Futures are higher with the ramp job on Friday’s close continuing overnight and into this morning. The /ES ran right into the 935 pivot point and is stuck there for now. This area contains BOTH the 200dma and the daily upper Bollinger band. It should contain prices in the short run, but if the Bollinger turns up and the 200dma holds, there’s then a very good chance it will continue to run as the fools rush in to not miss “the buying opportunity of a lifetime… LOL:”
And we STILL have not had a meaningful retrace, all we did was produce a tiny sideways triangle and then went higher. This is the very worst case scenario for the market, it is a sign that buying panic is steering the ship, NOT a normal and healthy progression. But the irrational can stay that way for quite some time…
Speaking of irrational, the market has been going UP for over 3 months. So, if people are buying the bad GM news thinking it was "priced in," all I can say is sold to you…
The entire “bankruptcy” has not been done according to the laws that are on the books. The firing of CEO Wagoner, the arrangement with bondholders, the order in which assets are being distributed, the initial bailouts, and the whole concept of “prepackaged (government sponsored) bankruptcy” is simply being made up as they go along. NO RULE OF LAW! IT’S LAWLESSNESS!
In fact, how is what they are doing different that what Hugo Chavez is doing by nationalizing industries in Venezuela? It’s no different, it’s dictatorial! It’s not socialism, it’s FASCISM. Capital, and I mean HEALTHY CAPITAL, does NOT form in lawless environments. New and healthy enterprises do not arise from that environment, sorry.
If you’re one of about 20,000 GM workers, it’s not such a good morning. Nor will there be many good mornings ahead for the many of thousands more all along the supplier pipeline in the weeks and months ahead. And again, don’t look for a new shining star to arise from those ashes, no… who would invest their capital in an auto industry in America where the President is allowed to appoint the companies leaders and pay off the debtors as he sees fit?
The entire spectacle reminds me of Rome. The sports stadiums, the athletes, Barak O’Caesar, Barney frank playing the rotund – I can just picture him in a white robe eating grapes by the side of the spa – the only thing that’s missing are the orgies! Oh wait, those are in vogue again too – or so I hear! Seriously, the parallels are stunning.
And bonds are plummeting again this morning. That’s the sound of capital fleeing. No, it is not a sign of health, it is people cashing out of the lawless empire.
And this morning we learned that consumer spending fell yet again last month – but the good news? Wages rose more than expected! Let’s read the applicable clip from Bloomberg on that:
Incomes climbed 0.5 percent, the biggest gain in almost a year, reflecting increases in unemployment insurance benefits and social security payments associated with the Obama administration’s stimulus plan. Income was projected to also fall 0.2 percent, matching the March decrease.
Ha, ha, hardee, har, har!
Unemployment benefit raises and social security raises are the leading cause of a blip rise in wages!? Truly, we are now at a point where it almost pays more NOT TO WORK.
At 10 eastern we get the manufacturing ISM and on Friday is the employment situation for May. Of course more billions upon billions in debt issuance…
Only the fools rush in!
Elvis Presley - Can't help falling in love:
No rule of law.