Joined Jan 19, 2010
717 Blog Posts
A 13 Stock update on CreateCoin Premium…Another lucky number!
All news is good news?
So the unemployment number is benign with no great surprises. 50k jobs were created by the Federal Government and 15k added in retail, mostly in the home & garden department. It is spring, after all.
Not too hot, not too cold. It will be spun as “moving in the right direction” and since the stock market is on a mission, there will be much happiness…
But the dollar is up and so are interest rates. There is a time during a recovery where higher rates are actually positive for markets. That’s where we are now–and with another Discount rate rise coming, the thesis will be tested.
April 15th is coming. Get your money into the Wall Street Complex so they can get it to work! Hurry up!
Comments »IN LIKE A LION AND OUT LIKE ONE TOO…
Schedule
As usual, I will be posting my weekly diatribe on the markets either late Wednesday or early Thursday. I will then be working on our multiple stock update. We will cover existing positions and proposed shorts. Then I will post market charts over the weekend.
Comments »End of FED buying of MBS tomorrow…
Welcome to the new reality articulated perfectly by Senior Tropicana. An up day keeps Bernanke at bay. But this market is clearly Zombyized. Clearly one trading desk sells to another all day until the end of time. It is the ultimate pyramid scheme.
We all know that the market is in no way reflecting the reality of the economy. Government statistics are bogus and have been for years. No conspiracy there. The current situation is better than at this time last year, but last year was zero, a big goose egg.
You’ve heard the statistics: there has been no 1% correction in 8 weeks. 21 of 24 Monday’s are positive. The string of up days is historic in most major indices. And Apple rises 1.5% a day, every day.
Volume in the market is punk. The grind higher is done on ridiculously low volume and every pullback is of high volume. But then the volume just dries up and markets bounce again, and continue their low-volume grind. I’ll tell you what; when volume comes in on the upside, I will be very suspect.
Ever wonder why the market rises constantly? Because the FED has dropped an average of $24B in the lap of Wall Street every week for the past 52 through the buying of toxic Mortgage Backed Securities. $24B, leveraged at least 10:1 or $240B. Does that sound like $12T? Yup. $6B for stocks and $6B for commodities and corporate bonds. Don’t worry about Treasuries, there is another entire $750m program to buy them.
Are you getting the picture? Can you see how this has come about? Keep buying until you’ve bought confidence and the public comes in. And guess what. Most have fought it and still fight it, but there is plenty of new, fresh, crisp money coming from your savings accounts and going into your 401k’s and IRA’s. It is getting plowed directly into the market before you change your mind and ask for it back. But once it’s in your tax deferred account, there it will stay–unless there is an emergency and you need the money. But then the gov. gets a biggg cut.
The MBS buying program is supposed to end tomorrow, just as you are allocating your capital into your retirment account at quarter’s end. Will you provide the Wall Street complex with enough firepower to keep gunning the markets? I highly doubt it unless you pull all your money out of Pimco. But Bill Gross might have a heart attack on the air. Nobody wants that.
Can this go on further. Sure, but there are laggards to be bought and overexteded stocks to be shorted. To say this advance is long in the tooth is an understatement. If there is any real or extended market weakness, the FED will buy more MBS’s. But the hand-off from $24B a week to Zero should be a very interesting time in the market for all.
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