MONDAY 10/6/14; Hong Kong Calms; Brazil Election Results; GTAT Declares Bankruptcy; Chinese Buy Waldorf Astoria for $2 Billion

The Hong Kong and Chinese mainland communist crackdown on student pro-democracy demonstrators begins without incident. The protestors pull back from several locations at government buildings but remain in the streets at 7 AM local time Monday morning (7 PM EST Sunday evening) vowing to maintain the civil disobedience now in its second week (day 11). Hong Kong vehicle traffic rema



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tual numbers behind the AIG bailout, both sides will likely find a way to kiss and make up and keep the situation swept under the rug. The banksters always stick together. All those involved in the decision to save the banks back then are richer including Paulson and Geithner. It’s nice work if you can get it.

Free markets were proven not to exist in late 2008 and early 2009 when the government stepped in changing short selling rules on banks and conducting bailouts. Everyone wants the good side of capitalism but no one wants to experience the bad side of capitalism where weak companies need to be washed out. Free markets and capitalism died in late 2008. The central banks have goosed markets continuously ever since with QE Infinity and ZIRP Forever policies. The Fed creates new asset bubbles and destroys all price discovery in markets. No one truly knows what any asset is actually worth anymore. The Fed has made the wealthy filthy rich since they own stocks. The band plays on; have another sip of Fed wine.

The session ends with the SPX down 3 points, -0.2%, to 1965. The Dow drops 18 points, -0.1%, to 16992. The Nasdaq is down 21 points, -0.5%, to 4455. The RUT loses 10 points, -0.9%, to 1095. The 1093 level represents the -10% correction territory off the July market top. The dollar/yen falls under 109 after threatening the 110 level overnight. Trannies are slapped as oil moves higher. TRAN -1.1%.

HPQ ends the day up +5%. AAPL is flat. GTAT is bankrupt and down -93%. TAN dumps -4% since GTAT provides solar products and is a component of the solar ETF. GSAT is down -25% today and traders may have gotten the ticker confused with the GTAT bankruptcy debacle. AIG drops -1.1%. Gold prints the lows overnight in the 1180’s and recovers to 1208. Silver and copper are up over +2% and +1%, respectively.

After the bell, the Container Store cracks opens the Tupperware lid to expose weak earnings and guidance. TCS drops -11% in AH trading on the weak sales numbers and cancels the Tupperware party this evening. Oil and gas company BBEP drops -4% after announcing a new public offering (share dilution). Wireless communication company CAMP that dropped -3.1% during the regular trading session trades higher moving into the bull camp after beating on earnings. General Motors recalls another 57K cars; the mess continues. GM trades down -1%.

Fed’s George, a hawk, speaks and she says the Fed should move toward raising rates which is not surprising. George says, “The central bank should be vigilant on inflation.” A Spanish nurse contracts Ebola the first person to develop the virus outside of West Africa. She and her husband are placed in quarantine.

An AAA study says hands-free systems in cars do not lessen the risk of accidents. The driver remains distracted since a conversation is occurring instead of focusing on driving. Over 400K Americans were injured in car accidents last year caused by distractions from cell phones and electronic communication systems with over 3300 killed. If you talk on a cell phone while driving realize that you may become a murderer by the end of the day.