friday brainstormig

1. As expected the debt ceiling is now the new negative focus for the market with the Full Moon today highlighting the urge for a solution since it will be a Capricorn one the sentiment is rather gloomy but pragmatic at the same time.


Analysis: Republicans own worst enemy in debt talks

We therefor can not expect anything soon as they will play this poker game til the last second and as the article describes that is not Aug. 2nd as some believe. The surprising factor is always the markets reaction as it was clear we were heading for a cliff-hanger and still they bought up the market ( mostly short covering). Since the market is getting short again here as the MA of the ISE show clearly we are close to record bearish levels once the debt ceiling is solved another short covering is due.

The other systematic confusion is the snake oil salesman talk of Bernanke who first signaled QE3 on day 1 and put it back into the box on day 2 – which is a standard pattern with this FED guys since Greenspan took over – I wonder if a none Jewish guy will ever qualify for that post as Rothschilds and Rockefellers seem to prefer a man of their own on this post.

2. Some contradiciting sentiment-indicators as the Rydex below has recovered quite a bit from oversold levels the option MA’s tell a complete different story. Overall we can state though that in either case a big top is in the making the only confusion might e about the short term waves. The fuındamental situation is bad is plenty of sovereigns are bankrupt and even the Chinese who seem to sit on 3 tril. of cash is just an illusion as that is only looking on one side of the balance cheat. With all the money printing stock markets do not reflect at all the real situation and have yet not priced in reality. Some propaganda machines come up with their pathetic call that markets are cheap with 14 times earnings but that is not true in a historic context as we rather should be priced around 8 times earnings considering half of the wprld is broke and the rest is running on thin fumes of borrowed printed money. Plus the earnings now are not comparable to old earnings at all as the accounting or cheating standards have been changed dramatically. Around 25% of the SPX earning come from financials who can officially cheat now and the negative interest rates around the world with highly understated inflation robs the mass markets of their buying power on a daily basis. Hence the possibility of future consumption hs to be discounted heavily which makes an 8 times real PE even look rich. Bottom line markets are overvalued by 40-50% right now and omly the cheating machine with the money print keeps up the illusion that the retirement funds have a value which they do not as a test would show quickly when you try to cash in you would find no buyers. This high prices just make the banksters sell you Linkin and Facebook and insane levels plus rip off fund fees for overpriced assets.

Rydex Nova/Ursa Ratio


print Print |  1 Month |  3 Month |  6 Months |  1 Year
Date NAV Adjusted N/U Ratio
07/13 0.522
07/12 0.456
07/11 0.444
07/08 0.456
07/07 0.444
07/06 0.410
07/05 0.424
07/01 0.344
06/30 0.332
06/29 0.328
06/28 0.326
06/27 0.288
06/24 0.297
06/23 0.293
06/22 0.298
06/21 0.280
06/20 0.294
06/17 0.292
06/16 0.291
06/15 0.288

~ by behindthematrix on July 15, 2011.

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