9 Ahead Of The Curve: United States

Showing posts with label United States. Show all posts

Tuesday, May 09, 2006

Bernanke Boggle: Halo or Horns?

Bernanke Boggle: Halo or Horns?

by Doctrader

The Bernanke Boggle concerns the stealth inflation factors which the Federal Reserve has largely ignored during it’s calculation of inflation, excising hydrocarbons and carbohydrates. As with the early 70’s, the Federal Reserve is behind the inflation curve and will only exacerbate the inflation curve by painting themselves into a liquidity trap.
Bernanke will have a “Halo” for the stock market by not raising rates higher, despite the inflation warning signs. The temporary Bernanke Halo will turn to “Horns” when the market’s irrational exuberance begins to fade. The Federal Reserve’s charter is to prevent runaway inflation, such as “hyper inflation” that Germany experienced after World War II. You could not buy a loaf of bread with a wheelbarrow of money in post World War II Germany. There are many countries today who are suffering from hyperinflation, but you will not hear the Market Media Matrix talking about those countries. The Market Media Matrix’s job is to only spout endless stories of “happy days are here again”. The sad fact is that the more this lie is told, the easier it is to convince more people that it is true. I see the polarization of America in my travels across the country. The rich are getting richer and the middle class are getting poorer. The un-skilled laborers are slowly being moved into the poverty line by inflation.
The immigration inflation factor is also an unknown factor. In my last post, Profit, Politics, and Protection, the protest marchers have learned very quickly to market themselves as peaceful protestors. If we see the protestors marching with American Flags and singing the National Anthem with the words they wrote to the song, their stealth infiltration into the American economy will be complete. Make no mistake by believe these are just un-organized peaceful protesters; they have a highly organized structure and financial backing. Their financial backing is based in the communist party. Hence the march on May 1, the "world workers party”

The classic Federal Reserve incompetence, gambling with the world’s future economy, in their arrogance of trying to “fine tune” the free market. They will create the largest loss of market capitalization in the history of the world. The new Federal Reserve Chairman, Ben Bernanke, will undoubtedly try to institute his historical understanding of the Great Depression’ of the 1930’s. According to Dr. Bernanke, he would to flood the economy with dollars spurring economic activity to “grow out of a depressed economy“.
The correct way to end a depression, however, we are entering into an inflationary period of time as China, India, and other developing country compete for resources.
The Ben Bernanke Boogle has begun with the market media matrix spouting its everlasting bullish attitude to the average investor. Ben Bernanke failure to recognize the inevitable harmonic stock market cycle will create the greatest challenges for long term investors, which are the “baby boomers”.

The Federal Reserve goal is to fight inflation, not spur the stock market to irrational exuberant highs. The market media matrix drum beat of high corporate profits doesn’t mean a thing to the average investors. “Earnings up 14% on the S&P 500 stocks” shout the financial headlines. When company xyz make spectacular earnings, how much are they paying to the shareholders?
High earnings mean nothing if the investor doesn’t make dime in dividends.
The average investor who watches the news sees the Dow Jones Industrials are marching toward a new historic high and he will want to jump on the bandwagon. My target for the Dow Jones Industrial average is 12,454 points, based on historical repeating market cycle of human behavior in 1973. In 1973 the Dow Jones Index did indeed break to new highs, above the 1000 level, but the index spent the next two years in a bear market correction as inflation swept through the economy. The average investor must be fully invested before the inflation bubble collapses the market. Once most of the individual investors are fully invested, the lack of buying interest will fade and prices will collapse. The “greater fool” theory will have been completed and without the support of new foolish money prices will collapse. Today’s investors may no remember the 70’s “misery index”, but they will!
Inflation is not something that can be measured quantitatively and does not move in measured increments. The “data” the Federal Reserve uses only looks backwards in time, just as corporate earnings reflect the past. There are many factors which could cause inflation to erupt like a “back draft” which will incinerate long term capital gains in a matter of days. The inflation “back draft” list is growing longer each day. These include geopolitical events, oil production disruption, oil production nationalization, illegal immigrant inflation factor, bird flu, interest rates increases, natural disasters, political, social and racial riots, and celestial events.

The same scenario happened in 1973 with the same geopolitical problems. Unlike the 1970’s however, most Americans were not invested heavily in the stock market. The geopolitical events will be the driving force that precipitates the market’s decline. The geopolitical forces are not quantifiable by the Federal Reserves calculations on inflation. Congress has been complacently incompetent by incumbency trying the same old tired solutions of the 70’s. Until we have new leaders in Congress, the same mistakes will be repeated just as the 70’s gasoline lines begin to form during Memorial Day Weekend. The oil company’s profits are a hyped by the Market Media Matrix knowing that most American’s are ignorant of how the stock market works. The deliberate dumbing down of America through the public education guarantees an easily manipulated labor force by the Market Media Matrix. Due to the lack of public education on the capitalist system and free markets, Generation X er’s have been taught more communism and socialism in their educational institutions instead of capitalism.

Every generation has a need to become the dominating generation. However, the members of “Generation X” are deficient in critical thinking to create a rational and logical solution to the problems we face today. The Members of Generation X are today’s money managers. They will be culpable for the high levels of programmed trading in the stock market. The fact that 6 out of ever 10 trades are being manipulated by computerized programmed trading will lead to huge market collapse in the stock market over the next year. In 1999, the average volume of programmed trading was around 20%, compared to today of 60%! The Russell 2000 Index is largely a proxy for programmed trading with over 1200 stocks out of the 2000 stocks controlled by institutional money managers. The Standards and Poors 500 Index has 458 stocks which have more than 50% of their shares controlled by institutional programmed trading!

The stage is set, for most Americans the collapse will be felt in their retirement accounts and 401(k). The next level of pain will be their home valuations, and lastly the cost of food and energy. It will be up to you to take the necessary steps to preserver your wealth by using protective stops and put options if you own individual stocks.

However, for most Americans who are passive investors through their pension plans and 401 (k) plans, they should systematically begin to move money into money market accounts and 10-20% of their account value into a precious metals and commodities. Remember, these spectacular earnings are not being paid to you, but are kept by the company. Your only profit in most of these stocks are “un-realized gains”, it will be up to you to take your profits before you have long term capital losses.

Meanwhile the short term and nimble traders will make huge profitable trades shorting the stock market and leveraging put options with my chicken straddle spread strategy.

Some prime examples of why you need the chicken straddle strategy are demonstrated in the following charts. (ESRX, ISRG, EXPD and GOOG . It does not matter if the stocks go up or down, you can be profitable with the chicken straddle strategy.

God Bless
Doc

OTHER RELATED ARTICLES BY DOCTRADER
Friday, May 14, 2004
Sell in May and Go Away

Monday, March 27, 2006
Bernanke: Batter UP!

Bernanke: Batter UP!The market anticipates the next two Federal Reserves meetings with the new Federal Reserve Chairman, Ben Bernanke to end raising interest rates.

Friday, February 24, 2006
The Feds Liquidity Trap Part II, Inflation or Deflation?

Thursday, December 22, 2005

Sunday, April 09, 2006

Profits, Politics, and Protection

Profits, Politics, and Protection
By Doctrader.com

Starting on Monday, Americans will find out how much illegal immigration will cost businesses in profits, who will be held politically accountable, and how much it will cost for real border protection.

The Market Media Matrix dictates that all activities revolve around producing a profit. The “Market” is all forms of businesses and profits. The “Media” dictates how you should “think and feel” about businesses and events. The “Matrix” is created out of the mass consciousness of people who are not free, logical thinkers.” The “Market-Media” has created the “Matrix Reality”. When I talk to people about the high rates of taxes they just shrug their shoulders and say, “what can we do about it?” They are living their lives out in quiet desperation not realizing that they have the power to hold the politicians feet to the fire and change the “Matrix.” Due to political correctness, the false Market Media Matrix reality of “Generation X” has increased the children’s confidence and self assurances without any evidence of competency with the rest of the industrial nations.

Profits:
A profit at any cost is the American business motto, right? You can only judge a tree by the fruits it bears. There are many examples and anecdotal evidence offered by the liberal news media about the benefits of illegal immigrants who are doing jobs that no one else would do. What all these stories fail to mention is that most illegal immigrants are making much more than minimum wages. The average person still believes that illegal immigrants are picking strawberries and cabbages for less than minimum wages.

Illegal immigrants are being used for high paying skilled jobs, such as carpentry and masonry, landscaping, and unskilled factory work. Which according to an immigrant advocate are averaging $15 per hour! These are the jobs everyone would want not just an illegal immigrant. In all business the largest cost factor is labor. So, given the choice of hiring an American or an illegal immigrant the businesses will hire those who will work for less money. Choosing the lower labor cost has depressed all American wage earners and increased corporation’s profits. Since it is not the businesses’ job to investigate an employee’s legal citizen status businesses can in spirit of the law and the letter of the law hire just about anyone with proper paperwork. This leads to greasing the political palms to keep the charade up of guest workers, undocumented workers and a whole host of politically correct names.

Politics:
Years ago, back in the 1980’s when I was in college I had to produce papers that I was an American citizen. Being a fan of the World War II movies I can hear in my mind the Gestapo saying, “Papers! Papers please. Show us your papers!”. When in the 1980’s the requirement of verifying citizenship was increased from a mere social security card or green card I was not a fan. I could not figure out why I had to show papers which could easily be stolen, copied, or forged and sold for a profit to illegal aliens. It would have been much simpler for the illegal immigrants to produce a “green card”allowing them to work here. The politics of producing profits was conditioning us, the law abiding American, to carry personal identification papers.

The Pavlov Conditioning effects of the Market Medial Matrix created political power and profits to the politicians who supported the law. Flash forward twenty (20) years and we have an invading army within our borders destroying our language and culture.

After 9/11 the first act of congress was to nationalize airline security by creating another political agency to “protect the American people” from hijacking. Meanwhile, the borders were left largely unguarded! The first step that should have been taken was to close the borders and not leave them wide open. This demonstrates the political incompetence of our politicians, both Democrat and Republican. Or, was it a calculated risk to gain the fast growing minority’s votes at the expense of the complacent tax burdened American voters?

The politicians never act until there is a crisis situation. They “come to the rescue” by enacting “knee-jerk public opinion polls” to make their constituents feel better Ben Franklin said, “They that can give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” We have been fooled again with the help of the Market Media Matrix. The immigration laws have not been enforced because of the large profit potential by employing illegal immigrants without the protection of the Labor Relation Laws. Liberal politicians would like for you to believe that every illegal immigrant is doing a job that no American would like to do. Never mind they are placing illegal immigrants in potentially abusive situations. Not only are the politicians failing to protect the immigrants, they are failing to protect Americans by allowing open borders.

Let’s look at some simple numbers for a reality check.
If there are 15 million illegal immigrants within our country working hard and paying taxes “are we to believe that there are not deviants amount them”? “The Market Media Matrix dictates that all poor people are hard-working and honest“. Unfortunately, the Market Media Matrix reality bubble bursts with FBI statistics.

If we take the normal distribution of deviate behavior of the US population we know that at least 1% will have criminal tendencies ranging from child molesters to murders. If 99% of the illegal immigrants are law abiding and 1% are criminals, How much is it costing us and our economy?

That 1% represents 150,000 potential criminals who have to be caught, prosecuted, and incarcerated. The cost to the American tax payers, include educating illegal immigrant’s children, welfare, Medicaid, Food Stamps, personal injuries, auto accidents, social security fraud, and a host of other expenses can be estimated at $40,000 per illegal immigrant. So 150,000 times $40,000 would equal $6,000,000,000 dollars.

Protection:

Congress has failed to protect and uphold their oath of office. Congress should be recalled by the American people to hold their feet to the fire for allowing profits to come before this nation’s protection.

The first duties of the congressmen are to protect and preserve the Constitution from all enemies, foreign and domestic. Last year there were 80 different nationalities of illegal immigrants were caught crossing the border from Mexico along with illegal immigrants. This undoubtedly is the greatest of security risk we have ever faced in our nation’s history. Yet, the Market Media Matrix has glossed over this major security flaw.

The first reasonable act of congress during a time of war should be to secure the borders. But in typical knee-jerk reaction they have created another useless government agency to help the airline industry. Profits come first in America at the expense of protection. They have created the Homeland Security Agency and the TSA to protect Americans.

These agencies provide very little protection against the massive open border policies which have been in place for the last 20 years. Congress has been complacently incompetent by incumbency. Congress’ complacency has been caused by voter’s incompetence repeatedly returning 95% of the politicians to office year-after-year. Through the help of the Market Media Matrix conditioning, the average American is polarized with stereotypical one-line sound bites. You have been so conditioned by these "one-line sound bite" you don't consciously think! You have heard these... " rich vs. poor", "Republican vs. Democrat", "White vs. Black", etc… headlines that grabs the attention of the "adults" reading at a 5th grade level.

During last week’s protest march for illegal immigrants I witnessed the silent invasion of our country’s borders by a foreign nation. Seeing all the Mexican flags paraded throughout our streets should sound the Paul Revere Alarm.

Image by Edu-Tourist via Flickr

There is nothing more stirring to the American flag being raised on Iwo Jima by the marines who liberated the island from Japan during World War II. The spirit of those who fought World War II is gone today. The only worries of the Baby-boomer generation is how much profit they are going to make on their pension plans, homes, and their stock portfolios. Congress should not make any new laws. They need to follow those already in place.

The first step is having the guts to close the borders, enforce the immigration laws, and build a secure border. The next step should be to determine who and where illegal immigrants are. Once that is determined these people should be added to the waiting list of those who are legally petitioning to enter the US.

Protection of our borders should come first over politics and profits.

God Bless

Doc

Sunday, March 19, 2006

Alert: Long Term Stock Holders

Alert: Long Term Stock Holders

The focus of this post is to alert long term stock holders of the next short term cyclical bear market type which is approaching within the next few weeks.

The first cyclical and secular bear market began with human nature. A cyclical market lasts an average of 18 months, whereas a secular market lasts 18 years. These market cycles are defined on my website at http://www.harmonicstockclock.com.

Image by doctrader via Flickr

Each Secular Bear market type (18 years) begins with the same type of cyclical market, i.e. bull or bear lasting an average of 18 months. The last Secular inflationary Bear market lasting 18 years began on Feb 10th, 1966, with the Dow Jones Index reaching an all time high of 1001 points. The next Secular market type was a bull market lasting 18 years from 1982 to 2000, with the Dow Jones Index reaching a high of 11750 points. These market types alternate between bull market and bear markets. Just as Secular market types alternate, cyclical market (18 months) types alternate between bull and bear markets. The focus of this post is to alert long term stock holders of the next short term cyclical bear market type which is approaching within the next few weeks.

Let's look at history to find a repeating cycle of the type of current market cyclical we are experiencing. Knowing the Secular (18 years) Bear market began in 1966 with a cyclical (18 months) bull and bear markets alternating every 18 months on average. The first cyclical bear market cycle began on Feb 10 1966 to Oct 10th 1966 with a correction of 23%. The next cyclical bull market type began with a move up from the lows on Oct 11, 1966 at 735 points to a high of 994 on Dec 2, 1968, up 29%. Next a cyclical bear market, (18 months) cumulating in a loss of 31% , back to a low of 627 points on Jun 1, 1970. The next cyclical bull bounce from the lows to a new ALL TIME HIGH of 1067 points Jan 18, 1973.

The Dow moved to new highs, 1067 points, despite inflation warning signs and in face of the Federal Reserve raising interest rates. The move to new highs was followed by a 16% correction throughout the summer of 73, and 43% correction to Oct 4, 1974! The Dow Jones Index was at 624 points on Oct 30, 1974. The average inflationary bear market looses 36% in a correction.

Now if we simply count the number of years from 66 to 73, we have a 7 years time span, with two cyclical bull and bear markets. The first bear market correction was as bad as the second one in 73, because we had the last stages of deflation in 1966. By 1970, President Nixon and the Fed were trying to stop rising inflation, (at 1.3% a year) by imposing wage and

Image via Wikipedia

price freezes.

Inflation, like wild fires, start small, then depending on the winds can quickly become a raging forest fire, which is exactly what happened. Soon, inflation throughout the 70's sky rocketing to double digits, energy, food, un-employment, and interest rates all moved higher. (20%)

Flash forward to Jan 2000, when the Dow Jones Index posted an intra day all time high of 11750 only to be followed by a 3 year cyclical bear market down to 7745 or a -36% loss. Remember, there are 6 cyclical (18 months) market cycles within the long term secular cycle lasting 18 years. The average bull and bear market cycles lasting an average of 18 months.

The first cyclical market type, in 2000 was a bear market, lasting 36 months, with a 36% loss. The next cyclical market type was a bull market. The current cyclical bull market has lasted over 36 months with a gain of 50% from the lows.

If this market is a reflection of the previous secular bear market starting in 1966, then we had another 11% move to the upside! If the Dow Jones index hits the all time high of 11750, then we can expect to add 6% more to a new high of 12,455 points! The market moved in 1973 move to an all time high, up 6%, breaking the 1001 points barrier.

The next bear market correction should will come after the Dow reaches 12,455 points. The next correction will be the biggest correction of all! The next correction will wipe out the "baby boomers retirement accounts" and those who still believe in the "buy and hold" theory.

The perfect financial storm is coming with higher inflation, aging "baby boomers", and falling home prices. These problems are world wide, not just in the U.S. only.

The economy is dependent on new consumers; unfortunately, the "baby boomers" have allowed abortion to kill 60 million new consumers and future tax payers in the U.S.

Image by Christchurch City Libraries via Flickr

( Notice from 1973 to current 2001, an estimated of 60 million consumers would have smoothed the transition between the generation x who are largely under 20 years old.)

Next time you are out looking for some service at a store, just think to yourself, "I am relying on this person to pay social security taxes?

Boomers represent 28% of the U.S. population. But in 1964, they represented about 40% of the population.
In other words, in 1964, more than a third of the population was under 19 years old!
No wonder the baby boomers attracted so much attention. In 1996, there were approximately 10 million Americans over the age of 80. Nonetheless, in about a decade, 70 million boomers will begin counting on those "kids" to pay our social security. But that's another set of statistics for another time. Bill Geist who noted first (in 1997) in his book "The Big 5-Oh" that another boomer turns 50 every 7 seconds. Whew! Is that possible? 4,000,000 will turn 50 in 2006, Or almost 11,000 per day!

Russell 2000 Index

Now I know what you are thinking, what about the Russell 2000 Index reaching new highs? If you look at a chart of the S&P 500 Index back to the same time period, 1966 to 1973, the index was making new highs also. In 1973, both the S & P 500 and the Dow Jones Index had major corrections of 40 to 48%. The main reasoning the S & P 500 was making new highs was the belief that investing in a broad diversification of industries would protect against long term losses. Well, guess what?

The cyclical inflationary bear market caused the S & P 500 to fall almost 48%. Also, notice, both Dow Jones and S&P 500 both corrected at the same time! The Russell 2000 Index is following the same pattern, and will suffer the highest percentage of losses.

The geo political ramifications of the 1966 Secular Bear market are the same as they are today.

Our economy is strong because we are fighting a war.
Un-employment is low because the numbers of soldiers from the National Guard units are in rotation and employers have to hire temporary workers until the soldiers return.
Commodity prices are rising due to the surge of industrial Capacity Utilization.
The baby boomers started the housing boom, with their large population bubble moving throughout the economy buying and consuming everything.
Our international relationships are not secured, especially with oil producing nations.
China is both are enemy and our friend.
China as a "Wal-mart" proxy is our friend by keeping prices low.
China as our enemy, is consuming raw materials and commodities driving prices higher for raw materials.

Knowing the market media matrix proganda, they will promote the 5 or 6 year all time highs for the Dow Jones Index to boost viewer enthusiasm to buy long over the next weeks.

However, due to the vast volume of programmed computerized trading that has boosted brokerage houses profits, any major moves in the market will accompany huge volume trading day. The huge volume of trading during the day should reach above 4 billion shares traded by 2nd harmonic stock clock time zone. Total volume of trading should reach 6 billion shares traded by the last harmonic stock clock time zone during the day.
These volume high points will mark the beginning of the next bear market correction after the bond yields start expanding from the inversion.

Good Luck long term investors.

God Bless

Doc

Tuesday, February 21, 2006

The Port Portiere Pecuniary Peccadillo

America For Sale: The Dubai Ports Peccadillo

If only you knew what was going on in the wide world of business, you would understand the dangers of the Market Media Matrix. The recent Port Portiere Pecuniary Peccadillo should wake up most Americans to the realization that everything in America is for Sale. This sad fact was brought to the attention of "Joe six pack" back in September of 2001. The people who work for a living are too busy watching "American Idol", and "Desperate House Wives", to understand they are living in the world that George Orwell created many decades ago.

Back in the fall of 2001, Americans did not care who was controlling the airline security screening, they were just happy to have cheap airline tickets. The average Americans doesn't care when they call a "800" number for technical support, where the connection is located. Americans do not care when their investments are being manipulated by foreign investors through programmed trading, as long as the prices keep going higher. Foreign investors using our stock market like a gigantic gambling casino with long term investors sitting at the loser's table. The global financial markets go beyond borders, language and culture. The large amounts of cash are being moved (S.W.I.F.T)ly throughout the world's trading markets, silently moves between countries with the Federal Reserve's consent. This week's Port Portiere Pecuniary Peccadillo should make it obvious that everything in America is for Sale to the highest bidder. The Panama Canal is owned by the Chinese. The Indiana and Illinois toll roads are being bought by a consortium of international investors. There are several military suppliers being bought by foreign companies. Isn't it a shame that the Army's new black berets were being manufacture in China, until enough people passed the word. Isn't it a shame that there is no television manufactures in America.

So no one cares until their security and safety is in jeopardy. Americans demanded that only the government could control the airline security function, hence the newly created TSA. Now that we feel better making the TSA part of the federal government, yet studies show the airport screening process is far from perfect. The purpose of politicians are to protect their constituents, yet the politician are only concerned with re-election and to profit from their positions of power on select committees. The 45 day waiting period was waived by low level bureaucratic minions at the subtle bequest of major political power brokers. There are reports of Republican Bob Doyle legally representing the Abu-Dhabi consortium and Secretary John Snow who used the same consortium when he was working for CSX railroad.

The amount of money being spent by this administration should be questioned by members of the Republican party. If the present administration were a Democrat, the Republican lock steppers would be shouting for fiscal responsibility, yet they are given a free reign in spending like a drunken sailor in Thailand.

Image via Wikipedia

The market media matrix broadcast the headlines of " Six American Ports for sale" to a Abu-Dhabi consortium, DP world. Now "Joe six pack" assumes that the company will control all aspects of the ports. This is not true, but in the market media matrix world, sensational headlines sell newspapers. Since the Headlines encourage readers to buy newspapers, their ad rates improve. The politicians, who don't want to be caught sleeping at the helm also jump on the popular cry of the headlines. This is a mid-term election year, and no politician wants to be on record of letting this popular event pass by without getting their 15 minute of fame. Even the truth is for Sale in America, based on ratings!

In the most shocking of all aspects of this debate is the fact that no politicians came forward with the sale of the the port portiere pecuniary peccadillo until news reached talk radio shows. As President Bush tried to justify the decision of turning over management of the ports, vowing to veto any legislation to stop the handover, all the politicians, both democrats and republicans now want to investigate the sale decision. President Bush further stated that all security aspects were scrutinized and no security risk was associated with the handover. Later this week, President Bush now says he didn't know anything about it until it was in the media spotlight. As the week ends, the news headlines have turned to other events in the middle east with a possible civil war breaking out in Iraq. The threat of civil war is caused by an Iranian intervention in the Iraqi internal affairs. Thanks to inadequate border security and a weak Iraqi army, the attacks will probably continue.

Meanwhile, on the home front, some good news if you believe "the glass is half full" with the economy and investments. History of world market's are secular and time will tell if you are right.

Good News: Wage Earners Rises 8.9%
An inflation Warning indicating rising labor cost.

Good/Bad News: Value of Equities owned by foreigners rise by $500+ Billion 2005 Foreign investments are controlling more U.S. companies.

Bad News: Top Insider Selling Rose 6% in January From December, High CEO turnovers, jumping ship before their stock prices fall.

Good/Bad News: Announced Corporate Buying Doubles Corporate Selling in February. Companies buying stock instead of paying dividends or investing in R&D. Announced buy backs are not always completed, but help bolster short term stock prices in light of insider selling.

Bad News: Portfolio managers and individual investors apparently fearing a slide in real estate are putting about $1 billion per day in offshore banks. Shifting money to off shore banks in case of banking failures due to real estate slump, credit card debt, and increased bankruptcies.

Bad News: U.S. economy is growing rapidly, job postings index is holding steady at its highest level since May 2001. The beginning of the last cyclical bear market started which I predicted in August 2001 in my yahoo group, with a duration between 18-36 months. The market declined from Sept 2001 down 45% over the next 2 years.

Bad News: Portfolio Managers Dump U.S. Equities
Bad News:: Four Major Futures-Related ETFs
Redeem $4.6 Billion in February and $10.8 Billion this year.

Good/Bad News: Individual investors' affection for global equity global equity funds posted an inflow of $4.2 billion.
Bad News: U.S. equity funds have been virtually ignored.

Housing to Spur Global Economic Slowdown?

According to a report in the Washington Times, a home sales slowdown and recent drop in mortgage applications could pull the economy into deeper waters and, in the process, energize the arguments and political agendas of many. The Washington Times went on to say,
"The booming housing market has driven a third to a half of the growth in jobs in recent years. Economists estimate the housing bonanza is slowly coming to an end."

Trimtabs.com reports:

Estimated Global Equity Fund Inflows Exceed $2 Billion for Unprecedented Sixth Week. Meanwhile, Individual Investors Remain Wary of U.S. Stocks: U.S. Equity Fund Inflows Slump to $10 Million Daily.

Being 9 steps Ahead of the Curve,
(my past post concerning the Fed raising rates and the stock market, my article called Market Strength Index, 7-10-2001 in docsstockclock yahoo group)

I predicted the future market changes and the coming cyclical bear market in 2000 just before long term investors lost an estimated 9 trillion dollars.

The Fed created a liquidity trap, which has led them to a conundrum of an inverted yield curve. A simple tax law change occurred which sparked the real estate wild fires of inflation in the housing market. The wild fires of inflation will be spread throughout the world with the commodity market and will be exacerbated by the Federal Reserve raising interest rates higher.

God Bless
Doc

Sunday, February 05, 2006

Sapient Super Bowl Surveillance.

Sapient Super Bowl Surveillance.

Image via Wikipedia

The real super bowl is not the game itself, but the Sapient Stealth Surveillance of those who are attending the super bowl. In previous years after 911 there were many discussions on the safety and security of large media events using new technologies to enhance security. There is very little talk about these security measures, mainly due to their wide spread acceptance and realization that the Market Media Matrix has imposed these stealth surveillance measures, with or without your knowledge. As I have pointed out in previous blogs, the Google God is a False God; we are indeed living in an Orwellian society. Yet those who attend the Super Bowl and other sporting events are accepting the invasion of their privacy without as much as a whimper. The "dumbing down" of Americans has continued to the point where ignorance is bliss.

The Sapient Stealth Super bowl Surveillance begins before the events happen and before the arrival of many of its participants arrive in the city. Starting with the airports, hotels, and traffic lights, participants are monitored and tracked by their credit cards and cellular phones. Since 911, all new cell phone have a global positioning chip installed within each unit, owners are matched with phone records and credit cards verifying their true identities. During the events, every one's picture will be taken, cataloged, and criminal background inquiries made.

Image by heath_bar via Flickr

Earlier this week, we were told that cellar phone records can be made available to anyone through the internet. The legislatures only began to discuss laws concerning privacy when their phone records were being made public also. No one knows how long this has been going on, but is just another example of the Market Media Matrix infiltrating society's right to privacy for profit. History teaches us that absolute power corrupts absolutely; our society is heading toward absolute power within the Market Media Matrix substituting privacy for profit.

Google has been the focus of these issues lately due to their control over the internet for profit. They have been most notorious of penalizing those who oppose the Google God's commandments by accepting or declining inclusion of websites within their search index.

They have taken on well named corporations for violating the "Google Commandments" such at BMW and Dell. The case with BMW was ruled inappropriate behavior of creating doorway pages to their website. A serious violation of the commandments which was punished by removing all backward links from the BMW websites and assigning a rating of 0 on the Google scale (http://blog.outer-court.com/archive/2006-02-04-n60.html)

IN the case of Dell, the Google God exposed private information to the pubic by indexing trade secrets on future lap top configurations. (http://networks.silicon.com/webwatch/0,39024667,39156123,00.htm)

Google's answer to theses simple privacy vs. profit concerns was the creation of a private internet which they can control and do with as they wish. The rumors are Google plans to take the internet private. (http://business.timesonline.co.uk/article/0,,9075-2023600,00.html)

The Market Media Matrix is starved for revenue there are plans to charge for sending email. The biggest proponents of these ideas are the major telecoms companies,(AOL), and Yahoo.
"Postage Is Due for Companies Sending E-Mail","Companies will soon have to buy the electronic equivalent of a postage stamp if they want to be certain that their e-mail will be delivered to many of their customers" This amounts to internet "blackmail" since paying customers will be assured of email delivery, while the non-paying customers are not. Postage Is Due for Companies Sending E-Mail.

The End of the Internet?

The major telecoms are also trying to privatize a "new internet" for a fee, in order to replace the revenue they are loosing from the free internet. "Verizon, Comcast, Bell South and other communications giants are developing strategies that would track and store information on your every move in cyberspace in a vast data-collection and marketing system, the scope of which could rival the "National Security Agency"(NSA).

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Now with all the painted faces, people will begin to file into the stadium, to watch men play a sport, much like the gladiatorial days of Rome, cheering for their favorite side to win. They should know their false Gods are watching their every move. The Market Media Matrix has emerged it a formidable force. Sooner than later, the Market Media Matrix will have absolute power over everything you cherish in this life.

Ok, so you are watching the “game” at home...

Think you are safe from the Market Media Matrix?
Think again, you are watching the game on cable or satellite,
guess who is watching you?

Doc
www.doctrader.com
www.harmonicstockclock.com

Sunday, June 13, 2004

Other Political Points

The International Forecaster

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I read some of Bob Chapman's articles. In this day and age of the Internet, it is very difficult to discern the truth. Lies and half-truths run amok in the Internet world created by anyone who has access to a computer. While some of the writings of Bob Chapman contains the truth, his political views may have influences to the point of being biases. His current article about the Federal Reserve's “Plunge Protection Team” is right on.

However linking the plunge protection team to the Bush’s Administration and the Fed may be a far reach. I agree with his writings about the “plunge protection team”, but who control’s the “PPT” is anyone’s guess.

To speculate who is in control of the world’s financial industry leads to things that go “bump in the dark”. I know from personal experiences in my younger days, you can spend considerable amount of time learning about “hidden conspiracies”. They make interesting conversations over you favorite “Black Label" drink when you find someone rare enough for intelligent discussions.

Image by Longster47 via Flickr

Bob Chapman’s assumptions that the Fed works for President Bush, or they are working together to prop up the stock market are not correct. I have said, the Fed doesn’t work for anyone, but it’s own membership. Whatever the Fed’s goals are,
it is not to be primarily concerned with the stock market!

I am concerned that so many people see our war in Iraq and temporary occupation as negative. This may be caused by the news media’s biased goals of increasing ad revenue by publishing negative and demoralizing information without the proper context. Sure, there were mistakes made in the occupation, but to use “hindsight” to gauge our successes or failures is only playing into the hands of those “that are against us”.

America is not fearful of terrorists but we have made the terrorist fear us. We have the power to end terrorism, but we are may not have the “will power” to win the war on terrorism.

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Unlike certain European countries, who are fearful of terrorism, they have transferred their fear to America’s war on terrorism through self-abasement. The European countries secretly resent America’s help during World War II, because they could not defeat their very own tyrant and dictator. They resent America’s occupation after World War II, during the cold war, the end of the cold war, and the defeat of communism in favor of capitalism.

European countries have always had a strong appeasement attitude toward dictators and tyrants, and based upon their history, appeasement is always the wrong choice!

I will post this at the “ahead of the curve” group also, since this falls more into that category, than trading.

Thanks for the question Dan,

God Bless
Doc