Posted on 06/06/2010 3:43:16 PM PDT by blam
Friday's Controlled Descent in Equities: A Perfect Storm Is Brewing
by: Bo Peng
June 06, 2010
Friday's US equities market strikes me as being highly unusual.
1. S&P 500 followed a perfect straight channel down through out the day.
2. VIX only touched 36.
In other words, there's never any sign of panic or crash, which is quite remarkable when the broad market is down 3-4% across the board; the Dow broke the symbolic 10,000 level, EURUSD broke the symbolic 1.2 level, interbank funding and corporate/muni bond markets have all but dried up, next housing sales are bound to be bad as predicted by the latest mortgage application number, a number of government bond auctions (Brazil, Hungary, Romania, Spain -- almost) have failed, CDS on French sovereign shot up. For the weekend: US bank seizures and Spanish bank mergers/failures, Bilderberg Club to decide on dismantling the Euro, BP (BP) oil washing up Florida beaches, etc
I doubt there's ever been a day like Friday before.
Panic is usually followed by quick reversals. But calculated, organized retreat means gone for good. This is well-controlled retreat. The calm is scary. A perfect storm is brewing.
and the national debt now exceeds GDP....Obama is reseting America in his image...
Chicken little says the sky is falling?
I say, BUY LOW!
SEARCH FOR HIGH YIELDING STOCKS with outstanding track records, like Natural Gas, LLP (e.g. KMP, LINE, MWE)
I love it when the bears get hystical, and this usually means it is time to BUY!
http://www.marketwatch.com/story/softer-retail-sales-could-depress-moods-2010-06-06
;-)
More proof that the anti-Christ is coming.
I was noticing the chart for Friday, after the initial plunge, was essentially a saw-blade, a straight line with a few minor squiggles.
No. More proof that God is Good, and those who have faith and common sense win in the end! Many stocks have high dividend yields, such as Verizon, AT&T,LLY, BMY, and today it was announced that BP has hired Goldman Slacks to defend against a takeover by Exxon or Royal Dutch Shell, Cheveron, etc..
KEEP THE FAITH!
It’s a slow death spiral until Aug. If Juan McAmnesty is thrown out in the AZ GOP primary in Aug, and the GOP decides it’s now an opposition party that cuts spending, I predict the free market will stop the clubbing of Socialist policies like baby seals. Otherwise the clubbing will continue until a 3rd party rises up to smote the Socialists.
Yup, see it here.
LOL. Been here for centuries in one form or another. Lots of femmi ones, too lol. Will there really be one final, all-powerful one? I dunno.
34 S&P 500 Stocks Yielding More Than 5% Dividends
AEE / AEP / BMY / CINF / CNP / CTL / DUK / ED / EXC / FE / FTR / HCN / HCP / LLY / LO / MO / NI / PBI / PGN / PLD / PM / PNW / POM / PPL / Q / RAI / RRD / SCG / SO / T / TE / TEG / VZ / WIN ...
“In other words, there’s never any sign of panic or crash, which is quite remarkable when the broad market is down 3-4% across the board; the Dow broke the symbolic 10,000 level, EURUSD broke the symbolic 1.2 level, interbank funding and corporate/muni bond markets have all but dried up, next housing sales are bound to be bad as predicted by the latest mortgage application number, a number of government bond auctions (Brazil, Hungary, Romania, Spain — almost) have failed, CDS on French sovereign shot up. For the weekend: US bank seizures and Spanish bank mergers/failures, Bilderberg Club to decide on dismantling the Euro, BP (BP) oil washing up Florida beaches, etc “
Here is a man who looks at stark reality, and the big picture, vis a vis the domestic and international markets.
tHANKS FOR THE PING, bLAM.
Yeah, that chart is indeed ugly ;-)
I do not find any evidence of Bulls over the last 48 hours. I do find the Chicken Little Gold Bugs are celebrating and filled with glee.
The gold bugs are building up the World’s largest bubble!
:O
There is always hysteria at the TOP of any bubble, and I may be too early in my opinions here, and TIME will tell.
I AM SHORTING THE CHICKEN LITTLES!
IMO, the GLD is so large, a serious sell off would create a flood of supply and panic selling.
So just how big can the gold ETF get?
Over the last year, the number of GLD shares outstanding has increased from about 355 million to about 417 million, representing an additional 200 tons or so of additions to holdings.
That translates into huge dollar amounts, but also a material chunk of the annual production that doesn’t go into jewelry or industrial applications.
MAY PEAK:
The SPDR Gold Trust (GLD) posted the biggest asset growth in May, adding more than $5 billion. A continued run-up in gold prices certainly helped, but the majority of the growth was attributable to the creation of new shares; more than $4.2 billion flowed into GLD in May.
Corrections of 10% - 15% are *NOT* uncommon after the likes of the Bull Run we just had - up over 80%.
Changing the subject slightly, today we learn that maybe the sky isn’t falling?
http://www.bloomberg.com/apps/news?pid=20601010&sid=aJ9jvhdaqy3A
;-)
VXX is the only stock I’m playing right now.
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries. “ ~ Winston Churchill ~
I know an Israeli Hedge Fund Manager, and he likes Gold bullion that he holds in a London vault. (He warns about the GLD, and doesn’t like the size.)
I asked him about war(s) rumors and how to hedge says, bombing of Iran?
We agreed Oil could far and away out perform Gold.
That said, T. Boone Pickens calls for a 400% rise in Oil in the next decade.
Oil and Nat gas stocks are cheap.
;-)
” Oil and Nat gas stocks are cheap. “
Good point, and I have been looking at them. But T-Bone is out of his mind ;-)
Yep, straight down from 10100 to 9900. That is what the article is saying--a controlled descent, no big gyrations, no intraday rally, nothing but air between the close and the old lows.
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