Archive - Sep 2010 - Blog entry

Last week I forecast that we would see a reversal in stocks. The market did indeed show signs of breaking down on Wednesday and Thursday, however, the Fed’s juice managed to keep stocks afloat and closing in the green for the week. All told, the Fed injected more than $10 billion into the market directly via its three Permanent Open Market Operations (POMO) pumps. However, Bailout Ben wasn’t content with mere open market juicing, so he pumped another $10 billion into the system “behind the scenes.”

The next Microsoft is emerging and nobody outside of Apple is paying attention!

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.

This time Gordon Gekko is John Paulson, the bad guy is Goldman Sachs, and Ace Greenberg throws himself in front of a train. Are there any lessons to be learned from this generation’s Wall Street?

Bonus question? What's the prize?

The U.S. SEC denied the application by China's Dagong credit rating firm of NRSRO status citing concern with cross boarder supervision. Dagong immediately issued an angry rebuff calling the SEC’s decision discriminatory, and that Dagong aims to enter the U.S. market to protect China's interests as the largest creditor there.

In the Eurozone, sovereign debt issues resurfaced with concerns about Irish and Portuguese debt. The weaker-than-expected Irish GDP data heightened fears that bank restructuring added further crippling weight to the government’s debt. Irish real GDP is currently 13% less than it was at its peak in the fourth quarter of 2007.

Oops...

Was Japan’s massive $21 billion intervention in the foreign exchange markets the opening shot in a global attempt at quantitative easy in the run up to the November elections? The silver move suggests that the economy may be stronger than the “double dippers” realize. The asset class that has been trouncing all comers since 2000. (GLD), (SLV).

A tale that leads to Bernanke's "QE-2 Celebration Bash".

While the US can handily beat armies, defeating an idea is impossible. With the planet’s fastest growing population, Muslims are expected to double from one to two billion by 2050, the terrorists can breed replacements faster than we can kill them. The US will have to maintain a military presence in the Middle East for another 100 years. The goal is not to win, but to keep the war at a low cost, slow burn, over there, and away from the US.

As of June 2010, China's netizenship climbed to 420 million, more than the population of the entire United States. Some believe the growth rate of China’s internet users will slow along with its economy. Now, McKinsey Quarterly just released a new forecast this week that Asia’s internet users will reach more than 1.1 billion and $80+ billion by 2015.

My meeting with Petros Christodoulou, the man in charge navigating Greece through its 300 billion euro debt storm...

You might be surprised ...