Archives for July 2015

Wall Street’s Secret Dividend from the Fed May Go to Fixing Potholes

Courtesy of Pam Martens. Photo of the Trading Floor at the New York Fed (Obtained by Wall Street On Parade from an Educational Video Despite Stonewalling by the New York Fed) Your humble editor and publisher of Wall Street On Parade might have had a little something to do with a growing mutiny in Congress. […]

Sentiment Measures vs. Retail Spending: Clueless Clues and Random Noise

Courtesy of Mish. Economists Shocked Economists were shocked by the plunge in the Conference Board Consumer Confidence Index this morning, well below the any economist’s guess in Bloomberg’s Econoday Forecast. The consensus estimate was 99.6. The consensus range was 97.0 to 102.0. And the actual result … 90.9. Consumer confidence has weakened substantially this month, […]

Putting the Puzzle of Greece Together

  Putting the Puzzle of Greece Together Gordon T. Long (at Macro Analytics) talks with John Rubino (Dollar Collapse) about the current developments in Greece and the seemingly impossible choices facing the Greek people and their government. THE ACCOUNTING CHARADE To better understand how Greece and the EU found itself in this perplexing problem, John Rubino traces […]

How to Use the Stochastic Oscillator

A lesson from EWI's Jeffrey Kennedy The stochastic oscillator is a technical tool that was popularized by George Lane. It is a momentum indicator based on the idea that in an uptrending market, the close tends to be near the high of the price bar, and in a downtrending market the close tends to be […]

Crude Oil: Will the Decline Continue?

In this brief interview, Steve Craig, editor of EWI's Energy Pro Service, explains what he sees next for crude oil ~ and it's not good.  Free Report: "Peak Oil" — And Other Ways Crude Oil Fooled Almost Everyone These excerpts from Robert Prechter's Elliott Wave Theorist highlight the flaws in the conventional approach to forecasting oil prices — and show […]

Actually, gold RISES after rate hikes begin

Courtesy of Joshua Brown, The Reformed Broker If you believe that history is any guide at all when it comes to monetary policy, the dollar and gold, then this may be of interest to you… Gold has been in a death spiral of late based on the twin fears of rising rates and a dollar […]

Simmering Stew; Italy’s Finance Minister Joins “United States of Europe” Parade; Germany’s “5 Wise Men” Argue for Grexit

Courtesy of Mish. Italy Seeks Political Union As expected, Italy has joined the "United States of Europe" parade. And also as expected, some from Germany want no part of it. Let's start with Italy. Italy's finance minister, Pier Carlo Padoan calls for ‘Political Union’ to Save Euro. Italy’s finance minister has called for deeper eurozone […]

Another Bridge Loan Likely as Greek Talks Break Down; Shocked Over Parallel Currency Plans? Why?

Courtesy of Mish. Greece insists it has met all of the conditions for another bailout, but only one vote matters, that of the creditors who say Greece hasn’t. One of the stickiest issues is hiking taxes on farmers. But if tax hikes is what the creditors want, that’s what they will get. Greece should realize […]

Blame The Fed For The Commodities Slump

Courtesy of Bill Bonner of Bonner & Partners When we left you at the end of last week the world was falling apart. As you know, the economy functions on electronic credit… not cold, hard cash. Without the banks pumping more credit into the system – by way of loans – it sags. The Dow fell […]

What Happens When Economists Talk Politics

Courtesy of The Automatic Earth. Jack Delano Chicago & North Western Railroad locomotive shops 1942 As the “Varoufakis Files” provide everyone interested in the Greek tragi-comedy with an additional million pages of intriguing fodder -we all really needed that added layer of murky conspiracy, re: the Watergate tapes-, a different question has been playing […]

Saudi Arabia Expands Price War Downstream

  Saudi Arabia Expands Price War Downstream By Gaurav Agnihotri of The undisputed king of oil and gas is making some moves that could change the face of the global refining sector. In June 2015, Saudi Arabia pumped a record 10.564 million barrels a day, a record level. As if being the world's biggest exporter […]

China’s Stock Market Crash Looming Large Over Oil Prices

  China’s Stock Market Crash Looming Large Over Oil Prices Courtesy of Evan Kelly at Oil prices continue to defy even some of the most pessimistic expectations, with WTI falling substantially below $50 per barrel, dropping near $47 on July 27. WTI is now within $3 of its March low, essentially erasing all the gains […]

When China Sneezes, the U.S. Stock Market Could Catch a Bad Cold

Courtesy of Pam Martens. According to the Office of the U.S. Trade Representative, “China was the United States’ 3rd largest goods export market in 2013.” That’s the latest year that data is available. The total of U.S. exports to China in 2013 reached $122.1 billion, a 10.4 percent increase over 2012. The top categories of […]

Information overload is making us dumber investors

"Information overload" may be especially problematic when we don't have a plan or don't stick with our plan. For example, we may have a long term goal for a stock, but then short term information gets presented, and we act on it, abandoning our original thesis. This can lead to over-trading, chasing the news, and […]

These Superhumans Are Real and Their DNA Could Be Worth Billions

The decreasing cost of gene sequencing (as low as $1,000 a patient today) is allowing companies to to sequence many people's DNA, create large data bases, and find relationships between genes and symptoms. The result: potentially new and improved drugs to treat genetic and other conditions such as high cholesterol and chronic pain.  These Superhumans […]

What is the Message of the Market?

  What is the Message of the Market? Courtesy of Jeff Miller, Dash of Insight's Weighing the Week Ahead As I have noted for the last two weeks, this earnings season carries a special significance. It provides an alternative to the official data on the economy. After a bad week for stocks, the punditry will […]

PTJ on being on the right side of the trend

Courtesy of Joshua Brown, The Reformed Broker There’s more than one way to skin a cat. The stuff that Paul Tudor Jones has made his billions based on does not appear in any traditional investing text book. Ben Graham would read his stuff and roll over in his grave. For example, the idea of being […]

Europe: Running on Borrowed Time

  Thoughts from the Frontline: Europe: Running on Borrowed Time By John Mauldin “I am sure the euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.” – Romano Prodi, […]

Stench from Chicago so Bad, Fitch Finally Smells It

Courtesy of Mish. At long last, the stench from Chicago is so strong that Fitch can finally smell it. Fitch just now downgraded Chicago Board of Education General Obligation bonds to junk status. Fitch and the S&P were holdouts because there's money to be made by purposely pretending a manure factory is a rose garden. […]

Final Second Quarter “GDPNow” Forecast 2.4% vs. Bloomberg Consensus 2.9%

Courtesy of Mish. The Atlanta Fed second quarter GDPNow final estimate came it at 2.4%. The second quarter GDP official "advance" estimate from the BEA is due out Thursday, July 30 along with the annual revision of the National Income and Product Accounts (NIPA). The Bloomberg Consensus Estimate for second quarter GDP is 2.9%, a […]

Witch Hunt is On; Foolish Ideas on Stopping the Shanghai Carnage; US Bubble Will Burst Too

Courtesy of Mish. Nearly 1,800 stocks, over 60% of issues traded on the Shanghai and Shenzhen stock exchanges fell by the daily limit of 10% and were halted according to a Financial Times report. When contacted by the Financial Times, the China Securities Regulatory Commission refused to answer any questions. The amusing comment of the […]

China: Major Devaluation Coming

Courtesy of John Rubino. The whole “market economy” thing is turning out to be a little trickier than China’s dictators expected. To set up the story: After the 2008 crash the country borrowed about $15 trillion (an amount that dwarfs the US Fed’s quantitative easing programs) and spent the proceeds on history’s biggest infrastructure program. […]

What Loss Of Control Looks Like: Chinese Regulator Urges Traders To Rat Out “Malicious Sellers”

Maybe the Chinese should just close their stock market until valuations catch up to prices. Lock in those gains!  I mean really lock in.  What Loss Of Control Looks Like: Chinese Regulator Urges Traders To Rat Out "Malicious Sellers" Courtesy of ZeroHedge After pledging a whopping 10% of China's GDP, or just about $1 trillion, to its […]

Chinese Stocks Crash Overnight; Will We See Another “Glitch” in New York

Courtesy of Pam Martens. Shanghai’s Bull Statue on Its Bund Waterfront (left); Bull Statue in Lower Manhattan (right) Despite unprecedented efforts by the Chinese government to stem the rout in the Chinese stock market that had shaved as much as $4 trillion from share prices before the government’s interventions this month and last, the Shanghai […]