Archive for May, 2013

The purpose(s) of Wall Street…

Posted on May 30, 2013 by .

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Wall Street of course is a giant risk sharing, capital financing engine — the beating heart of capitalism.  That is one of its purposes.  Aside from that one of its major functions is to transfer investor money into Wall Street pockets:  it was as we remember John Bogle who said:

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Nothing much…

Posted on May 25, 2013 by .

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0525spxhttp://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p88150915824&a=214966864

It might seem strange to regard the week as not much — especially when the SPX transversed 38 points on Wednesday and the Nikkei took a 6% dive.  How can this be?  Easy.  Same as any sea going voyage (in the Bermuda triangle) good weather for weeks then one little old Mass Coronal Explosion and a couple of sun spots and cometh the squalls.  If they don’t sink you you’re basically all right, and it looks like we’re all right.  Check in a few days to see if we sprung (spranged?) any leaks.

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Welcome to the roller coaster.

Posted on May 22, 2013 by .

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0522spxhttp://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p88150915824&a=214966864

Think the market is sure of itself?  Think again.  Today in conversation with Congress Bernanke hemmed and hawed when asked if he would tighten policy by Labor Day.  The market paniced and from up (Dow) 155 points finished the day down 80 — a range of 178 points.  You could discount this a trader silliness or as HFT traders bolting.  Or you could look at the technical situation.

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Froth.

Posted on May 18, 2013 by .

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newmansothebyThis picture was published in the WSJ noting the sale of this immortal piece of art (Barret Newman) for $42M.  In the Journal, in black and white it was just two black blobs.  Here we see it better and realize it is two blue blobs.  What it means for market analysis is that froth and foolishness is entering the market.  This is good.  The more the merrier.  In addition farmland prices are going out of sight.  These are all signs of froth in the economy.  Somebody ought to tell those 12.3 M unemployed people to stay out of sight, lest they spoil the party by looking ragged and hungry.  Oh well Congress is on the case, working hard — having passed 30 bills on abortion and repealed Obama care at least five times.  We once suggested that all the seats in Congress should be electrified (like the border fence) and constituents should be able to vote to give their representatives the hot seat, and when that vote reached 50% plus one the Congressman would be turned into a crispy critter.  But we digress.

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If this is not a confirmation, what is?

Posted on May 15, 2013 by .

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Tuesday, lucky Tuesday.  The markets took off today in what is an apparent confirmation of what we have been saying — the bull market is on.  (Don’t get too happy here.  It’s always when you’ve won the lottery that you discover that someone has picked your pocket.)  Also, what we have here is a 126 day wave without a downwave.  On the positive side the wave has had several minor downwaves and sidewaves.  We illustrate:

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