Volatile day, but kind of boring day. Market actually fell 3,2% from top to bottom, and managed to squeeze in a 22 points uptick in 20 minutes Trading. Nobody is in control, and both bears and bulls are thrown between greed and fear. Let the market play out, and show what it wants to do. Some big losers today in Bidu, Nflx and the new dog, Apple, while GS was +3,7%.
They make the best Laptop, they make the best phone, they make the best tablet. Everything they make, is the best. They also have more cash than many countries can dream of. Apple is the best, but it is always the hardest task, to stay at the top.
Of course Apple is different to the (the new dog) Netflix, but the human psychology behind some charts is the same. Greed of not riding the winner. Apple is overowned and loved by everybody, wonder just what the “sudden” fatigue in the share price is telling us. You can have an iPad, iphone, iMac. You can even replace these must have gadgets, but at what pace? Unless they come up with an iCar, things could start turning around. Watch out, as the stock could fall fast and furiously. Below charts, judge yourself, if this time is different, or not?
As Einstein said; “There are only two things indefinite, the Universe, and the stupidity of people”.
Market is trapped in a short term consolidation range. According to us, the brutal moves in early August have “destroyed” the faith among the investors. At these levels it is very much noise trading, disturbing the bigger price picture. Are we forming another giant HS formation (where people get “sucked in” omce more), which will eventually break down, and wipe out much more of the market?
Something for SEC and other regulators to subscribe to?
HCMI announced today the release of HFT Alert, the first real time software designed to detect high frequency and algorithmic trading systems. HFT Alert identifies when these trading systems are running and what stocks are being affected. HFT Alert can detect several types of algorithms as well as stocks experiencing elevated quote rates associated with algorithmic trading.
Full release here.
Two Charts by D Short that make you wonder about the American Dream. The Average Joe is incurring more debt for education, paying more for medical costs, while not adding to income growth, unless you join the banksters team. All this, while life expectancy is not better than the rest of the Western World. Social Unrest Next?
The Silver and Gold collapse has attracted many pundits and their beliefs of what is going on. Copper, not in fashion these days, is by many called Dr Copper. Wonder why? It is highly correlated to the SPX and a good measure of the Economy. Copper, having “collapsed” during the past week, is implying SPX to trade lower. Last time Copper traded at these levels, SPX traded at 1050.
Mr Price gives his view on mankind, politics and the importance of gold.
Indeed, United Europe is falling apart. By the time you read this, it may already have collapsed. But it is falling apart not because of a lack of “Fiscal Union”. It is collapsing because of the absence of the fundamental means for free international collaboration, based on the realities of each nation of Europe: there is no gold standard at work.
Somewhere in his books, Ludwig von Mises states that the beginning of the end of the Austrian Empire came when the gold coin stopped circulating in the Empire. It was this stable and trustworthy money that had held together an Empire made up of several nations with very different cultures. When the gold coin disappeared, the unifying factor was gone as well.
Gold is the money for societies made up of men and women who wish to live in the real world.
This is part of the trouble in our declining civilization: men and women in these times wish to live in illusions, and the politicians, the bankers and their economist lapdogs have been providing those illusions for many decades now. Those illusions were enabled by the “Welfare State”: Comfort and security from cradle to grave, with no requirement of hard work to merit them. On the other hand, it would also be reasonable to say that men and women today live in illusions, because they were forced to do so by the fiat money they had to use. Once fiat money is in place, all becomes illusion and gambling and people give up trying to make sense of life. Pretty soon they take illusions to be realities.
Full article here.
Asian shares and commodities fell on Thursday, Reuters reports, on growing worries that Europe’s intractable debt problems will plunge the world into a second global financial crisis. Copper fell 3 per centhttp://ftalphaville.ft.com/thecut/2011/09/29/688436/slide-continues-in-asian-markets/
Citigroup’s chief executive Vikram Pandit says he expects the company will return significant amounts of capital to shareholders from 2012, the WSJ says. Mr Pandit said the bank is still on track to return capital to investors next year, http://ftalphaville.ft.com/thecut/2011/09/29/688421/citi-to-return-capital-to-shareholders-in-coming-years/
Spain, Italy and France have extended bans on the short selling of select banks and other financial stocks, the FT reports. The French and Italian prohibitions are slated to last until November 11, while the Spanish rule remains in force until “market conditions allow” it to be lifted. http://ftalphaville.ft.com/thecut/2011/09/29/688406/spain-italy-and-france-extend-shorting-bans/
ING is selling its stake in Brazil’s insurance group SulAmerica in a deal that is likely to be worth at least $1bn, sparking a fierce bidding war in the fast-growing Brazilian market, the FT says, citing people close to the transaction. French insurer Axa and Japan’s Tokio Marine have so far emerged as the top bidders for ING’s 36 per cent stake in SulAmerica, http://ftalphaville.ft.com/thecut/2011/09/29/688366/bidders-vie-for-ings-brazilian-group-stake
All news continue.