Saturday, October 02, 2010

REASON TO RALLY


#1 Dollar (above) is being castrated (unlike "balls to the wall") by Fed Reserve actions in effort to INFLATE STOCKS, wash DEBT.
#2 GOLD is soaring and hitting NEW HIGHS, but is acting as a CURRENCY, not commodity. Gold usually rises in times of CRISIS
#3 Bond yields are plummeting, some like 2 yr to NEW HISTORIC LOWS. Bond prices SOAR and yields dive in times of economic UNCERTAINTY and CRISIS.
#4 POMO action by FED is coming at DIRECT times to infuse the stock market, this has been documented. FREE market system broken.
#5 Volume SWELLS on the declines, FADES on rallies. This has held true since March of 2009.
#6 26 90% volume days since APril 2010 !! Unusual action for ANY Bull mkt, in fact never happened.
#7 Unemployment has remained HIGH and has NOT come down with so called Recovery that began June 2009?
#8 Main driver of economy decimated by CRISIS HOUSING has NOT responded to stimulus and has REMAINED in a DORMANT DEPRESSIVE STATE.
#9 Credit is NOT expanding.
#10 Real final sales barely UP 1%
And so on.... Federal deficits need funding, they are beyond any historical reference averaging $1.3 TRILLION, with no end in sight. Bonds have to be sold to cover deficits, weaker US $ makes foreign investment in our debt a losing proposition. USUALLY to attract buyers prices must rise meaning yield in this case (bond prices fall).....more risk=more return. In our case it appears the FED and US GOV are using the printing presses to create DOLLARS out of thin air to destribute to buy the bonds.....money is basically FREE to the BIGGER TO FAIL banks which we know are letting it flow into the stock market and maybe GOLD and maybe OIL now above $81 !!!! how the F!!! is that good for the people!???
Futures are being detroyed here, lives ruined.....as the bankers and insiders sip champagne.....CAN ALL these efforts result in another BOOM? if it doesn't the CRASH will be heard around the world.......reckless feckless leaders.
Duratek keeping it real

No comments: