CRISIS

06.26 More Turmoil in the UK as Labor Party Faces Internal Revolt (Updated)

by John Galt June 26, 2016 09:00 ET UPDATE 13:00 ET – From the UK Guardian: Tom Watson, the deputy Labour leader, has issued a statement on today’s development. Here it is in full. I was deeply disappointed to see Hilary Benn sacked in the early hours of this morning and equally saddened that so many talented, able and hard-working colleagues felt they had to leave the shadow cabinet. My single focus is to hold the Labour party together in very turbulent times. The nation needs an effective opposition, particularly as…


Today’s Market Action was Ugly but not the Big One

by John Galt June 24, 2016 20:15 ET With much respect to the Sex Pistols for creating this song just for events like today: But this wasn’t the big market crash that the bears or for that matter, the bulls, had hoped to get out of the way. The NYSE volume was 10:1 + to the downside, but not the NASDAQ VOLUME nor the advance/declines (data via WSJ.com): Meanwhile the bellwethers are signaling trouble ahead. In honor of Brexit let us just say they are sinking like the old Great Britain…



06.24 US MARKET DEATHBURGER: Black Friday Brexit Burgers Now Being Served

by John Galt June 24, 2016 02:00 ET I have never been so happy to be so wrong in all my life. I honest to God did not think my limey crazy assed brethren had the jewels to vote for Brexit, but they did. If TPTB do not stop them through a technicality or loophole in the Parliament, then this move is nothing more than a vindication of the insanity we are witnessing in American politics where an unconvicted felon is allowed to run against a reality TV show millionaire/billionaire. Thus…




06.23 BREXIT Updates: The End of Great Britain, the Start of French Britain

by John Galt June 23, 2018 18:00 ET I remember reflecting on history at one time where I said if the United Kingdom ever succumbs to the evil lure of globalism and refuses to act proud and independent, then the Western world may well be lost. It would appear, barring a miracle, that the news will reflect a victory for “remain” and the British empire which was once a proud lion, will instead join the world community of cowardly lions which submit to every whim of the global banking syndicates. Of…


Bellwether Weekly Update: AAPL & GS Clank Again this Past Week

by John Galt June 19, 2016 21:30 ET   So another week and another warning from my bellwether stocks, Apple and Goldman Sachs. There is no serious middle class consumer demand and there appears to be no desire to invest in further expansion of companies unless it is to use cash on the balance sheet to buy smaller companies like Microsoft did with LinkedIn. Thus based on futures tonight we might get a dead iPhone bounce or maybe even a better dead Bankster bounce from Goldman but in the end, the…


MSCI will NOT Include China A-Shares in Emerging Market Index

by John Galt June 14, 2016 17:14 ET WOW! This will not help the Shanghai markets tonight and probably will cause massive tankage in Hong Kong also. Via CNBC: Key MSCI emerging markets index rejects Chinese mainland stocks, again MSCI on Tuesday said it would delay inclusion of the mainland-traded Chinese A shares in its key emerging market index. In a release, MSCI said investors needed more time to assess the effectiveness of the Qualified Foreign Institutional Investor program (QFII) investment quota allocation, capital mobility policy changes and the effectiveness of…


German 10 Yr Bund Yield Goes Negative for First Time in History

by John Galt June 14, 2016 04:50 ET Just when anyone in the investing world thought it couldn’t get any more nuts than it has been, German government bonds send the most alarming signal ever with their 10 year Bund yield dropping into negative territory for the first time in history: Meanwhile, US 10 Year Treasuries are now have a yield with a 1.5 handle this morning: If the US 10 year breaks below 1.50% that usually correlates with a stock market some 10-15% below current levels. This really ties the…



Ambrose Evans-Pritchard: Why I am voting to leave the EU

by John Galt June 12, 2016 20:10 ET In what can only be called a stunning editorial in tonight’s edition of the UK Telegraph, Ambrose Evans-Pritchard hammers it home with a stunning rebuke of the pro-European Union forces inside the United Kingdom with this editorial: Brexit vote is about the supremacy of Parliament and nothing else: Why I am voting to leave the EU Holy smokes! This is somewhat earth shattering as the conventional economic thought inside England was to remain and muddle through with a partnership both with France and…


Market Trouble Ahead as the Bellwethers Break

by John Galt June 12, 2016 19:40 ET I’m going to keep this short, simple, but loaded with graphs so everyone can see what happened last week to the 2 bellwether stocks in the equities markets, Apple, Inc. and Goldman Sachs. Why I have tagged those two issues is irrelevant; I just advise everyone to remember 2007-2009 when General Motors and IBM were the bellwethers and what happened to the markets after they broke down. Both of these stocks are widely held, usually reliable leaders in bull markets and vice-versa, and…


As a Follow up to My last Article on China: China FDI Drops 1% vs. Expected +5%

by John Galt June 12, 2016 19:20 ET As a follow up to my last article, the news out of China this morning was not good. In fact it validates the concerns foreign investors have about the viability of keeping money parked inside the communist behemoth where risk is defined not by markets but government whims. Foreign Direct Investment in China dropped 1% instead of rising the predicted 5% that economists expected. These highlights from the release along with the chart from ForexLive tells the tale of woe: +6.0% prev Yuan…


China Drops a Silent Economic Bomb: Hints at Bankruptcy Rules for Financial Sector

by John Galt June 12, 2016 17:55 ET The one thing that foreign investors had always been able to count on with the People’s Bank of China (PBOC) and the Communist Party of China was that no matter how bad the conditions in their financial sector may get, the government and PBOC will always find away to restructure the debts or ensure the continued operation of the entities to avoid an outright default. Sunday, during the Lujiazui Forum in Shanghai, that theory was turned on its head. From the South China…


The War That isn’t Reported Continues: 9 Ukrainian Soldiers Killed, 19 Wounded on Friday

by John Galt June 12, 2016 16:35 ET The war that is not going to be reported in the Western media continues with casualties and destruction on both sides becoming quite commonplace as artillery exchanges and small arms fire intensifies. The story below demonstrates that the OSCE oversight of the Minsk Agreements is nothing more than a figurehead joke designed to support a pro-NATO/EU version of events ignoring the plight of citizens near the front lines in the Donbass region. From DNI News on Saturday: 9 Ukrainian security officers killed, 19…


Greece Reminds Us: The PIIGS Crisis Is Not Dead

by John Galt June 2, 2016 20:45 ET While America slumbers in its own porkfest of Federal Reserve provided phony money, the European Union is attempting in a very desperate manner to bury the pork vampire from hell formerly known as the “PIIGS.” Unfortunately for Brussels, this fat little piggy just will not die. From the Greek newspaper, Ekathimerini: Greek bond yields climb Greek government bond yields rose on Thursday after the European Central Bank said it would take no decision on whether to reinstate a cheap funding lifeline to Athens…


Today was a Tranny Kind of Day in the News

by John Galt May 12, 2016 18:20 ET I can not make all the bullshit that was in the news today: Caitlyn Jenner Experienced ‘Sex Change Regret,’ Might De-Transition, Biographer Says After all the idiocy, really? She/he/it (Sheit for short) might get the titties and ass implants removed? From the article above published by TheWrap: Ian Halperin, the author of “Kardashian Dynasty: The Controversial Rise of America’s Royal Family,” said that, while researching his book, multiple sources told him that the former Olympian had been miserable for months and has considered…


Why Democrats Secretly WANT Donald Trump to Become President in 2016

by John Galt May 8, 2016 13:40 ET In the past months of political nonsense, unfair, and irrational comparisons have been made of one Donald J. Trump to the rallies Adolph Hitler used to hold. While the visual aura of individuals raising their arms in an oath to a political figure seems horrifying to most Americans; but if one understands the entertainer that is Trump, one would know that this was for show, not for some devious purpose like the school children who were forced in 2009 to sing songs of…


Gold is Poised for a Major Breakout This Week

By John Galt May 8, 2016 08:30 ET After weeks of consolidation, the breakout and weekly close above the key $1280 support level on a weekly basis indicates that monetary stresses in Asia, Europe, and North America are becoming more severe and that this new move in gold as a flight to safety is indeed being validated with each leg up. The weekly chart also confirms the volume supporting this move and as illustrated in the daily chart below, despite attempts to sell the monetary metal below support, there are enough…


China’s Caixin PMI Edges down to 49.4 in March

by John Galt May 2, 2016 22:25 ET The sugar coated version of tonight’s release came from the newspaper Shanghai Daily via Xinhua: Caixin China manufacturing PMI edges down to 49.4 From the somewhat softened release: The Caixin General China Manufacturing Purchasing Managers’ Index (PMI), an indicator of manufacturing activity, edged down to 49.4 in April, a private survey showed on Tuesday. The reading was fractionally down from 49.7 in March, signalling marginal deterioration in operating conditions, according to the survey conducted by financial information service provider Markit and sponsored by…


The Boricuan (Puerto Rico) Crisis Accelerates into Default with American Banksters

by John Galt May 2, 2016 21:40 ET John Oliver on HBO’s “Last Week Tonight” provides a nice summary  of what is happening on one of America’s remaining colonies: How bad is it? Here is this morning’s El Nuevo Dia newspaper front page from San Juan which should have rung alarm bells in Congress: The key headlines (roughly translated for those not fluent in Spanish): “We can NOT wait any longer” for relief from the Congress of the United States “Emigration has reached another record” (from the island) “Congress has to…


Another 20% Dollar Tree Inflationary Warning

by John Galt May 2, 2016 20:20 ET A little over a decade ago, I pointed out the hypocrisy of product size inflation in an old article about my Dollar Tree inflation indicator. I noted, of course simple things like 4 packs of batteries being changed to 3, 16 oz. of dry cereal being reduced to 12 oz., and candy bars being reduced from 6 oz. to microscopic specs of something wrapped in paper. Today, I encountered something amazing at the U.S. discount retailer the Dollar Tree which should alert everyone…


Warren Buffett Sees Derivatives as a Potential “Time Bomb” for Financial Markets

by John Galt May 1, 2016 22:40 ET Weird. CNBC did not report on this subject on their web page. Marketwatch did not make a big deal about this story either: The Financial Times of London, Wall Street Journal, Bloomberg, hell, even that rag the New York Times Business section do not even have this headline: Buffett sees derivatives as potential “time bomb” in financial markets So my American readers can thank the Communist Chinese government’s semi-official official propaganda outlet, Xinhua?!?!?! Yup: OMAHA, Nebraska, April 30 (Xinhua) — Warren Buffett, Berkshire…


$1294.90

by John Galt May 1, 2016 19:05 ET Gold closed on Friday with a price of $1294.90. Why is that significant? Because it should alert any sane person that a long term trend line has been broken but more importantly, the three month consolidation and base building period is now over. First a little chartistic charsima courtesy of gold: Way, way, back when Jim Cramer was telling us it was still safe to own Bear Stearns, the precious metals markets experienced a similar consolidation and decline following a rally above $600…


The Fed Goes Full Retard Leaving Investors Totally Befuddled

by John Galt April 27, 2016 22:30 ET James Grant summed up today’s FOMC meeting better than any other talking head today (via Bloomberg-TV): “They remind me in the aggregate of the most novice of novice retail investors” That actually sums up the Federal Reserve Open Market Committee quite nicely. What did they say today to trigger this response? From the Federal Reserve website: Press Release Release Date: April 27, 2016 For release at 2:00 p.m. EDT Information received since the Federal Open Market Committee met in March indicates that labor…


04.17 DeathCamelBurger Edition: Saudis Choke in Doha, WTI Crashes below $40 on the Open, Stock Futures Falling

by John Galt April 17, 2016 19:15ET Apparently the House of Saud would rather eat their rides than finance them as today’s Doha, Qatar OPEC meeting ended in discord and disaster for the now flailing for a reason to exist organization. The results? WTI-Crude opened up down over 6% along with Brent and created a huge disaster for the longs that enjoyed the short covering rally of the past few weeks (Charts courtesy of Finviz.com/prices delayed 15 mins):   Note: WTI rolled over to the June 2016 contract starting today; on…



The Federal Reserve is Being Held Hostage by China

by John Galt March 17, 2015 05:15 ET Please not the following from the Federal Reserve’s FOMC statement: Information received since the Federal Open Market Committee met in January suggests that economic activity has been expanding at a moderate pace despite the global economic and financial developments of recent months. Household spending has been increasing at a moderate rate, and the housing sector has improved further; however, business fixed investment and net exports have been soft. A range of recent indicators, including strong job gains, points to additional strengthening of the…



03.08 Warm up the Grill: Deathburger Markets have Returned as Asia Craters

by John Galt March 7, 2016 21:30 ET Never let Janet Yellen light your grill for a Deathburger. So Japanese GDP was worse (not a shock),  China is a clusterTrump (not a shock), and the Asian economy is incinerating investors like there is no tomorrow because there is no tomorrow. How is this suddenly playing out tonight? Japan as of this posting is down about 311 or 1.84% (via YahooFinance):   OUCH. China is not doing much better, now down around 2.8%: US Futures on the S&P 500 e-Minis have turned…


Happy Leap Year Day Spooky Video Courtesy of a Major Hedge Fund

by John Galt February 29 2016 17:20 ET Remember this scene from the movie Margin Call? Perhaps if you are not familiar with the movie, you should be. Because the bank it was roughly based on does exist and was bailed out by the U.S. taxpayer, gambled on and won on a Federal Reserve and U.S. Government funded phony recovery, and worse, now is impervious as it is THE bank that it is too big to fail. Why is this relevant today when employment is allegedly booming, the economy growing at…


02.27 BREAKING NEWS: Irish Pro-Austerity Government Coalition Falls in Shocking Election Defeat

by John Galt February 27, 2016 18:00 ET The implications of the message from the Irish people is quite clear and unmistakable: From AFP (via Yahoo): Irish government concedes election defeat <excerpted> Irish prime minister Enda Kenny conceded defeat on Saturday following elections that saw the governing coalition punished by voters weary of austerity, leaving the eurozone country in political limbo with no clear winner. “Clearly the government of Fine Gael and Labour are not going to be returned to office,” Kenny, the leader of the centre-right Fine Gael party, told…



Shanghai Stock Exchange Shellacked with 6.41% Decline Overnight

by John Galt February 25, 2016 05:15 ET No wonder I couldn’t sleep. There was a bear porn movie on in at the Shanghai Stock Exchange: After the initial down draft, the lunch time break failed to prevent the afternoon panic. After a brief bout of government intervention before 2 pm local time, everyone bailed. This is a very bad omen for March. The US markets might have the cheerleaders out discussing how the bear is over, the correction has corrected, and that this is the buying opportunity of a life…


RED ALERT: S&P 500 Action Today means Assume the Crash Position!

by John Galt February 23, 2016 22:15 ET So how bad has the past week’s action been in equities? Even Apple can’t get it’s app up! The first warning sign of what we are about to endure was issued back in August of 2015, but the financial MSM gave cover to leading stocks like AAPL because they HAD to maintain the illusion of economic expansion and the bull market would continue for political reasons. A total economic implosion or recession is bad for business and the big money needed time to…


02.11.16 18:00 ET: Russia Warns Saudi and GCC Military supporting Rebels in Syria Risks a World War

by John Galt February 11, 2016 18:30 ET This is the kind of news in the old days that would cause gold to jump $100 in 5 minutes, however, since the chicken hawks who date camels are usually all talk and no action when it comes to military affairs unless the United States puts ten times then number of our own troops at risk, the reaction is only notable because of Russia’s stark warning. Via The Daily Star in Lebanon, via various news agencies: Russia warns Gulf intervention in Syria risks…


02.11 JAPANESE YEN Deathburger Mega-Alert: 300 pt Move to 112 in USD/JPY!

by John Galt February 10, 2016 20:20 ET Holy Flirkingshmidt! UPDATE 21:00 ET: And whatever it is that has gone kaboom in the night is reverberating into Hong Kong trading as the Hang Seng opened down over 700 points (4%+) and is still trading close to the lows in the first 1/2 hour of trading(chart via YahooFinance): The opening 1 minute of trading appeared to be the most harrowing! NetDania has some graphic charts (as in Holy TRUMPword) which shows the mind-boggling rise of the Japanese Yen versus the US Dollar…


02.10 While Trumpzilla Rampages through NH, Godzilla Bear Destroying Nikkei 225 and Asian Markets

by John Galt February 9, 2016 21:35 ET As The Donald rampages through the snow covered hills of New Hampshire winning a whopping almost 35% of the vote, apparently he is not so popular on the Nikkei 225 in Japan as they have decided to show their Trumpertantrum by selling off stocks by over 2.4% so far tonight: Meanwhile in Australia, the situation is not much better with an almost 2.5% drop also: US Dow e-Mini futures are only down 63 points at the moment, however the night is young and…


There is no Dead Cat Bear Bounce of Consequence Forthcoming

by John Galt February 8, 2016 21:30 ET The financial media and prime time stock pumpers will try to deceive everyone into thinking that again, one more time,  that this is nothing more than a corrective phase in the midst of a long term bull market rally. Woe unto the fool who buys that nonsense. Instead of chart after chart illustrating how bad the action has been in the past 40 days, here is a great summary via CNBC’s resident guest technician about trend violations on Friday February 5th’s Option Actions…


%d bloggers like this: