THIS SHOULD END WELL!

Written By: GaryK - Apr• 28•14

SOURCE: http://www.zerohedge.com/news/2014-04-28/elephant-room-deutsche-banks-75-trillion-derivatives-20-times-greater-german-gdp

THE FED HAS SCREWED SAVERS TO THE TUNE OF ?

Written By: GaryK - Apr• 25•14

Yup…no repercussions here. All this money went to the banks…those lovely non-corrupt banks who almost brought the house down!

SOURCE: http://www.money-rates.com/research-center/cost-of-fed-rates-2014.htm

DO THESE PEOPLE EVEN KNOW HOW FUNNY THIS IS?

Written By: GaryK - Apr• 16•14

Using taxpayer funds to pay this yutz…on income inequality. I looked to see if it was April 1 when I saw this.

Source: http://gawker.com/income-inequality-institute-will-pay-paul-krugman-25-0-1563245534

GARY ON THE PAST COUPLE WILD DAYS

Written By: GaryK - Apr• 15•14
In the midst of the recent bearish action, our last words to you were:
“On a technical note, this morning:
The Russell 2000 actually almost touched the LONGER TERM 200 day average at about 1005…where it should be defended for now.
The very strong SOX has now pulled into the 50 day average at about 565…where it should get some defense.
And most importantly, the NASDAQ went right into the very important 3980-4000 where it held Dec. and Feb…and where there should be a fight to defend.
We suspect with market oversold, they will hold for now. But to be clear, if at any time these areas are broken, expect it to invite additional selling. But for now, we think we should get some defense here…especially with the drumbeat out of the ECB that they are next up for printing a trillion in Euros.”
                                            ————————————————-
WE BELIEVE THAT IN THE PAST COUPLE DAYS NAUSEATING WHIPSAW, THE MARKET FOUND A NEAR TERM LOW…AND RIGHT AROUND THE IMPORTANT LEVELS OUTLINED IN OUR LAST REPORT. The intraday action the past couple days are about as crazy as we have seen in quite a while. In fact, both the Russell and the Nasdaq undercut before reversing sharply and on volume…indicating what we call a darn good washout. Both had dropped about 10% recently. Remember, markets do not usually go straight down. Bounces and rallies do occur.
From here, we suspect we will get some upside testing into the holiday weekend…which has a bullish bias. We will need to see some more cards coming out of the deck on any anticipated bounce from here. Keep in mind, there has been a ton of technical damage done recently so careful. The Dow and S&P-types continue to be stronger than risk areas but suspect the risk areas will bounce better as many names just dropped 30-40% in short order.
The strongest set-ups in the market remain in the energy complex and you can now add Utilities to the strength list. After that, not much showing up just yet.

HOPE AND YOUR CHANGE!

Written By: GaryK - Apr• 15•14

SOURCE: https://www.atr.org/sites/default/files/assets/Obama%20Proposed%20442%20Tax%20Hikes%20Full%20List.pdf

HEY…GO VOTE FOR THIS GUY!

Written By: GaryK - Apr• 11•14

SOURCE: http://www.mediaite.com/tv/greta-van-susteren-confronts-dem-candidate-who-declared-war-on-fox-news/

SEBELIUS…WHAT CAN GO WRONG…WILL GO WRONG! WATCH!

Written By: GaryK - Apr• 11•14

SOURCE: http://weaselzippers.us/182476-sebelius-during-farewell-remarks-unfortunately-a-page-is-missing/

ONE MORE NOTE

Written By: GaryK - Apr• 11•14

And put buying finally spiked today. Will help the near-term cause!

A SHORT NOTE ON TODAY’S ACTION!

Written By: GaryK - Apr• 11•14
Just a little micromanaging:
 
It is actually a bit of good news that a couple of permabears were paraded out in the news today…as usual, calling for crashes. Nothing wrong with some bearishness picking up.
 
On a technical note, this morning:
 
The Russell 2000 actually almost touched the LONGER TERM 200 day average at about 1005…where it should be defended for now.
 
The very strong SOX has now pulled into the 50 day average at about 565…where it should get some defense.
 
And most importantly, the NASDAQ went right into the very important 3980-4000 where it held Dec. and Feb…and where there should be a fight to defend.
 
We suspect with market oversold, they will hold for now. But to be clear, if at any time these areas are broken, expect it to invite additional selling. But for now, we think we should get some defense here…especially with the drumbeat out of the ECB that they are next up for printing a trillion in Euros.
 
 

GARY ON THE NAUSEA!

Written By: GaryK - Apr• 10•14

“YELLENUS INTERRUPTUS”

The Fed tried interrupting the bearish action in the market yesterday by simply flip-flopping. Yellen and crew couldn’t care less about the economy, They are focused on the market. They know their printing of money has enabled assets to bubble up…supposedly helping the economy. They saw risk assets under pressure so what did they do? They pulled a Bernanke. Just change your stance and everything will be all better. Unfortunately, when all is said and done,printing money helps no one…and only creates distortions and bubbles.
So…we get a big pop yesterday as markets were oversold and caught shorts leaning. But immediately, the bearish market reared its ugly head. Today, markets were smoked as the all-important growth area continues to lead down. This is a big negative. It is also a negative that we are now starting to see financials roll over badly.
Remember our thesis. It did not start in the past week. It started a couple months back as all the characteristics that show up before a top of consequence appeared. We just had to wait for the ugly. We started seeing the ugly in the 1st week of March and despite the parking of “risk” money into the mega-cap, low beta, liquid-types, the action has been horrid underneath the surface.
The best way to describe our feelings right now is that the wheels are now in motion as prices are now heading lower with some heading lower sharply. We have no idea how long it lasts or how far it goes…but we know this is much different than the pullbacks we have been seeing over the past year.
Keep in mind, bear phases do happen. Markets just do not keep going up in a straight line forever…and because of the Fed printing of over $4 trillion, that’s exactly what has happened. But rubber bands stretch so far. The S&P was up 28% last year with earnings growth in low single digits. That will also only stretch so far. We suspect lower prices are ahead and first stop should be the longer term 200 day moving average for the weaker NASDAQ,NDX and RUSSELL 2000. That is a few percentage points lower.
More to come over the weekend as we are headed to the Masters to watch some great golf!