Ten large banks are paying back treasury with 68 billion dollars, so that they can be freed from government meddling in paying their executives. Now that all of their accounting book is blessed with marked-to-fantasy, they don’t need the cash anymore. Can we put in a clause in the payback that “please don’t come back …
As I have stated, people needs to take advantage of this rally to sell out of their stocks. This is the “prayer answered” for those who have suffered big losses. What’s ahead? My own opinion is that the rally is soon going to stall a little at about here. Many people are looking for selling …
With the exception of uranium, I am not so hopeful on energy industry for this year. If you don’t sell them this round, there may be one more chance after some 1 or 2 weeks of the current short-term corrections. After that, energy stocks will probably drop along the general market, with bigger percentage of …
Everything is possible now with the unraveling speed of Wallstreet 700 trillion derivatives. Which of the following scenario may come true? Maybe all of them. 1. Dow at 3500 in 2011. 2. Gold at 5000 in 2016. 3. S&P 500 bottoms at 400. 4. The economic depression lasts more than 20 years until 2032/2033. This …
One of my colleagues have repeatedly asked me this question. I am quite clearly on the answer, “NO”. How many people do you know who actually hold GLD? How many people do you know actually buying gold? How many people do you know actually buy mining shares? The answer all too often is close to …
As days go by, I’m more convinced that the current economic slowdown will turn into an economic depression (but don’t sell your stocks before April, until the intermediate rally runs out of steam). This depression will be less severe than the last Great Depression at the lowest depth, but it will last much longer, possibly …
Markets on Thursday may react positively initially. I’ve actually bought back some of the positions that I sold at a slightly lower prices. But I’m simply trading these stocks. Earning seasons however are just around the corner. As soon as this boost is over, I expect that markets may test the recent low, and it’d …
With some 100+ banks (if not more) that probably will fail in the next two years, that averages out to be about 1 bank per week. Since FDIC is under-staffed in the first place, and you don’t want things to go too crazy, FDIC should probably be closing at least 1 bank per week, just …
From about 1980 to 2000, global economy (especially US) enjoyed unprecendented steady growth without the inflationary pain that often comes with it. There were three primary trends: 1. Technology advancement has lowered real costs associated with production of goods and services. 2. International trades and globalization faciliated capitalism to find the lowest cost structure through …
Hindenburg omen is one of the rare stock market crash signals. The fact that it is rare makes it even more significant. A rare signal or event in the Shannon’s information theories (the backbone of the modern day digital communications) is considered to contain higher amount of information. And this information from Hindenberg’s omen is …
Hindenburg Omen: Sounded Again For Stock Markets 2 Read More »
