US markets have fluctuated today from negative to positive to negative and back where it is now flat and in the red. Volume statistics are very low and have been trending lower since circa 2005 and begs the question what is going on? Or better yet, what is about to happen?
Here is the current market situation from CNN Money
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Following a major market correction, the conditions for safe re-entry are when:
a) Daily $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
ZURICH (Reuters) - A U.S. national security panel has cleared ChemChina's $43 billion takeover of Swiss pesticides and seeds group Syngenta , the companies said, boosting chances that the largest foreign acquisition ever by a Chinese company will go through.
(Reuters) - Pfizer Inc , beating out numerous other bidders, said it would buy U.S. cancer drug company Medivation Inc for $14 billion in cash, adding its blockbuster prostate cancer drug Xtandi to the company's growing oncology roster.
(Reuters) - Office Depot Inc said on Monday Chief Executive Roland Smith would retire, three months after the second-largest U.S. office supplies retailer and bigger rival Staples Inc abandoned their planned merger.
NEW YORK (Reuters) - Ending a decade on the run, the former chief executive officer of Comverse Technology Inc who fled to Africa to avoid prosecution in a stock options scandal is returning to the United States to plead guilty in a fraud case.
RIO DE JANEIRO (Reuters) - As the athletes strived for gold, the world's biggest companies engaged in their own sport during the Rio Olympics - outglamming each other with spectacular hospitality houses.
What the world is witnessing, without actually paying much attention, is the death of our debt-based economy — that is, borrowing the means to thrive in the now from a future that can't really furnish it anymore. The illusion that the future would always provide was a legacy of the cheap energy era. That era ended in 2005. The basic promise is broken and with it the premise for living as we had been. The energy available today, especially oil, is no longer cheap enough to run the industrial economies designed to run on it. Any way that you look at the dynamic, Modernity loses.
With oil under $50 a barrel, and gasoline under $3 a gallon (back east), the public apparently thinks that the Peak Oil story is dead and gone. But when it costs $75 a barrel to pull the stuff out of the ground, and the stuff only sells for $47 a barrel, the oil companies' business model doesn't really work. The shale oil companies especially have been gaming the system by issuing bonds that pay relatively high interest rates in an investment climate where almost nothing else offers enough yield to live on, especially for pension funds and insurance companies. Two little upward bumps this year in the price of oil toward the $50 range prompted a wish that the good old days of high-priced oil were coming back, that the oil business would be profitable again.
The trouble is that high oil prices — say, over $100 a barrel, as it was in 2014 — crush advanced economies, so that demand for oil crashes, and with it productive activity. Without productivity, the debts issued by companies (and even governments) don't get repaid. There really is no "sweet spot" in this energy cost equation.
Update: It appears Judicial Watch's fact-finding is blwoing the Clinton narrative...
*JUDICIAL WATCH `DISTORTING FACTS' ON EMAILS: CLINTON CAMPAIGN
As we detailed earlier, the farce continues as detailed reckoning of Hillary Clinton's State Department emails reveal former Hillary Clinton's top aide Huma Abedin provided influential Clinton Foundation donors special, expedited access to the secretary of state. In many instances, as Judicial Watch exposes, the preferential treatment provided to donors (from a British soccer player to the crown prince of Bahrain) was at the specific request of Clinton Foundation executive Douglas Band.
As JudicialWatch.com details, the new documents included 20 Hillary Clinton email exchanges not previously turned over to the State Department, bringing the known total to date to 191 of new Clinton emails (not part of the 55,000 pages of emails that Clinton turned over to the State Department). These records further appear to contradict statements by Clinton that, "as far as she knew," all of her government emails were turned over to the State Department.
The Abedin emails reveal that the longtime Clinton aide apparently served as a conduit between Clinton Foundation donors and Hillary Clinton while Clinton served as secretary of state. In more than a dozen email exchange ...
There is an odd infatuation among Japan's ruling elite with fantasy characters: last June, BOJ governor Haruhiko Kuroda, who is running the greatest monetary experiment in history, essentially compared himself to Peter Pan in a formal speech at the BOJ-IMES conference, saying no matter what, one has to believe one can fly just like Peter Pan:
The issues I have raised so far are all complex, and there are no quick, definitive solutions for them. Nevertheless, I strongly believe that, at this one-and-a-half day conference, we will address the issues we currently face and find our way forward through lively discussions. I trust that many of you are familiar with the story of Peter Pan, in which it says, "the moment you doubt whether you can fly, you cease forever to be able to do it." Yes, what we need is a positive attitude and conviction. Indeed, each time central banks have been confronted with a wide range of problems, they have overcome the problems by conceiving new solutions.
Overnight, Japan's other distinguished ruler, premier Shinzo Abe did it again, when he took time away from his busy schedule of instructing the BOJ to monetize any ETF it can find, while buying now more than a third of all Japanese government bonds, and appeared in a brief but showstopping gig at the Olympics closing ceremony as the Nintendo game character Super Mario, in what AP said "offered a tantalizing glimpse at Tokyo's plans for the 2020 games."
The organizers for the Tokyo Olympics crammed the works into a brief two-minute film montage before Abe's appearance: athletes participating in more than a dozen sports, as iconic Japanese images like Tokyo Tower, cherry blossoms, a bullet trai ...
The concept used in economics for a "depression" is inexact and in conflict with the physical definition of the term. We will propose an analytically precise definition of the term and show a number of examples of how the new definition works in examining the business cycle.
The FBI has found thousands of documents Hillary Clinton failed to turn over to the State Department when she stepped down as secretary of state — ensuring more legal trouble for the Democratic presidential candidate and further mandatory disclosures.
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