Friday Roundup: Better than Expected

Okay, so the building tension before the unemployment data is relieved by buying on the (I’m really shocked!) “better than expected” unemployment data. This is the kind of response we’ve been conditioned to deal with for a long time. I’m not going to judge it just yet but it wasn’t a blockbuster day except in a few areas like financials and real estate related issues.

Volume was better than average for the day but on the week about the same as we’ve been seeing over the past few months now. Breadth was positive but not a 90/10 day blockbuster day.








McClellan Summation Index reflects overbought conditions building. How high can it go? Maybe around 1400 is a target.
















As for the leveraged issue nonsense, checkout SSO and others from ProShares for example. The media doesn’t bitch when they work well going up. Silly crap, frankly.

Go to Part 2: Commodities, Emerging Markets >>

Comments

[Prudent Man...:]

As proof that stock prices are as much a measure of perception than fact, we have not had a major productive innovation in the 21st century.

As our collectivist trend manifests itself we will see most of the innovation take place off shore as the U.S. and EU are, basically, anti-industrial.

Not, unfortunately, being an industrialist, scientist and/or engineer, if I were I would entertaining the ideal of building a "John Galt" Atlantis. Why should the productive continue to b support the politically correct non producers?

Paper pushers, financial analyst,s economists, politicians, academics, etc. don't produce what feeds the babies or makes the hammers and nails. As the governments in the U.S. and EU are already bought and paid for by the "looters" it makes sense to just start a new country as it is less expense than re-buying the old ones.

Aug 08 07:53 PM

[MBL:]

We have not had a major inniovation in the 21st century? You really just kidding right? Innovations are coming from the communist/ dictatorship countries of Asia and not from the EU and US??Right!! One thing about the Chinese they sure are pro-industrial (as collectivist as all hell but pro-industrial and best of all they are not worried about being PC)
Why don't we build a society where we eliminate all intellectuals, have everyone work in production type jobs and exclude everyone who is not part of the working class. Didn't they try that in Cambodia in the 1970's?

Aug 09 12:32 PM

[RMG:]

Thanks to the author for providing a good picture of what the markets have been doing.

Aug 09 01:57 PM

[TCK:]

Who can really believe the jobs report when the adjustments are adjusted backward for several months of data ?

Aug 10 07:12 AM

[Shalom Hamou:]

Abstract:

I am going to show here that central banks have excessive powers which are coherent neither with democratic principles nor with morality. Their existence can not be justified from a mathematical point of view.

Worse, in light of the exercise of their extraordinary power by Bernanke, I argue that they can pose a real threat to democracy, peace, privacy and individual freedom.

Because of the immediate dangers that are evoked in these lines I strongly suggest that you reproduce my deeds.

Bernanke Dark Kingdom: kingdom.yield-curve.net


"I will argue here that, to the contrary, there is much that the Bank of Japan, in cooperation with other government agencies, could do to help promote economic recovery in Japan.

Most of my arguments will not be new to the policy board and staff of the BOJ, which of course has discussed these questions extensively.

However, their responses, when not confused or inconsistent, have generally relied on various technical or
legal objections—- objections which, I will argue, could be overcome if the will to do so existed."

Prof. Ben Shalom Bernanke
Japanese Monetary Policy: A Case of Self-Induced Paralysis?
For Presentation at the ASSA Meetings, Boston MA,
January 9th, 2000.


In my Tract: The Age of Turbulence: Plea for a New Economic Order I prove that after an unknown period of Irrational Exhuberance, which will inflate the Mother of All Asset Price Bubbles, we will have a Keynes' Liquidity Trap, The Crash and The Deep Depression.
blog.yield-curve.net


In fluid dynamics, turbulence or turbulent flow is a fluid regime characterized by chaotic, stochastic property changes. This includes low momentum diffusion, high momentum convection, and rapid variation of pressure and velocity in space and time.

It owns most of the discontinuous and chaotic properties of a Market Crash and of a Keynes' Liquidity Trap.


There is a remote possibility that The Crash and The Deep Depression, in a pattern similar to Hitler with The Great Depression, will allow the instauration of a totalitarian regime, an Adventure in a New World Order.


"But the essential issue here is one of insurance, with a relatively modest premium,
against a potentially catastrophic, very low probability event.

With that, Peter, would you outline your proposals to us?"

Chairman Alan Greenspan
Meeting of the Federal Open Market Committee.
August 24th, 1999


First, and with all due respect, Sir, my name is not Peter. My name is Hamou, Shalom Patrick Hamou.

I propose a plausible alternative to The Deep Depression, The Adjusted Credit Free, Free Market Economy, our New Economic Order.

It is a fair, prosperous and stable economy that protects its participants from the consequences of The Deep Depression.

That economy is both liberal and libertarian.

That New Economic Order does not discriminates and guarantees the individual freedoms of its participants.

In order to reserve your option to participate you just need to register anonymously, before The Crash, the serial number of a €5 bank note in our Public Cra$h R€gi$t€r It is Free!. crash-register.yield-c...


By the way, I have just updated a paragraph of my Tract: Model of the Yield Curve. model.yield-curve.net

Aug 10 12:45 PM