monday brainstorming – part 1

1. The sentiment has gone from oversold to moderate levels except for my mostly weighted indicator the ISE MA’s which remain at very bearish sentiment (hence bulish). Due to the global situation its not a surprise as the world is even in worse shape than 2008 and the real nature of the situation gets to the daylight despite all the coking of balance cheats and statistics. Only the excessive money printing kept the dead man walking and none of the real problems have been solved – rather the opposite the cancer had time to spread out even more. Obama allowed Wallstreet to keep the pld scams up and to hide their losses with insane accounting rules which are by common sense fraud.

Anyway a debt ceiling plan B is already in the working and a small version with a 1-1.5 tril is at work as the Reps want to make that an election theme and Obama desperately tries to get a version which is big enough to kick down the can until after election time. None of both parties is trying to solve the issue and a downgrade is just a matter of time although overdue america is in my books a BBB best-case as most developed country debts.

Pimco seems to have lost its grip as they went short Treasuries around the lows and covered back already and bought Italians far too early around 5.50 yield

excerpts

Absolute bloodbath in Europe:

  • Italian 10-Year Bonds Extend Drop; Yield Climbs to 6 Percent
  • Spain 10-Year Bond Yield Surges to Euro-Era Record 6.31 Percent

The Natives Are Getting Restless: Chinese Police Station Attacked, 5 Killed

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~ by behindthematrix on July 18, 2011.

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