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Government Turnover Tuesday – Time To Blame the New Guys
Government Turnover Tuesday – Time To Blame the New Guys
Kick over the wall
Cause government’s to fall
How can you refuse it?
Let fury have the hour, anger can be power
D’you know that you can use it?The voices in your head are calling
Stop wasting your time, there’s nothing coming
Only a fool would think someone could save youIn these days of evil presidents
Working for the clampdown
But lately one or two has fully paid their due
For working for the clampdown
Investors were very excited yesterday about the bloodless coup that is planned for later this evening, when the Republicans plant to take back the wheel of this nation after taking a 4-year break from their last turn, which ended up in a massive collision that caused a 40-nation pile-up on the global economic highway.
Now they promise they’ve sobered up and learned their lessons and are expecting the voters to welcome them back with open arms and Wall Street could not be happier to welcome the new boss, who is the same as the old boss that let them operate free of rules and restrictions and not only bailed them out when their gambling spree lost them $4Tn, but now wants to make sure they continue paying as little tax as possible as they reload for FCII (Financial Crisis II – I want to coin this phrase early).
We have simply been enjoying the ride (see David Fry’s chart above of yesterday’s wild action) and making money off the chaos. After all, if we are going back down the road that almost wrecked the Global economy just 2 years ago, we are likely to get another fantastic buying opportunity so we stay in cash and do our hit and run moves like yesterday, where I sent out an Alert to Members on the SPY weekly $118 puts, which came in better than we expected at .70 and made a near double by the afternoon, topping out at $1.39.
Why do I say better than expected? Because I called that trade at 6:03 am, 3.5 hours before the market opened saying: "Obviously, the move is to go short off the gate, using a line like 1,190 on the S&P as an on off switch. " This is not about my ability to call a market, this is about how pathetically obvious the market is to call (and take full advantage of) as we move back to the blatant, obvious, fearless manipulation that wiped out Trillions of dollars of middle-class equity before this country had it’s brief flirtation with hope and change.
Today we have another oil pump, after yesterday’s failed run at $84, which has been tough resistance at roughly $36.50 on the USO ETF. USO also has weekly options we can play and the $36 puts bottomed out at .50 yesterday and topped out back at .70, which is a nice 40% intraday so, if given a chance to get back in at .50, we can use the $36.50 line as a stop and look for a 20% gain as a quick play and we can leave a little on the table if things go well as tomorrow’s inventory report or any election disappointment (any possibility of regulation or fiscal/monetary restraint would disappoint commodity pushers) can easily make this a double. Oil futures can also be momentum traded short off the $84 line, of course, using the same logic.
Will the elections be enough to take us out of our trading range or will they prove the top? It is still all about the dollar, which peaked out yesterday at 77.60 as the markets tanked but is now back below 77 in pre-market trading so, of course, the futures are loving it. Only, not so much as usually such a major debasement of our currency would be more widely celebrated than a half-point bounce. Still, copper is over $3.80 ($3.82) and oil is over $82.50 until inventories and gold is $1,350 so we have to respect the technicals.
Today will be a day of uncertainty but anticipation is reaching frenzy levels – not for the election but for the very much unelected actions of Mr. Ben Bernanke tomorrow, who will continue to tax us without representation as he takes away the value of our savings almost as fast as we can add to them so we’d better keep finding our daily doubles – it’s the only way to stay ahead of the game as we hyperinflate our way back to FCII.
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Agreed, thank you.
$Trillions$ in debt and very likely that the election makes no difference.
Decisions of import made by unelected official of a private banking agency that has it's fist and foot in every American's bank account, home, and life.
Commodities such as oil and gold are up at the same time as markets while the Dollar gets pounded along with it's purchasing power.
For the moment the game can be played for short term profit; however, the long term picture is stagflation/hyperinflation.
Obama walked into the white house and got Bush/r shit on his shoes. The Obama walks on water strategy worked, anything less was failure. It was expected. This happened during Raygun,Clinton and Bush mid cycle terms. Same shit different party.
There were NO Clinton surpluses.. wake-up, the SS Trust Fund was raided, again. W-A-K-E U-P
but Bush gave them back to us anyway. I seem to remember getting checks in the mail. during a war no less.
Remember when Gore was mocked for his "lock box"
Go back to SLEEP!
again, zzzzzzzzzzzzzzzzz
RepubliKeynesianism is once again the order of the day - as it has been, unbroken, for 30 years (except for those Clinton surpluses - but that clearly an accident).
About tonight's results they should simply announce: "Ladies and Gentlemen, we are happy to confirm the official results: America still has Two Santa Clauses".
Three points.
1. Fed will not announce specific numbers. They may announce intentions, direction, but no specifics, in magnitude, time or mechanics.
2. Beware the lame-duck Congressional session. Woe be to taxpayers when ousted lawmakers are permitted to take their frustrations out on revised tax legislation. And with impunity, I might add.
3. Genius of Republicans to throw McCain to wolves, without a credible running mate, and to (implicitly) support Obama. Now Obama is the fall-guy, the economy really tanked on his watch, as he exploded government spending, and a frustrated and angry electorate votes Republicans in (net: 112 loss for Dems in House; 14 in Senate; 16 in Gubernatorial statehouses). Just in time for reapportionment; weight of demographic trends and Republican control may exile Democrats for another decade.
Blaise
Won't get fooled again..
The Who
http://www.youtube.com/watch?v=Rp6-wG5LLqE
I'd like to see the House audit the Fed. That would be worth it.
whenever anything goes wrong "WE THE PEOPLE" have only ourselves to blame.
http://covert2.wordpress.com
Our votes don't matter. Stupids are told how to think. The smart ones follow Stupid.
Just like the markets. It all melts up. It's all in a computer now. Dow 12,000. YUP. LOL
I've never been to Phil's web site, but am curious as to whether it is as filled with political bile as the articles that Irene drags over? This article was largely worthless. Elephants, Donkeys- they're both lesser species of mammals....both doomed to do what they do- eat and poop.
There was nothing of any merit in this article. Why did you cross post it?
Republican's just taking their turn in the barrel. It's gonna be messy because they have no manners.
And our Democrat friends are so civil?
please my animal friends!!!
Can't we just remain civil and say "Fuck them both"?
The elephants might take over the house. If they do, so what? The asses in the Senate will kill anything the elephants pass in the House. And if by chance the 2 chambers can muster some compromise, they do not have the votes to override Obamas certain veto pen.
Hooray, the baby-eating party takes over the house!
just replacing the baby killers; what's the difference? Uber partisanship is awefully dumb these days, considering that the final word is always with the FED and their fellow banksters who, I'm sure, will continue to leverage/hedge their contributions to both Schumer and McConnell.
Hah!
D's are Soooo last election cycle....
Lol, so it could go up or down?!?
I just flipped my lucky coin and it's clearly going to go up.
If only we still had Octo Paul... he would have known...