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  • Super Tuesday – America Wakes Up To Sophie’s Choice

    GOP candidates caricatureRomney, Newt or Santorum?

    In the movie "Sophie's Choice," Meryl Streep was forced to make a terrible decision over which of her children would be sent to the gas chamber and which to the labor camps. Even after choosing, she was unable to live with the decision and she and her husband killed themselves, which manages to further screw the boy who was sent off to the labor camps, now an orphan too. That pretty much sums up this Primary season for the Republicans as they have to choose between 3 TERRIBLE candidates - any one of which is a pretty clear path towards National suicide.

    A recent Gallup poll indicated 55% of Republican voters say they wish someone else was runningbut, that leaves 45% happy with their choices (I guess if they were Sophie, they would have just flipped a coin and been done with it) and perhaps today we'll get a better indication of who the front-runner is as 410 delegates go up for grabs today, which is much less than last election, when John McCain alone scored 511 delegates on Feb 5th, 2008. Interesting Republican trivia: On that day in 2008, Mitt Romney came in 2nd with 176, Mike Huckabee had 147 and Dr. Ron Paul scored 10. So Romney was only 1/3 as popular as McCain 4 years ago and I'm pretty sure McCain got his ass kicked in the General elections, didn't he?

    Something has to change in this country as 93% of all income gains in 2010 (most recent figures) went to the top 1%. 93%. How does this work? In 2010, average real income per family grew by 2.3%, but the gains were very uneven. Top 1% incomes grew by 11.6% while bottom 99% incomes grew only by 0.2%. Looking ahead to last year, National Accounts statistics show that corporate profits and dividends distributed have grown strongly in 2011 while wage and salary accruals have only grown only modestly. Unemployment and non-employment have remained high in 2011.

    While it is very, VERY good to be in the top 1%, being in the bottom 99% - not so much. What I try to get the top 1% to see though, is that getting 45% of the growth, like we did under Clinton, is pretty good - especially when it means that EVERYONE is participating in economic improvements and the overall growth is
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    Tags: BAC, FXE, FXI, GS, SCO, UNG, USO, UUP, WFR

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    Tags: BAC, FXE, FXI, GS, SCO, UNG, USO, UUP, SUNE
    Mar 06 9:21 AM | Link | 2 Comments
  • Miracle Monday – Putin Wins With 99.7% Of The Vote

    99.7% - in Chechnya!

    That's right, the very place where Putin brutally put down civil unrest and the same place where they still launch terrorist attacks on Russian targets apparently LOVES Putin. All of Russia "loves" Putin as the former KGB Boss turned Russian Boss sailed to another Presidential victory. Nationally, Putin scored about 63% of the vote with his worst showing in Moscow, where just 48.7% voted for him but, unlike the US, Russians choose between 5 parties so 48.7% is pretty good while 99.7% is INcredible (as in NOT credible)!

    So it's "meet the new boss, same as the old boss" in Russia this morning and before you think "that can't happen here" - perhaps you should consider how our own propaganda networks covered this election. Here's a video of Fox (of course) showing video of a "violent rally against Putin" complete with fire bombs, riot police, etc.

    Only it isn't Russia - it's Greece. Fox knows their viewers are so gullible, they don't even bother to edit out the Greek letters on the bank in the background because, as any Fox viewer knows - Russian, Greek - all the same nasty unAmerican languages.

    CNN is no better, showing a soccer rally and narrating it as violent protests against Putin (end of same video). The fact that these deceptions aren't considered major news in THIS country let's you know how dangerously close we are to seeing one of our own candidates getting 99.7% of the vote one day as one group of thugs or another consolidates their hold on our Government and our Media.

    So happy Monday to you! It was a pretty boring weekend so not much to report other than the Eurozone PMI fell 2% in February to 49.3 (contracting) while China's Feb Service PMI dropped 9%, into negative territory at 48.4 (contracting). China also lowered their GDP target by 6%, from 8% to 7.5% as Wen Jiabao says "the nation needs to shift to a more sustainable and efficient economic model."

    Hmm, China's Premier says their growth is unsustainable - don't worry folks, move along - nothing to see here…. Unwilling to ignore the situation is Credit Suisse's Dong Tao, who says The commodity super-cycle underpinned by China has drawn to a close as Chinese commodity needs have peaked as the nation transitions to domestic…
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    Mar 05 8:27 AM | Link | 10 Comments
  • Fake News Friday – What A Fool Believes

    Oil shot up to $110.55 yesterday.

    The news was that a pipeline in Saudi Arabia had been attacked and oil had been running up all day into this "news," which, funnily enough, turned out to be fake. We caught the news at 3:05 in Member Chat (thanks Kustomz) and we had been waiting for oil to stop going up so we could short it. The turn came at the $110.50 in the Futures (/CL) and we caught a nice run down to $109 and I reiterated, at 3:36, with oil still at $109.88 my love for the USO April $40 puts, which were $1.08 at the time and finished the day at $1.15.

    As Malsg pointed out in Member Chat: "The pictures of the fire are taken in daylight … but Saudi sunset was several hours ago … the oil market only stared going nuts after the close." A very good observation that gave us the resolve to stay short on oil - which is working out fantastically this morning as well.

    We also grabbed an aggressive short spread on BNO, as it seemed the whole day's run had been BS, with traders in the know stocking up ahead of the fake news so they could unload barrels into the retail suckers who bought into the spike. Don't worry though - no one who bought oil up from $105 on Thursday to $109 ahead of the news will be arrested or even questioned - we'll just keep pretending the total farce of oil trading is a legitimate pricing mechanism, even though it costs people around the world hundreds of Billions of Dollars each year in excess charges (see "Goldman's Global Oil Scam Passes the 50 Madoff Mark").

    SPY DAILY Now, this is the part where I would usually point out how the economy is weaker than we think etc. but I'm not going to do that this morning because the S&P still over 1,360 and, if a stronger Dollar isn't going to stop this rally - nothing will. Even yesterday, I joked to Members that I wasn't going to highlight negative news items in red anymore as there was no such thing as bad news in this market.

    As you can see from David Fry's SPY chart, we''re back testing the bottom of that channel today and, if we don't break down here, then we can…
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    Tags: AA, AAPL, BAC, DXD, FTR, HCBK, HOV, peg, SCO, SKX, SQQQ, SU, USO, X, XOM

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    Mar 02 9:23 AM | Link | 10 Comments
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