http://day-trading-the-stock-market.blogspot.com/
Here is Technical Analysis of the daily and weekly charts for the S&P 500, plus a number of interesting news articles I read throughout the week...
The daily chart is Bullish for the most part with a positive Parabolic SAR and closing very close to Monday's close today...But there are still those nagging Bearish Divergences in the CCI and the MACD Histogram...The most notable thing happening on this chart is the Golden Cross...That's when the 50day Moving Average crosses up through the 200day MA, and is considered Very Bullish...But I think this kind of indicator is overrated because it is such a lagging indicator...It is considered a Buy Signal by some traders, but I use the CCI for my Buy Signal, which happened in early July and late August when it crossed up through the -100 line...The other thing to notice is that Volume diminished every day this week, but it appears that Volume isn't such an important indicator like it used to be, since the market has had a number of rallies on low Volume this year...Volume used to be THE most important indicator of them all...
The Money Indicators (Chaikin Money Flow, On Balance Volume, and Accumulation/Distribution) are all looking very Bullish, but CMF is lagging a bit because Volume was declining this week...
The weekly chart is still looking Very Bullish, but I'm expecting a ton of resistance at the 200day Moving Average at 1195.38...The CCI downticked on an up week, which is not ideal...And Stochastics remain very overbought, but most people don't realize how long it can remain so...Look at the previous two times it got above the 80 line...It stayed there for weeks on end, so I don't put much importance on STO except for when it gives a clear Sell Signal, which it hasn't yet...The MACD is Super Bullish...The only thing I don't like is the angle of ascent since the bottom in late August...It's waaayyyyyyy too steep, just like it was from February until late April, and I still foresee a HUGE dump just like the last one IF the right catalyst comes along...Could that be bad blood after the G20 meeting this weekend?...Or maybe the foreclosure-gate fiasco could really take off and hurt the big banks and mortgage brokers badly...There are a number of articles about this subject below the charts in the news section...
The Money Indicators on the weekly chart are SCREAMING Bullish...
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Here are the most interesting news articles I read this week...The first one HAS TO BE the most important one of all...I don't trade Commodities at all and never have, because I heard a long time ago how Gold and Silver have been manipulated so much, and this article PROVES it...Truly and amazing read, in my opinion...It just shows us how extremely crooked the markets have become:
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CORRUPTION: Retiring CFTC Judge: We Covered Up Market Manipulation
NEW DEVELOPMENTS IN THE CFTC SCANDAL: On September 17, 2010, CFTC Administrative Law Judge, George H Painter, issued a "Notice and Order" announcing his retirement from his position. In this notice Judge Painter wrote of a conspiracy at the highest levels of the CFTC (within the ENFORCEMENT DIVISION) where a long time judge of 20 years has been conspiring with past CFTC Chairs to RIG THE ENFORCEMENT OF THE LAW by NOT finding ANYONE guilty of market manipulation. Here are Judge Painter's own words:
http://www.thedailybell.com/1461/Retiring-CFTC-Judge-We-Covered-Up-Market-Manipulation.html
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MORE CORRUPTION: Congressional Staffers Gain From Trading in Stocks
At least 72 aides on both sides of the aisle traded shares of companies that their bosses help oversee, according to a Wall Street Journal analysis of more than 3,000 disclosure forms covering trading activity by Capitol Hill staffers for 2008 and 2009.
http://online.wsj.com/article/SB1000142
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MORTGAGE-GATE: Mortgages Were Fraudulently Pledged to Multiple Buyers at the Same Time
Bank of America alleged in a court filing this June:
It appears as though many loans and other mortgage-related assets have been double and even triple-pledged to various constituencies.
http://www.washingtonsblog.com/2010/10/mortgages-which-can-legally-only-be.html
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Homeowners’ Rebellion: Could 62 Million Homes Be Foreclosure-Proof?
Over 62 million mortgages are now held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles — and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure-proof.
http://seekingalpha.com/article/221344-homeowners-rebellion-could-62-million-homes-be-foreclosure-proof?source=yahoo
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NY Fed, BlackRock and PIMCO Pressure Bank of America to Buy Back $47 Billion
Pacific Investment Management Co., BlackRock Inc. and the Federal Reserve Bank of New York are seeking to force Bank of America Corp. to repurchase soured mortgages packaged into $47 billion of bonds by its Countrywide Financial Corp. unit, people familiar with the matter said.
http://jessescrossroadscafe.blogspot.com/2010/10/ny-fed-blackrock-and-pimco-pressure.html
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Mortgage Crisis Set to Kick Into a Higher Gear
Specifically, the question is how many mortgages were overpromised and overpledged -- sometimes two, three maybe five times, maybe umpteen times -- to back securities? How many fraudulent mortgage-backed securities now sit on Fannie and Freddie’s books? At the New York Fed? Who will be on the hook for those securities?
http://www.foxbusiness.com/markets/2010/10/19/mortgage-crisis-set-kick-higher-gear/
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How the Foreclosure Fiasco Threatens the Economy
It might seem like a respite for struggling homeowners, but the sudden snags and slowdowns in thousands of foreclosure proceedings could prolong the housing bust well beyond its fifth year--and spell deep trouble for the broader economy.
http://finance.yahoo.com/news/How-the-Foreclosure-Fiasco-usnews-610419413.html?x=0
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If This Is True...... KaBOOM!
If this is true it's not just systemic, it's not just common, it was the premise and basis of the entire securitization game - and "game" is the correct word for it, as the allegation made here is that the entire thing was a gigantic scam.
http://market-ticker.org/post=169779
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NY to hold lawyers accountable on foreclosures
The chief judge of New York's courts on Wednesday imposed a new rule requiring lawyers handling foreclosures to verify that all paperwork is accurate.
http://finance.yahoo.com/news/NY-to-hold-lawyers-apf-671089494.html?x=0
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SO IT BEGINS -- Bank of America Accused of Racketeering in Class Action Foreclosure Lawsuit
This is not going to end well for the banks. The trial lawyers have been unleashed. Best new job in America -- foreclosure class-action attorney.
http://dailybail.com/home/so-it-begins-bank-of-america-accused-of-racketeering-in-clas.html
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Weakness In Bank of America Is Telling You Something
Stocks don’t lie, people do, reminds Guy Adami and I think weakness in BofA is trying to tell you something. It makes me wonder if the S&P is a little frothy. I don’t believe we can have a sustained meaningful rally in the S&P as long as the banks continue to underperform.
http://www.cnbc.com/id/39779193
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Tab for Fannie, Freddie could soar to $363B
The government spelled out Thursday just how much the most expensive rescue of the financial crisis will end up costing taxpayers — as much as $259 billion for mortgage buyers Fannie Mae and Freddie Mac.
http://www.msnbc.msn.com/id/39776628/ns/business-us_business/
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The Big Wall Street Banks Have Found A New Way To Strangle The American People: Predatory Property Tax Collection
It turns out that the big Wall Street banks have found a dirty new way to make loads of cash from U.S. homeowners, and they really, really don't want to talk about it. So what is this dirty new business? America's biggest financial institutions have become property tax collectors, and it is extremely lucrative. From coast to coast, the big Wall Street banks are buying up thousands upon thousands of tax liens and are making a killing by socking distressed homeowners with predatory interest, outrageous penalties and almost unbelievable legal fees.
http://theeconomiccollapseblog.com/archives/the-big-wall-street-banks-have-found-a-new-way-to-strangle-the-american-people-predatory-property-tax-collection
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Foreclose on the Foreclosure Fraudsters, Part 1: Put Bank of America in Receivership
After a quick review of its procedures, Bank of America this week announced that it will resume its foreclosures in 23 lucky states next Monday. While the evidence is overwhelming that the entire foreclosure process is riddled with fraud.
http://www.huffingtonpost.com/william-k-black/foreclose-on-the-foreclos_b_772434.html?ref=fb&src=sp#sb=832484,b=facebook
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Now We're Talking: BREAK 'EM ALL UP!
If the government does not hold the fraudulent CEOs responsible, who is supposed to stop the epidemic of elite financial fraud? The Obama administration's answer is the fraudulent CEOs themselves. You can't make this stuff up.
http://www.huffingtonpost.com/william-k-black/foreclosure
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An Early Stress Test For The Financial Stability Oversight Council
How much damage to the financial system should we expect from what is now commonly called the foreclosure morass, the still-developing scandal involving document robo-signing (and robo-dockets), completely messed up mortgage paperwork and high-profile inquiries into accusations of systematic and deliberate misbehavior by banks?
http://baselinescenario.com/2010/10/21/an-early-stress-test-for-the-financial-stability-oversight-council/
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Nasdaq %Above 50-day SMA reaches overbought levels $NAA50R - Don't Ignore This Chart!
The Nasdaq %Above 50-day SMA ($NAA50R) is trading near the prior 2010 highs. This indicator surged to the mid 70s in January and again in April. Prior moves to this area signaled overbought conditions that led to a pullback.
http://blogs.stockcharts.com/dont_ignore_this_chart/2010/10/nasdaq-above-50-day-sma-reaches-overbought-levels-naa50r.html
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The Stock Market's Long Decline Has Begun
The Fed's campaign to boost the risk-trade in equities by destroying the dollar has reached its limits. Now gravity will take hold as stocks enter a Long Decline.
http://www.oftwominds.com/blogoct10/long-decline10-10.html
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Three Words: NO ECONOMIC STANDING
If a loan is assigned to different tranches and/or different trusts, with each tranche or trust having its own series of credit enhancements and insurances, this means the possibility of multiple levels of insurance for the same loan, which goes to prove what we have been arguing for years: that upon securitization, the mortgage loans were insured with multiple layers of insurance so that when the loan went into default, those in the placement chain could reap untold profits by having the same risk paid over and over and over again through multiple claims or reserves. Anyone who read through the SEC v. Goldman Sachs lawsuit knows this.
http://market-ticker.org/post=169722
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Inside the Illusory Empire of the Banking Commodity Game
Banking and fraud were born into our global word as Siamese brothers, inseparable since birth. And just like Siamese brothers, if ever separated, they would likely die together as well.
http://www.theundergroundinvestor.com/2010/10/inside-the-illusory-empire-of-the-banking-commodity-con-game/
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PIMCO-Viewpoints: The Fed Feels Compelled to Experiment
This week’s release of the minutes of the September 21 meeting of the Federal Open Market Committee (FOMC) points to an activist Federal Reserve that is in policy experimentation mode – an institution that feels compelled to take additional measures to energize the American economy yet is uncertain ...
http://www.pimco.com/Pages/TheFedFeelsCompelledtoExperiment.aspx
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David Malpass Gets Most Of It: The Fed's An Ass
Congress will face a runaway train on taxes and spending when it reconvenes after the elections. The solution is to restrain both—especially to stop the $6 trillion tax increase scheduled to take place on Jan. 1—in order to restore business confidence and help job growth.
http://market-ticker.org/akcs-www?post=169640
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A "Watershed Event" for Bernanke: The Fed Is "Pushing Water with a Fork
When he declared "inflation is running at rates that are too low" last week, Federal Reserve chairman Ben Bernanke did a lot more than just pave the way for more quantitative easing, says Todd Harrison, CEO of Minyanville.com. The Fed chairman's use of the "d-word" (deflation) is "an admission of defeat" by the central banker, Harrison says. "It's a watershed event."
http://finance.yahoo.com/tech-ticker/article/535517/A-%22Watershed-Event%22-for-Bernanke:-The-Fed-Is-%22Pushing-Water-with-a-Fork,%22-Harrison-Says
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Hussman Funds - Weekly Market Comment: The Recklessness of Quantitative Easing
With continuing weakness in the U.S. job market, Ben Bernanke confirmed last week what investors have been pricing into the markets for months - the Federal Reserve will launch a new program of "quantitative easing" (QE), probably as early as November. Analysts expect that the Fed could purchase $1 trillion or more of U.S. Treasury securities, flooding the financial system with additional bank reserves.
http://www.hussman.net/wmc/wmc101018.htm
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End The FED. Get The Gold.
How can we end the Federal Reserve System? Prior to 2008, this question would have been entirely hypothetical. It is still entirely hypothetical, because the Federal Reserve System is in charge of monetary policy; the Congress of the United States is not.
http://news.goldseek.com/LewRockwell/1287324000.php
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CBO Releases Official Numbers On Obama's Spending Record: In Two Years, An Increase of 21%
Perhaps you missed it, but then so did the Washington press corps. Late last week the Congressional Budget Office released its preliminary budget tallies for fiscal year 2010, and the news is that the U.S. government had another fabulous year—in spending your money. We didn't expect President Obama to hold a press conference, but why are Republicans so quiet?
http://dailybail.com/home/cbo-releases-official-numbers-on-obamas-spending-record-in-t.html
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Tax Cuts Won't Cut It - by Peter Schiff
Congressional Republicans and Democrats are engaged in a heated debate over which Americans deserve not to have their taxes raised, with both claiming that some form of tax cut will stimulate the economy. The primary point of divergence is what type of cuts will be most likely to get Americans spending, and whether the wealthy will wastefully save their extra cash or use it to create jobs. This debate is academic. If a stronger economy (rather than pre-election posturing) is really the goal, then tax cuts alone will fail.
http://news.goldseek.com/EuroCapital/1287429142.php
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The Financial Tsnuami Second Wave is on the Way
The spectacular, unrelenting rise of gold, silver and other commodities are signs that those who understand the unfolding financial calamity are taking defensive measures to protect the purchasing power of their wealth. Gold and silver have been the unanimous choice through history as the most basic forms of money in any kind of advanced society. The metals market is not being driven by little retail investors, but by Big Money heading for the exits from the FiatMoney Casino.
http://freeoklahoma.blogspot.com/2010/10/financial-tsnuami-second-wave-is-on-way.html
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45.5 TRILLION DOLLAR LOSS
This is not just $45.5 Trillion in fraudulent assets (mostly Teir 1 assets for banks) but tacking on all the derivatives we end up with a number in the QUADRILLIONS!
http://www.roadtoroota.com/public/410.cfm
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THE SUBPRIME DEBACLE: ACT 2 | PRAGMATIC CAPITALISM
There’s trouble, my friends, and it is does indeed involve pool(s), but not in the pool hall. The real monster is hidden in those pools of subprime debt that have not gone away. When I first began writing and speaking about the coming subprime disaster, it was in late 2007 and early 2008. The subject was being dismissed in most polite circles. “The subprime problem,” testified Ben Bernanke, “will be contained.”
http://pragcap.com/subprime-debacle-act-2
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And my favorite story from last week still holds true...IMHO
Has The Fed Come To Their Senses Yet?
We all know that this recent stock market rally that began on August 25th, 2010 has been manufactured by the Federal Reserve Bank and the prospect of QE2 (quantitative easing). Since that time the stock market has rallied higher by nearly 13 percent. However, the U.S. Dollar Index has declined by nearly 13.0 percent since its June 7th, 2010 high. This tell us that quantitative easing has already been going on. If the U.S. Dollar has lost 13 percent and the stock indexes have rallied 13.0 percent what have investors really gained as stocks are denominated in dollar terms? It has really been a zero sum game and many people are hopefully realizing that.
http://www.inthemoneystocks.com/n_rant_and_rave_blog_single.php?id=10192
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One of these days...Sooner than later...This house of cards is going to FALL...
GOT GOLD?...
Have a great weekend everyone!...
zigzagman
Tom
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