by John Galt July 5, 2012 08:00 ET The first half of 2012 has become a comic book story, not based on the superheroes of Marvel or DC, but akin to Alfred E. Neuman acting as villain, superhero, and lucky loser. Since January of this year the market has rallied not on economic growth, not on world geopolitical stability, not on stock market technicals or fundamentals, but on rumors. Rumors of Fed rate cuts, BoE rate cuts, rumors of peace agreements in strife…
by John Galt June 21, 2012 17:32 ET Click on this link to visit Moody’s webpage for all financial ratings actions. Nothing better than a long day at work and coming home to a nice, toasty, warm bloodbath. Of course that only counts if one is a vampire or short the financials, precious metals, energy sector, and CNBC viewership numbers. The market supposedly had “built this in” and the action was going to be labeled an expected “non-event” if you…
by John Galt January 9, 2012 05:15 ET Today is going to be a snoozer. With volumes anemic and the start of earnings season which is a total crap shoot this time around, do not look for any dramatic moves in any U.S. markets today barring some shocking geopolitical event. The head of the ECB is not named “Tebow” and the 1,321 summit between Sarkozy and Merkel is beginning to resemble a marriage counseling meeting rather than a serious attempt to resolve the problems…
By John Galt December 28, 2011 – 08:15 ET When these pages say “preparing for the fall” I am not referring to a change in seasons. The one chart, a bear among the most bearish, says it all: The breakdown of of Goldman Sachs is a leading, not lagging indicator of future activity. This collapse after the death cross as pictured above is usually a warning for a stock and in this case the financials that further stresses are about to impact the markets. The…
By John Galt December 20, 2011 – 05:20 ET Yesterday’s market action on thin volume was in a word, brutal. All of the indicators that Santa Claus was going to save the day failed. Gold rallied above $1600, then fell. Oil barely moved. Financial stocks scream of a disaster building cause in the markets. And despite the horrid yields, people are piling cash into the U.S. bond market, even accepting real and net negative yields to insure the return of capital. The S&P 500′s failure…
By John Galt November 30, 2011 – 14:40 ET Someone forgot to tell GS about the TV Party tonight: Ah, nothing like a little Black Flag to fire up the masses. Then again, these charts are buttgly but they are from 2008! Let’s start with the September 2008 super duper liquidity “we’re going to save the world” bailout period which is an almost perfect duplication of today: (click to enlarge/reduce charts) Impressive? Nah. But if today’s market action parallels this move, which it appears…
By John Galt October 20, 2011 – 05:30 ET All you need to know about what is coming can be found in the charts below. Things are breaking down in Asia and Europe thus it is a matter of days perhaps when we take the lead back and head south for the winter. Gold, using the GLD ETF, is indicating a massive break about to happen below the $1550 mark, probably below $1500 (150 on the ETF approximately) in the days ahead: (click on graphs…
By John Galt September 20, 2011 – 23:00 ET Is the Vampire Squid telling us the results of 2011′s FOMC meetings? The term is not mine, it’s the term of affection assigned by Matt Taibbi in his Rolling Stone piece “The Great American Bubble Machine” where in his April 2010 the case was made that Goldman Sachs, aka one of the two largest shareholders in the Federal Reserve, was preparing to inflate one more bubble to profit on the backs of American citizens. Of course…
By John Galt August 26, 2011 – 05:30 ET Just a quick note before the insanity begins. I think Q2 GDP revision will disappoint with a 0.9% figure and Bernanke will follow with a Lewinsky and no concrete action to give financial markets a reason to rally. With the short end of the yield curve already trading in negative territory, if there is not a confirmation of Operation Twist and some declaration of more easing, there will be a massive sell off this afternoon in…
By John Galt August 22, 2011 – 16:25 ET Oh the temptations to add a lot of commentary to this but here is an excerpt from the Reuters story: Exclusive: Goldman CEO hires high-profile defense attorney 3:39pm EDT By Andrea Shalal-Esa WASHINGTON (Reuters) – Goldman Sachs Chief Executive Lloyd Blankfein has hired Reid Weingarten, a high-profile Washington defense attorney whose past clients include a former Enron accounting officer, according to a government source familiar with the matter. Blankfein, 56, is in his sixth year at…
By John Galt August 22, 2011 – 08:55 ET Yup, it would appear the rumors of QE∞ and the removal of the whacky Colonel from power in Libya will be enough to power the markets higher today. Expect thin volume all week until GS receives the leak as to if there will be another round of Bernanke money bombs dropped on the economy. Remember to watch the one stock that the Fed loves to flaunt in your face, Goldman Sachs, to see what happens. 109-110…
By John Galt August 9, 2011 If Satan’s favorite stock suddenly spikes after 1 p.m. towards the 125 level then QE 3 is a go. However if it suddenly tanks below 117, the entire market will follow as that means there is no sound easing plan to be issued by the Fed in their statement at 2:15 and the market will crater in kind. Just watch this sucker today for a clue as to where the markets will be heading and how the money changers…
By John Galt August 5, 2011 It would appear so. Once again, follow Satan’s lead: If GS rolls over, which it is at this posting, it is game over for the week and quite possibly a weekend of meetings at the FRBNY (Federal Reserve Bank of NY).
By John Galt August 3, 2011 If Satan’s Spawn continues to bounce and rally above 133.00 to 133.50 then the broader market will probably follow. So follow Beelzebub’s baby and watch the market fun: However…. If it breaks below 131, then 130, we’re going downtown and hard…..
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