Saturday, November 7, 2009

Government by the special interests for the special interests...

It is clear what is going on in this country. And while the Fed, Treasury, Obama and Congress are abusing  the tax payer and constituents for the benefit of the special interests...they are deliberately furthering a scheme planned and implemented early in the 1900's. So called healthcare reforms represent a major step forward of that agenda. If there is any doubt about this...please read these quotes:

Capital must protect itself in every way... Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd.- JP Morgan
The world is now more sophisticated and prepared to march towards a world government. -David Rockerfeller

Healthcare or Not?

If the people let government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny. 
-Thomas Jefferson

The Dollar - pattern broke supports

This is an updated chart of the dollar from several days ago. This raises the odds of some lower probing...with downside targets in the 74.5 area. However, if the multiple turn dates occurring early next week play out the lows could still be in already and the dollar could make a huge move, otherwise it will be more of the same dribbling down.

Interestingly, the large healthcare reform bill being voted before congress may have large implications for the future of the dollar and interest rates. A plan as misguided with regard to debt and constitutionality is likely to cause some real issues with interest rates and could be a good excuse to get 3 of 3 down moving...but for now the dollar chart forecasts weakness.

Some Numbers

Cost of military providing ONE gallon of fuel for a jeep in Afghanistan:
$292.00 - yes that's right, two hundred and ninety two dollars.

Effective all in tax rate for New Jersey:
62% - and the government is still broke.

All this money floating around being misused by government is not creating opportunities for the US citizens or business unless your name happens to be JP Morgan or Goldman Sachs

Stimulus and Jobs?

The Chicago Tribune said recently that Obama's gang says the jobs of 473 teachers were saved in North Chicago.

But the paper pointed out that the district only has 290 teachers in total. How does that add up?

Read more: click here

Industrial Production then and now...

This is a great chart of the current situation...

Can we afford the wars and bailouts? What is the government and the press telling us? Is the stock-market levitation a miracle or something else?

“I have sworn upon the altar of the Almighty God eternal hostility against every form of tyranny over the mind of man.”

"I believe that banking institutions are more dangerous to our liberties than standing armies."

-Thomas Jefferson
“The business of the journalists is to destroy the truth… We are the tools and vassals of rich men behind the scenes. We are the jumping jacks, they pull the strings and we dance. Our talents, our possibilities and our lives are all the property of other men. We are intellectual prostitutes.”
-John Swinton, speech given while working for the New York Sun, 1880

Tuesday, November 3, 2009

Dollar Pullback targets

We should bounce at the trend line and then rally hard.

Dollar Breaks Out - takes out stops in futures contracts

Over night the dollar broke the 76.40 trendline...and took out stops in the low volume overnight session for the DX contract. The prices popped there to 81.00 on 3,000 contracts. If this was a hedge or speculative position...the net effect was an $11,000,000 hit on those contracts from overnight lows. Please look at these trades to see how you can get killed in overnight stop hunting. DX is not a very liquid contract and can not absorb  a 3,000 contract order.

In any case, the market is not down on european banks as is being spread in the press. The market is down on relative value dollar issues. We may be setting up a leading diagonal for a downside break. This was my assumption yesterday and continues to be a preferred view today.

Buffett's, hair-brained purchase of Burlington Northern is an example of the Buffett credit inflation thesis. Please read my Buffett pieces on the featured article list. Credit inflation is dead...buying transports now is absolutely devastating. Buffett does not understand the financial system and thinks his buddies at the Fed and Treasury will provide enough cushion. The reality is they are not in control. This buy of Burlington may provide some lingering strength for the Equity markets...which will, no doubt, be a great bearish opportunity.

I saw Cramer last night, he has officially lost his mind and should be fired immediately. He is championing good news. Good news comes at a top...he should know that already. CNBS is continuing in their quest to reduce their view ship to Zero.

As long as the dollar is strong...sell rallies IMO.

Sunday, November 1, 2009

The Dollar - another view

This reflects the same chart as DXY potential for a small bounce in the markets and a dollar pullback to 75.90 or so. The HS pattern looks better on the UUP even than the DXY directly which is why I wanted to show this chart.

above chartcourtesy of matt fraily,
© 2009 m3, ltd. All rights reserved.