By John Galt May 15, 2011 Tonight’s action in the Euro is psychologically and technically not very reassuring as the currency appears poised to shatter the 140 level and proceed to test the 200 DMA. On the chart below of the Euro ETF proxy (FXE), I’ve outlined the “failsafe” region (technically) in my opinion that must hold between 134 to 136 or this sucker will break down to 126 then retest the 2009 lows around 120. All of which should happen in the June to…
By John Galt May 15, 2011 It is becoming somewhat spooky when the words of Ben Bernanke haunt the mind, week after week, thus I shall do the best that I can to escape this transitory trap he has placed most commentators into. Except in this case the “official” CPI report from last Friday was without a doubt seriously a transition before a major commodity crash brings the prices down the BLS creates out of thin air and allows the Fed even more room to…
By John Galt May 15, 2011 The Communist Chinese government took a very effective step this weekend to preserve their fuel supplies and a direct hint to other nations on how to control the limited supplies of finished petrochemical goods on the world market. The Chinese announced via the Xinhua news agency that all diesel exports have been suspended with the exception of diesel for Hong Kong and Macao. As the wars in the Middle East expand due to domestic discontent and the Untied States…
By John Galt May 15, 2011 Let the games begin! With DSK, the former IMF Chief, now participating in the exercise program in the New York City police holding cell, Greece has lost a crucial ally in the ability to borrow even more money that they will never repay. Thus this story leaking out to a German newspaper as reported by Reuters is no surprise: IMF has doubts over more credit for Greece -paper The reality is that the only solution is for Greece to…
By John Galt May 15, 2011 For anyone buying the garbage that the state of New York is an economic paradise, I would suggest you read this article from the New York Daily News: New Yorkers under 30 plan to flee city, says new poll; cite high taxes, few jobs as reasons I’m not an expert but this article by Kenneth Lovett looks more like an advertisement for Texas, Florida, and North Dakota rather than staying behind in a state which was perceived to be…
Just a quick note and open thread from your host. Sorry I was down for so long but a certain company that used to host this blog that begins with the letter “Y” was so WordPress unfriendly and their database structure so horrid that when I attempted the transfer they held it up for four days and of course let me with problems translating the archives from their format to the new structure so I’ll be rebuilding history for a few weeks. If you have…
By John Galt May 15, 2011 The news cycle this Sunday morning is quite disturbing. From Reuters: India, Pakistan exchange border fire after soldier killed 15 May 2011 10:10 Reuters (Updates with Pakistani confirmation, three wounded) JAMMU, India, May 15 (Reuters) – Indian and Pakistani troops exchanged sustained cross-border fire on Sunday, security officials said, a day after an Indian soldier was killed by Pakistani troops while patrolling one of the world’s most heavily guarded borders. (Continued at Link) The table is being set for…
By John Galt May 15, 2011 The news out of the Middle East this year has been nothing but disturbing thus when one reads a story about a Sheikdom creating a mercenary force for either protection or domestic suppression it should not come as a shock. The New York Times this morning has this exact story: Secret Desert Force Set Up by Blackwater’s Founder The story by Mark Mazzetti and Emily B. Hager was controversial because it highlighted the re-emergence of the former…
By John Galt May 15, 2011 This is not a good series of developments this morning from the Middle East: Israel-Palestinian violence erupts on three borders 15 May 2011 12:48 Source: reuters // Reuters ISRAELI GUNFIRE WOUNDS 45 PALESTINIAN PROTESTERS IN GAZA STRIP 15 May 2011 11:42 Source: reuters // Reuters ISRAELI FORCES SHOOT DEAD FOUR SYRIAN CITIZENS AT RALLY NEAR GOLAN HEIGHTS 15 May 2011 12:28 Source: reuters // Reuters U.N. calls for calm at Lebanon-Israel border 15 May 2011 12:20 Source: reuters…
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