Archive - Oct 22, 2010 - Blog entry

What does it take to succeed in the world of entrepreneurship?

The market was mixed today as fears of currency wars formed the yin to earnings beats' yang (or the teeth to earnings beats' hummer if you will) and with macro data more non-existent than Mel Gibson's career, there wasn't much for the Street to manipulate.

11 seconds ...

That’s the word from US Treasury Secretary Tim Geithner as he seems to forget that people follow him around with notepads and microphones as he begins the game of "Survivor - Global Currencies" although Tim seems to be following the very interesting strategy of trying to be voted out first so maybe there’s a method to his madness after all.

Few commentators realize what the BIG story is for the financial markets today. The BIG story is not the mortgage fraud, the corruption, or the computerized trading (although the last one dominates US stock markets’ daily action). No, the big story is the monetary actions of the massively indebted US vs. the credit cooling China.

The unnamed official nearly fell off his chair laughing when I said "So, does the US still have a strong dollar policy?" It was meant as a joke.

There is a stampede by 49 alternative energy projects to get approval before massive federal incentives offered by Obama expire at the end of the year. The golden state has set a goal of obtaining 33% of its electric power from alternative sources by 2020, the most ambitious anywhere in the world. Making the state a hot house for new energy technologies that can be exported to the rest of the world. (SPIR), (HOKU), (FSLR), (TSL).

"All the burning mortgages that are falling after me--
All the default feelings and the bankrupt memories--
Every bank I left behind each time I borrowed more--
Burning mortgages lost forevermore"

I bet you won't see too many of these point's in your favorite broker's analyst reports!!!

Support and Resistance PowerZones for the Russell 2000 (TF Dec), Nymex Crude (CL Dec) and Comex Gold (GC Dec). These zones are created by combining multiple support and resistance methods including Volume Profile, Elliott Wave, Fibonacci, Pivot Points, Trend lines and Market Profile amongst others.

Here’s a little cross pollination to attract bears from all over. Karl Deninger, the editor of the Market Ticker, invited me over for a half hour chat on his Blog Talk Radio show to discuss things such as foreclosure fraud, banks, derivative risk and the markets. You can access the original airing podcast on Karl’s site. I have taken the liberty to append some graphics to the background to add some information to the discussion (see below). Enjoy!

Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs. So what are the signals?

After repeated admonitions from Larry Summers, Tim Geithner, and even President Obama to engage in more Keynesian stimulus, Germany's Chancellor Angela Merkel firmly rejected those demands and had the gall to suggest that such policies weren't right for Germany. Now she has the last laugh as Germany is recovering and we slip back into recession.