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  • A More In Depth Look At The Feds Lending Program

    With the recent uprising of the world’s economic woes, it seemed like the root of it all, the Feds had little choice but to begin a new form of transparency towards their lending programs, of which was never seen before. The list of companies in their report include: Royal Bank Canada (NYSE:RY), Bank of Montreal (TSE:BMO), CIBC (TSE:CM), Toronto-Dominion (TSE:TD), McDonald’s (NYSE:MCD), Citigroup (NYSE:C),  General Electric (NYSE:GE), Harley-Davidson (NYSE:HOG).

    And to think, during their latest quarterly reports these companies all on average give rather a rather bubbly and jazzy forward looking guidance! How about we all go in the backroom and print some fake $100 bills, I mean, I think we would all be a little more comfortable with our lives knowing we could do that. Shocking, disgusting, lying, deceitful… call it what you will, but for what it’s worth, it seems like the financial elite have garnered so much power over the mass media that it no longer matters when they are robbing the population right in-front of their noses. In fact, it seems the only thing the population is worried about is making sure they get their unemployment benefits extended.

    Some Highlights of Crisis Lending

    • $3.3 Trillion “Emergency” lending during financial meltdown
    • 21,000 transactions
    • $111 Billion in loans made under one Fed program to U.S. units of Canada
    • 84 times to Goldman Sachs, total of $600 Billion
    • $14 Billion is the amount banks have earned from July through September this year
    • 271 number of loans to EU central bank from December of 2007

    So one has to wonder now, whatever happened to the US Constitution? It seems like the welfare of the state is now a forgotten principle, and the only thing our governments care about is that the 1% wealthy continue to enrich their “oh so difficult” lives, while the honest hard-working middle and low class find it increasingly difficult to save and plan for the future. So, is this what being a free country is all about nowadays? The disease known as “lending”, especially sub-prime mortgages, has become so rampant these days, that AIDS and Cancer should no longer may have finally been trumpted for the winner of human pandemics.

    How is it that the CEO of Goldman Sachs, Lloyd Blankfein can justify making above $25 million dollars a year, while the company has to make “emergency” call-ins for printed paper? Really? Whatever happened to rewarding those who deserve it based on merits and achievements? Oh, right, forgot that no longer applies and the only thing that is important in today’s world is to debase your currency in order to boost exports and somehow, someway avoid becoming the next Zimbabwe.

    What’s the worst part of all of this you may ask? It’s the fat that the grocery stores you buy your food from are soon about the feel a real pressure to increase prices by more than 50% on all goods offered. Just look at that chart below offered by Finviz, this is the very definition of absolute insanity. It is a complete and utter insult to those who have any basic sense of economics that the measurement of CPI, inflation, and any other tools used by the Fed, that it does not include the prices of, YOU GUESSED IT: Energy, Food, basic materials… are you kidding me?

    One word: Criminals.

    Furthermore, Canada was from from the only country whose institutions tapped the program. Banks from Japan, Germany, South Korea, Israel, and Brazil also utilized the loans, which the Fed said were given to institutions in “generally sound financial condition.” Oh why thank you Mr. Bernanke, how nice, let’s all use hardworking taxpayer money in order to facilitate the needs of OTHER countries around the world, heck, who cares if they can even pay us back?

    Factor in their Permanent Open Market Operations (POMO) of buying well over $10 billion dollars a day in stock market equities in order to prop up the markets, and yes folks, this is the ultimate bubble, the one that will engulf us all once it does pop. Call it what you will, the last stand, one last breath of hope, but if there is a God, you’d better start praying now, for those bankers making $25 million a year and buying up all of the world’s gold reserves will not invite you in their bunkers once the virus begins spreading.

    Disclosure: No positions
    Dec 04 12:55 PM | Link | Comment!
  • The S&P 500 Struggling To Maintain Gains As Financials Dip Below Key Support

    The S&P 500, SPDR (NYSE:SPY) has had an incredible run after gaining 3% in the past two days, especially given that is has been able to completely shrug off the negative fundamental data that has been pouring into the US markets. Expect the Financials Sector (NYSE:XLF) to take a haircut from recent gains, with Financials Bull 3X (NYSE:FAS) getting hit the hardest. A position in Financials Bear (NYSE:FAZ) could be a smart hedge against a potential fallout across the board in equities. There also seems to be a short covering rally in the US Dollar Index (NYSE:UUP), though it may be short lived if Bernanke & co. keep up the printing ponzi scheme, thus the US Dollar Short Index (NYSE:UDN) may benefit in the long-run.

    Key Highlights:

    • Case-Shiller 20-city Index dropped to 0.59% from a forecast of 1.0% and 1.67% prior
    • Chicago PMI came in at 62.5 when it was expected to be 58, though most question the validity
    • Consumer Confidence hit 54.1 from a forecast of 52, experts believe this was simply due to the typical Christmas rally
    • MBA Mortgage Applications at -16.5%, this shows a drastic increase
    • ISM Index came in at a dismal 56.6 while it was fore-casted to be 57.2, yet the markets ignored it
    • Construction spending is up, though many speculate it is due to bailout money
    • Crude Inventories rose dramatically to 1.07M barrels, not surprisingly, as it expected to hit $100 soon, thus tumbling the economy futher downwards
    • Initial Claims up to 436K from forecast of 415K
    • Continuing Claims 4270K from a forecast of 4200K
    • Unemployment rate rose to 9.8% from a forecast of 9.7% and a prior 9.6% rate
    • Factory Orders down 0.9% while market expected 2%

    The negative cycle continues to send the markets’ fundamentals downward, yet the equity prices continue inflating due to the constant US Dollar and Euro manipulation. Seems like the only safe play nowadays is Gold.

    Disclosure: No Positions
    Tags: SPY, FAZ, FAS, XLF, UUP, UDN
    Dec 03 12:08 PM | Link | Comment!
  • Vivus Rated Outperform by MIV Investments with $10 Target, Nears Blockbuster NDA
    Vivus, Inc. (NASDAQ:VVUS) is a company we really like here based on fundamentals, especially considering they have $158M cash on hand to see them through to their NDA for Qnexa (Obesity) and Avanafil, of which they paid $27M to acquire. We strongly believe it will outperform the broader market, and trump any major US indices. Competitors, Arena Pharma (NASDAQ:ARNA), whom may have to battle with Nasdaq share price compliance rules soon, and Orexigen (NASDAQ:OREX) saw their share prices tumble nearly 5% since open as speculation swirls their products are far behind Qnexa. A price target of $10 has been set for Vivus by MIV Investments Inc.

    The $150 billion dollar obesity market is largely open to upcoming competition, with NutriSystem (NASDAQ:NTRI) and Medifast (NYSE:MED) seemingly sharing the market.

    We will be preparing a more in-depth analysis in the coming days on Vivus, highlighting price targets, product market potential, revenues and much more.

    (click chart to enlarge)

    From a technical standpoint, it is rather simple to acknowledge the vast potential with limited downside for the share price. On the two year perspective, we are currently deadlocked in a wedge which seems to be nearing the breaking point. We are leaning towards an upward break of this pattern due to the fact that we have seen this pattern before during late 2009 into mid 2010, when the shares rose from $9 to $13.68 in a matter of two months.

    More interestingly is the fact that the bullish candles are repeating (as seen in the smaller wedge with blue circles) for the bigger, larger pattern.

    The bollinger bands are also tightening up which fores-cast a large move is coming in the near future, whether it be to the upside or downside.

    Shares currently lie under a very strong support which has held through the ups and downs for the last two years, thus offering very limited downside, and should calm investors risk appetites.

    MACD divergence is moving into positive territory and has engaged in a bullish cross, with the slow stochastics looking to follow suit. Another positive is the Relative Strenght Index (RSI) which helps interpret that the stock is rather oversold at current levels.

    With the recent bullish engulfing pattern (highlighted by the blue circle), it is easy to notice that tremendeous upside could follow in the short-term as seen in the previous instances.

    Strong resistance lies near the $8 mark, however, we expect this to be broken once we inch closer to the new drug application (NDA).

    Disclosure: Long VVUS, No other positions in stocks mentioned
    Dec 01 7:17 PM | Link | Comment!
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