Archive - Oct 2010 - Blog entry

The market closed moderately down today as investors, gamblers, and algorithms everywhere await tomorrow's jobs report which will likely be as telling as one of Eddie Long's altar boys (well for the ten or so years prior to this one) because thanks to the delightful birth/death model (where the output is more hard-coded than the Kryptos sculpture) the numbers will be more manipulated than Lexington Steele's johnson on the set of any of the Manhammer films.

It's not just a Canadian problem...but hold on, bubbles are on their way!

Sometimes images can illustrate what words can't quite convey ...

How they steal your home Florida.

“I personally did not do it because I refused to do it.”
“I wasn’t going to falsify a military document.”
“I was told that that’s fine, somebody else on your team will do it.”

And that is not even the worst part..

GRANDPA JOE: But this roof is made of glass. It’ll shatter into a thousand pieces. We’ll be cut to ribbons! WILLY WONKA: Probably.

This is the math, the reasoning and the logic behind a nearly inevitable default by Greece. Why hasn't this been present in the mainstream media?

DoctoRx and I have been watching the Consumer Metrics Institute's leading economic data for a while and were impressed by what we saw. Recently we had an opportunity to interview Dr. Rick Davis, a physicist, the founder of CMI, and came away as believers (with caveats) in his approach.

Now, now ... don't worry your little heads about anything. We'll tell you what you have to think about and what you don't.

Now that Research in Motion has reached our valuation target and offered the opportunity for material gain for our subscribers, I have decided to released the full 45 page professional Forensic Valuation report to the public. It is quite extensive, and has been quite accurate to date…

Cold feet? Yes, but I am taking money off the table.

This horrifying fact comes courtesy of Morgan Stanley analyst David Greenlaw. And it confirms what I’ve been saying since the end of 2009, that the US has entered a debt spiral: a time in which fewer and fewer investors are willing to lend to us for any long period of time… at the exact same time that we must roll over trillions in old debt and issue an additional $100-150 billion in NEW debt per month in order to finance our massive deficit.

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.

Remembering Crazy Eddie Antar...

It was a strange day in the market as gold reached a record $1,350 an ounce (making it the 4th most expensive material per ounce in world after unicorn tears, Brooklyn Decker's vagina, and of course the rarest of materials, John Edwards' credibility) which continued the biggest rise in hard assets since the Houston 500.

If you bought every Friday close this year and sold the Monday close, your return so far would be 14.20%, versus a 0.42% return on the S&P 500. Apparently, the market is paying a huge premium for traders willing to run the weekend risk. The reasons why do not bode well for the market.