Saturday, June 1, 2013

Deflation and Inflation

Let me sum this up quickly.

Inflation in everything you need

Food, Water, Gas, Electricity, Housing, Honest Money

Deflation in everything you don't need

Large screen TV's, designer clothes, fancy new cars, everything else.

Thursday, May 30, 2013

Wow, this is worth a good ol belly laugh.

Stocks Jump as Disappointing Data Cool Tapering Worries

FOX Business: Capitalism Lives Here
The markets advanced solidly on Thursday after a round of weaker-than-expected economic data helped ease tensions about the Federal Reserve paring back its bond-buying program.
Today's Markets
As of 12:16 p.m. ET, the Dow Jones Industrial Average climbed 67.9 points, or 0.45%, to 15371, the S&P 500 gained 9.7 points, or 0.59%, to 1658 and the Nasdaq Composite advanced 27.1 points, or 0.78%, to 3495.
It's been a manic week for Wall Street. Strong data ignited a rally Tuesday, but then fears that an accelerating recovery will cause the Federal Reserve to slow its easing program sparked an equally large selloff Wednesday.

A nice ES trade using Bernoulli Channels

I posted this last night in real time (see 2 posts down) as I took this trade.

This is a swatdown by the Bernoulli 177 line, and then a backtest of the B133 channel line, could signify a breakout upward, further crushing the "sell in May crowd".

The purpose of the market is to do as much damage to as many people as possible.   Think like a broker/banker, think like a criminal.
Turned into a nice but small trade.   Banked the profits, after getting bottom ticked, I was ticked off.    LOL, funny how things turn out.    Greed is not always good.

Wednesday, May 29, 2013

Blow off top and perhap the Great Unravel

I could see a relentless final, even higher sloped push upward to really crush bears and get people to jump on the "got to have some stocks, you are insane not to have stocks" kick.

And maybe that comes to an end this year.   With a huge unravel, portrayed at first in Orwellian manner as a "healthy correction".   

Per item 2 of MISH's list below......I disagree with any ETF as a store of wealth.    Some ETFs can be good short term trading vehicles, but ETF "value" is created by option or swaps, and in a choatic environment, perhaps intentionally created, there value can swing wildly.   Review the flash crash.   Some ETFs went from 80 to 2 in minutes, with no market to buy to coverage your stop loss....until buyers come in at "2".     ETF's are therefore a joke.

Money in the bank can be FDIC insured, but we know the bankers, brokers, and those in charge of supervising them are criminals in cahoots.    When the chips are down, there is no reason the FDIC won't come out an say....hey we only can provide protection your sum aggregate of all accounts to $200,000, and we have put that $200,000 into safe keeping as the "Patriot Reserve Fund" to prevent runs on the banks.     Everything above $200,000 is gone, sorry.     That method protects the masses, to prevent revolt, and still keeps those with "something to lose" on the hook to avoid them making too much noise, or you will also lose the last $200,000 too.  

Finally, many legal bodies are now treating money you have "deposited" into a bank, instead treating it as a loan to the bank.    If the banks goes under, they declare bankruptcy, and they don't have to pay back their "loans".    That means you get screwed, legally.    You thought you had "deposits".

From MISH site.

Five FDIC Alternatives

  1. Treasury Direct:  You can safely buy short-term US treasuries directly.
  2. Short-Term Treasury Funds: The iShares Short Treasury Bond ETF (SHV) holds Short-term U.S. Treasury bonds with remaining maturities between 0 and 1 year.
  3. Brokerage account at places that hold excess cash in treasuries. Not all brokerages hold client cash safely. Interactive Brokers is one of the better ones in my opinion. ETrade nearly went under because of risks it took. See E*Trade Heads For Bankruptcy?
  4. Physical gold or silver in your possession
  5. GoldMoney, Bullion Vault, and other places that store precious metals for you.

Bullish on ES

This is a swatdown by the Bernoulli 177 line, and then a backtest of the B133 channel line, could signify a breakout upward, further crushing the "sell in May crowd".

The purpose of the market is to do as much damage to as many people as possible.   Think like a broker/banker, think like a criminal.

Tuesday, May 28, 2013

What do Basel 3 and Oscar Carboni have in common?


Yesterday Oscar states "don't fall in love with the downside, bonds are going to get hit and propel stocks higher."

FYI Basel 3 also elevates Gold to be a tier 1 asset, the best.   So it is as "good as cash", kind of funny really.   Basel is the Central Bank of central banks.  They are requiring central banks to hold more Tier 1 assets and that goal keeps increasing, see chart below.

 Oscar introduces a new trade reversals.

and Finally as Orwell is RAFB (Rolling and Freakin Barfing) in his grave, Scotland appoint a government worker to look after every single child.   So as a parent, you will have a Goverment worker speaking privately to your child and you cannot be there.

The Empire Crumbles, Rocket Scientists will now tax "moving money"

 In a sign of desperation, the "strong" countries of Europe have decided to commit suicide.

For years we have stated that the Great Unravelling would start with Europe then China, then USA.
Under the current plan, a 0.1pc levy would be charged on equity and debt transactions and a 0.01pc tax on derivatives. Germany, France, Italy and Spain are among those that have agreed to the plan, which the European Commission expects will raise €35bn (£30bn) a year and hopes will be in force by 2014.
To prevent business moving abroad, the FTT carries an “extra-territoriality” clause that would see the levy imposed on any euro-denominated transaction, even in countries that are not signed up to the FTT. The UK is challenging the decision in the European courts, and the US and other countries have vowed to block it – which would almost certainly make the FTT unworkable.

Monday, May 27, 2013

Breakpoint Trades Newsletter

UPDATE Matt from BPT sent me a link to the full version of the Newsletter with the Audio Overlay, so this is the complete product, for free, enjoy.   Drop a comment.

48 Professional Charts.

Original post----------------------

Here is a PDF version of the Memorial Day BPT newsletter, General Market.

 They also do a big commodity newsletter on the weekend.

Sign up for BPT using the link on the right, they give me credit for referrals. thanks.

The no brainer choice is the 6 month membership.

 It will help you make more money. steveo

Really Good Video Summary

Saw this on Zero Hedge, somehow also related to Mauldin. Grab a suntan and watch it!

Sunday, May 26, 2013

Widget to try