Archive for October, 2007

The first reaction to the Fed rate cut was disappointment. The shorts were then disappointed that the selling quickly dried up. That turned into a squeeze, which morphed into bullphoria by the end of the session. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk...
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The Fed only cut ¼ point off the Fed Funds target, disappointing some traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that...
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The most interesting thing from today’s FOMC meeting is that the markets interpreted the Fed statement to say there will be no interest rate cuts for some time. That could be it, but I found greater truth in the fact that there was a lone dissenter. In my mind, it did not...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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Following on Monday’s post on pay option ARMs comes an item from Calculated Risk (CR) that gives further flavor on the issue and cites charts and info from a Bankamerica report. Remember pay option ARM allow debtors to make very minimal debt service payments in the early years. But then they recast to...
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The market spent the day in suspended animation as the players awaited the Fed announcement due at 2:15 on Wednesday. Bifurcation was pronounced with the Nasdaq rising, and the broader market falling. Energy and other inflation hedges fell sharply. Does some big shot expect the Fed to return to its role as inflation fighter?...
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Facing rising Fed Funds rates the Fed added $8.25 billion to the market pool on Tuesday. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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I came across a chart from Loan Performance that illustrates just how egregious the large scale shylocking by financial institutions was on the subprime fiasco. The term used here, “DTI proforma” , measures what debt to income on 2005 and 2006 vintage subprime teaser loans would have required if the loan were fully indexed,...
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The HUI broke through a very significant resistant confluence today and at the same time the FCS has gone to a BUY signal.  Mid-day I was very pleased with how price was holding so I entered half the position in GDX and will enter the remainder at tomorrow’s open.  The HUI 423 level represents  important Fibonacci and...
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The market continued its high wire act in the face of grave dangers lurking below. Is this a market climbing a wall of worry on rising liquidity in classic bull fashion, or is it a rally based on a false premise, insanely laughing in the face of an underlying crash of capital on the...
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The Fed has surprisingly drained reserves over the past 5 days, in spite of the Treasury hitting up the market for big new loans. Maybe the Fed is getting ready for the estimated $33 billion gift horse coming from Uncle Hank the Paulie Man later this week. Just a little more lipstick for the...
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Latest cycle conditions and projections for the US Dollar Index and 10 Year Treasury Yield. Click links to download report in pdf format. (WSE Pro subscribers only). Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund....
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The US mortgage bubble resembles the shape of a badly-deformed balloon trying to retain its bulb shape. I would like to extend that analogy to the credit bubble, but my bravado is tempered by the ingenuity of financial wizards who adeptly create more products and organize ingenious master liquidity funds.
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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As the non-traditional mortgage collapsed it looks like Joe Ultra Light Sixpack (JULS) has turned to her credit cards for staying in the game. In my mind this is desperation, and this high cost credit is being used for essentials like energy and food. Further stress has been added by higher prices...
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After twenty four days in Brazil I am now ready to say I love it here. So much so that I’m extending my stay until November 29th. I have spent about nineteen days in Rio de Janerio, both in Aproador and now Ipanema. Five other days were spent in Buzios (the Sun Coast), and...
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I’m not sure how to characterize the market’s action, but bullish doesn’t especially come to mind. Over the last month or two a number of high profile financial and consumer stocks have been routed. I would mention the following just to name a few; Countrywide, Moodys, MBI, WaMu, Coach, Nordstrom,...
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It was off to the races Friday as the market surged across its recent trading range. They closed it on a critical long term trendline. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for thirty days. If, within that time you don’t find...
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The Fed added $1.5 billion to the market pool on Friday with $7.5 billion in weekend repos against expirations of $6 billion. The move left the 5 day net at an add of $4.25 billion. $24 billion in net new Treasuries were auctioned this week. About $4 billon of that settled Thursday, with the...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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The increase in volatility is a sign of market depth shriveling as liquidity gets destroyed. One of the world’s biggest market makers just lost $8 billion of its capital, with more losses almost certain in the quarters ahead. They will not be standing there with a multitude of bids as the market comes down,...
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The Fed pulled $9 billion out of the market on Thursday by adding $6 billion in overnight repos, $19 billion in 7 day repos and $6 billion in 14 day repos against expirations of $40 billion. Meanwhile foreign central banks were buying Fannie paper by the truckload, helping to keep US markets liquid. ...
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Lee Adler and Aaron Krowne discuss the latest developments in the mortgage and housing markets and their long term implications. Not a subscriber? Click here for a free preview of this podcast. Subscribers only. Enter your login when prompted. Click here to view Fed System Open Market Account (SOMA) chart referenced in this podcast....
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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Reports from large homebuilders like Centex indicate that large scale job layoffs have recently occurred. The 40 percent workforce reduction reported now seems consistent with the housing start level at 1.191 million. With new home sales running at only 770,000, even the 40% decline in construction employment now looks problematic. This chart...
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Can you identify the jackasses in this Faux News report broadcast on August 18? Hint- Merrill Lynch coughed up an $8 billion dollar loss today.
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Driven by alternating waves, first of fear, then of hope, the day was full of thrills, chills, and excitement. In the end it was little more than entertainment as the market closed virtually unchanged. From a cyclical perspective it wasn’t the recovery or the fact that the market closed unchanged that was surprising, but...
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The Fed added a net of $6.5 billion to the market with an overnight repo of that amount against no expirations. The move left the 5 day net at an add of $9.75 billion which should help the market to absorb $24 billion in net new Treasuries being auctioned this. Click here...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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