Archive - Oct 4, 2010 - Blog entry

As hot as they’ve been, emerging markets are only just getting started. By 2018 the combined GDP of the BRIC’s, Brazil (EWZ), Russia (RSX), India (PIN), and China (FXI), will match that of the US. China to maintain a virile 8% annual growth rate for eight more years, while the US plods along at an arthritic 2% rate. How the “BRIC” almost became the “RIC”. Jim Chanos, you may be right about a China crash, but you’re early by a decade! (EWZ), (RSX), (PIN), (FXI)

The recent data do not point to a recovery. Factory orders are declining and inventory is building up. This is not what Bernanke and the Team Obama expected to happen. The economy has been stagnating further and now we are just waiting for stagnation and inflation.

“Secondary buyouts are almost of bubble of their own,” said Jon Moulton, who helped start the funds that grew into CVC Capital Partners Ltd. and Permira Advisers LLP, two of Europe’s biggest private equity firms. “If firms keep selling assets to one another, how real are their prices? how real are their returns?”

The National Association of Realtors is a marketing engine with what some may call (but not I, of course) comedians for chief economists, yet their data and their economist’s opinions are quoted regularly in credible, mainstream financial news shows and newspapers. WHY???!!! On that note… Bloomberg reports the NAR states "Pending U.S. Sales of Existing Homes Increase 4.3%"

Liberals and conservatives, progressives and libertarians should all be up in arms about this.

We have a right to know what we're eating.

Our research on Interoil (IOC) leads us to believe there may be a lot of skeletons in its closet, making it a top choice for our next bearish position.

Another day another falling dollar.

Good thing too or we'd be heading for the toilet this morning.

An aid for visualizing the full ponzinomic spectrum.

This sure sounds like a perfect set up for a reversal to me. On that note, I expect this week we’ll probably see a final impulse high on stocks, but that stocks will end the week down, creating a reversal week. This in turn I believe will be the beginning of a larger, VIOLENT collapse that will take stocks back to 1,040 on the S&P 500 in a matter of weeks. And ultimately, I believe we're heading to 875 by year-end.

Things are much worse than the Case Shiller index, and the media that quotes it ad nauseum, are leading many to believe...

Retail Traders as a herd are wrong…most of the time (sorry guys its true).

This daily report is designed to help traders find opportunities to trade against this group. The premise is very simple we are looking for 66% of retail traders to be trading either long or short a currency pair, we then look for opportunities to fade (trade against) this group.