WEDNESDAY 8/6/14; Global Contagion; Protectionism on the Rise; Italy in Recession; International Trade; AOL; CHK; TWX; FOXA; TNX and Dollar/Yen Mini Flash Crashes; FTK; SD; JACK

China regulators are targeting Audi and Chrysler over monopolistic behavior and plan to punish the companies. The protectionism wars are ramping up. Nations are protecting their own companies at the expense of foreign companies which creates a race to the bottom a la the 193





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 time. Ditto GTLS so the liquefied gas terminal and plant design, engineering and construction activity must be slowing. The stock LNG fares much better printing at bubble highs but likely topping out.

Canaccord Genuity’s strategist Tony Dwyer says “we are closer to the end of the correction than the beginning.” Dwyer remains strongly bullish saying it is time to buy and “buy aggressively.” Dwyer says “SPX 2185 will print this year.” Dennis Gartman of the Gartman Letter says “stay quietly long” the equity markets. The bulls remain very positive.

The day ends with markets moving strongly down, then strongly up, but then finishing flat as a pancake. The SPX is up three measly pennies, dead flat, at 1920. The Dow is also flat at 16443. Ditto the COMPQ at 4355. The RUT gains 4 points, +0.4%, to 1126. Gold gains +2%. The dollar/yen drops to 102.10. The 10-year yield ends at 2.47% with the German bund at a record 1.09%. Copper loses luster down -1.4%. It is very surprising the markets did not sell off strongly on the weaker copper.

After the closing bell, oil and gas driller RIG beats on earnings and pumps +2.6% higher. Oil and gas company SD slides -5% lower after reporting earnings. ZU trades flat after it beats on earnings but guidance is lowered. FOXA beats on top and bottom lines and bounces +3.6% higher. JACK springs +6.4% higher like a Jack In The Box boosted by the Qdoba Mexican Grill chain success. GMCR falls -3.1% after slipping on a used-up K-cup; Keurig Green Mountain beats on EPS but misses on the top line sales. FTK dumps -6% after earnings.

The ECB monthly meeting is tomorrow and will dictate the action in the futures. The ECB rate decision statement is released at 7:45 AM EST followed by President Draghi’s press conference at 8:30 AM.

President Obama speaks in the early evening and strengthens his rhetoric against tax inversions. The president uses the terminology ‘corporate’ inversions. Note how the clever politicians use words to manipulate your mind. By calling it a corporate inversion, the president creates a negative connotation in the general population’s minds against corporate America, big business; the ‘fat cats’ that President Obama beat up on after his first election.

By calling the tax inversion deals corporate inversions the president fuels the flames of class warfare and places the blame for the lackluster economic squarely on the corporate conference table. The political mind manipulation is a method of stirring up the democratic base to make sure they vote and elect democrats to office. Republicans perform the same word games to manipulate their adoring lackeys; there is no difference between the two parties. Amazing what one little word can do, isn’t it? Think about how your mind is manipulated daily by the politicians, companies and others in power that push their particular agenda.

The president speaks on the Israel-Gaza conflict and the Ukraine-Russia turmoil. The ebola outbreak is also discussed but the president’s comments and Q&A session does not offer anything new.