Typically bonds trade counter to stocks. Meaning: when stocks trade up, bonds go down and vice versa. However, during this recent run, both stocks and bonds have risen in tandem, which raises the obvious question: what’s different this time around?
Is it the Fed’s purposeful intervention that is artificially depressing yields in an attempt to rescue the housing market? Think about it. They are “creating” wealth via a roaring stock market and keeping rates absurdly low at the same fucking time–diabolical genius!
They are having their cake and eating it too.
The rising wealth wave, that is the stock market, is inherently inflationary. Fuckers like me go out and buy boats, cars and clothes. Plus, I might hire a blogger or two. By keeping rates so low at a time when the market is ripping is better than any tax cut “the chimpanzee” (Bush) ever passed. Obama is a financial guru, led by the greatest man who has ever lived, Benjamin Bernanke.
Naturally, this will end badly, vis a vie $100 tomatoes and things of that nature. But, in the meantime, shit is good.
Disclosure: I am still long fuckloads of VXX.
http://www.youtube.com/watch?v=yYNcBcDmFTs
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I dunno, but i sold all of my intermediate term bond holdings today and moved into short term treasuries.
De facto devaluation?
I still have VXX tits.
His name was Hank Paulson.
Wishing you luck, would hate to see a repeat of the 2010 fall, re VXX… 8(
technical backfill, in my view –
Hon this dinner is ripping tits…
🙂
shit is good.i got some good shit the other day. what kind of shit you got ,PAL!
whats for dinner tonight?
shit on a bun.
just make enough for yourself
i asked what kind of sammich he ate,his one buddy says,fuck him, he eats shit on rye,and me, being the good buddy that i am, said, pffft, he dont like rye.
My takeaway…
…plant $ome tomatoe$ in my yard this $pring.
Buy a farm too
Howabout farm equipment? Freaking ag dealers are going garbanzo right now.
_________
Practically speaking, how does one who has a family living in a house on Long Island buy a farm?
Honest question. Quite often, I read about how people are doing it but I still don’t understand how, unless you are prepared to relocate and start tilling soil or milking cows, someone from the city or the suburbs with a family can do such a thing while keeping their day jobs.
marketable skills are your greatest asset, a house is only a utensil in life. family needs stability especially teenagers, so moving is bad unless necessary.
Easy answer. Move away from Lawng Island.
one or the other will reverse at some point and the relationship will stick longer term
Next 3 to 4000 point Dow drop will be somewhat deflationary . Fund managers are buying like crazy here, to make up for doing terribly in the 2011 whipsaw.
Trapped fund managers getting forcibly liquidated. We’ve seen how that plays out before. And , it doesn’t lead until inflation until full blown intervention kicks in. Only, the next round of intervention won’t work. Mideast drama will keep oil between 80 and 120 for years. Too much stagflation risk
Next blogger should be a global macro trader. Check out Xiphos_Trading on twitter, that guy is money
He sucks
Lol ok
Off topic, but here you go anyway.
In small recompense for the months of great reading and profitable picks hereabouts, have a listen to these musical selections. If you have any inclination toward English/Irish folk music, they are among the best.
http://youtu.be/B-tiGvMqpU8
http://youtu.be/9uNn2TDDru0
Thanks again for this site and all who dwell here.
Montrose
Thanks, Montrose. Nice mellow music. Quite a contrast to some of the rap “music” Fly posts, LOL.
Nice Pic, Senor Fly
When you are in the 1%, you can afford $100.00 tomatoes.
People will have to be eating glue and grass before these assholes running the country and the financial system get what they deserve.
Carter Werth is the only positive voice on CNBC today. Guy Adami, Finerman, and a couple of other bearshitting asshats are trying to keep viewers from buying.
We will see about St Patrick’s Day who is right and who is wrong.
finnerman looked kinda dazed and confused there for a minute.poor girl,i think she lost money on all her wmt calls the last couple of years
I doubt if she spends much time at Walmart.
if she would have switched out of her wmt holdings and jumped into DLTR,that woman would have a glow on her mug,instead of the look on her face that looks like menstrual cramps…………….
I think we rip tomorrow. In which case I think we see 1400 or even 1450 before any meaningful pullback.
Also, the observation about bonds could mean we have yet to see bonds break down, and in that case we could see more fuel added to the rally. /ZB below 140’27 is a short
I just put in a light short on gold as a hedge its not acting great here after hours. Could pose a problem for general market tomorrow will be interesting
The good part about having the Daytona 500 on the Telly on a Monday night is that my wife is forced to watch it.
Now she wants to go next year.
I’ll have to tell her about the Coke Zero 400 (the old Firecracker 400) in July, but I’ll wait so I don’t press my luck.
Boogity, Boogity, Boogity.
“TC” … howz tha bunny?
.
Thanks for asking.
I kept checking on him much of the night and as he got worse (he had a stroke) I decided to take him to be euthanized early the next day so he didn’t keep suffering.
As all pet owners know (I read you had a rabbit, too) it sucks, but is in the best interest of the animal.
We have a Manx cat (no tail) and they were buddies and the cat keeps looking for him.
I asked my wife about getting some chickens (I live on 3 acres) but my wife said “no more barnyard animals.”
Do you have rats? When I lived in Windermere we had a mini orange grove and citrus rats. Took my move to FL to learn of such creatures.
I have a bunch of citrus trees and I am sure they are around.
About 8 or 9 years ago I had one in the attic but I caught him with a trap and some peanut butter.
We do have bears, foxes,possum,raccoons,venomous snakes, etc.
Never a dull moment.
Did you live near the Butler chain?
I should have bought the frozen out grove near Isleworth back in the ’70s.
Exactly right. When a pet is terminally ill, there comes a time when euthanasia is an act of love, and the best thing to do.
We have raccoons and several foxes living in the backyard.
… sorry to hear that “TC” !
I have a special place in my heart for rabbits. They are wonderfully fun, sweet and engaging little animals. Great pets ! As I mentioned before, easily litter box trained. Our lil “Nikki” was a total “house bunny” !
We miss tha hell out of her !
—
Right now … we are dealing with our Poodle, Gracie … she went blind (seemingly overnight last December) … diagnosed with SARD (Sudden Aquired Retinal Degineration) ! We are currently pursuing a treatment protocol of low dose cortisol injections and thyroid supplementation in hopes that some of her vision can be restored.
—
Our pets give us so much joy … and so much love … and so much companionship. They deserve our love and caring … and our very best effort … when they find themselves in a bad way !
Bless You !
Sorry about your bunny !
🙁
.
Sorry about your bunny?
Now that’s funny!
… REALLY ?
Live with an animal for 7 plus years !
Watch it grow sick and weak !
Make the gut wrenching decision to “put the animal down” !
—
I fail to see ANYTHING … even remotely funny in that !
.
When I was in highschool my girlfriend gave me a bunny rabbit for my birthday. I brought it home and put him in the basement where he shit all over the place! My dad threw the bunny into a cooking pot! When I confronted my dad all he could say was that that rabbit wasn`t shitting in his house anymore! So yeah! I get the emotional attachment! Back then I cried like a baby but I can laugh about it today!
Admittedly don’t understand the bond market that well, but yields on 10 year were appreciably higher during periods of outright QE. How can Op Twist have a greater effect on the bond market?
I am happy with my $TVIX position as I practice my Sublime Golf swing in my Living room. Its what one does when he’s not worried about the downside, as I sip a nice glass of Walker!
Uncle Warren said that he wishes he could buy 1M houses. Then Cramer picks up on that and says tonight “the housing market is back, it’s time to buy!”.
Cramer should know better than to mislead his subs so is officially as asshole. Warren is a shill for 0bama so he is excused.
Following Fly on the path of his winship I purchased 100 shares in CPST today! I’m prepared to double down if necessary.
Capstone Turbine (CPST) shares are trading at bargain levels and I expect them to trend much higher both in the near and long-term. The company helps its customers lower energy costs, capitalize on green subsidies and attain energy independence with lower downtime than conventional gas engine systems. The company has over 122 U.S. patents, industry leading reliability, award-winning systems and over 95 distribution partners. The market cap is approximately $320 million which is cheap, considering the market opportunity and growth for Capstone. According to a recent presentation, the company estimates that they have a $14.5B market opportunity and will capture $1.5B of it. This market is divided into 5 key segments:
Energy Efficiency for commercial and grid applications
Renewable energy – Last month, CPST extended its current original equipment manufacturer contract with General Electric (GE) to sell GE’s Clean Cycle waste heat recovery generator, which complements Capstone’s microturbines. The agreement now runs through January 2016, with GE providing parts support through 2020.
Oil, Gas and other Natural Resource Applications – These applications allow oil and gas producers to produce electricity in remote locations. This market is experiencing tremendous growth, especially overseas.
Critical Power Supply for applications such as cell phone towers; another high growth market overseas.
Mobile products such as hybrid commercial vehicles and marine applications.
According to the company’s last 10-Q filing, the company’s performance indicators are extremely positive:
Record product revenue – A 34% increase on a year-over-year basis.
Increase in average selling prices – Average revenue per unit increased for the third quarter of Fiscal 2012 to $161,000 compared to $110,000 for the third quarter of Fiscal 2011.
Improving margins – Gross margins more than doubled to 8.5% in 3Q2012 versus 3.8% in 3Q2011. Additionally, margins improved from the 6.1% achieved in the prior quarter of 2Q2012.
Decreased Expense s- There was less than $3 million cash burn in Q3, which is very healthy considering the $48 million in cash and receivables on the balance sheet as of 3Q12.
The market is starting to observe the impressive direction that Capstone is heading. As an example, Ardour Capital increased their price target to $2 and upgraded Capstone Turbine to buy based on higher ASPs and cost reductions on February 10, 2012. Also, Rodman and Renshaw rates Capstone as an outperform with a $2.50 price target. On December 21, 2011, JMP Securities started coverage on CPST at Outperform with a $2 target.
CPST’s management team has produced impressive results since they joined in 2008. They have increased revenues from $31 million per year to nearly $82 million or nearly 160%; all of which was accomplished while keeping production overhead nearly flat. I expect that management will continue to deliver strong top line growth and will continue to make progress on its margins primarily through pricing and cost reduction. Last year was the first in which Capstone made a profit, which is a significant turning point for the company. With 34% year-over-year revenue growth and improving margins, I believe the stock should be trading north of $2 per share.
Considering the current short interest of 40 million shares or 18% of the float, any news of new deals could drive this stock significantly higher in the very near-term. Since clean energy is in strong focus within Congress, Capstone could be a prime takeover target by companies such as GE. We believe the stock will be over $5 within the next 3 years and recently sold our long positions in First Solar (FSLR), JA Solar (JASO), LDK Solar (LDK), Suntech Power (STP) and FuelCell Energy (FCEL) with impressive gains. Based upon the foregoing, we see that Capstone is one of few alternative energy plays that is extremely undervalued.
Chart Chomping?
They can call this “recovery” whatever they want.
This post-recession (depression) market action, is hauntingly familiar to the post great depression stock market.
This post-recession (depression) market action, is hauntingly familiar to the post great depression stock market.
http://web.olivet.edu/gradusers/pnash/stockcrasha.htm
This market has run up into the depressed economy, it will continue to do so, until everyone thinks it is safe.
That is when Joe Trader will finally put money into the market. We already know money managers are desperatly throwing money at stocks to make up for their terrible performance last year.
Just like the great depression, the market shot upward for about a year, then -woosh-
A jumping out of windows crash over the follwing two years. Then lackluster performance for years afterward.
The dollar is eventually going to lose it’s global reserve currency status.
The inflation we are going to face after that is unfathomable.
Having said that, buy buy buy!
pardon the duplicate phrase!
Sounds like a fucking ponzi scheme to me but in the meanwhile, i might as well go on a cocaine induced buying binge.