Tuesday, July 13, 2010

Headlines and comments for July 13th

Ok, want to get a sense of what's going on and where the market is headed? Let's just look at the headlines from today's Bloomberg.com web site. I'll write the headline in quotes and then make a comment after each. Here they are:

-"European Stocks, U.S. Index Futures Rally on Alcoa Earnings; Euro weakens" Hmmm, why is the Euro weakening, I thought things were improving in Europe, as the Greek debt crisis had abated. Well it turns out they are now worrying about Portugal's debt, as Moody downgraded it.

-Greece Bill Sale Below EU Bailout Rate Eases Concern over Borrowing Costs" Hmmm, but what about Portugal's debt crisis looming?

-"Europe's Banks Poised to Win Reprieve in Basel on How Capital is Defined" Hmmm, I don't get a chance to redefine what my capital is. What kind of game is this? And why do they have to redefine what capital is? Haven't they had a definition all these years already? What's the old definition and what's going to be the new one? Isn't money, money? Oh, and here is the real news from the article, "A push to water down stringent standards proposed last year by the Basel Committee on Banking Supervision, and to allow more time to implement them, is led by France and Germany, according to bankers, regulators and lobbyists involved in the talks. Representatives from the U.S. and the U.K., who have sought to rein in risk-taking, are willing to compromise on how capital is defined to reach an agreement at a committee meeting that begins tomorrow, the people said." Feel better now? I don't! The games Governments are playing now threatens our very economic survival.

-"German Investor Confidence Drops as Debt Crisis Threatens to Hobble Growth" Hmmm, I thought we solved the Debt problem with 1 Trillion Euros. Are you telling us you are still worried? Now you've got me worried! It turns out that German investor confidence declined for a third month in July as Europe’s debt crisis threatens to cripple economic growth and banks undergo stress tests to prove their durability. Imagine that, they lend 1 Trillion to solve the debt crisis but then worry whether they have 1 Trillion to lend. By the way, this is the 3rd month of declining German Investor confidence has dropped. It went down to a 15 month low of 21.2 and they had expected a drop to only 25.3 from the 28.7 level in June. Hmmm, this is the only real truth out there it seems today. The German's seem to know it's a shell game. Their confidence level, or lack of it, says it all for me!

-"U.K. Inflation Slows Less Than Forecast; Rate is Above Government Target" Hasn't anybody been paying attention there? What good is a target if you never have acted on anything away from target before? Oh now you are concerned. Well the World is really experiencing Deflation if they pay attention.

That's enough to get you going on the headlines this morning from Bloomberg.com. Hope you enjoyed the recap and comments. You get the point, it's all a game of manipulation with a smattering of honesty mixed in for good measure. Read headlines for what they are really saying. There is another way to interpret each, using a more skeptical eye.

After reading all the headlines, I looked at the charts again and I do not believe we will go over 10,300 and stay above that level. And we are close as yesterday we closed at 10,1216.

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