Hi Vitas; The Dow cap shows the liquid level 1/2% better than it
was on DEC 8th when I started it, but it fell 1% from Jan 8th, and
is falling.
For the week roughly on the Dow we lost 500pts and gained back 200pts
for a net of -300pts or -3.1%.
-----------------
This market more than just the news has been liquid driven,
biz.yahoo.com
Note that don't show the 7th, but like the 8th the FED drained
liquid..then after the 8th the FED pumped in liquid until
yesterday. I also think the late rally today had to do with
with options, and they picked off the shorts , we may have
a little more Tuesday, as there still seems to be a lot of shorts
out they can milk. BUT if you do see the FED drain liquid again
you can short without fear. GeemSpam has himself and us
in a jam it's taking more and more repos to hold the funds rate
to a point where the market don't crash. His friends are trying
hard to force him to lower rates again.
-----------
We are making all the same mistakes the Japanese made before their
big melt down, ( which was done at the urging of our so called
best economic minds; ( of the Princeton leanings ).
------------
Tuesday is up for grabs with Brazil letting their currency float,
( but way to late ) we and they could rally on taht, but it won't
last too long. Any one with any sense will be unwinding positions
into the Brazil rally, their troubles are far from over.
There is no magic formula that will undo the harm that out and out
corruption does, there or here. The fact that the FED is having
to intervene almost on a daily basis should tell people something
( the market is rigged ). Spam taking out liquid Two Days in a row
( the 7th and 8th ) shows he is not near as smart as he is made
out to be.
--------------
What has liquid got to do with it ? Well the pundits on CNBC
that talk all knowing about futures, fair value, and computer
program trading are just parroting some canned phrases they were
given. The fair value is not the same for every one, and can
even change in the course of a day.
On Thursday the 7th FED funds traded between four and six percent, with a 4.49-percent effective rate.
taht 2% swing helped some and hurt others dramatically, this market
runs more on leveraged derivatives than it does on earnings, and
all the Squawk Box does is feed the masses some platitudes aimed
at keeping the investment bankers in the business of running
this ponzi scam we call a free market.
---------------
In time as the baby boomers get to where they need to retire,
and the ratio of younger persons in the work force fall,
there won't be enough inflow into the market to support the
outflow, it's that simple. Now if the Republicans can get enough
Democrats to sign onto putting S.S. into the market it will get
one last hurrah, ( but will be the biggest mistake of them all )
They intend to use fear to accomplish this and the writing is on the
wall, all this save S.S., ought to be who scalped the
all the money over the years, if the real truth of that was known
half your investment bankers and politicians would have to take up residence in some foreign country.
Jim
|
