I need more cowbell

Despite another strong month (and September to boot!), mutual fund investors continue to pull funds ($11B) from equities. What this means, from a contrarian perspective, is that if markets were to turn down from here, "it would be one of those extremely rare occasions in which such a move was widely anticipated by the typical mutual fund investor."

Maybe what is being anticipated is the need for money to buy food, gas, etc.

Bearish on Banks - Why Now Is the Time to Sell

And of course GS this morning send out buco upgrades, so as to sell this trash. What a surprise!

This Recession Ain’t Over

Wrong, the recession IS over. Unfortunately, it has been replaced with a depression. And more unfortunate yet, it is being worsened every day by the banksters, in close coordination with our corrupt government.

Markets Are Starting to Roll Over

C'mon get real. This market is so rigged and they are not even trying to hide it. The worse the news, the more the counter rally, using dollar weakness, and god knows how much of our money, taxpayer money, to prop up this ridiculous house of cards.
Astonishing to witness.

IMF boosts its 2010 world growth outlook to 3.1% from a previous 2.5%, and adjusts 2009's expected contraction to 1.1% from 1.4%, but warns uncertain growth in developed countries could leave governments in a "damned if you do damned if you don't" vice with regard to stimulus withdrawal.

Headline should read,
"IMF replaces old number pulled out of its ass, with new number pulled out of its ass", but cautions, hey, its the same ass.

What Does Massive Insider Selling Really Tell Us?

Insiders are selling because they know the economy sucks, the consumer is dead and buried, and business expansion and revenue increases are gone. You know, the things that used to matter to "investors" who bought shares of companies they had thoroughly investigated and believed would grow over time.
This thing we today call a stock market is a rigged casino, propped up with hydrogen, on thin volume, PPT and government money liquidity, and is doomed to crash. When, who knows, but any half-intelligent insider wants no part of it, and got out while the getting was good.
So keep writing articles just like things are normal, whistling past the graveyard, la di da.

Deflation Looms

Deflation doesn't loom, it is in the here and now:
- housing continues to deflate, even with gov programs attempting to reflate; not working
- cash for clunkers was good for a quick sugar high; now all those purchases are pulled forward and gone.
- have you been to mall lately? I only buy something that is at least 70% marked down, and it is not a hard search
- I can't believe how cheap my favorite cuts of beef are. Yum.
- restaurants are offering two-fers, kids eat free, etc. This is in Austin, where we are told we haven't been hit as hard
- hotel rates are down 50% if you just look for bargains
- gas prices are the only thing I see that still has pricing power

The people that believe there has not been a seachange in attitude must be blind. The American consumer is not stupid ( anymore that is ); they see beyond the MSM cheerleading, they know the economy is down and out; they see nothing being done to address job creation; they see the out of control DC spending and are rebelling. Once congress gets it that if they want their jobs, they must rein in gov spending, things will really deflate, because that is all the liquidity holding things up to some degree now.

Plus, this is a global issue. Sure, China is still spending, but that cannot go on forever, and they are making the same non-productive lending mistakes we made.

Velocity is shot, wealth destruction of US alone $30T is too big a hole for the Fed or anyone else to fill, and when the crash comes ( and it will ) that will be the final wealth destruction straw.

It's still early to be worrying that stocks are too expensive, JPMorgan analysts say, and they continue to favor the 'recovery trade' - being long risk assets against safer ones. Firm notes "the underlying fundamentals of growth, earnings, and credit quality are improving as fast as asset prices are."

Oh, its far too early for concern. Why, I have never seen our economy in better shape, firing on all pistons. Why, just look at gold sky-rocketing, because of its utility in so many manufactured products.
Huh, what's that you say? Oh, well then, never mind.

Bulls Are Undeterred

They were undeterred in Sept of '87 as well.

Greenspan: Another Crisis Is Inevitable

Another crisis? You mean after the one we're in presently?
Oh wait, the Beige book report says we're out of recession, whew.

What Gold's Breakout Means for Stocks

In this absurd market, anything can happen, but I tend to agree.
On gold, I would like to see it break $1033 for a true breakout- if so, it could bolt much higher quicker.
But the powers that be seem to be able to keep it surpressed, but at some point they may lose their grasp. They have a lot of plates spinning to attend to.


On Sep 08 08:16 AM Peter Cooper wrote:

> Stocks are already up 50%, the switch towards gold and bonds indicates
> an imminent correction.

S&P to 1,150 by mid-2010, Credit Suisse predicts, saying it remains Overweight on equities. Firm believes there will be more positive growth surprises over the next 3-6 months. "Investors tend to underestimate the positive feedback loops during a recovery."

Unfortunately, the "recovery" actually has to exist, not just be a figment of analysts imagination. No, thats too kind. It has to exist, not just be lied about on CNBC and all the other shill media outlets.

Can Gold Go Even Higher?

While it does seem like a crowded trade, there are a lot of non-bubble reasons to seek shelter from the storm. I would like to see it break $1033 to confirm a true breakout.


On Sep 08 11:05 AM Maxe Paul wrote:

> It looks like it's entering the bubble zone, no doubt about it with
> half the articles on SA today about gold.
>
> Cant wait to short this baby soon.

Game On for the Markets?

Here here. Problem is, how many people read and understand ZH, certain SA articles and authors, Denninger, et al?
First, you have huge amounts of printed money funnelled through GS, JPM, etc to prop up markets through 5 stocks, in a low volume market ( this could change after Labor Day, if volumes turn higher ).
Second, you now have mutual fund managers chasing the market, using 401K dumb and blind money ( it's 8 PM- do you know where your 401K money is?- hah. How many people know which companies, and why, constitute their mutual funds? Sad)
You have, or had, China handing out tons of money, much of went into market speculation.
And on and on. What a crock.



On Sep 01 07:11 AM conceptwizard wrote:

> The only people that have the "game on" are those who already know
> who will win and who will lose.
> We have a huge integrity problem in the markets of today. It has
> probably always been there to some extent, but not so flagrantly
> noticable until this meldown.
> Recent articles from Zero Hedge and Karl Denniger and others have
> all but confirmed the toxicity of HFT and ther market control. I
> dont know how anyone can have faith that the casino is not rigged,
> and knowing that why risk whats left on a sucker bet.

Asset Price Driven Economic Recovery Is Underway

And, yes, Steve, spot on, excellent article. Facts are a stubborn thing.