I’m gonna throw the dead deer on the table and ask you what you think of its antlers. Is the Fed working for the interests of the American people, via quantitative easing? Furthermore, why is the Fed paying banks interest, to the tune of billions, to hold reserves? If they really wanted banks to lend money, they’d take away the incentive to horde cash, no?
In the Fed’s statement today, they warned of deflation and promised to bring inflation back up to a level they are comfortable with, using history as a benchmark. All the while, the U.S. dollar drowns in pigshit, to the point where other central banks are sure to intervene, in order to prop it up. The current mix of the market makes no sense and should make everyone nervous. How can the Swiss Franc, Yen, Treasuries, Euro, Gold and other commodities rally, at the same time investors are blind to the soon to be revealed “other side of the blade” repercussions?
Answer: Euphoria
Remove yourself from the trading turret, if only for a minute, and ponder about the future of the average American, using the trajectory the Fed is laying out in front of us. In layman’s terms, how will the goat fuckers in Detroit survive, with a rapidly deteriorating employment market and rising food/energy costs?
This is a path that is unsustainable, courtesy of the treasonous Federal Reserve.
Sugar
Coffee
Cotton
Milk
Cattle
Rice
Oats
Soybeans
Corn
Wheat
CHART ART OF THE FIRST CALIBER.
FIWS
geat analysis…
Look–these “hard assets” will continue to rise until nobody can afford them.
And then they’ll crash.
But at what cost is the question for the softs and what else will they take out during the process.
everything. Every darn thing…
reminds me of the quote that the guy over at Minyanville used in 2008:
“In 1929, candy bars were 10c so I bought one. In 1930, they were 5c, so I bought two. In 1932, they were 3c and I was too broke to buy one” (paraphrase)
kinda like oil a couple of years ago …
Is that a triple top in cattle?
Just lol.
Fuck the goat fuckers in Detroit.
“A goat in every classroom”
-Bob, Robert
Detroit 187 starts tonight. Tune in.
Fly,
Check out OJ
No joke….
Mostly due to Freezing conditions in Florida so doesn’t really count.
Ever consider the effects of chemtrails on Florida temperatures last winter?
i agree. Volkler is the only person with any credibility and balls left. i despise the fed. we are doomed -DOOMED!
i agree with you. summer now leaving white house team – does that mean we will get a better policy sometime soon?
WOH!
Quick everyone –hoard ricers!!!!
http://ricealert.com/2010/03/02/re-spotted-ricers/
You can use them to outrun your neighbors , when you steal their stash of emergency rice. Ironic, No?
” In layman’s terms, how will the goat fuckers in Detroit survive.”
Like Detroiters have always survived.
By eating their goats, committing crimes, and burning down houses at Halloween.
Milk is the new Oil…..
and Flat for the day is the new “killing it”
Flat for the day is the new “killing it” hahaha
You fuckers don’t understand. I’m underwater on my house and Jamie Dimon holds the note you fuckers.
This shit is necessary man!
we are going lower, I just covered half of my shorts
HAHAHAHAROFLLOLOMGBBQ
Who ever said the Federal Reserve works for the American People?
I’ve said before–forget what any politician or PR monkey tells you to your face. That shit is for the proles. Watch what they do. And what they are doing is trying to shovel free money into the furnace, hoping the fires don’t go out before it builds steam again.
They are TERRIFIED of the return of the DEFLATIONARY VORTEX that would take the S&P back to 666 AND LESS. And not everybody is on the same page. The commodities get it. The Gold gets it. The treasuries? Not so much. Forex is the new wild west.
Bottom line: asshattery in every pot across this great nation. Hedge or GTFO
Too late bud.
Oil is down 25% since April top, nearly 2% today. Anything industrial goes down, lack of demand, foods (as Fly relentlessly demonstrates) go up, well, in nominal terms, with the dollar stuffed.
Where does the stock market fit in that conundrum. Hmm, a market that values the prospects of companies growth/contraction in profits?
I say it follows oil, down 25% to catch up to where oil is now, and the another 15% or so for luck…and all by the start of November!
Great post Fly, I do feel sorry for you US guys, but we’re in no better shape in the UK, you can bet our idiots will QE too, to keep the pound down.
Very depressing.
http://wealthadviseruk.blogspot.com/
You sir, I believe, are correct. The equity trade has a close correlation to the crude oil trade.
70% – 75% in the past 12 months.
sup, dawg. LTNS.
Likewise, professor.
Just started hanging around here again since June
Good times being had by all who follow the adventures of The Fly and his PPT techology.
technology…..damn, I miss that edit button
Since when did I matter ?
LOL
lol!!!
Sorry to geographically place myself but I gaurantee you the farmers will still bitch this year about how bad things are. The last couple of years have been phenomenol for corn and soybeans but they still get all the nice Federal govt tax breaks. Did you know that they can claim a tax deduction(might even be a credit) for any standing barn no matter what condition it is in? Ever been to the Midwest? If you do that’s why you’ll see old dilapidated structures with roofs falling in cuz it aint for historical preservation. End of rant, so sorry all.
What is your point?
That farmers will still complain about how bad it is to be in the farming business – I had to laugh when looking at the charts for corn and soybeans.
If you are a farmer sir, no offense of course 🙂
Nope. Just curious. It’s even sillier in Canada. There is a monopoly on things like egg production. I couldn’t start an egg or milk farm unless I inherited it in Canada. Rediculous! I suppose they probably complain here too, but the ones I know don’t. They just laugh their way to the bank, and go to the tropics for at least a month every winter.
I enjoy looking at those dilapidated barns… here I thought they kept them for my viewing pleasure.
Me too until I started going through some of the tax code.
I think his point is that farmers know that corn stalks don’t grow to the moon and that they take offense at the phrase, “milk the farmer”, for it is they who will and must continue to do the f***ing milking at the govt’s teat, thank you very much. It’s hard to make sense of, but it’s all in there, trust me.
So true, so true.
The Bearded Clam and his money-changing minions are not entirely at fault. The shit floats to the top, my friend. The Fed is the govt.’s banker and it does what the customer wants.
However, the bankers are not completely without blame, for they relish holding on to their cash in the hopes of buying out their failing competitors, rather than lend money to Main Street at paltry RORs.
We need a trade war with China to get VXX off it’s butt and out on the dance floor.
It’s the other way around. The gov’t is the banker’s current PR guy and he (Mr. President) does whatever he’s told to in order to maximize profits for his bosses (who are not the American people).
Yeah, there you go…. Jewish-bankers-rule-the-world-conspiracy-theory du jour.
Who said anything about Jews? But anyone who says that bankers do NOT rule the world is in serious denial of reality.
Excuse me, but I rule the world—-or will eventually, with an army of disgruntled entitlement-dependent pawns.
Well put Frog.
“I’m gonna throw the dead deer on the table and ask you what you think of its antlers.”
Venison for dinner?
Love listening to the Fed Announcement on the radio…..sounds like the fucking weather service reading about a hurricane warning….Jesus..Bob Dall…Gross…Hebner…all the yell leaders out in full force. Muddle thru is good enough for stocks.
Well I’m New Too….Ummmmm….He’s New-ER
The margins on Charbuckles grocery items are being squeezed.
LMFAO
I’d get long FUD for a hedge against high priced Big Mac’s if it wasn’t so thin…
Y’all know of a better “security”?
COW
JJG … ?
<3 your charts
CASE AND POINT. CASE CLOSED. We are fucked if we do and fucked if we dont. No way around it. The economy needs to re-set and that takes time. All this gov intenvention just prolong the pain and srew things up. What is QE anyway. Lube so it doesn’t hurt when we get fucked?????
its lube to make the market go higher…like to dow 11100.00
Lube to make it last longer, and make you think you like it. By the way, are you also swing4thefence?
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” – Arthur Schopenhauer
TMoe is back. That makes us good for at least another 700 Dow points.
Ba da bing!
Lol
You are asking the right questions. Best, g
a little condescension. lovely.
The US and other western nations are being fiddly-fucked on a spiny spindle by their respective Feds.
Nothing new there. Unsustainable indeed.
well, it was written dow 10800.00 and so it came to pass…what happened were you scared ???since we are going higher i have to ask dow 11,100.01???
It is important that folks in 3rd world countries die due to inability to buy food so we can liquidate bank balance sheets and make sure america speculators make mad money.
The people on cnbc disgust me as long as it drives up asste prices there is no wrong
That is all.
Hilarious!!
A dude in Malibu just told me to figure this market out you “just have to follow the money.”
Somebody tell the slope of dopes that I have Timmah’s holy grail…
Your gravatar cracks me up!
Here’s the top countries in which the US has a trade surplus (July 2010):
July Year To Date
Surplus in Surplus in
Millions Millions
Country Name of U.S. $ of U.S. $
Hong Kong 1,778.50 12,169.60
Singapore 1,179.39 7,406.34
Brazil 970.93 5,904.16
Australia 944.95 7,321.67
United Arab Emirates941.63 6,003.05
Netherlands 931.19 8,100.65
Turkey 489.89 3,392.66
Belgium 477.85 4,869.04
Egypt 391.95 2,007.65
Chile 380.82 1,826.72
http://www.census.gov/foreign-trade/top/dst/2010/07/surplus.html
Looking at the charts, but what do those lines that go up and down mean?
what are all you doom and gloomers bitching about now ?? housing starts up by 40% which means construction employment will be up…Q2 is great as im sure you saw @ dow 10800 +
fas going to 31.41thought you might like to know
oh by the way ,,, the doom and gloom is over you missed the first 800 pts in this rally ..planning on missing the rest ???
You pompous asshole!
what ever do you mean ??
the fly posted his charts..i just been telling you what my charts said for the past month..should i have lied to you???
It is my fondest hope that the pig fuckers at the federal reserve get the following treatment:
1. May they be skewered from eye socket to bunghole and then placed on a spit so that their flesh could be roasted by the searing gale of flatus which issues forth from the haunches of Asmoday;
2. May they suckle from the 16 poisoned leathern teats of Gophahmet, Whore of Betrayal, until I burst from an unwholesome engorgement of curdled bile;
3. May they be hollowed out and used as prophylactics by thorn-cocked Gulbuth The Rampant;
4. May they be forced through a wire screen by the callused palms of Halcorym and then having your entrails wound onto a stick and fed to the toothless, foul-breathed swine of Gehenna;
5. And finally, may legions of fang-wombed hags will take their pleasure on their shattered carcasses.
please stop the shoe throwing at the fed as i am offended by it…
It is my fondest hope that the pig fuckers at the federal reserve get the following treatment:
1. May they be skewered from eye socket to bunghole and then placed on a spit so that their flesh could be roasted by the searing gale of flatus which issues forth from the haunches of Asmoday;
2. May they suckle from the 16 poisoned leathern teats of Gophahmet, Whore of Betrayal, until they burst from an unwholesome engorgement of curdled bile;
3. May they be hollowed out and used as prophylactics by thorn-cocked Gulbuth The Rampant;
4. May they be forced through a wire screen by the callused palms of Halcorym and then having your entrails wound onto a stick and fed to the toothless, foul-breathed swine of Gehenna;
5. And finally, may legions of fang-wombed hags will take their pleasure on their shattered carcasses.
Dude, you’ve been reading way too many fantasy books.
😀
Death metal fan I see.
But what is your 12 sided die says?
Detroit? Indueeed.
Have to disagree, sir, with your implication that commodities will continue to rally. Check out this chart of the CRB;
http://stockcharts.com/h-sc/ui?s=$CRB&p=D&yr=1&mn=3&dy=0&id=p00022299505
We’re back to the $280 level which is where CRB spent most of the month of April and where it topped out in August. Notice the textbook negative momentum divergence between this trip to $280 and the one in August (price making an equal high but momentum {the MACD} making a lower high). Combine the negative momentum divergence with very overbought Stochastics and it seems to me the odds favor the next major move in commodities as an asset class is down. Stocks as an asset class will follow close behind the down move in commodities and I plan to over the next 2 days build positions in inverse index etf’s (ex; PSQ and RWM) and leveraged inverse sector etf’s (ex; SKF and SSG) and leveraged inverse precious metal etf’s (ex; GLL and ZSL). Might also pick up some long volatiltiy exposure via VXX.
fid
Stag-flation… on the table. Uncle Ben can’t raise rates in order to stop a run on Treasuries, stop a run up on commodities, or stop hyperinflation. He believes that cheap money can save the economy and is looking for inflation.
Me, I’ll be looking to buy that 30-year fixed-rate cheese sandwich at 5%. -Five percent!!
Bad news for horses as well, with oats going higher.
Flybaresco–
This should be helpful.
_________
greed is good…so get greedy
Everyone with a brain size of a grain would know that FED never works for the interest of American… Look at where USD is at… funny thing, FED is comprised of bankers… and how fuck the american this time? Bankers? I wish US of A luck…
Nice rack !!
Jake
Not barolo. Barbaresco.
Read the article, Barberesco is Barolo’s lighter brother.
It’s all in there.
_______
They are all from the famous nebbiolo grape:
A visit to Angelo Gaja’s winery in Barbaresco is always exciting, because Gaja does make great wines, although of course they are very expensive. Even though I favor Barolos and Barbarescos made in the traditional style (with little or no barrique-aging), I must concede that the very modern-style Gaja wines are always well made. Because he adds a small percentage of Barbera (5 to 8 percent) to his best single-vineyard wines, Gaja cannot call them Barbaresco or Barolo; instead their appellation is simply “Langhe Nebbiolo DOC.” I tasted mainly 2006 and 2007s here, plus one 2004 Langhe Nebbiolo. My three favorite Gaja wines were the 2006 Conteisa (from the Cerequio Vineyard in Barolo’s La Morra zone); the 2004 Sperss (from Barolo’s Serralunga zone); and the 2006 Sorì San Lorenzo (from Barbaresco). All of Gaja’s wines, which are famously long-lived, require a good deal more aging to reach their peak.
________
Barolo’s are great. Had one last week. Smooth as silk.
Btw it was an 06.
Liked the link. I was ignorant of barbaresco myself. I shall check it out.
Love Barolos, have only had a Barberesco once or twice, not as familiar. Funny color… almost orangish.
_________
Well, fortunately the cattle chart doesn’t look that bad! Mmmmm, burgers!
It would be nice to see what happen to ADBE (AH) happen to SPY… couple of hours trading wipe out entire rise of Sept…
Inflation and deflation at the same time, not kindly eh. Too much debt and too much competition from China. But perhaps the stock market can recoup some wealth (in an artificial way, mind you) that has been lost in real estate and we go further.
You can add water to the soup only so many times and still call it soup…
🙂 !
Maybe ADBE is what finally breaks tech down.
Long Bedbug futures and exterminators..seems to conflict but no..more good shit from illegals..infestation…give us your tired and huddled..oh fuck we are so screwed
Buy high yield, write covered calls and hedge some of the downside risk in equities.
Cash and cash flow is king.
I would agree with that.
“I’m gonna throw the dead deer on the table and ask you what you think of its antlers.”
It’s bloated, it stinks, and now I have to throw this fucking table away. Thanks a lot.
Woof, woof! Right on, no question cash is king as long as the court jesters wag the dawg and set policy. That dawg won’t hunt.
Larry Summers is gone:
“Sept. 21 (Bloomberg) — White House officials expect Lawrence Summers to leave his job as the president’s National Economic Council director after November’s congressional elections…”
They should have waited until Sept. 22, the last day of summer.
Coincidence?
Fly
So you’re in the deflation or inflation camp?
Massive inflation is looming. What’s gold at again?
Fly i understand the frustration and talking your book a little but leave the fearmongering to the idiots at “zero edge”. Just take your charts and show us the longer term picture (last 2-3 years) not last few months.
The only job the Fed has is to not let a depression happen. In pretty plain language today they said they will throw everything in their power at it, including dropping millions of dollars in cash out of cargo planes, legalizing drugs and prostitution, They will be creating brand new industries and new revenue streams. This is what Ben thinks of day and night.
The market is believing Ben and pricing in inflation because the vortex is starting to turn. Thats why I went short.. I now see the errors of my ways….. yes we will pull back but see if on more bad news and the market ticks up.
Thats why they call it speculation… most are speculating that inflation will come.. we only have evidence that we are in deflation mode.
Its a vexing problem to say the least. we have all seen the vortex. the market crashed last time, but this time they have the power of the printer that’s whats different. QE in big fucking doses…. the trick is not to kill the patient, we are in uncharted waters….very few answers. High inflation seems the obvious choice, the market is not going up on a renewed outlook of growth and job creation.
The gold bugs and the inflation nuts are winning and got more ammo today… so what the fuck to do now……
Jump in i guess…
its fun to live in eventful times..
And buy the fuck way a 10% jump in housing is shit… that will create like 200 jobs..
What about the dismal consumer numbers… market went up… pricing in QE mega fuck inflation….
I for one will not stand in front of a steam roller…
No edit fucking button…. skipped a few words… in my haste. just fill in the blanks..
Good news market should go down… bad news market will go up….. INFLATION TRADE.
Still looking to short this run up….
Deep out of the money calls and chewing tobacco motherfuckers
Fly,
What do you think all those multinationals with hoards of cash are going to do when one of their competitors starts buying raw material with their cash hoard. There going to try to do the same thing. Who wants to be running a factory with 2000 employees and no material supply. It is already starting to happen in the plastics industry. Their are world wide shortages occuring over a broad range of resin product. Our factory is loading up on resin as insurance and a better store of our capital. Its the same as the husband who tells his wife we better buy 5 bags of Bucati rice at Costco because he fears some something is coming and food prices. If you could channel check Costco for bags of rice sold, you could frontrun the hyperinflationary event that is coming to a town and store near you. Got seeds?
Sierra
Apologies for my poor use of the English language. I need to type after I think, not vice versa.
So much negativity.
“We All Win When We’re All Broke.”
What’s so difficult to understand?
signed,
The Management
It’s an Egg Management Fee..
don’tch know.
While I am not a goat fucker, I am in Detroit, and I can tell you that regardless of whether the country gets stronger or not, this shit hole of a city is fucked six ways to sunday…whatever that actually means. We have half of the city government on trial for some form of corruption or other illegal act. Meanwhile, our working-for-free mayor is trying to make changes, but the ignorant assholes of the city are fighting him at every turn. These people are so fucking stupid, they think “the man” is always out to get them and every good idea gets shot down.
Anyway, this country is permantly fucked. We’ve often considered moving to Canada (just 15 minutes away) so avoid this crap. 20 years from now we’re all going to be speaking Chinese. Denniger had a piece the other day showing that right now, 100% of the collections the government makes go to entitlement spending…that means that anything “discretionary” isn’t even being covered right now. With Medicare and Medicaid sure to grow rapidly in the coming years, and receipts flat, down, or at best slightly higher, how are we ever going to pay for that?!
You can only refinance your “house” so many times before the bubble bursts and you’re living on a street corner in a refrigerator box.
RR,
Best of luck. I think you are right. If I were there I’d move asap. There’s trouble everywhere but less in some other places.
Move to Wyoming. We have goats the size of Black Angus bulls.
That dude from dope on a slope flipped from capitulation to euphoria within a span of 24 hours. No stopping the bull now.
Why do we try and play the down side of the market. Wasn’t 08 the time for that. If we know that the powers at be are making decisions to better our economy, why beat our monkey skull against that wall. My monkey size brain just wanted to say that.
the powers that be don’t have a clue what they are doing.
Bernanke has never been right.
Slate on the FOMC statement:
http://www.slate.com/id/2267899/
Lets live easily. Just print money. No need for people to do useful work.
Indeeud. Let the yellow men do it.
We want vacation!
That’s exactly right:
PRINT BABY PRINT !!!
What we need, is for Bernie Madoff to run on a newly formed Printing Press Party ticket. Who better to run this place than an SEC certified 10th degree Ponzimaster?
Indeud.
The Printing Press Party has a nice ring to it.
I would expect CNBC will be using this one tomorrow.
Money supply is falling. Can anyone here suggest what the Fed is supposed to do other than what it is doing?
This Fed action will also force the BOJ’s hand to do more too. Eventually the the ECB will intervene unsterilized too.
Resign after preparing a Fed phase out plan.
But they won’t.
As you know, this is not the 1st Fed; and hopefully not the last
make that, hopefully the last Fed (with the same government)
Bullshit. Ben has done a reasonable job in the circumstances. If he let the money supply contract we’d be back to the 30’s when between 29 to 32 the contraction of the money supply and other shit they did caused GDP to be sliced in half.
The money supply is falling and the Fed’s job is not to see it fall.
omg a man with the brains and smarts – a rarity these days. Still i don’t think anybody cares about the facts – its the blame game – fed,politicians, Wall Street; except obviously the households who doubled their debt/income over the last several years.
Never fuck with the Bearded Clam. He will fuck your shit up if you dare to short anything that is denominated in Dollars. Dollar is going to zero courtesy of the Bearded Clam.
Mr Bernanke has taught everyone this lesson time and time…
Remember? Just wait till it sinks in… He will not let this recovery falter.
He rules all of the planet’s wealth and you think he’s gonna let it crap out?
March 2009 was merely a dress rehearsal.
Scott Bleier.
Incredible string of egregious wins, matched only by non-stop told-you-so infomercials.
Any truth to rumor that this site will be renamed “Rabbi on Wallstreet” ?
Tell you what. I’ll just shut my mouth every time I’m right and when I’m wrong, I’ll repeatedly shout it from every rooftop on the interwebs.
Frankly I don’t think I’m being too arrogant about my winship or timing in this case. When I’m right I’m very very right and when I’m wrong I’m rotten…
And to my detractors, don’t worry. I’ll be plenty wrong soon enough. Then you’ll get to see how to limit the damage…
In tomorrow’s morning radio show, I will briefly address this very topic…
Haters always hate. Winners win. You, sir, are the latter.
Keep winning.
I see a ton of stock going parabolic too this will end badly.. IMO if Dow reaches 10900 by friday, short with impunity..
I’ve been away too long. That is one of the best posts I’ve read on the FOMC announcement today. Bravo, sir bravo!