Friday, August 28, 2009

Brief Summary of Bank Failures - I see them EVERY Friday

Well the Gov pumped say $10T into the economy, making the future generations pay for the recent 2 decades of avarice. Net result? A minor and temporary reduction in losses in GDP.

Will bank foreclosures decrease or accelerate as the well documented increase in mortgage rate resets, and continued massive increases in unemployment go on? Convince yourself, research the mortgage rate resets that are baked in the cake...this is going to end very badly. I am not convinced it starts next week, but it does have a chance, at least in the stock market. However, after the largest mania of perhaps a millenium, why not a 61% retrace of the prior highs, why not indeed.

It seems obvious with the highest bullish percent sentiment EVER, that the masses have not learned a thing. They seem to believe that somehow this "economy" based on a house of cards and corruption is actually "resilient" thus proving how strong it is. It does pain me to watch my beloved country turn into this mess.


    The NYSE Bullish Percent rose over the course of the past week to a reading of 79.3% from last week’s reading of 76%. After a pullback over the previous couple of weeks the BPNYSE has recovered and is actually within a percent of closing the 80% box. Should the BPNYSE hit 80% this would be just the 16th time since 1955 that the Bullish Percent has reached the 80% level. The last time we saw this indicator at or above 80% was during the market rally in 2003, and it was in September of that year the BPNYSE actually made it to 80%. Nonetheless, as it stands now we would still rate the BPNYSE as positive as this chart remains in a column of X’s with nearly 80% of the stocks on the NYSE on a Point & Figure buy signal. With the reading still high, we are continuing to operate in the Red Zone so all of the plays we have been talking above over the course of the past few weeks would still hold true today: buying stocks on pullbacks, selling stock and buying calls, selling stock and buying an ETF, buying protective puts, selling calls to create on overwrite, tightening up stops, taking partial profits, etc. Those wondering, here are the other times that the BPNYSE has hit 80%:
    1955, 1958, 1959 (twice), 1961, 1963 (twice), 1971, 1975, 1976, 1978, 1982, 1983, 1896, 2003

  2. great looking pup.. I have one too

  3. Please, if you are quoting charts on a tech site, please send the chart link. The info you present does not mesh with the data we have. If you have back up please send it. If you are just copying some source, please quote the source as is appropriate.

  4. Dorsey Wright...publish wed...a lot of other data similar to what BPI's represent if you hav e a interest

  5. mrendahl, big Mahalo!
    I signed up for the free 3 week and will check it out. In the past I have studied the P&F chart but have never "made it my own". The simplicity and objectivity is an attractive thing of course.


Insightful and Useful Comment!