Archive - Oct 2010 - Blog entry

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?

"In fairness, Larry [Summers] did a heck of a job," --Barack Obama-- "You don't want to use that phrase, dude."--Jon Stewart

Do you know what's happening right now?

"The Court requires an affidavit from Erica A. Johnson-Seck, a conflicted "robosigner," explaining her employment status. A "robo-signer" is a person who quickly signs hundreds or thousands of foreclosure documents in a month, despite swearing that he or she has personally reviewed the mortgage documents and has not done so."

Can Ireland avoid another potato famine? Not if they listen to senior advisers who are urging the government to use state pension monies to shore up their fledgling debt markets..

This has been a very funny story. It will end badly.

Junk economics and the Taylor Rule guide the Fed's QE2 monetary policy. Junk or not, the important thing is that they believe it. So does Goldman Sachs. How many dollars will the Fed print? $1Trn, $2Trn, $4Trn? You should know that they are all just guessing and have no idea how this will come out. Remember this word: stagflation.

Its really very simple ...

An excellent commentary by the director of "Inside Job"

They call it "Doctor Copper" because copper pricing is a pretty good indicator of economic health. It's more of a demand metal than gold or silver and hard to fake and there aren't any silly ETFs stockpiling it although China has socked away a full-year's supply, which has given copper a very false sense of demand...

The Bank of Canada Governor Mark Carney has made it quite clear that the “persistent strength in the Canadian dollar has the potential to seriously influence Canadian economic growth.” Further tensions in the global currency markets through intervention are forcing the Bank of Canada to consider exercising policy to manage the exchange rate.

Treasuries are trading at levels not seen since the depth of the 2008 Crisis. We just had a TIPS auction close at a negative yield for the first time in history, meaning investors are willing to LOSE money just to park it with bonds that supposedly adjust for inflation (TIPS adjust based on the CPI which is nowhere near the REAL rate of inflation… see tomorrow’s essay for more on this), and US corporations have ALREADY issued $217 billion in junk bonds this year, even HIGHER than last year’s RECORD.

I see this development as Risk Off.

“Goldman, unlike the rest of the street and practically the rest of the I banking world, is ratcheting up VIE risk!!! Is BoomBustBlog the only one inquiring as to WHY??? We have a few reasons in mind… And to think, many thought the Enronesque days of “hide the sausage” games have come to an end…”

If I don't see you no more in this bubblified world then uh I'll meet ya on the next one...
And don't be late