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Recap Of The Week's Main Stories With Art Cashin, And A Cocktail Napkin Chartist's Look At The Week Ahead
In this week's conversation with Art Cashin, Eric King touches on this week's most popular Zero Hedge post, which noted Wal Mart's CEO's observations on the modern equivalent of bread lines, in which customers line up in advance of their government benefits cards being recharged with money at midnight at the end of the month. Other items highlighted by Art include:
1) the weekly drubbing of the dollar which was the primary catalyst for the surge in stocks, nonetheless the main story is that due to cash repatriation taxation, investors should be aware that up to 30% of the recors S&P may not be easily accessibly by companies seeking to do dividend deals and buybacks (more here)
2) as Zero Hedge pointed out, the near-record NYSE short interest coming into September which facilitated one of the biggest short covering sprees since early 2009 (we will update this indicator shortly)
3) traditional S&P technical observations (needless to say, 1,152 on the S&P is critical resistance)
4) how the FOMC decision is "Music to Art's ears" - look at TIPS for inflection points in inflationary expectations (and as a reminder, we pointed out Thursday, and David Tepper repeated on Friday, that the M2 is now higher 10 weeks in a row)
5) on the latent surge in vol: "brilliant people on both sides of the argument, some saying double dip, other convinced the pick up will come)
6) as for his market's outlook for next week, it may go up... or down.
Full brief clip courtesy of King World News
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I used to like watching Art on CNBS until about a year ago, when he always said "the next few days will be the test" and then "could go up or down".
So, we have nice bullishness, insider selling, taxes likely going up, huge govy spending, low VIX, nearing the top of the range, huge ramps in nifty fifty stocks (AMZN and NFLX up 60% since missing earnings), a little bit of diplomatic distress here and there, government backstops being thrown about all over the place, etc. Hardly seems the recipe of a renewed bull market. So, I'll call it the bulltard market.
The Europeans can't be happy with EU at 1.35. The Comex must be smoking by now with silver up $2 in what 2 weeks?
Me thinks something is a-brewing. Let's get it over with so we can move on...
Reporter: "Mr. Morgan, what's the stock market gonna do today?"
J.P. Morgan: "Fluctuate."
"past performance will be no gurantee of future results." this time really is different. All eyes on Chicago.
"nonetheless the main story is that due to cash repatriation taxation, investors should be aware that up to 30% of the recors S&P may not be easily accessibly by companies seeking to do dividend deals and buybacks"
Seen a Bloomberg article this week where Microsoft went to the debt market instead of pulling back cash back home.
"Proceeds from Microsoft’s sale may be used to fund working capital, capital expenditures, stock buybacks and acquisitions, the company said today in a regulatory filing. The company also plans to pay for dividends and share repurchases because much of its cash is held overseas, a person familiar with the matter said last week."
http://www.bloomberg.com/news/2010-09-22/microsoft-sells-4-75-billion-of...
Money for nuthin;
http://www.youtube.com/watch?v=ACGUasFWVsI
Can't wait to see the Apple bubble pop, it's going to be epic.
that's scary.
One day I'll short apple, but not just yet.
I'll wait another 6 to 12 months when their Iphone 4 life cylce is going to go down and the androis start conquering the markets.
Art - Thanks for the weekly round-up. I appreciate your wisdom and humility in recognizing that the epic battle of the inflation vs deflation, bull vs bear, and Fed manipulation vs free market forces makes it extremely difficult to navigate the stock market.
I was watching Art on CNBC on Friday and noticed that something seems to be going on with him. He had a subtle shake of the head and some weird vocal ticks...did anyone else notice this? He may need to see a Dr., seriously.
Art is starting to feel the pressure to come up with more bullshit reasons the market keeps heading skyward. Soon on CNBS we will see something like this, I just hope it's Cramer not Cashin:
http://www.youtube.com/watch?v=HY-03vYYAjA
I predict the future is going to be pretty much like the present, but with some differences.
Now let's hear from Art...
I think it's kinda weird to describe a falling dollar as "the weekly drubbing of the dollar" considering the FED (and pretty much every other central bank) is doing it on purpose, and cheers when the manipulation sticks.
Poor Art Cashin.
Doesn't stand a chance against the Hi-Fi Bot traders, XBox gamers, momentum junkies, and all the other young ones.
It's like watching Kobe Bryant in a one-on-one match vs. Archie Bunker with his pants down around his ankles.
No wonder Art is suffering from various ticks and twitches. He must be constantly looking over his shoulder.
The Young PigMen are throwing the old sows upside down these days.
LMAO!!!!!!!
Is that a pig gangbang?
I love it now that
Robo's drinking the
kool aid...okay, he's not drinking it, he's genuflecting
on bended knee in
front of the dispenser.
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Send Allan Greenspan a Gucci diaper bag!
* off beat question * Are you a World Class Sprinter ?
You do go by " Fast Twitch "
It feels like the 1812 Overture--like we're building towards something of epochal proportions.
Outlier events have been cancelled until further notice. However, should such an event occur and leave share prices in a distressed state, the offending trades will be unwound to reflect the previous close.
All you in-duh-vidual investors, line up! Time for your daily meds.
When Buffett bought Burlington Northern, that was the biggest inflation bet of the past fifty years. Those rail lines are the direct barometer of inflation - steel, lumber, and land - jjust like housing but with cash flow.
The markets will go up this week. The FED gossip will make it so.
Japan is going to throw another nuke at their currency and fail
Benny B. made it pretty clear this weekend that the economy isn't growing as fast as it should.
And Oktober will be halloween month, so I think we'll see some scary ass shit in the next 5 weeks.