The ‘stupidity index’ was up over 150 points this morning, making Monday that much more arduous than it usually is. Bad enough the boss is an idiot but when he throws that much of (let’s face it, it really is ‘your’ money, you produce it not him.) moolah at the stock markets because he idiotically believes it is ‘oversold’ and all of those stocks are ‘bargains’…
But hey, WTF…you know he didn’t use his own money to buy all of that stock. (And what a ponderous sum it must have been to move the Dow up 150 points on virtually nil volume…) Oh, tell me again how you don’t think the markets are crooked!
Worse…as share value rises (for no apparent reason) those shareowners are being enriched, pretty much for nothing. Where do you find a deal like that? First you create a piece of paper and then you get to tell the world how much it is worth…sort of blows your mind because the only thing behind it is your say so. (Not that your average schmuck can pull this kind of a scam off. The chiselers who run the markets on the other hand have the “I lie and he swears to it” bit down pat.
When you think about it good citizen, it really is your worst nightmare come true. It turns out that ¾ of our economy is a well-orchestrated con.
Today’s events show just how ‘thin’ that illusion can be sometimes….
Stocks Pull Back After Early Surge
By JAVIER C. HERNANDEZ
Published: November 2, 2009
Stocks retreated from early gains on Monday, despite signs that manufacturing in the United States was on a path to recovery. [Yes, repeat a lie often enough and people begin to think it’s true…how about last night’s post where they openly admit there is no such thing as a domestic consumer electronics sector? Well good citizen…consumer electronics isn’t the only sector ‘missing’ from the US economy. In fact, you’d be hard pressed to lay your hands on a genuine US produced anything (excluding foodstuffs, which are ‘processed’ not ‘manufactured’.) So what is this claim that US manufacturing is ‘recovering’…it’s an obvious lie.]
In afternoon trading, the skittishness of investors over the health of the economy appeared to return on the first trading day since the market took one of its steepest plunges in months. [Which makes you wonder if investors knew ahead of time what the FDIC would be up to at the end of the business day?]
A report by the Institute for Supply Management said the health of the manufacturing sector was at its highest level in three years, substantially beating Wall Street expectations. In addition, a separate report showed increases in the number of home sales, offering hope that a critical sector might be headed for revival. [ Today was November 2nd…does anyone else find it remarkable that they already have ‘hard data’ on hand for October already? You don’t suppose these morons are citing ‘estimates’ as fact, do you? Just like the market’s near vertical climb this morning…after Friday’s precipitous plunge…all we can say is ‘WTF!’]
In response, stocks jumped in early trading, then pulled back at midday. The Dow Jones industrial average rose 28.87 points, or 0.30 percent, to 9,741.60 at 1:15 p.m. The Standard and Poor’s 500-stock index and the technology-heavy Nasdaq composite index were nearly flat. [While they got the Ford results out first thing…the market was already (inexplicably) up 150 points. I know these nutjobs like to pretend the market is ‘psychic’ but this is ridiculous.]
“These downturns will continue to happen,” said Randy Cass, founder of First Coverage. [Here we go again! Who is this and why should we give a flying fuck?]
“The question is which one will be the one that breaks the camel’s back,” he added, referring to an expectation that the market will adjust after an enthusiastic seven-month rally.
Stocks in financial and telecommunications companies led the decreases. [STOP…back up and read the ‘bold’ again…let it sink in.]
On Friday, the major averages posted some of the biggest losses in months, with the Dow tumbling 250 points, or 2.5 percent, and the S.& P. 500 falling 2.8 percent.
Many Wall Street analysts wonder whether the drops on Friday were simply an adjustment in the market after weeks of enthusiastic gain, or a harbinger of dreary days to come. Over the last seven months, stocks have rallied at an incredible pace, leaving some analysts skeptical the momentum will last much longer. [Bizarrely good citizen, the last person I’d listen to regarding the direction of the markets would be some ‘perpetually wrong’ analyst…the only one worse than that would be a government official.]
John F. Merrill, chief investment officer at Tanglewood Investments in Houston,[Huh? Who/Why…this is getting tiresome.] said the ups and downs in recent days were the result of investors looking to latch on to any piece of news that beat expectations.
“There’s a seesaw or a tug-of-war going on between those who want to be more invested and those who don’t,” he said. “Those who want to be more invested are looking for reasons to get there.” [I’d ask you to go back and keep re-reading the above paragraph but it would be an exercise in futility…you could read it a hundred times and it still wouldn’t make sense!]
Investors were also buoyed by news that the Ford Motor Company posted a higher-than-expected profit of $997 million in the third quarter, its first profitable quarter in North America in more than four years. Ford said cost-cutting and the government’s cash-for-clunkers program helped drive up its earnings. In midday trading, Ford’s stock was up 8.72 percent at $7.61. [Geez, you don’t suppose ‘cash for clunkers’ had anything to do with that, do you?]
European markets turned upward in afternoon trading, with the FTSE 100 in Britain up 1.19 percent, the CAC-40 in France up 0.88 percent, and the DAX in Germany 0.29 percent higher.
Overnight, Asian markets fell in response to the sharp sell-offs in the United States on Friday, with the Nikkei average in Japan closing down 2.3 percent and the Hang Seng in Hong Kong dropping 0.6 percent. [Which only makes this morning’s rally that much more inexplicable…it really is a few steps beyond ‘strange’…]
A key economic data point will come on Friday, when the government releases its monthly report on unemployment. The jobless rate is expected to rise slightly, to 9.9 percent, but a sharp deviation could sway markets significantly.
As our friend John Williams remarks, help wanted advertising has remained stuck at record lows. I can personally attest to the fact there aren’t any jobs out there as I’ve been unemployed since mid-August.
So, will the October unemployment number ‘surprise’ to the upside, resulting in a market sell-off? It’s difficult to guage that one because the government statistics have zero relationship with reality.
National payroll figures continue to plummet yet the BLS ‘survey’ still reports a fraction of the number of people who actually open new unemployment claims.
PS by the way…we’ve already been given a ‘hint’ that this month’s number will be hellacious, that last few weekly reports have been getting worse instead of better, and we all know the ‘correction’ is overdue.
The ‘super-volatility’ of the past couple of sessions has allowed the ‘players’ to cash out at a decent price. Now it’s time to let the markets find their ‘true level’ so a ‘real’ rally can begin…or not.
Thanks for letting me inside your head,
Gegner
No comments:
Post a Comment