Tuesday, May 31, 2011

Morning Update/ Market Thread 5/31 - Just Another Scheme Edition…

Good Morning,

Equity futures are up substantially this morning, clearly breaking up and out of the May downtrend. The dollar is lower, the Euro higher, bonds are lower, oil is breaking out higher (>$103), gold is flat, silver is higher, and food commodities are mixed with wheat lower and corn higher.

Stocks are breaking out higher on what (as if we didn’t know)? Downgrades in Europe? Goldman lowering forecasted U.S. growth? No, no, yet another supposed “bailout” of Greece part XVII… just another sad Greek Tragedy. This tragedy is a total repeat of history, the people failing to remove the shyster money changers.

But for U.S. futures to zoom wildly can only happen because there is an excess of hot money. The total supply of the three money forms is simply too much and it has allowed the money changers to capture politics, the markets, and the productive efforts of the world.

While their assets are soaring in manipulated value, your “assets” are falling in value. The Case-Shiller Home Price Data just came in for the end of Q1 (March) and home prices not only sank during March, and year over year, but they hit the lowest point of the crisis so far. Here’s Econspin:
No relief in sight for falling home prices is the unfortunate conclusion drawn by the S&P Case-Shiller report which says its latest data confirm a double dip for the housing sector. The Case-Shiller adjusted composite 10 index is down 0.1 percent for March and down 0.2 percent for the composite 20. Despite the report's commentary, these readings aren't that bad as the rates of decline are less than prior months and given that the readings are three-month averages suggesting that the March data may actually show a small gain. But the year-on-year rates are showing deterioration, at minus 2.8 percent for the 10 index and minus 3.5 percent for the 20.

The unadjusted readings, which are given preferred attention by the report, also show easing rates of decline, at minus 0.6 percent for the 10 index and minus 0.8 percent for the 20. These readings were minus one percent and worse in prior months. The unadjusted year-on-year rates are very close to the adjusted data.

The breadth of decline is a big negative in the report with 18 of 20 cities showing unadjusted month-to-month declines, which however again are three-month averages. The report's national quarterly reading is at minus 4.2 percent in the first quarter vs minus 3.6 percent in the fourth quarter. This reading is at a new low for the cycle and is back to the mid-2002 level.

Here is the entire report:

Case Shiller MARCH

Remember all the people who said that housing had bottomed some time ago? Well, they were wrong again, all the while I’ve been pointing to the impossible math and the number of Option-Arm resets that peak later this year. Data since March also shows that prices are continuing to fall.

The Chicago PMI and “Consumer” Confidence come out later this morning and will be reported inside of today’s Daily Thread.

Following the waves, this breakout higher in the markets probably signifies the start of the 5th wave up (e). It may go on to produce new highs, but fifth waves can truncate or extend. From my perspective its simply the devaluing of our money and manipulation, actions that lead to nowhere good for those who are caught in the squeeze.