9/7/11…speaking for Obama

Bloomberg Top Stories:


*Stocks Rebound From Four-Day Decline as Treasuries Retreat; Dollar Weakens

(Can you tell TB of any value in headlines like this that reverse each day???)

*German Industrial Production Surged Most in a Year on Late School Holidays???

*Oil Supply Falls in Survey on Storm Shut-Ins, Imports Slide

*Bank of America’s Shakeup May Put Montag in Contention for CEO Succession

(Krawchek,formerly of Morgan Stanley is out!)

*Bartz Tenure as Yahoo CEO Ends With Chairman’s Phone Call After Stock Drop

*Swiss Open Fresh Round in Currency War Ignited by Global Economic Slowdown

*’Helicopter Ben’ May Deter Lending With Lower Rates Policies, Gross Says

*Apple Bears Deapart as Jobs Resigning Sends Puts to One-Year Low!

*Pandit ‘Globality’ Goal Imperiled as Citigroup Sees Slower Economic Growth

*Obama Said to Plan $300 Billion Jobs Package With Tax Cuts, Aid for States



You want the good news first or the bad news? OK, good news… Volume increased to 4.48B shares from Friday’s 3.8B for NYSE stocks while trades executed on the Big Board rose to the new average 1.12B shares from 756 million. Note that last Monday’s rally on 912M shares was lowest since July 26th, while yesterday massive early morning selloff to catch up with Europe’s Monday rout, was on higher volume…this has been the case since the market peaked in 2009. We also had a ‘double top’ in July with the first coming on 7/7 and the second on 7/24, which was never broached and negates the recent rally. In just three sessions we nearly obliterated the entire rally. Advance/Declines continue to be very negative: -2.6:1 vs -5.6:1 on NYSE and -2:1 vs -4.6:1 on Nasdaq. Breadth was similar: -3.8x vs -19x -7x on NYSE and -1.9x vs -14x vs -4.7x on Nasdaq. New 52 week highs plunged to 36 while new lows exploded to 467!!! The ratio is very much negative again. The VIX rose sharply and closed at 37 +5.18. 48 was the selloff high, not seen since 5/21/10: 48.20!


After plunging precipitously on the open, the rest of the session was spent attempting to get back to even but it never made it…the Dow missing by more than 50 points: Dow –0.9% vs -2.2% vs -1.0%; Transports -0.9% vs -3.4% vs -1.4%; S&P 500 -0.7% vs -2.5% vs -1.2%; Nasdaq Composite -0.3% vs -2.6% vs -1/3%; 100 flat vs -2.3% vs -1.0%; Russell 2000 -0.4% vs -3.4% vs -2.5%. The horrible quarter continues to haunt!


Finally a rally on a surprise jump in German Industrial Production…never mind the surprise disappointments of the last few weeks, consider this a dead cat bounce! FTSE +2.1% vs -3.6% vs -1.5%; CAC 40 +2.9% vs -4.7% vs -2.3%; DAX +3.8% vs -5.3% vs -2.4% vs -1.6%; Nikkei +2.0% vs -1.9% vs -1.2%; Hang Seng +1.7% vs -3.0% vs -1.8%; Korean KOSPI +3.8% vs -4.4% vs -0.7%; Indian Sensex +1.2% vs -0.6% vs +0.9%, only strong index lately. U.S. stocks opening strong: DOW +153; SPX +18; NDQ +36.

Gold is following its usual pattern: after hitting a record high of $1923.50 on Tuesday it plunged below $1900 and closed $1873.30. Overnight it is $1815 -$58 – the rally isn’t over though…not yet! Crude meanwhile continued its plunge closing at $86.02 and is now $87.72 +$1.70 with major resistance at $90!

…TB believes Obama is headed for the history books as another Jimmy Carter. He so wants people to like him and abhors confrontation…a good attribute in a friend but bad for a president. He has caved on everything…even his healthcare plan which extracted nothing from the insurers or pharmaceutical lobby…in fact, for the support of pharma he took out any chance of controlling costs. It passed, and yet it is still blasted by the GOP who won by placating both of the above lobbies. Well done! Toasted in fact!


I think Obama has an opportunity but one as an egotistical politician…and his voting record prior to the presidency shows what his goal was and how he skirted any controversial votes to keep from being held accountable. Mission accomplished, but like George W. Bush, it was not and will not be accomplished.


He should say that unless the Congress is willing to work for the American people, do their work, he has no desire to seek a second term. He will not preside in the downfall of the United States of America by ideologues of both parties. The shock value of this would be enormous…but will he do it? Nope, instead he will try to mix up a strange brew of jobs and tax cuts to placate the GOP, read tea party, and in doing so worsen the budget situation which will in turn cause them to push for more budget cuts insuring neither a balanced budget or a healthy economy, and you, the American people will pay for it.


Since yesterday’s column was so long, will end here for today.


. . .  – – –  . . .    . . .  – – –  . . .


Hope the day is good for you…just don’t get suckered into the ‘relief rally.’




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