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Stocks Odd Man Out As Every Other Asset Class Has Now Faded LTRO2
Silver remains the best performer YTD and the Long Bond the worst performer but what is most notable is the quiet serenity of the equity rally continued through March as Commodities, Precious Metals, Treasuries, and Corporate Bonds all lost notable ground post LTRO2. Is equity keeping the dream alive as the liquidity spigot has slowed to a drop (for now)? AAPL had it largest 2-day drop for almost 4 months into quarter-end - ending under $600 - and the broad S&P 500 pulled away once again from credit yesterday and today as IG, HY, and HYG close practically unchanged from last Friday's low but the ES up 15-20pts. Of the S&P sectors, Energy was the only one to fall appreciably post LTRO2 with Utilities the only sector in the red YTD -2.6% as Financials +21.5% and Tech +18.5% dominate.
YTD performance of major asset classes - note the selloff in everything post LTRO2 (liquidity) except stocks...
Credit markets remain far less sanguine once again as the S&P 500 surged again away from credit which is practically unchanged on the week...
IG, HY, and TSYs all lost ground in March following the LTRO2 but stocks strolled happily onwards...
AAPL suffered its largest 2-day drop in four months (since the rally began) and closed the quarter under $600...
S&P sectors show Utes the only one in the red -2.6% while Financials and Tech dominate and post LTRO2, Energy is the only sector appreciably lower...
Charts: Bloomberg
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When does this break?
Eventually. Plan accordingly.
HEY TY LET'S PUT THIS UP AS A POST ON NEXT GOLD MANIPULATION (IT'S OLD NEWS, BUT WHAT ISN'T?):
The Wonderful Wizard of Oz – A Monetary Reform Parable The Wonderful Wizard of Oz by L. Frank Baum (Chicago, 1900) is a parable about Money Reform and the 1890s Midwestern political movement led by William Jennings Bryan (1860-1925); three times candidate for President of the United States (see his poster at bottom of this page). From 1891-1895 Bryan served in the House of Representatives, where he advocated the coinage of silver at a fixed ratio with gold, in order to break the bankers’ monopoly and manipulation of the gold-backed currency.Bryan and his supporters accused Eastern banks and railroads of oppressing farmers and industrial workers. Bryan believed that a switch to silver-backed currency would make money plentiful. Although correct, Money Reformers today would argue that money need not, and should not, be backed by either silver or gold, but only by the people, their skills, and their resources.
In 1896 Bryan delivered the following words at the Democratic National Convention: “Having behind us the producing masses of this nation and the world, supported by the commercial interests, the labouring interests, and the toilers everywhere, we will answer their [i.e. the bankers'] demand for a gold standard by saying to them: ‘You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold.’”
Although only 36 years old, this speech resulted in his nomination for the presidency. He contested, and lost to, William McKinley. He stood again for the Democrats in 1900 and 1908, losing both times.
Carroll Quigley wrote about the 1896 Presidential election in Tragedy and Hope: A History of The World in Our Time (MacMillan, 1966, p. 74): “Though the forces of high finance and of big business were in a state of near panic, by a mighty effort involving large-scale spending they were successful in electing McKinley.”
L. Frank Baum was editor of a South Dakota newspaper and he wrote the first of his Oz series on Bryan’s second attempt in 1900.
Oz is short for ounce, the measure for gold and silver.
Dorothy, hailing from Kansas, represents the commoner.
The Tin Woodsman is the industrial worker, rusted as solid as the factories shut down in the 1893 depression. The Scarecrow is the farmer who apparently doesn’t have the wit to understand his situation or his political interests. TheCowardly Lion is Bryan himself; who had a loud roar but little political power.
The Good Witches represent the magical potential of the people of the Northand the South.
After vanquishing the Wicked Witch of the East (the Eastern bankers)Dorothy frees The Munchkins (the little people). With the witch’s silver slippers (the silver standard), Dorothy sets out on the Yellow Brick Road (the gold standard) to the Emerald City (Washington [The Wizard, of course, is a charlatan who tricks people into believing he wields immense power; even his Emerald City is only an optical illusion. (emerald-green paper money is likewise a delusion.)]), where they meet the Wizard(the President), who appears powerful, but is ultimately revealed as an illusion; the real Wizard being just a little man who pulls levers behind a curtain.
This can be interpreted in two ways: Either, the President himself is really just a little man who pulls levers to sustain an illusion of power, or, the real power of the President rests with the little men behind the curtains who pull the levers and create the illusion.
When the real Wizard is exposed, the now enlightened Scarecrow denounces him. Dorothy drowns the Wicked Witch of the West (the West Coast elite); the water being an allegory for the Midwest drought. The real Wizard flies away in a hot-air balloon, the Scarecrow is left to govern the Emerald City, the Tin Woodsman rules the West, and the Cowardly Lion returns to the forest where he becomes King of the Beasts after vanquishing a giant spider which was devouring the animals in the forest. Dorothy’s silver slippers were changed to ruby in the 1939 film.
buy cash bitch
I'm calling the stock market top...around Apr 10th-15th. Everything is rosey until the tax bill comes due.
I'VE BEEN CALLING THE TOP NON-STOP FOR WELL OVER 9MONTHS (REMEMBER WHEN FAZ JUST SEVERAL MONTHS AGO BLEW UP?) BUT THE BITCH JUST DEFIES ALL NATURAL AND UNNATURAL LAWS OF THE UNIVERSE SAVE FOR THE LAWS OF STUPIDITY AND HOPIUM.
the delusional bubble that is Rob Prechter at Elliott (Idiot) Wave International has been calling the top too ...but for 2 years
He's thrown away more of his 'expert' charts and "Wave 5 topping" calls than Ronald McDonalds had hamburgers
In fact Prechter admitted last year his Gold (and by implication Silver) top calling was totally wrong (month after month after month) ..and just recently admitted on Fox News he was "too early" on calling tops for all the stock indexes
...month after month after month of miserable failure, all his technical indicators not working time after time, but STILL he keeps predicting with a 95% failure rate
some just dont know when to shut up or see a Doctor
Keep these charts.
In 30 days, you can re-use them, only having to substitute "April" for "March".
Recycling is kewl!
Hmm, I dont think so myself, I believe the banks need to reshuffle the deck big time here.
How did we get to 1400?
Seems impossible, earnings have topped, fundamentals are crap, nobody is working.
How long does this rally have to drag out?
I'm ready to get my gun, go outside, and start firing off a few rounds.
The runup is simply a repeat of old historical patterns involving credit crunches. After a severe credit crunch, stocks fall then rise when as the crisis is slowly resolved. It's happened several times before. Yes, we have crushing problems - debt, low savings, deficit, a bond bubble, etc but companies can now borrow overnight to pay salaries as was threatened for a whole. Many companies are making money (by being mean and lean) and many valuations are good.
Compared to the dot com bubble this market is almost rational. Fortunately, a corporation cannot act like the feds and lose money year after year without consequences. Of course, it can't print money when folks don't buy its product either.
dueling divergences
where's the banjo?
As the previous article pointed out, the banks have gone full-retard all-in loaded with stocks, original plan being by now a 'stock market buble mania' would have taken place and the banks would have offloaded to gulliable retail. Only problem is, retail is BROKE and it hasnt happened as they thought at all. The big banks are screwed, big time.
They'll get bailed out again after the "market" corrects and they realize 30:1 leverage was a bad idea during a doomed rally with 0 underying fundamentals to fuel it besides cheap credit layered upon cheap credit that was lent and rehypothecated from the same overly leveraged players in one of the biggest circle jerks ever imagined.
Apparently the only way to win is to play though so... we still have that and stuff.
Go 'MURICA! 'tis Friday after all...
'Bailing out' is only a MEANS to an end....their planned 'end' of passing off the pump to retail is a fail...retail isnt going to buy shit because theyre broke. Handing more free money to banks means nothing, they need to pass it off, and theres no one NOW, and no one LATER either, to pass off the pump to.
The big banks will make more money this year than in any previous year. Their profits are not subject to the votes of the 99%.
Made more money that is worth less and less every day. Good luck with that plan.
This ends when the COCKSUCKER Bernanke runs out of ink.
Unfortunately that ain't gonna happen.
I think Bernank is far more backed into the corner than people think...more printing and we've got $6 gas, and it will then be totaly irrelevant even if stocks are 20% higher than here we'll be seeing cities on fire.
Thanks for the laugh, Sheep.
Cities on fire. In Amerikkka? That only happes after sports teams win/lose a championship.
They did it only a few years ago on 9-11.
But this time they'll have to know how to start a fire without gasoline, since they won't be able to afford the stuff.
A gallon of gas + 4 big bottles of dish detergent = about 15 molotovs. Even on foodstamps, it's affordable. Now, you'll probably have to take the bus to get to the target, but it's still doable.
Since 2002, we have been hearing continually that the Fed is backed into a corner, rock and a hard place, end game, out of ammo, etc.
Hasn't happened, won't happen.
WON'T happen? Yea, you keep believing that, sucker. I know better.
he sure is! at chess he would be fucked the next move he makes: 1- default on US debt 2- hyperinflate the currency (in progress) either way is GAME OVER BEN SHALOM
The Bernank's biggest concern is that his job is going the way of the check out cashiers at Ralph's. The machines have been running things so smoothly since the beginning of the year that he is now out doing PR work.I don't know if others have noticed but the PR that he's doing seems to be more of a plea to keep his job than anything meaningful.
I'm wondering when I should sell big--now or after next QE?
Sell now and wait until July or August. Next quarte should be interesting. Ben needs some deflation so he has some cover to print.
As soon as Romney gets his delegate count (& Wall St. has it's two assclown puppets), market sells off... Not until...
Markets will 'sell off' to who? Where are the buyers? Nah, theyll just have a huge false flag, markets closed for a couple weeks, when they open it will be about 50% lower.
Right on.
http://rt.com/politics/nato-ukraine-missile-defense-835/
NATO eyes deploying AMD in Ukraine
The North-Atlantic Treaty Organization (NATO) is holding talks with Kiev over Ukraine’s possible participation in the alliance's planned missile defense system n Europe.
http://english.chosun.com/site/data/html_dir/2012/03/30/2012033001312.html
China Nervous About U.S.-Led Missile Defense System
China is growing nervous after U.S. calls for an Asia-wide missile-defense system against the threat of North Korean intercontinental ballistic missiles.
http://www.sott.net/articles/show/243571-FDA-Deletes-1-Million-Signature...
FDA Deletes 1 Million Signatures for GMO Labeling Campaign
http://articles.orlandosentinel.com/2012-03-30/news/os-george-zimmerman-...
Al Sharpton: Civil disobedience will escalate if Zimmerman remains free
If George Zimmerman is not arrested in the shooting death of Trayvon Martin soon, theRev. Al Sharpton will call for an escalation in peaceful civil disobedience and economic sanctions.
In other news, NATO wants to have nuclear war.
Al Sharpton should be strung up by his nuts until dead.
But yea, that whole hyped up BS story WAS no doubt designed as another option they can go to for diversion for the huge trouble the banks are in with their all-in stock market BS. Just ramp up riots.
It's to gear us up for civil war. They have to make sure we are pitted up against each other instead of all of us against them. I'm sure that 450 million rounds of hollow points homeland security is buying has a big role to play.
Yep, THEY know something big is coming and gearing up for it, no doubt!
well, it's gonna be mothers'Day in columbine, too, ya know, pilgrim...
Thankfully for us, guns don't kill people.
and the spoon did not make Rosie O'Donnell fat.
If they really cared about us, spoons would be illegal.
Sharpton should have been bitch slapped into oblivion after the Tawana Brawley fiasco... anyone remember? Instead he is still somehow the spokesman for black America... disgusting piece of garbage that he is
Why does 20% of the volume in the SPY happen after the market closes?
As they did until 1929, the Primary Dealers are selling small amounts of their own stocks to each other to keep this carcass' price up.
I haven't lived in 1929, but has anybody heard of 1929 crash and the great depression?
I recall hearing something about that, yep.
Lies. Markets always rise.
Be patient...MY MAIN MAN, has not missed one beat!...
I'll know, when "shtf"...MY MAIN MAN, plays second fiddle to know one!!...Right?
Does anyone read what they write?!!
http://www.bloomberg.com/news/2012-03-30/u-s-stocks-fall-in-s-p-500-s-biggest-weekly-drop-in-2012.html
Hilarious
ben's the baby boomers best friend..what would happen if stocks fall to all those ins, pension,401k funds..the horror of it is why BEN must print. the put is full on.
Started buying physical silver at USD14, buying seriously at USD18 and bought so many times at mid and late twenties and early thirties that it was a blur.
Friends and I bought so much that Kitco Hong Kong at one point was out of all forms of silver for a while they just had 30kg bars from China. They didn't even have one Maple Leaf or Eagle and couldn't even tell us when they would have more one ounce coins.
Buy physical silver and don't stop buying it, 10,000 industrial uses and there is stuff all out there. One guy who bought at the same time I did bought 70 x 30kgs bars in one hit.
Once Asian business people understand silver the price will explode. More and more are becoming aware everyday. Its just time before the price of physical silver explodes.