Archive - Oct 2010 - Blog entry

We are entering a major secular bull market in food, as the world is making people faster than the food to feed them. A 175,000 new customers a day. When push comes to shove in the global economy, the commodities you have to have are the grains. The Scottish reverend Thomas Malthus must be smiling from his grave. (CORN), (AGU), (MOS).

A woman goes to a party or is promiscuous and sleeps with 6 men in a night or week. The following week she is pregnant. Who is the daddy?

D'oh!

I thought I smelled something today.

A piece of the entitlement pie.

If there is a provable relationship between formal education and intelligence, it is probably an inverse one. The more letters you have behind your name (MBA, PhD, JD, MFA, CPA) the greater level of stupidity one likely possesses, as the attainment of a higher level of education means that one has been exposed for a far longer time period than the average citizen to the indoctrination process.

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?

I have one question: Are Lloyd Blankfein, Lawrence Summers and Robert Rubin members of the NYC Harvard Club? If not, they should be...

In view of the blistering Q3 9.6% GDP growth rate, it’s time to increase positions in the Middle Kingdom. Look for cash to rotate out of virile, young emerging markets back into the established BRIC’s. We have blasted through the 200 day moving average, suggesting that this move may have the legs of Secretariat. Rumors of its imminent demise are premature by at least a decade. Jim Chanos, please get out of New York and widen your circle of contacts. (FXI), ($SSEC), (EWZ), (RSX), (PIN).

The market rally was back on today with stocks shooting up faster than Ben Bernanke could chant "quantitative easing" over his bubbling cauldron (though he was heard incanting: "Double, double toil and trouble; Dollar burn, and assets bubble")...

Canada's pension system is one of the best in the world, though there is room for improvement. Overall, the pension experts judged the US system, as well as those in the UK and Canada, as less sustainable than just a year ago, when they conducted their first joint international study.

Is America a great country or what?

A lot of economic reports have come out in the past several days but the data that caught my eye were industrial production, retail sales, and business inventories. There is evidence that retail sales have been improving but in light of a negative consumer sentiment, is that true?

Geithner’s strong dollar comments, China's surprise rate hike, and worries about the U.S. mortgage market led a flight by investors into U.S. Treasuries. Some analysts believe that there may be a currency accord right before the G20 meeting. However, from all indications, China and Geithner appear to be acting under totally separate agendas however “coordinated” they might seem.

Last week I thought the dollar was bottoming and I stand by that as it’s an important time to stay flexible and take those BS long profits off the table before the market takes it for you!