Loading ...The most underrated and enlightening news last week came from Wal-Mart on Saturday. There was total simultaneous chaos in thousands of Wal-Mart stores when the EBT cards stopped working. The fat and lazy, or poor and unfortunates who make up the food stamp nation were pissed. So, this is what the government eventually has to deal with when one of its sponsored handouts is taken away. The media claims a glitch at Xerox caused all of the EBT cards to not work. Personally, we at Alphas Edge believe that the government was testing out what would be a possible consequence of removing a program. The problem now is that these people believe that all this government sponsored programs (not just the EBT) are now entitlement programs. Good luck ever removing one of these programs! […]
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This morning, the US markets are pointing to a weaker open. No doubt, most investors are seeing this as a buying opportunity because of the Bernanke put and the government ending the not real shutdown and raising the ceiling. But as far as a political winner, both parties are now completely covered with shit with damaged reputation. The only real winners are the public, which learned that their government is non-essential, corrupt and is currently doing more harm than good. I bet we, Alphas Edge, are not alone when we wish to have our founding fathers back. […] By Friday, the only news that mattered was the Special Olympics event in Washington. Equities ended the week lower due to the shenanigans in Washington. The Senate passed a bill that funded both the government and Obamacare. The House however has made it clear that it would not pass a bill that included Obamacare. […] The highlight of last week however came on Saturday. When I say highlight, I mean the truly entertaining and the hilarious. Obama and the clowns on Washington went on a full court press. They desperately tried to convince the Nation that Putin did not win; it was actually Obama who caused the diplomatic solution to Syria by forcing the Syria issue. Can you believe the balls of our politicians? This is like an arsonist taking credit for a fireman putting out the fire. Maybe if Obama and his Arabian friends didn’t arm the Al-Qaida rebels in Syria, we wouldn’t have a bloody war in the first place. […] Until Syria is resolved, it will remain the top news for the markets. War with Syria means the following; higher oil, higher gold, higher defense company stocks, lower rates, and strengthening US dollar. Note however, strengthening of the dollar only lasts if we are in the winning side. If we are on the losing side, think Weimar Republic. No war results in economic news once again being the driving force for the markets. Okay, okay, I’ll take that last sentence back. I meant random front-running algos will once again be the driving force. […] Today is going to be an exciting day. We already learned that Global QE in ongoing when Japan, Europe, and Britain all have left their respective rates unchanged. This is the type of environment where betting against the market is hazardous to your health (and wealth). The highlight today is going to be watching how Obama performs at the G-20 meeting in St. Petersburg. Putin is not going to be welcoming Obama with open arms, but at least Obama is allowed to attend (unlike John Swiftboat Kerry). In addition, Brazil expects (and deserves) an apology. What kind of so called amigo spies on its friends? With everything that’s going on and yesterday’s gain, it’s hard to identify which direction the market will head. If we follow global markets, we are heading higher. […] Labor Day, the first Monday in September, celebrates the social and economic achievements of American workers by giving them a day of rest. It commemorates the much unappreciated contributions workers have made to the prosperity, strength, and well-being of our country (and therefor the world). It is our favorite Holiday. Recapping last week, the stock market started last week green when the economic data came in weaker than expected. It seemed that bad news was bullish again by keeping interest rates low. In fact, the market remained green for most of the day on Monday. Then, with an hour left of trading, John Kerry discussed the possibility of an attack on Syria. This resulted in the Dow Jones, S&P 500, and Nasdaq all dropped over 1% to end the day red. […] Fundamentally, very little has changed with the markets in the last few months. The equity market themselves have been overvalued for over two years, but with interest rates as low as they have been, the stretching for yields continue. The fear of raising rates makes fixed assets an undesirable investment. A storm appears to be forming at the horizon and caution is needed. The stock market has rebounded 80% from 2008 lows, all driven by government manipulation. The US balance sheet has expanded to support an equity rebound. Without TRAP, QE1, QE2, and QEinfinity, the market would have had a near total collapse. However, nothing lasts forever and the slight whisper in the reduction of quantitative easing causes market panic. Just imagine when the actual unwinding of quantitative easing takes place! […] |
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