1/31/13…is the right wrong?

There was no commentary yesterday.

From the Friars Club Encyclopedia of Jokes: “If nobody ever said anything unless he knew what he was talking about, a ghastly hush would descend upon the earth.” – Alan Herbert…and that is nothing compared to Congress!

Bloomberg Quote of the Day: “Try not to become a man of success, but rather a man of value.” – Albert Einstein

Bloomberg Top Stories:

*U.S. Consumer Spending Rose 0.2% in January, 8 yr high; Incomes Rose by 2.6%

*Deutsche Bank Beats Capital goal as Jain Focuses on Strengthening Finances

*Stocks Decline in Europe on Earnings As German Bonds Gain; Metals Advance

*UPS 2013 Earnings Forecast Trails Analysts’ Estimates on Sluggish Recovery

*German Unemployment Unexpectedly Declines as Investor Confidence Improves

*Mastercard Profit Tops Analysts’ Estimates as Customers Increase Purchases

*Russia’s 3.4% Expansion Last Year Marks Slowest Pace of Growth Since 2009 – are we following suit?

*Blackstone’s Quarterly Profit Rises as Market Gains Lift Management Fees

*FAA Inspections of Dreamliner 787 Reveal Checks Were Left in Boeing Hands

*Dollar Debasement Denied in Unprecedented Global Demand for America’s Debt

*Iran Tells UN Monitors Uranium Enrichment Output Rising at Natanz Facility

*Egyptian Political Camps Agree to Hold Dialogue to Bring End to Violence

*High Winds Delay New York-Bound Flights as Cold Front Passes Through Area

*Congress Poised to Grant States Access to Amazon-Led Internet Sales – finally!!!

The S&P closed just about on 1500 for a third straight day even amidst the hoopla. Tuesdays modest gains were offset with losses on all indices especially Dow Transports which fell 1.6% (don’t expect a bounce after UPS missed today! Since broaching 1500 last Thursday, the S&P 500 has traded in a 7-11 point range each day, and closed -0.4%…other indices were off 0.2-0.4% except the Russell 2000 which lost 1.2%!. Dow Financials fell by 0.3% Advance/Declines and Breadth were negative with NYSE stocks -1.9% on both and AMEX stocks -2.3% and -1.6x respectively. The VIX which dipped slightly on Tuesday roared back to 14.32 +1.01 – worth watching with payrolls tomorrow.

 

NYSE volume was a 3.69B shares while shares traded on then NYSE were 705 vs 721 vs  656M – these two 700’s on days that the market had little momentum. Hmmm.

 

Global stocks generally weaker by 0.4%-0.9%, except Japan +0.2%. U.S. stock futures slightly lower overnight: DOW -10; SPX -1.30; NDQ -8.

 

Bonds were weak yesterday but trying to come back overnight with the 10 yr Treasury at 1.98% vs 2.00% and the 30 yr at 3.17% vs 3.19%. The long Tip is 0.54% vs 0.51%. Foreign bond yields are lower by 2-3 basis points except Italy and
Spain which are up 2, while Portugal is 6.05% +13, and Greece is 10.57% +38! Who said bonds are boring???

 

After losing $38 in four sessions, Gold rallied by $27 the last two days closing at $1681.60 +$18.90! The rally took it back above the 200 day and the 40 day with res at $1690, the 50 day. The $1636 low on 12/21 – lowest since 8/21 is critical support!  It is off though overnight to $1672.80 -$5.50, back below the 40 day (1679) and close to the 200 day (1670). Crude rose by 37 cents following a $1.13 gain to $97.94. Yesterdays high of $98.92 is highest since 9/17. Overnight it is $97.67 -.27.

…just when you thought it was safe to go back in the water, the fiscal ‘bluff’ rears its ugly head as focus is again on sequestration, which it appears is how the extremists plan to force spending cuts – even if it is their beloved military! These same people have led us from one scare tactic to another and produced a do-nothing Congress which Boehner and Co. are trying to end…but we know it is not beneath the teabaggers to make a fool of him along with the president.

How is it when the tone of the country is shifting left…not TO the left but towards moderate policy, are conservatives like Lindsay Graham and John McCain acting out? Because they are afraid of their constituencies in the next primaries…Graham has already been singled out by the extremists if you can believe that!

TB does not endorse the democratic party either but when every ‘respected’ economist in the country is warning of slower growth ahead – ex the ideologues – and risks of double dipping…UK is in triple dip now…you have to wonder about this nations sanity.

Let’s lay the groundwork for reform but understand that changes must be gradual and only implemented as the economy improves. To do otherwise is foolish and dangerous.

Ah, the NRA…looks like Wayne LaPierre is replacing Grover Norquist on TB’s most despised list. Interesting hearing yesterday…the NRA wanting nothing different except more guns in the hands of the people…wait, that isn’t different. Then at the end, Gabby Giffords husband spoke out that another shooting had occurred in Arizona injuring five people. The Second Amendment is a right to bear arms, not to kill senselessly. Usurping power? Not when virtually every law enforcement officer in the country sees a problem but is ignored in favor of militias. You decide.

Well, signing off now…had more to say but not enough time…thanks again for your well wishes!

Have a great day!

TB

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