Written by Gary
Opening Market Commentary For 09-19-2013
Yesterday was a sad day showing explicitly that Bernanke and his band of golden monkeys did not have a plan nor have they had one – ever! Without a doubt, these foolish academic Keynesian scholars have made up every decision they have executed on a whim, making up what to do as they go. The unintended consequences of this imbecility looms ahead but first sell all of your long term bonds.
The premarket numbers, up fractionally, remained where they were after yesterday’s close even after the USD Current Account Balance came in at -98.9 billion. The markets opened mixed with the DOW down 10 points and everything else up but flat and on anemic volume. By 10 am the averages were poised to melt down; the bull’s party from yesterday looks like it is turning out to be a hangover.
Unfortunately, the way things are stacked, the fat cats may take a proportional financial hit, when it comes, but it will never put them into danger of loosing everything, go hungry or lose their job. Potentially, September 18, 2013 has the potential of sacrificing more human lives, because of the Feds flawed financial stupidity, than those perished on September 11, 2011 because of flawed religious stupidity.
If there was any doubt whether fundamentals still matter (they don’t, and in fact the worse the economic data, the better for risk) or what is the only driver of global performance (central-planners), they can all be put to rest following Bernanke’s surprise announcement from yesterday.
[It] may have sent US stocks to record credit-bubble highs, and global asset soaring, but it also confirmed that the Fed literally makes up monetary policy as it goes along.
As the recap below shows, a one-word summary of what has been bought this morning: everything.
I have faith the system will reset eventually. But the cost, unfortunately, may be as realistic as the unrealistic and unsustainable crony capitalism these unelected, having to report to no one, fat cats have put this republic into.
The financial disaster that massive debt creates awaits us and our children. It is going to punish those whom have done nothing to propagate this financial hole and push back hopes and dreams of millions that have worked, prayed and hoped for a better life.
“The government’s bailout plan destroyed capitalism. In a capitalist system, those who stood to gain-and already made off with large gains-would have to bear the risk.
The bailouts represented a corruption of capitalism. Crony capitalism violates the spirit of democracy established by the Founding Fathers of the republic known as the United States.” – Janet Tavakoli
The DOW at 10:15 is at 15660 down 17 or -0.11%.
The SP500 is at 1725 down 0.13 or -0.01%.
SPY is at 173.09 up 0.03 or 0.02%.
The $RUT is at 1076 down 0.66 or -0.06%.
NASDAQ is at 3785 up 2 or 0.05%.
NASDAQ 100 is at 3234 up 3 or 0.09%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been positive and the current bias is negative.
WTI oil is trading between 108.15 and 106.72 today. The session bias is negative and is currently trading down at 106.85.
Brent Crude is trading between 111.27 and 109.54 today. The session bias is negative and is currently trading down at 109.55.
Gold has move sideways between 1374.83 earlier to 1358.81 and is currently trading up at 1363.90.
Dr. Copper is at 3.345 rising from 3.311 earlier.
The US dollar is trading between 80.44 and 80.15 and is currently trading down at 80.38, the bias is currently sideways.
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Written by Gary