Rydex Nova/Ursa – and the “Kaiser’s new clothes”

The Rydex Index above is at a relative high level (.78), which usually would qualify for lower prices in stocks going forward as you can see by the grey line in comparison to the red one. But the timing is not spot on, so within the current small upside correction we still should see a ABC wave with A the current one. This should switch next week in wave B down. We have an alternative count of directly making the decisive lows in the next 2-3 weeks as well. It’s hard to tell because some conflicting short-term indicators make it a bit confusing but it does not make a big difference after all. The bottom line remains that we do not have the low in so far.

The following article shows how pathetic the world has become – the rules get changed as the game goes but always with an advantage to the top managers in those banks. Now they are allowed to show losses as profits as the accounting rules, which made record profits for Wall Street, do not work in their favor any more. The biggest outrageous fact is that the FED gives $125 bil. in new capital to investment banks and they plan to pay out $108 bil. in bonuses – that’s an absolute ‘no go’ event. The puppets from the Treasury and FED do not look after the interest of taxpayers or stockowners but for the guys who wrecked the economic model by trillions and, on top of that, even get a bonus out of it. This is a scandal of unbelievable format and should be stopped this very moment. Paulson is not good for taxpayers at all since his motivation to take the job was to use a loophole in order not to pay his taxes for his stocks worth approx. $200 mil. – even as a CEO of Goldman he never made over $200 mio. in 2 years.



Deutsche Bank Posts Profit, Says Doesn’t Need Capital (Update2)

By Aaron Kirchfeld and Jann Bettinga

Oct. 30 (Bloomberg) — Deutsche Bank AG, Germany’s biggest bank, reported a surprise third-quarter profit and said it doesn’t need to raise capital, prompting the biggest gain in 16 years in Frankfurt trading.

The bank rose 18 percent after posting net income of 435 million euros ($573 million). Analysts had predicted a loss. New accounting rules easing requirements for marking down investments allowed Deutsche Bank to lower writedowns for the quarter by 845 million euros to 1.2 billion euros.

Chief Executive Officer Josef Ackermann, who indicated the company may trim its dividend to conserve cash, said financial markets remain “challenging.” The profit masked 1.4 billion euros of trading losses and deteriorating earnings in consumer banking and asset management. The bankruptcy of Lehman Brothers Holdings Inc. in September froze up credit markets and forced rivals including UBS AG of Zurich to accept government funds.


~ by behindthematrix on October 30, 2008.

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