Schweizer

On Picking the Right Pundits

This is a typical Wall Street con. Use a slightly above average PE and apply it against operating earnings rather than GAAP earnings. Such in the sheep ...

We still have yet to clear out this corrupt system. That takes a PE under 10 on GAAP earnings. 2010 GAAP earnings likely will be $30-$40 at best meaning an SP500 at 300-400 at best.

Facts:
1977-82 recession; PE=8.27 ave on GAAP earnings
1947-51 recession; PE=7.78 ave on GAAP earnings
1940-42 recession; PE=9.01 ave on GAAP earnings

2009 GAAP earnings (reported and estimated) is currently 36.44 and the PE is thus 28. Next year they are not likely to be any better as revenues are still dropping and all the easy cost costs have now been taken.

Weekly Preview: Last Week's Rally Should Be Viewed with as Much Suspicion as Relief

Good article. All that really happened last week was a panic short covering rally by those who went short at the H/S neckline break which reversed on the pop based on GS and INTC earnings releases. Once above the neckline many traders keep reshorting, only to have to cover a second or third time. It was like throwing a constant supply of twigs on the fire. I suspect that is overwith now with Friday's doji.

There are some major Moving averages as resistance on the weekly and monthly charts at the current prices so I'd like to think these will hold. The DOW also is at a downtrend resistance line.

One pro called last week a classic boiling at the top of a range, just before a major spillover. Seems to fit as I did not see any bulls piling in - just Bears as buyers, covering.

Bank Stress Tests: Is Everybody Confused Yet?

They claim the stress test was to help the public build confidence in the banks.

The complete opposite is happening.

I wish the FBI would uncover all the scams the FED, Treasury, Congress, and Wall Street are pulling by using taxpayer money to trade equities in order to control price.

This needs to get cleaned up if we are to have a healthy future.

Why This Rally Is Unsustainable

The Treasury should not be allowed to buy/trade equities.
The FED should not be allowed to buy/trade equities.
And banks (GS in particular) should be limited in their ability to buy/trade equities.

These 3 are too large to allow a fair value to be set.

Or are they already trading illegally but there is no one with balls to stop it?

Banking Uncertainty - It's Back

It's clear taxpayer money dumped on AIG was funneled to the banks that gave them a 1Q windfall coupled with the various accounting tricks played by all the big names, all of which resulted in the rope-a-dope of hope rally.

It's over. Banks sold into it to build some capital as the Gov and Private investors are not going to provide lifelines to them going forward.

Let nature take it's course. Most of these big banks are insolvent and most need to diappear in favor of start-up banks that are not inherrently corrupt.

Investors will not step in to buy these big banks until a true bottom is reached and several big banks are gone; 666 was not it.

Is Bank of America Poised for a Major Move Up?

The massive selloff starts Tuesday.