8/27/14…the new, ‘improved’, pledge of allegiance?

Quote of the Day from the Friars Club Encyclopedia of Jokes: “Baseball’s very big with my people. It figures. It’s the only time we can shake a bat at a white man without starting a riot.”

– Dick Gregory

 

 

Bloomberg Quote of the day: “Diligence is the mother of good fortune.” – Miguel de Cercantes, father of Don Quixote, ‘jouster of windmills’.

 

Bloomberg Top Stories:

Not available today

 

Tuesday’s Market Summary:

 

Look at foreign bond yields overnight –plunging! U.S. following suit!

 

Another day and a very mixed bad. Bulls will point to the record close on the S&P 500 (2000.02), first above 2000, but when you break through a key number like that, isn’t it supposed to be a big surge?…not just a 0.1% gain? The high was just 2005…perhaps you don’t question it…like CNBC, but TB does. Furthermore it was a mixed session and a weird distribution: Russell 2000 took the honors,+0.9%! While Dow Transports declined by 0.4% (only 3 of the 20 members close up!), while the worst was Dow Utilities, -1% – pretty strange when the two best performers YTD (13.8% and 12.7% respectively), are the big losers! Another thing: total NYSE volume was just 2.4B shares – it has been between 2.2B and 2.6B shares for five sessions now…that is WEAK!

Advance/Declines and Breadth were positive, New 52 week highs rose slightly to 318, new lows were stable, and VIX barely budged for a second say at a very bullish (i.e. puts are cheap!) 11.63 -.09…with a second straight ‘extremely tight’ range of 11.33-11.93: 0.60 vs 0.53…unheard of!

 

Total NYSE Volume was stable at a very weak 2.4B shares vs 2.2B vs 2.3B vs 2.62B vs 2.56B vs 2.64B. Real NYSE Volume just slightly higher – just above Monday’s lowest of 2014: 494M shares vs 521M vs 567M vs 542M vs 556M. Last week’s average was just 558M shares – this week be even close to that level. There have been just four sessions above 800M since 4/28! The 12-month average is a historically weak 700M shares. Since 4/30 the average volume has been just 657M shares ranging from 517M to 927B….12 month high is 2.06B shares on 9/20/13!

 

A/D’s were positive: +2x vs 1.6x vs -1.6x vs +1.5x vs 1:1; Nasdaq +1.9x vs +1.4x vs -1.7x vs +1.2x vs -1.7x. Breadth was similar: NYSE +1.9x vs +1.5x vs +1.1x vs +1.5x vs +2.1x vs +4.3x! Nasdaq +1.7x vs +1.9x vs +1.4x vs +1.4x vs +1.3x vs +4.8x. New 52 Week Highs slighltyhigheer at a solid 318 vs 296 vs 198 vs 266 vs 228 vs 294 – recent range is 46-580!!! New Lows about even at 50 vs 52 vs 56 vs 71 vs 53 vs 60 – recent range is 24-260! S&P VIX slightly lower at 11.63 -.09. The range was another tight .60 vs .53: 11.24-11.77!?!

Bonds closed slightly lower: 10 yr 2.40% -1//; 30 yr 3.16% -1/2, the long TIP 0.88% -11/16. Overnight, higher: 10’s 2.37% +3/16; 30’s 3.14% +7/16; and long TIP 0.86% +1/2. The (record?) low of 0.36% was set on 4/5/13.

Libor update: 0.238% 3 mos.; 0.331% 6 mos., both remain near their record lows, set recently: 0.222% and 0.320% respectively! NOTE the Fed Funds rate has averaged 0.09% since 5/22/13 and is at 0.08-0.10% where it has been for weeks! Foreign bond yields lower for a second day (note: these are all 10yrs!): Germany 0.91%!!! -5; UK 2.39% -6!; France 1.23% -4!; Italy 2.35%!!! -6!; Spain 2.11%!!! -6!; Portugal 2.98%!!! -4; Greece 5.48%! -6!; The recent high on selloff was 6.75%. Recently 5.42% to 12.57%. Japan: 0.49% -1.

 

Gold closed slightly higher at $1285.20 +$6.30; session high was $1291.90. Last Thursday, it plunged to $1272.00, lowest since 6/18 – it’s 4th straight decline and sub-$1300 close since 8/6. It remains well below the 40/50 and is at the 200 day m/a. 7/17’s session high was $1346.60, highest since March 19th!!! 6/9’s $1240.20 was lowest since 1/31/14!!! RES/SUP is the 200 day $1285, then the 40/50 day at $1304-5. Next support? $1270 or so! Note the recent high of $1392.60 on 3/17, highest high since 9/4/13…that too ended the session with a negative key reversal sparking the downturn! Jan. 2’s low was $1181.40 – A MULTI-DECADE LOW!!! Overnight it is slightly higher at $1285.90 +.70 in a very tight inside session!

 

Crude closed slightly higher at $93.86 +.51. Thursday’s low was $92.50, lowest since 1/15/14! (big driving weekend ahead, then we may see gas following suit). It has had FOURTEEN handles since 6/30! 7/22’s high was $105.20, highest since 7/2. 7/15’s session low was $90.01 – lowest since 3/21. 6/20’s run to $107.73 was highest since 9/19/13 (a huge down session which put it in freefall. 3/2’s session low was $97.37, lowest since 2/4! 1/14’s low was worst since 5/2/13: $91.24! The record high of $114.83 was on 5/2/11, the low since on 10/4/11 is $74.95: $93.60 is the midpoint!!! Recent rally high and close are $110.70 and $110.53 respectively. RES at the 40 day ($99.65), then the 200 day ($99.76), then the 50 day ($101.21)…HUGE drops daily now!!! The range is $85.61-$112.24 since March 1, 2012. Overnight it is slightly higher at $93.57 +.22 with a range of just 42 cents!!!

 

Global equity markets mixed: UK – vs +0.4% vs closed vs -0.1% vs +0.2%; France – vs +0.6% vs +1.2% vs -0.8% vs +0.8%; Germany – vs +0.2% vs +1.2% vs -0.4% vs +0.6%; Japan +0.1% vs -0.6% vs +0.5% vs -0.3% vs +0.9%; Hang Seng -0.06% vs -0.4% vs +0.2% vs +0.5% vs -0.7%; Korea +0.3% vs +0.4% vs +0.2% vs +0.6% vs -1.4%; India +0.4% vs – vs +0.1% vs +0.2% vs +0.2%. U.S. equity futures were slightly lower overnight. U.S. market opening little changed and mixed..

 

Some random thoughts:

 

…how about this:

 

I pledge allegiance to the wealthiest people in America, and to the greed and love of money for which they stand, one nation, totally divisible, with liberty and justice for the wealthy.

 

Wait! That sounds like oligarchy!!! …but isn’t that what we have?

On PBS News last night they interviewed Roberton Williams, head of the Tax Policy Institute who held that Burger King and Medtronics did the right thing…the law should be changed…and Congress now considering it is causing more companies to make the move. He then cited famed Supreme Court Chief Justice Learned Hand as saying people should take full advantage of the tax code provisions.

Meanwhile we have a crumbling infrastructure…military actions (no, not wars), all over the Middle East, but it is fine to siphon funds out of the U.S. to Canada…you decide.  tax inversion

 

 

Now read Robert Reich’s column from the SF Chron on how voters have lost interest in elections

Power to the people

 

Doonesbury on Sunday (thanks to Supreme Court decision that says that unlimited campaign contributions don’t influence elected officials)…as best as I can recollect:

wealthy constituent to Congressman: here is a huge sum of money and I would like you to consider an issue up before you, of course not influenced by the money.

Congressman: I would be happy to consider it for you as I would for any constituent without being influenced by the contribution

Man on the street to Congressman: I have an issue for you regarding raising wages and I cannot contribute to your campaign because I am not paid enough to make ends meet.

Congressman: I would be happy to consider it for you as I would for any constituent without being influenced by the contribution. It will receive the same consideration whether or not you contribute as that would be an illegal act. I like your idea and will not vote the way another constituent did who just financed my entire election campaign.

Next Panel: poor constituent talking to friend: what do you think?

Friend: just keep following the yellow brick road

 

Enjoy your day…had lot’s of fun ‘on a stick’ at the State Fair yesterday!

 

TB

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