Dow 11,060
With yesterdays market action the Dow and the S&P 500 are under our flash crash warning signal. For the Dow that means the minor support level at 11, 360 and major support at 11,060 is in play over the next…Continue Reading →
Archive for July 2011
Flash Crash Territory
Two of the six markets that we apply the flash crash criteria have triggered their warning signals, the Mid Cap 400 and the Transportations. If the S&P and Dow stay around the levels where they closed yesterday they will trigger…Continue Reading →
The Cultural Bubble, last hurrah
Amazon, Apple, NetFlix, McDonalds, Dunkin Donuts, what do they have in common? Internet and cheap bad food that helps the populace deal with the stress of unemployment and political chaos. In terms of trend the stock and commodity markets basically…Continue Reading →
Wake Up Call Needed
Why did the market yawn yesterday? I think what we outlined in yesterdays blog is behind it. The Tea Party is playing hardball and the Obama Administration is playing softball. Obama’s speech said the right things but then towards the…Continue Reading →
Right Wing Nut Jobs
I’m back from a weeks vacation and it would appear that Obama and the Democrats are going to cave in to the right wing nut jobs who have paralysed the markets. In spite of his (Obama’s) rhetoric “if not now, When” his…Continue Reading →
XLF ETF tells the story
As the Republicans put the US on the line the financial ETF, XLF gives a verdict and it isn’t good. I have been wrong on Gold since getting out of longs around $ 1000 a couple of years ago after…Continue Reading →
Bernanke ???…..update after testimony at 11:47 AM CDT
Obviously with his intial testimony this morning it appears that I was wrong in thinking that Bernanke believed in something beyond inflation generation. Update at 11:47 AM So what we are ending up with is a short-term blowoff in gold. …Continue Reading →
Hope of QE 3
That is where we are now that the Republicans finished off the Reagan era of voodo economics. It will be interesting to watch Bernanke’s testimony to Congress today. I will be content if the pattern, which I agree to, continues…Continue Reading →
Reagan Supply Side End Game
The budget battle in Washington is really just the final collapse of the trickle down programs that were started thirty years ago. Two ironic factors have evolved out of this disaster; 1) the conservatives are pushing more of the same…Continue Reading →
Waiting for the Other Shoe
As the stock market summer relief rally stalls and Washington builds to a crisis it may be a good time to read a couple of good articles that are pertinent to what we are seeing unfold. http://www.truth-out.org/ideological-crisis-western-capitalism/1310127895 http://www.nytimes.com/2011/07/10/magazine/sheila-bairs-exit-interview.html