Tuesday, October 27, 2009

"HOW CAN THAT BE POSSIBLE?"

By TOM RAUM, Associated Press Writer – 38 mins ago

"WASHINGTON – It's about to become official: The recession is over — but not the pain.
The government will release figures this week expected to show that the economy has awakened from its deepest slump since the 1930s and is in the early stages of a recovery. But the following week, the government will issue another set of figures expected to show unemployment continuing to rise toward and possibly above a clearly recessionary 10 percent.
How can both be possible?
The government releases third-quarter Gross Domestic Product figures on Thursday. Many forecasters say they will show GDP growing at an annual rate of about 3 percent, validating a widely held belief among economists that the recession ended in June or July."


IMHO the market already knows GDP will show near 3% growth in the 3rd quarter, much of this will come directly from STIMULUS provided in the form of KLUNKERS FOR CASH and $8,000 HOME CREDIT, and STOCK MARKET RALLY, I believe this is a one off event and does NOT reflect REAL economic sustainable activity or growth.......

Even the BULLISH ECRI report (shhhhhh) as mentioned recently in INvestor's Business Daily showed the last 2 weeks a CONTRACTION in their LEI.

106 banks have failed SO FAR
More than past decade and a half, and it is pretty plain these REGIONAL BANKS won't get propped up these Consumer and Small Business friendly loaners!

NAH, If you aren't deemed "TOO BIG AN ASSHOLE TO FAIL" you can go screw yourself, what a BEAUTIFUL PLAN dear readers, what an EVIL BEAUTIFUL PLAN! Now these HUGE BANKS have been turned into BLACK HOLES and have all the BENNIES our money can buy, backing by the FED and GOV, and nothing stands in their way, ALL LOSSES COVERED by the American taxpayer.....however many of them are left!

"NO CRISIS WILL GO WASTED" and is the perfect scenario for getting a lock grip on power and control.....and with so many GS executives picked to run things, thank goodness for the foresight and savvy to do that.

It seems to me the ONLY thing standing betwen the BIG BANKS and failure is a GOV GUARANTEE with OUR MONEY and and CHANGE in an ACCOUNTING RULE.

JAPAN tried HIDING the damage done to their banks, did not realize their bad debts.....boy look how great it turned out there? 20 years of deflation and a stock market only 25% of what it was 20 years ago! NOW THAT'S PROGRESS AND TOO BIG TO FAIL IN ACTION....PROPITIS PONZINOMIS

Transports hurled from a possible DOUBLE TOP FORMATION, housing and financials have been weakest in this hurlathon.

SO we know about the decline in volume in this rally especially on those big rally days for the most part. But IBD goes on to inform us their have been 8 DISTRIBUTION DAYS on the SPX 500, and this can I inform you is not BULLISH.

In June ALLEN ELLIOT EXPLAINS "The clearest signal that a market uptrend is in distress is a buildup of distribution days.
When a major index drops more than 0.2% in higher volume than the previous session, that's a distribution day. It suggests institutional investors are selling their holdings."


We talked about yesterday how the VIX has turned up since last week, there is still some uneasiness out there.

Now I don't KNOW how the market will react to the GDP THURSDAY REPORT, and we have heard a LOT about Fidelity's end of year this FRI and how it may induce a rally to pump up their figures......will it?

Is A TOP or THE TOP IN? I personally think that is possible, but we could also run to 1,200 if 1120 is broken and held, so I wouldn't rule anythng out. TOO EARLY to be playing Nostradamus.

Yesterday we had around 100 point VAULT early on then $ rallied and BAMM almost 200 points REVERSAL....another REVERSAL DAY.....what in the world could be worrying this market? Haven't the people in the know put us on the road to recovery?

Duratek

1 comment:

Anonymous said...

Mister D, you so good. Black Monday , now black Tuesday. You dxd have much profits. You nice man and deserve. What you see as target for crash? Thanks Misret D