Friday, August 29, 2014

FRIDAY 8/29/14; Russia Invades Ukraine; EOM; Personal Income and Outlays; Chicago PMI; Consumer Sentiment; Britain Raises Terror Alert; SPX New All-Time Record Closing High at 2300; COMPQ New Record 14-1/2 Year Highs

The dollar/yen drifts lower from above 104 yesterday down to 103.79. The stronger yen sends the NIKK -0.2% lower. Asian indexes are mixed with China up and the others lower. SSEC +1%. Australia is flat. Indian markets are closed for a public holiday.



[Text is Redacted: Purchase August 2014-08 to Read the Complete Chronology]



prised. We’ve been overweight equities.” The bullish prognostications continue to be correct and all the bulls remain very bullish. Even those calling for a pullback refer to it as a buying opportunity and say higher stock market prices will occur in the months and even year’s forward.

The majority of market participants remain steadfastly bullish completely dismissing any possibility of a multi-year top forming or in place right now which would lead to months and perhaps years of downside ahead. In addition, no one believes that deflation can occur. The universal consensus is that inflation will kick in at any time due to the central banker money printing. When the boat is fully loaded to one side saying that a multi-year market top is pure folly and deflation is impossible to occur, what do you think will happen? Many of these analysts called for 4.00% for the 10-year Treasury yield this year that now sits at 2.34%.

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