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Monthly Archives: November 2011

China Begins Easing

China has already forgotten its close encounter with inflation as recent as a few months ago leading to riots and is instead far more concerned with the collapsing housing market. As […]

Different Signals:

Credit markets are deteriorating with financials the notable laggards and yet equities in US and Europe are beating to their own ‘Birinyi’ drum. European sub financials are the worst performers, […]

Selling Copper:

We feel copper has not taken the lead in this rally and are selling our HGZ11 established at 3.22o here @ 3.3580.

Today:

Current Conditions:   Bond yields are at ’09 crisis lows while equity markets are well above those lows. One of these markets is wrong. History has been on the side […]

ECB Fails To Sterilize Bond Purchase

Yesterday, the ECB had to sterilize €203.5 billion in cumulative bond purchases. Instead, it only got bids for €194.2 billion from a paltry 85 bidders. This means that for the […]

US Bond Yields At Or Below 08 Levels

  US Bond yields are at or below ‘o8-’09 crisis levels while Equity markets remain well above ’09 lows. One of these markets has it right, guess which one.  

Today:

Current Conditions:           The La Stampa rumor that the IMF would bail out Italy has come and gone, roundly refuted by none other than the IMF as expected, […]

News Letter 11-27-2011

 Sunday, November 27, 2011  Current Conditions:   Sometimes they do ring a bell! The S&P 500 fell 4.7% closing at 1158.67 the lowest level since October 7th.  It seems to […]

US Carrier To Syria

“The U.S. Embassy in Damascus urged its citizens in Syria to depart “immediately,” and Turkey’s foreign ministry urged Turkish pilgrims to opt for flights to return home from Saudi Arabia […]

Do The Math

No, not that Sarkozy. His half-brother – the one who actually can use a calculator. In an interview on CNBC, the Carlyle group head had the temerity to tell the truth, the […]

ECB Bond “Sterilization”, Really??

When discussing European sovereign bond purchases it is never polite to say the ECB “monetizes” when talking to “very serious people” –  after all they “sterilize”, or in other words, […]

The Absurdity Increases:

Supper Committee Fails, total political dysfunction. Facing eventual insolvency on the current fiscal path the US political system fails and the reaction is for UST to rally!!!!.

News Letter 11-20-2011

 Saturday, November 12, 2011  As European Banks find that they are unable to borrow to fund their expenditures and roll their debt with out relying on ECB funding, equity markets […]

Crude Hits Pivot

Those who waited for Pivot target to take profits should have taken profits at $102 for a nice $13 profit. Pivotal Trades took profits at $100.10. We will attempt a […]

Stagflation on its way!

9% Unemployment and $100 crude. October “deflation” , which was make believe in the first place, will be just a memory!

Italian Yields Spike Higher:

Even after Berlusconi and the installation of Super Mario, Italian 5 year yields spike on a crummy auction ending overnight celebration in equity markets.  

News Letter: 11-12-2011

 Saturday, November 12, 2011 As we write the Prime Minister of Italy Silvio Berlusconi has resigned. Mario Monti will now try to implement the package of economic reforms approved on […]

China’s Yield Curve Inverts:

The Chinese 2s-10s has inverted for the first time. This inversion usually predicts slowing growth. The last growing  ecomomy going to neutral.

Berlusconi To Resign:

Berlusconi will resign after the austerity laws are approved. Translation he will be PM for life.