by Henry Becker on October 3, 2011
Commentary below
A few items to take away from the above charts:
First, is that we are seeing some PMI turning up but the economy and the market not. Second, we are seeing ISM turning up and the market not. The divergence in the bottom picture we saw a little of back in March of ’09 which was right when China set out with its stimulus and the market surged. So, the question is where is the market’s white knight? Also, could it be that the numbers are not as good as they appear. See my next post on some of the details of the ISM that are very telling New Orders and Inventories…
by Henry Becker on September 28, 2011
Click on either picture for a larger view side by side.
by Henry Becker on September 28, 2011
The idea being kicked around Europe as the possible savior of the debt crisis that is gripping the European continent is for the ECB to swallow the bad debt of European states.
The details are that the European Investment Bank would take money from the European Financial Stability Facility (EFSF) to set up a special purpose vehicle (SPV). The SPV could then be used as collateral for borrowing from the European Central Bank (ECB). This would allow the central bank to make loans to banks faced with liquidity shortages.
In short this is a recipe for disaster. Imagine if you will a fish tank with two little fish named EU Banks and the other PIIGS (Portugal, Italy, Ireland and Spain). They are happily munching on some fish food. On the top of the tank is the fish food container that says AAA fish food. Upon closer inspection we see that above the AAA fish food label is the real label crossed out – Rat Poison. Just as EU Banks and PIIGS finishes the last of the food a monstrous, evil looking fish ECB comes up and swallows both of them whole. Moral of the story is that the rat poison will kill the little fish and the poisoned little fish will kill the big fish. Even though the market may rejoice if this disastrous plan would come to fruition it will not be long lasting. There is no way this plan would (a) work and (b) is unlikely to be signed off by the German public. Good luck Eurozone.
by Henry Becker on September 15, 2011
For empire, it has sunk lower and Philly Fed had not much other choice than to go up.
And here is the S&P 500 still under a death cross of the 50 day EMA under the 200 day EMA.
by Henry Becker on September 12, 2011
What is worse being a liar or clueless? I say neither is good. Regard the following headline from Reuters over this past weekend. “Gold dragged down by dollar spike, profit taking.” Not only is the headline wrong but the article is the most misinformed or clueless rag I have seen in the past few days. As I watch Bloomberg TV today (9/12/2011) the talking head is perpetuating the myth that traders are selling gold.
The big problem here is gold was not dragged down it was hammered down with a flood of short futures contracts throughout the week. In one instance 400,000 100oz contracts hit the market in one minute (silver saw the same at the same time). This is more than coincidence. Most of the hammering of gold came in the overnight futures market. If I can see the clear manipulation of the metals markets why can the mainstream reporters not see it. Surely they are smart people. So I ask are they liars or clueless? The bottom line is gold and silver demand is surging but the pricing mechanism for the metals (ie the futures market) is being manipulated by global central banks and bullion banks. For more on the topic check out this post.
Anatomy of Manipulation
Information contained herein is taken from sources believed to be reliable, but cannot be guaranteed as to its accuracy. Market opinions contained herein are intended as general observations and are not intended as specific investment advice. Contact your investment professional to discuss suitability for your particular circumstances. This article does not constitute an offer of sales of any securities. Henry L. Becker, Jr. and/or Becker Advisory Services clients, at the time of writing does hold positions in physical precious metals and ticker symbol CEF GDX and GTU . Securities trading is speculative and involves the potential loss of investment. Past results are not necessarily indicative of future results.
by Henry Becker on September 7, 2011
Kathryn Wylde. You know one of the Directors of the Federal Reserve that is supposed to represent the public was quoted as follows:
“It is of concern to the industry that instead of trying to facilitate resolving these issues, you seem to be throwing a wrench into it. Wall Street is our Main Street — love ‘em or hate ‘em. They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.”
This is what she told New York Attorney General Eric Schneiderman in an attempt to pressure him to back off investigating big Wall Street banks and mortgage firms who helped cause the 2008-2009 economic collapse.
Besides the quote keep in mind that here day job is to run some NYC Partnership that is funded by none other than the big Wall Street firms she wants the Attorney General to back off from. Needless to say Obama is all for backing off is big funders on Wall Street as well.
Shame full! And, you thought the Fed was out to protect you.
by Henry Becker on September 2, 2011
by Henry Becker on August 31, 2011
Below you will find an even newer Markibble titled The Fed’s use of the Force. Here we find Sith Lord Ben and his trustee apprentice Sith Tim levitating the market.
by Henry Becker on August 31, 2011
I will let the picture say everything except I will add that one should regard where the S&P was last time the University of Michigan index visited these depths. The Fed will is looking at some serious use of the Force. They may need a Jedi for this economy and scratch the Sith Lord Bernanke and his apprentice Geithner.
by Henry Becker on August 31, 2011
Below you will find my latest Markibble titled Next Stop. As you can see the Fed is driving their train with a next stop at Fiscal Hell after a brief stop at Purgatory station to let off their bankster buddies.
