 07, 2015
Bond Yields vs Stocks and The Fed / Stock-Markets / Financial Markets 2015
The widely anticipated US August jobs report headlined with a disappointing 173k increase in nonfarm payrolls (lowest since March). The silver lining was in the 44k upward revision of the previous two months and the decline in the unemployment rate to fresh seven-year lows of 5.1% from 5.3%. The decline 41K decrease in the labour force was too small to reduce the participation rate, which remained unchanged at 62.6%.
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Monday, September 07, 2015
More Stock Market Selling Ahead / Stock-Markets / Stock Markets 2015
Current Position of the Market
SPX: Long-term trend - Bull Market?
Intermediate trend - SPX has started an intermediate correction (at least).
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
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Monday, September 07, 2015
Stock Market Bulls Set To Be Tasered Again - Imminent Crash, Severe Downleg... / Stock-Markets / Stock Markets 2015
The stockmarket is toxic! It's very important that you don't get seduced by the old siren song of Wall St about "buying the dip" and other nonsense like "being selective". While these strategies have worked up to now, they won't any longer, because we are now in a bearmarket, and furthermore it looks like we are on the verge of another plunge.
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Monday, September 07, 2015
The Real Refugee Crisis And How To Solve It / Politics / Immigration
Last week Europe saw one of its worst crises in decades. Tens of thousands of migrants entered the European Union via Hungary, demanding passage to their hoped-for final destination, Germany.
While the media focuses on the human tragedy of so many people uprooted and traveling in dangerous circumstances, there is very little attention given to the events that led them to leave their countries. Certainly we all feel for the displaced people, especially the children, but let's not forget that this is a man-made crisis and it is a government-made crisis.
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Monday, September 07, 2015
Investors Cash in On a Strong U.S. Dollar and Weak Stocks / Stock-Markets / Stock Markets 2015
The Dow Jones Industrial Average lost another 541 points or 3.2% to close at 16,102.38 while the S&P 500 dropped 68 points or 3.4% to 1921.22. The Dow is now solidly in 10% correction territory from its 18,351.40 closing high earlier this year and down 9.7% year-to-date.
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Monday, September 07, 2015
At Jackson Hole: Be Very Afraid, Bankers are Channeling their Inner Rothschild / Politics / Banksters
Dear Reader, There is a melancholy overtaking economic commentators such as myself. The kindred spirits amongst the economic intelligentsia who stridently, constantly, warn of the dangers the actions of our central banks, are now overwhelmed by the futility of our attempts to bring this issue to Main Street's consciousness. [Dear Reader, please stifle your guffaws at my hubris that allows me to include myself as a member of the world's economic intelligentsia. Debatably, my curriculum vitae as an economist is quite thin. It requires many redactions, falsehoods and exaggerations prior to being sent to a prospective employer, {along with a fervent prayer that the employer does not check my police record, references, academic credentials or my credit bureau}]. However, my intimate knowledge of the outrageous inner workings of our Central Banks gives me insights heretofore unavailable even to the most celebrated, revered and feted economists. I will explain how I came to be amongst the celebrated elite at the Economic Symposium held at the Jackson Lake Lodge last week end.
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Monday, September 07, 2015
$GOLD (Gold - Spot Price) and Gold Sentiment / Commodities / Gold and Silver 2015
Just like always traders are ultra bearish when they should be getting bullish, Gold is 30 days into its daily cucle and due to bottom any day. Possible on a final dip after the employment report.
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Sunday, September 06, 2015
America’s Descent into Totalitarian Violence is Accelerating / Politics / US Politics
America’s descent into totalitarian violence is accelerating. Like the Bush regime, the Obama regime has a penchant for rewarding Justice (sic) Department officials who trample all over the US Constitution. Last year America’s First Black President nominated David Barron to be a judge on the First US Circuit Court of Appeals in Boston.
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Sunday, September 06, 2015
Tracking Stock Market Investor Sentiment with Credit Spreads / Stock-Markets / Stock Markets 2015
Long time readers of this site are aware that successful traders/investors learn how to read market sentiment. Positioning yourself on the correct side of a market is the key to profits. Do this, and do it consistently, and you will make money. Don’t do this and you will lose money. It is a very simple yet very profound axiom that sadly many seem never to learn.
“Fighting the tape”, is the expression we use when characterizing those who fail to approach markets objectively, but who insist on reading their own bias or belief system INTO a market rather than listening to what the market is saying to them.
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Sunday, September 06, 2015
The Failed Moral Argument for a "Living Wage" / Economics / Wages
Ryan McMaken writes: With Labor Day upon us, newspapers across the US will be printing op-eds calling for a mandated “living wage” and higher wages in general. In many cases, advocates for a living wage argue for outright mandates on wages; that is, a minimum wage set as an arbitrary level determined by policymakers to be at a level that makes housing, food, and health care “affordable.”
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Sunday, September 06, 2015
How Stock Market Crisis Creates Opportunity / Stock-Markets / Stock Markets 2015
Anthony Summers writes: Last week, we looked at the largest percentage losses in the Dow since 1965. We learned that the months August through November saw the highest concentration of single-day losses of 3% or higher.
In today’s chart, we’re going to look at the market’s largest gains. And just like before, we wanted to know the months when they were most common.
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Sunday, September 06, 2015
How to Buy Houses for 25% Below Market Value / Housing-Market / US Housing
Dr. Steve Sjuggerud writes: "What's your top idea right now, Steve? What are you doing with your own money?"
The answer is simple: U.S. real estate.
Right now, I have a greater percentage of my net worth invested in the U.S. residential property market than in any other asset class – by far.
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Sunday, September 06, 2015
Stock Market Dog Day Afternoons / Stock-Markets / Stock Markets 2015
The Fed got what they wanted today besides the much weaker than expected jobs report.
The Unemployment Rate dropped to 5.1%, largely on the number of people who have been unemployed for so long that they are no longer counted as part of the workforce. Hence the record low 'Labor Participation Rate.'
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Sunday, September 06, 2015
Stock Market Primary IV Wave Continues / Stock-Markets / Stock Markets 2015
Another volatile week! The week started off with two consecutive gap down openings after starting at SPX 1989. By late Tuesday the SPX was down to 1903. Wednesday and Thursday it reversed with two gap up openings, carrying the SPX to 1975 by Thursday morning. On Friday the market gapped down at the open taking the SPX to 1911. For the week the SPX/DOW were -3.35%, the NDX/NAZ were -3.15%, and the DJ World index was -3.60%. On the economic front positive/negative reports came in even. On the uptick: construction spending, factory orders, the ADP, the GDPN, plus the unemployment rate and trade deficit improved. On the downtick: the Chicago PMI, both ISM’s, the WLEI, payrolls, plus weekly jobless claims rose. Next week will be highlighted by the PPI, Export/Import prices and Consumer sentiment. Best to your week!
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Saturday, September 05, 2015
Stock Market Investors Destined to Lose; What you can do to improve your odds / Stock-Markets / Stock Markets 2015
Uncertainty and mystery are energies of life. Don't let them scare you unduly, for they keep boredom at bay and spark creativity. - R. I. Fitzhenry
The average person regardless of their education or lack off usually is on the receiving end of the stick when it comes to investing in the markets. The reason for this quandary is really very simple and predicated upon the fact that the average person’s decision-making process is driven by their emotional state. Successful investing and emotions do not go together; it’s an awful mix, and the outcome is always the same; stress and loss.
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Saturday, September 05, 2015
China’s Worst nightmare--The US Oil Weapon / Politics / GeoPolitics
Tingbin Zhang writes: China’s islanding building on the four-mile-long and two-mile-wide Subi Reef in the South China Sea has put The US in a tight spot. To protect its ally from China’s aggression, The US will be left with little choice but to constrain China by military means. However, the US won't directly engage China in the war in the foreseeable future, because the US dominates China with its superior naval and air force and the only way for China to level the playing field is to apply nuclear weapons. The nuclear nature of Sino-American warfare will make both the world no.1 and no.2 economy the fallen giants.
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Saturday, September 05, 2015
Global Stock Markets Are Between Apocalypse And Armageddon / Stock-Markets / Stocks Bear Market
Major world stock markets are all in a BEAR MARKET MODE…cash is king horizon to horizon…universally! Death Cross patterns continue to spread through most international stock markets like an epidemic gone viral (A Death Cross pattern is when the 10-week moving average falls below the 40-week moving average). Moreover, history is testament that September is marked by horrific stock losses during the past 40 years.
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Saturday, September 05, 2015
Central Planning, Politics, Economics and The Santelligram / Stock-Markets / Market Manipulation
Rick Santelli may be one of the last speakers of truth left in the mainstream financial space.Santelli is a former commodities trade – now a popular CNBC commentator, broadcasting from Chicago.
He is treated like a sad clown brought out for entertainment effect, where you brace for the extreme. In his case, this often manifests as an angry rant.
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Saturday, September 05, 2015
Stocks Bear Market - 5 Further Technical Confirmations / Stock-Markets / Stocks Bear Market
Divest!
We now have five signals that the US equity market is entering a Primary Bear Trend (Confirms the prognosis of the S&P Global 1200 Index)
- Rounding top on both Industrials and Transports
- The DJ Industrials’ fall to a lower low than October 2014 was confirmed by Transports fall to a lower low (Pink spots)
- “Death Cross” on both indices as 50 Day MA crossed over of 200 day MA (Green spots)
- The consolidation of both indices after fall below 200 day MA was followed by sharp declines (Blue spots)
- On Balance Volume (relationship between buying and selling pressure) of Dow Jones Industrials has fallen to a new low (Yellow spots) (Not yet “finally” confirmed by Transports)