U.S. stock market on verge of collapse?

[CanOz]

Interesting how the MACD histogram showed divergence on the last two tops, but show convergence on this one.

A rally in May, a new low in June, the top in December.


CanOz

 

[Joules MM1]

Warren Buffett betting on real estate recovery

video

http://live.wsj.com/video/why-buffe...47.html#!432BAEE2-88DB-4382-9496-2DA9F86E3047

What does Warren Buffett see that no one else does? He just made an outsize bid on ResCap loans, the latest example of his bet that the housing market represents a great investment opportunity. Joe Light has details on The News Hub.

 

[tech/a]

Interesting how the MACD histogram showed divergence on the last two tops, but show convergence on this one.

A rally in May, a new low in June, the top in December.


CanOz

Simply means that this time momentum going into the top was stronger than last time.
2 averages.

Warren Buffett betting on real estate recovery

video

http://live.wsj.com/video/why-buffe...47.html#!432BAEE2-88DB-4382-9496-2DA9F86E3047

Makes sense
Was way above the mean
Now way below the mean.
Not here--at around the mean.

 

[CanOz]

Interesting how the MACD histogram showed divergence on the last two tops, but show convergence on this one.

A rally in May, a new low in June, the top in December


CanOz

June 04 / 2012

 

[bailx]

I'm surprised the U.S market is staying a float as I thought it would certainly sink.

Quote:

The U.S. government debt, which topped $16 trillion for the first time at the close of business on Friday, now equals approximately $136,260 for every household in the country.

Just since President Barack Obama was inaugurated on Jan. 20, 2009, the debt has increased by $45,848 per household””or about 50 percent per household.

As of Friday, the debt was 16,015,769,788,215.80. According to the Census Bureau, there were approximately 117,538,000 households in the country in 2010. Thus, the current debt equals about $136,260 per hour.

 

[notting]

The U.S. government debt, which topped $16 trillion

Yeah, their left hand owes their right hand a lot of money:silly:

 

[wayneL]

Simply means that this time momentum going into the top was stronger than last time.
2 averages.



Makes sense
Was way above the mean
Now way below the mean.
Not here--at around the mean.

What do you mean by the mean?

 

[tech/a]

What do you mean by the mean?

Longterm average

 

[Joules MM1]

Warren Buffett betting on real estate recovery

video

http://live.wsj.com/video/why-buffe...47.html#!432BAEE2-88DB-4382-9496-2DA9F86E3047

September 5, 2012, 1:01 PM

Home Sales Move Faster, Asking Prices Rise
By Alan Zibel
http://blogs.wsj.com/developments/2012/09/05/home-sales-move-faster-asking-prices-rise/?mod=e2tw
excerpt

With buyers acting more quickly, sellers have been able to boost their listing prices. Asking prices were up by 2.3% in August compared with the same month last year, according to real-estate website Trulia. It was the seventh straight month in which sellers hiked their asking prices, and 68 out of the 100 largest U.S. metropolitan areas reported asking price increases.

Not including foreclosed properties, asking prices were up 3.8% from a year earlier, Trulia said. The biggest gains were in the Southwest, which has been rebounding from the housing bust, with asking prices up by more than 24% in Phoenix.

http://blogs.wsj.com/developments/2012/09/05/home-sales-move-faster-asking-prices-rise/?mod=e2tw

 

[Aussiejeff]

Collapse

Bond boom, boom....

 

[Uncle Festivus]

Memo from US Fed & Treasury (affectionately known as Goldman Sachs ) to Plunge Protection Teams (A through to Z), The Presidents Working Party For Financial Stability (Units A through to Z), and to misc bots -

"Please ensure Dow is above & remains above 13300 until at least after THE election"

"Also note, there will be timed and coordinated announcements/promises from Central Bank presidents every time the markets remotely look like falling"

"As the NFP figures, and all other government controlled data, will be 'better-than-expected', please front run ALL markets with impunity and surety"

"Note - all of the above is reliant on the actual global economy recovering and sovereign and bank insolvency being eliminated"

 

[Trembling Hand]

Oh Unc, its a lonely sad life once you know the truth hey.

 

[Uncle Festivus]

Oh Unc, its a lonely sad life once you know the truth hey.

Mmmmm.......well put it this way........if all it took was "to buy government bonds in unlimited quantities" then why wasn't such a brilliant idea enacted 2,3 years ago when it could have nipped it in the bud so to speak???

Then the second part of the 'promise' is who will pay for it? Oh I forgot - it will all be 'sterilised' - money in = money out = brilliant solution with no losers.......

All part of humanities reversion to mean I guess............

PS it's a lot less lonely now that the masses have the info to make somewhat informed opinions these days thanks to the internet etc (and a basic grasp of simple arithmetic)

Unfortunately it just means there are a lot more sadder people about too

 

[Aussiejeff]

Mmmmm.......well put it this way........if all it took was "to buy government bonds in unlimited quantities" then why wasn't such a brilliant idea enacted 2,3 years ago when it could have nipped it in the bud so to speak???

Then the second part of the 'promise' is who will pay for it? Oh I forgot - it will all be 'sterilised' - money in = money out = brilliant solution with no losers.......

All part of humanities reversion to mean I guess............

PS it's a lot less lonely now that the masses have the info to make somewhat informed opinions these days thanks to the internet etc (and a basic grasp of simple arithmetic)

Unfortunately it just means there are a lot more sadder people about too

Don't feel sad Unc...

Now the ECB has effectively declared it can pay the entire planet's debt orf with endless Bazooka Bond purchases, what's to worry about?

Free ride and endless wealth for all.

Let's just go mad & rejoice! :bananasmi

 

[Uncle Festivus]

SAN FRANCISCO (MarketWatch) -- Egan-Jones Ratings Co. said Friday it downgraded its U.S. sovereign rating to AA- from AA on concerns that the Fed's new round of quantitative easing, or QE3, will hurt the U.S. economy.

The ratings agency said the Fed's plan of buying $40 billion in mortgage-backed securities a month and keeping interest rates near zero does little to raise GDP, reduces the value of the dollar, and raises the price of commodities.

"From 2006 to present, the US's debt to GDP rose from 66% to 104% and will probably rise to 110% a year from today under current circumstances; the annual budget deficit is 8%," Egan-Jones said in a note.

"In comparison, Spain has a debt to GDP of 68.5% and an annual budget deficit of 8.5%."

Which country is the economic basket case?

 

[Uncle Festivus]

The Dow Theory, for those of you unfamiliar with it, is the oldest market timing system still in widespread use today. Though the theory’s originators never codified it into a precise set of rules that could be mechanically and unambiguously applied, there is broad agreement on the three prerequisites for a sell signal:

. A significant correction off of market highs must take place ”” significant both in terms of the magnitude of the drop as well as the duration

. In the subsequent rally attempt off of the correction lows, either the Dow Industrials or the Dow Transports, or both, must fail to surpass the highs they attained prior to the initial correction

. Both Dow averages subsequently must drop below their lows set at the bottom of their initial corrections

What is particularly relevant to recent market action is the second of these three steps.

A bit of divergence here - one index is way ahead of itself?

Dow = green, transports = white

 

[explod]

A bit of divergence here - one index is way ahead of itself?

Dow = green, transports = white

So its not hard to figure where a lot of the new paper is going.

Ben the Prop

 

[Uncle Festivus]

One more post on the transports non-confirmation............what's coming down the track......

 

[IFocus]

I am just wondering how much the feds action will distort markets and how useful some of the old market indicators will be as a result.....still a chart is a chart.

 

[explod]

Lets look at the bigger picture of the Dow:

http://bigcharts.marketwatch.com/ad...rsToggle=false&chartStyleToggle=false&state=9

Early 90's the Dow was sluggish so we had stimulus and up we went;

.com problem, we had stimulus and up she went again;

crash of 08, stimulus and, jeeezz your clever, up she went again.

Of course around the 05/06 period where the Dow flat-lined we had the Lehman Bros., et al housing problem so the taxpayer bailed that out and up she went again on the peoples stimulus. Or is all this paper printing the people's in the end anyway.

So in my view from the early 90's the value of the market is a pretty big mix of probably not a lot and its true value in a crash could well be back at about 4000. Could actually overshoot of course (where's Tech) on sentiment to the old support at 2000. But then ....who would support that?

Anyhow, the veggies are going well and so have decided we are going to add chooks and ducks. Oh and the down hill neighbour has volunteered all the water we want from his dam. And you wont believe this, there is an old Southern Cross windmill there to pull it as well.