Equity futures are about flat this morning:
What’s not flat are the long bond futures (on right, below) which looks to have fallen out of bed this morning on the back of Bernanke’s $235 BILLION in debt issuance THIS WEEK:
People in the media are praising this traitor, Bernanke? Yes traitor!! This is a guy who facilitated the greatest heist America or the world has ever seen, and you and all future generations are his victim. He and Paulson make Madoff look like a little preschooler. Oh, but the good news is that Americans are saving! And they are being ripped off there, too, because of the distortion in rates created by the Fed.
WAY too much optimism. “The recession is over… Earnings are being revised sharply higher… There’s at least another 10% more to go this year… People were overly negative…” all things I would expect to hear as we near a top. Remember, once the majority are convinced that the market can only go higher, then everyone is in and it cannot possibly go higher. We are getting close to that psychology already.
New home sales come out at 10 Eastern, and the big economic news this week will be GDP for quarter 2. Did you catch that the fed is REVISING THE WAY GDP IS CALCULATED? My, but that’s timely – welcome to the land of make believe.
There was a small change to the McClelland Oscillator on Friday, meaning that there is likely going to be a large price move either today or tomorrow. Beware the hammers that were made on Friday, like the one on the DOW chart below:
The last clean looking hammer was not only NOT a reversal indicator, it was leaped over. Changing dynamics in that regard, be careful.
Manfred Mann - Blinded By The Light