Futures are up a little this morning after being down following yesterday’s close:
H.P. is cutting 6,400 jobs and lowered their outlook. Bank of America “raised” $13.5 billion but needs another $17 billion more. The way they went about it, once again, raises suspicions about how our markets are functioning. I’ll leave it at that, and just say that our markets are so gamed by these institutions that I don’t know why any individual would invest a nickel in them. For the record, I don’t own any, as in not one share of stock in any company and don’t intent to until and unless I see the rule of law restored. Oh, I’ll temporarily use levered devises against them, but I will not finance their operations any more than I would send my money to Nigeria.
MBA Purchase Applications fell from 265.7 to 254. More data tomorrow includes the Philly Fed, Leading indicators, and weekly unemployment. Oh, and a ton of bond auctions to finance our impossible debts. There’s something else that is objectionable to own in my opinion. It’s like buying an alcoholic a bottle booze – same thing.
And here’s a headline for you: Kazakhstan Needs IMF to Avert Emerging-Market Crisis, ING Says… It seems their banks are defaulting, so once again the IMF (same central bankers who have screwed up the world) will print more phony money and lend to enslave yet another country. Great system.
I guess I’m just not in the mood to talk fundamentals today, lol, let’s talk about some technicals…
Last night McHugh pointed out what he calls “a classic five wave structure” in the VIX. I was looking at that just the other day myself and had noticed that wave 5 appears to be creating a bullish descending wedge. If so, it could break down first but then rocket back upwards with a target at least at the base which is around the 50 area. McHugh thinks the target would likely be back up into the 80’s! Obviously that would mean stocks will be taking a journey to the bottom of the C at some point:
The bell just rang and stock are heading higher, but I have to tell you that the 30 and 60 minute stochastics are overbought and the likelihood of it running away to the upside today are not that good. I would look for a turndown sometime today, at least by those indications. That said, the market is very much just like our banks at this time, what I would describe as “unnaturally alive.” LOL
Watch the VIX which is swinging beneath that wedge already, and have a good day.