by John Galt June 5, 2013 05:50 ET The Japanese Nikkei 225 got whacked again last night with a 3.83% loss or 518 point decline: (charts from YahooFinance) I haven’t seen panic set in over the last three weeks since Dunkin Donuts closed their capitol building location in New Jersey. The key to today’s action is to watch the Yen which is strengthening once again as our economic situation is starting to display the instability which most Americans feel on a daily…
by John Galt June 3, 2013 05:45 ET The prevailing thought after Friday’s swoon was that the markets would continue tanking this Monday morning and there is a strong chance that the U.S. equity markets could drop further despite mildly higher futures this morning. The reality is not in the short term hourly action of the markets but what history has taught what few individual investors are left when May ends on a sour note with somewhat less than a booming economy. The chart…
by John Galt April 19, 2013 06:00 EDT Everyone loves a market rally after a tough week and with terrorists being killed and hunted down and the prospects of a massive increase in the size of the Police State, look for all US markets to rally strong today. In the premarket, it’s looking somewhat strong: (Data from FinViz.com) History reminds us about IBM’s role in pre-World War II Nazi Germany and how many U.S. and British companies exploited the expansion of the police…
by John Galt March 26, 2013 17:30 ET Today the Dow Jones Industrial Average closed at a new all time high of 14559.65. To add some perspective to this resurgence in the market and what happens when government and the Federal Reserve meddle, I thought a visit to economic disasters of the past might be in order: I don’t think that any other comments are necessary. Just beware the consequences of manipulated markets and the rush to the exits when everyone who…
by John Galt March 1, 2013 05:30 ET The markets are at a face palm railroad crossing and unfortunately most market participants and gurus are missing the warning sign. First and foremost is that gold has shifted from its safe haven status to a full blown predictive indicator of approaching economic and stock market action. At this moment the declines in gold are not stating we are in the great hyperinflation but in fact possibly heading towards another period of deleveraging and deflation…
by John Galt February 20, 2013 19:30 ET Hmmm, heard this before? Nah, it’s the 1920′s ladies, Kwamer said so: Wait a second. Oil prices going up are bad? Didn’t we hear in 2007 and 2008 that this indicated a bull market was going to extend all the way to Dow 20,000? Nah, people are not stupid enough to get washed, laundered, rinsed, and raped again are they? Ah, uh, yeah, from the New York Times on January 25, 2013: As Worries…
by John Galt December 30, 2012 15:00 ET So how did I do? First, unlike many bloggers, prognosticators, commentators, and hosts, I will refer to my predictions for this year that is about to end by reminding everyone they can see my mistaken and correct predictions of doom in this thread from my radio show and in this thread: JohnGaltFLA.com Predictions for 2012 Let’s break this down, section by section and score it by +1 for correct, -1 for…
December 21, 2012 05:05 ET By John Galt Tonight I must say that parting is such sweet sorrow. It is time for this cowboy to ride off into the sunset and spend more time writing at this website and more importantly prepare my family for the acceleration of the collapse. It has been a good run, starting with my time on Steve Quayle’s program many years ago until this moment where with the blessings of all my listeners who allowed me into their…
by John Galt November 7, 2012 16:45 ET - …. . / .– — .-. .-.. -.. / .. … / .- – / .– .- .-. / .- .-. . / -.– — ..- / .–. .-. . .–. .- .-. . -.. Dear God, Ouch. We got the message. Love ya man, Real Americans Wow gang, just wow. A lot to cover in one hour as yours truly dissects the disaster from last night. And…
by John Galt August 5, 2012 23:50 ET Despite popular belief that yours truly has been abducted by U.S. government sponsored aliens from Area 51 and forcibly given an anal probe, I’m quite well, just busy preparing for the Tampa’s Pearl Harbor as the drones invade our airspace and the world shifts further into police state orgasmic pleasure. Thus why a moment to analyze the massive economic data from the past week requires the pause that refreshes beyond the 151 Bernank being…
by John Galt August 1, 2012 05:30 ET Beyond language stating that the Fed will be there to support low interest rates for the long term, price stability, inflating being under control, and concerns about the economic data reflecting lackluster growth there is nothing of interest coming from today’s Fed decision in this author’s opinion. The rally in equities was a purely rumor driven fantasy based on the delusion that the economy has stalled enough to justify another round of Quantitative Easing. This…
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 26, 2012 05:25 ET Yesterday in my quick note on the markets I pointed out the key support level of 1296 on the S&P 500. That has not changed but if it does fail to hold in today’s trading AND the move below that mark on the close is with high volume, then the markets will likely capitulate in the weeks ahead. However, if it holds or breaks slightly below that mark on low volume, expect one more rally…
by John Galt June 25, 2012 10:40 ET The U.S. stock markets this morning are sending a major warning signal this morning and the S&P 500 is screaming the loudest: A break below the 1296 to 1298 with over 1.7 billion shares on the NYSE is one of the most negative signals heading into the end of the month anyone will ever see. It opens the equity markets up for a 10-15% correction, especially if the S&P 500 closes below the…
by John Galt June 18, 2012 05:15 ET Whew! That was close. Everyone thought that the Greeks would go hard line Marxist and instead continued with their tradition of electing a lightweight Marxist so the market futures shot up last night because nothing was solved and the economy of Greece still sucks. Then the futures minions woke up this morning and remembered that Spain was a much larger problem and the “bailout” there was a joke: (chart from Bloomberg.com) The U.S.…
by John Galt June 17, 2012 18:30 ET Uh, someone with some money realizes that this is becoming a joke. In the old days, a rigged election or leak about “coordinated bailout” would cause the futures to skyrocket some 300-500 Dow points. Here they are getting “their boy” into office in Athens and this is all they got? (from FinViz.com) Perhaps someone actually looked at a map and realize that Ireland, Hungary, Portugal, Spain, and Italy are still on the “oh…
by John Galt June 10, 2012 23:40 ET Hey, remember this guy? Who could ever forget that awesome prediction. Along with the Dow 20K guy, of course. Someday soon, with the Bernank’s help, they might be right. But for practical purposes, let’s review the upcoming Spanglish rally created by the FedECBJCBPRAYFORAMIRACLEOHGODWEAREALLGOINGTODIE bank of the world. The S&P 500 has some serious headwinds as Herr Obummer likes to call them: A break through the 1360ish area with major…
by John Galt June 8, 2012 05:30 ET On my radio program of June 6, 2012 I pointed out how gold has been leading the equity markets. In this commentary, I shall show how the two divergences from 2007 to this year will end and result in a short term collapse in stock prices. First, let’s review the chart of the S&P 500 versus the GLD ETF from 2007 to June 7, 2012: The initial divergence as highlighted in the chart above…
by John Galt June 7, 2012 05:15 ET So what keeps an academic figurehead for the world’s elite banksters up at night? A repeat of the 2008 debacle. Thus far they think they have avoided it in the United States however that creeping feeling that the disaster de jour in Europe will not be avoided is starting to permeate the thought processes of our bankers and that means the U.S. taxpayer must be extorted into another bailout of their mistakes. The problem…
by John Galt May 15, 2012 05:30 ET After several days of just horrid technical destruction and weak trading action, look for equities to start their Facebook dead cat bounce phase. Today, if it plays out as most bear market moves do, should see a rise in prices in the morning, fade after lunch, and then it is a coin toss if the markets finish flat or lower. If there is major selling into the morning rally then that is a very ominous sign.…
by John Galt May 9, 2012 18:25 ET From Reuters: Equity funds lose most since start of year -ICI How bad was it? From the article: Oops. So much for the CNBC propaganda.
by John Galt May 6, 2012 19:15 ET US Equity futures as of a 1/2 hour ago: That was not hard to predict. Neither was the emergence of anti-austerity leftist and extreme right wing parties becoming viable in Europe. As a result of the elections in France, Germany (local), Greece, and Serbia, it would appear the Euro will be punished severely and traders have broken out the chairs and whips tonight: That chart looks good compared to the reaction of the…
by John Galt April 8, 2012 11:00 ET The anticipation building up for the open of U.S. futures tonight is highlighted by the action in the Israeli and Arab markets which were open for trading today. In lieu of the non-farm payroll data, the theory is that there will be a decent sized plunge at the open of the US markets. The Saudi market probably illustrates the pattern the S&P 500 and DJIA will probably take; a sharp dive at the open with an afternoon…
by John Galt April 4, 2012 23:00 ET The United States Equity Markets declined today. Now that Mr. Obvious has spoken… Gang, I’ll be the first to admit that technical analysis of THESE markets is an insane, stupid, waste of time. When the Federal Reserve is buying, logic, fundamentals, and technical analysis goes out the window. With that being established, Mr. Bernanke said the following in the FOMC minutes released this week: Now that the fun and games are over with, let’s address some…
by John Galt January 17, 2012 05:20 ET The ChiComs broke out the heavy weaponry but then again, didn’t yours truly say they could do this? Yes, I did and reports are that China injected $30 billion into their equity and financial markets to insure that the selling would be stemmed regardless of the economic figures manufactured by the government. The one consistent result when governments monetize debt like the EU and Federal Reserve and interfere in the natural direction markets wish to go is…
by John Galt January 10, 2012 05:15 ET Here we go again. The Republicans are holding their primary today in New Hampshire and like good little rally monkeys they will march to the polls and vote for a New England clone of George W. Bush because “this time it’s different” and Romney would never do any of the things that idiot Bush did. At least that’s what they would have you believe. With Alcoa reporting a quarterly loss, Italian 10 year yields over 7.10%, and…
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 January 5, 2012 05:30 ET The implosion of the Euro is well under way and this will trigger a massive sell-off in the U.S. equity markets if the central banksters don’t break out their inner piggy and bail it out immediately. The technical condition is now shattered in the EUR/JPY swap with new decade plus lows being made daily and this morning being no exception: (from ForexPros.com – live 5 minute chart updates automatically) 96 is now in play in that swap…
by John Galt January 4, 2012 05:20 ET Buckle your seat belt, make sure you keep your arms inside the car at all times, and please secure all loose objects. All of the sudden yesterday’s “rally” isn’t looking so hot as the news broke this morning that usage of the ECB’s deposit facility hit an all time high yesterday of €453.18 billion and the volume in the U.S. markets was disappointing to the bulls and technicians. The Asian markets did not follow through with a…
By John Galt January 3, 2012 07:30 ET Happy New Year and enjoy the faux Wall Street party today because it will not last long. Futures are up this morning but not due to a sudden resurgence in the U.S. economy or some miracle created by Obamanomics. The reality is that everything is still tied to the actions in the Eurozone and price action in the Euro and each tick up in the S&P 500 can be tied directly to the USD/EUR and EUR/JPY trades…
JohnGaltFLA Predictions for 2012 By John Galt January 1, 2012 – 17:00 ET I. Geopolitical Predictions 1. The United States constructs a new large military base in Columbia near the Venezuelan border in anticipation of the collapse of the Chavez regime. The new focus on South America is seen as a desire to refocus American foreign policy as the Middle East rejects any further interference from the United States. Columbia welcomes the action as it intertwines the U.S. into their internal conflicts and…
By John Galt December 30, 2011 07:50 ET Buckle up. 2012 is almost here. Last year I was so-so in my predictions and for 2012 I probably will be also. If you are meek put on your Depends for this show or just assume the fetal position when the theme music stops. In the first half hour I’ll cover the news of the day, the financial news and then begin the prognostications which cover geopolitics, sports, U.S. politics, the economy, weather, and whatever else I…
By John Galt December 30, 2011 – 07:43 ET While many a commentator and bubblevisionista will argue that 2011 was a “safe” year with the Dow up about 6% for the year and the S&P 500 treading water but up slightly, the decline in the NASDAQ is the lesson of the year and a warning sign for stocks in early 2012. Traditionally during an election year markets rally as the election gets closer and I expect 2012 to be no exception. While timing is everything,…
By John Galt December 29, 2011 – 05:25 ET There is nothing Santa can do now but go home to the North Pole and melt the ice with the good Mrs. now, as the markets are totally focused on the reality of the PIIGS problems once again. The Euro is hovering and barely holding the 1.29 level as I type this, gold is moving south once again preparing to make new lows, and the yields on the 10 year Italian bond is well above 7.00%…
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 27, 2011 – 07:30 ET Now that the holidays are over with, the returns complete, it is time to prepare for a harsh reality once again. First, the continued crisis in Italy continues with the 10 year yield crossing 7% again this morning, despite massive intervention by the ECB and member banks. (chart via Bloomberg.com) Secondly, the EUR/JPY swap is signaling another leg down in the Euro currency is imminent, probably at the end of this week or the next at…
By John Galt December 23, 2011 – 05:50 ET Grandmabear got runned over by a Plungerdeer Walking home from Wall Street Christmas Eve. You can say there’s no such thing as Santa rallies, But for me and Art Cashin, we believe. The bears had been drinkin’ too much eggnog, And we’d begged them to buy more Citigroup. But they’d believed too much in Whitney, So off the margin calls knocked them for a loop. When they found them Christmas mornin’, At the scene of the…
By John Galt December 22 2011 – 04:59 ET This is the time of year where the idiots will tell the viewers of the various bubblevisions that the Santa Claus rally is a sign of underlying economic strength and that this portends a bullish 2012. They will claim it means a major economic turn around is coming and blah, blah, blah. Really? Did anyone tell Asia last night where Shanghai had its 4th negative close in a row and is in danger of crashing to…
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 December 19, 2011 – 15:40 ET Chart from CNBC.com for once: S&P 1200 is in doubt once again….bah humbug! Uh-oh…Sing it Petula!
Recent Comments