Equity futures are flat to slightly higher, below is a chart showing Friday afternoon’s decline and the over weekend/overnight action in the DOW and S&P futures:
The dollar is slightly lower, bonds are roughly flat, oil is higher and gold is up slightly.
I can still hear Obama’s words echoing across the large pavilion in Seattle as he repeatedly stated (before he was elected) that the FIRST thing he was going to do was to get us out of Iraq and that he would end the war in Afghanistan. This weekend 160 were killed and 540 were wounded in two Baghdad bombings. Fourteen Americans were killed in Afghanistan in a helicopter collision as President Obama considers listening to his Generals and is about to INCREASE the troop count by 40,000. Usually I would say that it’s a wise thing to listen to the Generals, but NOT in this instance. The “war” in Afghanistan is not “winnable,” it was never meant to be. Hell, we don’t even know what “winning” is or what it would look like. Insane… no real goals, no exit strategy, just mindlessness and never ending spending of money we do not possess.
A record $123 billion in bonds will be sold this week alone. Who is buying those debts? Our own government via their Primary Dealer surrogates.
These wars, our spending on the military industrial complex, are at the heart of the bad math of our economy. The relationship of corporate money and its influence on political decision making is the ROOT of the problems we are having today. We are spending crazily in the name of "security" while we sacrifice our freedoms. Life is a balance, the scales of this nation are tilted.
There are no economic releases set for today, the big one will be third quarter GDP on Thursday. Expectations are for 3%+ growth. Only in the trumped up world of government statistics does that stand even a remote chance. Thursday is getting close to our turn window, I will not be surprised to see a significant reaction to that release – forecast or better could possibly produce a euphoric high, and a miss would seal the deal for the bears who would then take advantage of the massive divergences to get a real correction underway.
Of course that correction could already be underway, but the proof will be in breaking those rising wedge lower trendlines. Support is now at the 1,061 pivot on the SPX, the next lower pivot is at 1,041, and overhead resistance is at 1,090.
For more on the current technicals, please refer to this weekend’s Technical Update.
Have a great day, see you in the market thread…
It is truly remarkable to me that such a great nation with so much potential could lose her way. Fraud and deceit are rampant, they completely permeate our financial and political arenas. No goals that are worthy of society. No sense of direction of which to be proud. No adult LEADERSHIP. Moral and ethic decay that starts at the top and works it way down. Truly it is time to gaze at our looking glass…
Styx – Suite Madame Blue (America Patriotic):