Archive - Oct 2010 - Blog entry

Episode QE3 of the Scam Trek Series takes ZH readers on a guided tour of select "Garage Mahals," "Hummer Houses" and "Faux Chateaus" located on postage stamp lots somewhere in the verdant Northern quadrant of the Borough of Queens, New York City. Ahead Warp 3 Mr Zulu...

Banking and fraud were born into our global word as Siamese brothers, inseparable since birth. And just like Siamese brothers, if ever separated, they would likely die together as well. But how well do we really understand the illusory empire of the banker-influenced commodity world, where bankers often create artificial supply and artificial demand numbers to set real prices? Here, we take an inside look into this complex, often-misunderstood Empire of Illusion.

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. For example if 72.99% of traders are long the USD/CHF we look for opportunities to short that pair. The pairs that we feel offer the highest opportunity for success are described in the Short and Long Zones.

Still more shenanigans ...

Those who were too clever by half and traded out of the yellow metal early are now trying to buy it back on any dip, driving it relentlessly higher. The gold industry is in a supply/demand sweet spot now, as supplies have been ex-growth for a decade in the face of a rising tide of demand. Peak gold is upon us, and unexploited deposits are getting farther and fewer between. (INIVX), (AEM), (KGC), (GOLD).

Stay tuned – the private equity trend is one to watch carefully.

The latest on Apple's earnings that went far in corroborating what I've been preaching for months to a bunch of crazed, excitable Apple fanatics who simply refused to see facts for what they were. Its called compression!

Due to the abundance of inventory and supply, crude has remained range-bound, and started to decouple and underperformed other commodities, as well as equities. While high stocks level traps crude, the dollar weakness, on the other hand, has prompted some OPEC members to support $100 oil.

We have a clueless top 10% partying on as if the World revolves only around their net worth while the bottom 90% of the people tumble into the abyss - getting a little poorer and a little madder every day.

Less than an hour after my CNBC Squawk on the Street segment on JP Morgan I read JP Morgan's analysts predict that forced repurchases of soured U.S. mortgages may be the “biggest issue facing banks”. I'm simply flabbergasted. Didn't I say the same thing on the 12th, as well as the 18th (OF JANUARY!!!). Worse yet, it appears as if Jamie Dimon didn't get the memo or read BoomBustBlog before the conference call. Somebody buy him a subscription!!! Yeah, I know I'm not making too many new friends on the Street, but I try to call 'em as I see 'em...

What is good is not always good.

Thanks to the world central banks’, particularly the US Federal Reserve’s, constant liquidity injections combined with the automation of almost ALL trading courtesy of the massive rise in high frequency trading programs (HFTPs) and other computerized trading systems, the world financial markets have entered a period of incredible correlations between asset classes.

In plain terms, everything is now moving in near perfect direct correlation or near perfect inverse correlation to everything else on an almost tick-for-tick basis.

SmartKnowledgeU Managing Director JS Kim's third appearance On the Edge with Max Keiser this year. This time around JS and Max discuss the fraudulent nature of the global monetary system and the failure of the rest of the world to connect the fraudulent monetary system with many of the world's other significant problems.

Once again, art imitates life...(any resemblance to actual jackasses and economic events is not a coincidence)...

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. For example if 72.99% of traders are long the USD/CHF we look for opportunities to short that pair.