Tuesday, December 30, 2014

WEDNESDAY 12/31/14; New Year's Eve; China PMI; Chicago PMI; EOM; EOQ4; EOH2; EOY; SPX, INDU, COMPQ and RUT Print Another Bullish Year

Japan markets are closed until next week. South Korea, Thailand and Indonesia markets are closed. Australia trading is underway with the SPASX200 up marginally. The bullishness in gold miners ripples through the entire commodities group. Aussie dollar 0.8184. The AirAsia doomed Flight 8501 salvage mission continues and the investigation begins as to why the airplane fell out of the sky.

China PMI is 49.6 under 50 indicating contraction and a single hair above the preliminary 49.5 number as well as expectations at 49.5. The November final PMI was 50 so the economy is contracting month on month. China will need to 

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and KING is not crowned losing -30% since its debut. The IPO fervor will continue in 2015 with Uber, SnapChat, Dropbox and Airbnb leading the parade as the top offerings on tap.

The margin debt in the US is at record highs at the same levels as the 2000 and 2007 stock market tops (the vast majority of traders are long the market without fear or worry).

One million people celebrate New Year’s in New York City. Revelers are herded into pens in Times Square like animals where some stand for hours and are not allowed to leave to go to the bathroom due to security reasons. The tight security that forces partiers to behave like livestock creates an event only for the young to enjoy and a party definitely worth avoiding. The last true Times Square New Year’s party ended with 9-11. The clock strikes 12 midnight on the East Coast and 2015 begins. Happy New Year!

Monday, December 29, 2014

TUESDAY 12/30/14; Flight 8501 Crash Site Discovered; Italy Record Low Yield; Consumer Confidence; Record Low Oil Prices

The lower oil prices and angst over the missing Flight 8501 creates a negative mood as trading begins in Asia. The NIKK trails lower -0.4% as it begins the last day of trading for 2014. The dollar/yen pair leaks lower to 120.50 reflecting a stronger yen that creates the downside in the Nikkei. Australia’s SPASX200 is down -0.3% to begin the day. Oil and energy stocks and gold miners are smacked lower.

The AirAsia mystery continues 

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ESS, a REIT catering to apartment rentals, rises +0.6% on news that Americans are renting more. ARIA bounces +1% on news its leukemia drug sales will increase in Europe.

President Obama doubles down on his statement the other day that race relations are better in America under his legacy. What is he smoking? Polls across the board show the ethnic groups of white, black and Hispanic are in universal agreement that race relations are worse under the president’s tenure. In Philadelphia, a deranged man attempts to run over a police officer and is shot and killed. The race tensions and social unrest continues in the major cities.

Pope Francis announces support for countries to address climate change. The Pope will urge Catholics to act to improve the environment. The climate change debate continues. On face value, the proponents for spending billions of dollars of taxpayer money on addressing climate change are basing their entire belief on 200 years of weather data for a planet billions of years old.

Sunday, December 28, 2014

MONDAY 12/29/14; Flight 8501 Search Continues; Greece Vote Fails; German Bund Record Low Yield 0.542%; SPX, RUT, UTIL and TRAN All-Time Highs; COMPQ 14-1/2 Year Record High

Asia begins trading on the upside following the US rally on Friday. Dollar/yen 120.57. Banzai! The Nikkei Index is boosted by the Japan stimulus package announced on Saturday and also on news that companies will pursue financial engineering strategies such as buybacks, dividend increases and M&A. Japanese companies plan to use cash reserves and the BOJ’s easy money to support the accounting gimmickry that will boost stock prices higher following the same path of US stocks over the last three years. Japanese utility stocks trade higher following the parabolic spike higher in US utilities last week.

The NIKK reverses course and ends down -0.5% on news that 

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CVEO is bludgeoned -29% after providing weak revenue guidance. ARR, a REIT, drops -0.5% on a downgrade. MCD drops -0.2% on news that New York’s Shake Shack, an up and coming popular burger joint, is filing for an IPO. MS upgrades Gilead so GILD bounces +0.6%; Morgan Stanley may own a lot of stock and needs to get out at a better price.

The search for Flight 8501 in the Java Sea in Indonesia continues. The airplane is missing just like the doomed Flight 370 that was never found. The mystery continues.

The US population continues to inch higher now slightly above 320 million people. One person dies every 12 seconds and one baby is born every eight seconds in America. The world’s population is 7.2 billion.

SUNDAY 12/28/14; AirAsia Flight 8501 Goes Missing

AirAsia Flight 8501 goes missing en route from Indonesia to Singapore. The pilots had requested a flight path change due to severe storms before communications went dead. The pilot did not signal a mayday. 162 people are on board including seven flight crew and 16 children. Most passengers are Indonesian. The missing aircraft brings back memories of the doomed Malaysian Airlines Flight 370 airplane that has never been located and remains a mystery to this day. The Flight 8501 airplane is a reliable workhorse Airbus A320. AirAsia is a low-cost carrier serving southeast Asia. The plane is believed to be down in the Java Sea. At 7 AM EST (7 PM local time Jakarta, Indonesia), the air search and rescue is called off due to the weather and darkness but will quickly resume on Monday morning at daybreak. There is no debris field as yet.

In Greece, a ferry boat is on fire with 500 people aboard. Rescue ships are 

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Euro 1.2176. Pound 1.5553. Aussie dollar 0.8113.

US Treasury yields are; 2-year 0.74%, 5-year 1.75%, 10-year 2.24%, 30-year 2.81%. The 2-10 spread is 150 bips.

Saturday, December 27, 2014

SATURDAY 12/27/14; Japan Stimulus; Cyber War

Japan announces a $29 billion stimulus package to goose the markets. Banzai! The global central bankers collude to keep the stock markets elevated. US traders were aware of the pending stimulus on Friday which helped levitate stocks. Vietnam economic growth data is better than expected. China’s industrial profits drop -4.2% the most in two years. The energy, coal, oil and gas industries create the majority of the decline. Chinese tech industries remain steady.

Data shows a huge influx of money into US stocks and funds over the 

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the computer hacking on SNE was caused by North Korea. Cyber security professionals are not privy to all the information but the current available data does not conclusively prove the security breach at Sony was led by the communist nation. The North Korea internet outages continue with service interruptions occurring every few hours. The new era of global cyber war has begun.

Thursday, December 25, 2014

FRIDAY 12/26/14; Boxing Day; US Markets Reopen for Trading; Natty Gas Drops Under 3.00 for First Time in Two Years; Wall Street Prognostications for 2015; SPX, INDU, RUT and UTIL Print New All-Time Highs; COMPQ New 15-Year Record High at Dotcom Bubble Levels; Rampant Trader Complacency Signals Near-Term Market Top

Australia (SPASX200), Hong Kong (HSI), Philippines (PSE; PSEC) and Indonesia (Jakarta Composite JKSE) markets remain closed. The NIKK trades marginally positive. Japan’s industrial output drops -0.6% missing the +0.8% expectations and losing strength from last month’s +0.4%. The industrial output data signals a weak and lackluster economy despite the obscene Keynesian spending by the BOJ. Inflation remains subdued far below the +2% BOJ target.

The SSEC jumps almost +3% and is up about +45% in 2014 with all the gains occurring

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 10-year 2.25%, 30-year 2.82%. The 2-10 spread is 151 basis points and the 5-30 spread is 106 bips.

The CPC and CPCE put/call ratios are very entertaining these days. The CPC prints another low at 0.73, the lowest number in over four months and three consecutive lower lows over the last six trading days. The CPCE remains subdued at 0.55. The low put/calls verify the rampant complacency, lack of fear and bullish euphoria in play. The TRIN drops to 0.50 intraday further verifying bullish euphoria.

The stock market is printing a near-term top currently since everyone and his bro are long the market without fear. The shoe-shine boy, Uber driver and even the coffee barista at SBUX say they are all-in for the long side of stocks. They will likely have their heads handed to them on a platter. The put/call ratios signal a significant market top at hand which flies in the face of the Santa Claus rally. Rest up this weekend since next week will likely trade far more dramatically than anyone expects.

THURSDAY 12/25/14; Merry Christmas

A Jordanian F-16 jet plane with mechanical problems crashes in ISIS-held territory and the Islamic State nutcases take the pilot prisoner and begin torturing and beating the doomed airman. ISIS will likely try to negotiate a prisoner swap for the hostage or murder the poor soul.

Technicians mishandle Ebola samples at a secure CDC lab but the errors do not jeopardize the scientists or the public.

“The Interview” movie at the heart of the US-North Korea cyber war is streaming on 

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a rocket attack occurs at Es Sider, Libya’s largest oil export terminal as warring factions continue to fight over chunks of territory in northern Africa. Libya’s oil production continues to leak lower each week. The oil minister says the rocket hit a storage tank but damage to the oil facility is limited. Any attack on oil facilities will create a recovery in oil prices (less supply higher price).

Traders in the States take a day off as Christians around the world celebrate Christmas Day and the birth of Jesus. Markets will reopen for trading tomorrow. Merry Christmas!

Tuesday, December 23, 2014

WEDNESDAY 12/24/14; Christmas Eve; SPX, INDU and UTIL New All-Time Highs

The NIKK is playing catch up after yesterday’s holiday moving strongly higher +1.3%. The dollar/yen drops to 120.45 but the Nikkei Index is up since it is pricing in two days of rallies in the States. The SSEC is down -1% but the other indexes such as HSI, SPASX200 and KOSPI begin the day trading marginally higher.

The NIKK finishes up +1.2% with the dollar/yen at 120.41 remaining flat overnight. Japan PM Abe is reappointed in 

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 targeting soldiers and citizens. Israel retaliates with an airstrike on Gaza targeting Palestinian radicals and pledges to respond to any threat. The Israel-Gaza conflict is heating up.

President Obama is living it up on a 2-1/2 week Hawaiian vacation golfing and having fun without a care in the world. The president is not expected to return to Washington, DC, until after the New Year.

Christmas Eve turns ugly as protests become violent in Berkely, Missouri, location of the latest police shooting. The mayor attempts to diffuse the situation but police are using pepper spray and riot gear against the crowds. Social unrest continues in the major cities across America.

TUESDAY 12/23/14; WAG; Durable Goods; Q3 GDP Blowout +5%!; INDU (Dow Industrials) Prints 18K!; US Dollar Index Above 90; Tepper Rally; Personal Income and Spending; Consumer Sentiment; New Home Sales; INDU, SPX and UTIL New All-Time Record Highs

Asian indexes are lower ignoring the US late-day stock rally and new record closing highs for the S&P 500 and Dow Industrials. Japan markets are closed for the Emperor’s Birthday holiday. Chinese energy stocks are slapped lower taking the SSEC down -3%. Beijing regulators are investigating 18 companies for possible stock-price manipulation which creates a negative vibe. The HSI loses -0.3% as the real estate and construction company Dalian Wanda Commercial Properties debuts in trading, the largest IPO of the year, and collapses -8%. Traders are concerned over the valuation and 

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 Copper 2.88. US Treasury yields are; 2-year 0.74%, 5-year 1.73%, 10-year 2.26%, 30-year 2.86%. Yields move higher across the board on the robust GDP.

The bullish market sentiment continues with traders expecting SPX 2100 any day. At 7 PM, thousands of protestors take to the streets in New York City to demonstrate against heavy-handed police tactics and racism. The protestors threaten to shut down the New York business district in this busy holiday season; the night before the night before Christmas.

Sunday, December 21, 2014

MONDAY 12/22/14; Oil and Energy Rally Fizzles; Existing Home Sales; 2-Year Note Auction; Global Cyber War Begins; SPX 50th Record High this Year; INDU New All-Time High Targeting 18K; UTIL New Record High

Asian indexes rally across the board pushed higher by oil-related stocks. The dollar/yen currency pair moves higher above 119.50 so the weaker yen provides lift to the NIKK that ends marginally higher +0.1%. The SSEC gains +0.7% at a four-year high. Agricultural Bank of China and Bank of China each explode +10% higher. Utility stocks catapult +10% higher. HSI +1.3%.

The SPASX200 is up +1.9%. Australian PM Tony Abbott 

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SCS is beaten -8% after releasing earnings that post a profit. Office furniture is a key indicator of broad economic health and Steelcase is a leading supplier. If companies are expanding and hiring workers they are buying cubicle walls, desks and filing cabinets. If not, as the stock reaction indicates, business and the overall economy is flat and stagnant. CHK bounces +3% after announcing a share buyback. Chesapeake fell -3.6% during the regular session.

The CPC put/call ratio is down to 0.75 and the CPCE put/call drops to 0.49 both clearly indicating rampant market complacency and a near-term market top at hand.

SUNDAY 12/21/14; Winter Arrives; Cyber Vandalism

The deaths from Ebola continue rising. There are 7400 dead from the virus with a jump of 400 deaths in Sierra Leone over the last couple weeks. Developed nations provide limited help to West Africa since the deadly virus has not yet spread to Europe or the United States.

The Boko Haram Islamist nutcases murder over 50 elderly people in Nigeria that were too old to flee. Boko Haram declares an Islamist caliphate across Nigeria encouraged by the ISIS success with the caliphate in Syria and Iraq. Nigeria’s economy is completely dependent on oil even more so than Russia’s economy. The low oil prices throw Nigeria into complete chaos. Muslims need to speak up against the senseless violence ongoing around the world by Islamist nutcases otherwise all Muslims will be painted with the same brush. By the Muslim community not speaking up against the terrorism, non-Muslims assume they all condone it.

US troops are fighting ISIS radicals west of Baghdad in Anbar province. 

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 the US joyousness in the back half of last week. Australia, Japan and Korea open higher. US futures are flat. Oil stocks are catching a bid lifting the broad market. Inpex +3.5%. In Australia, Santos gains +5%. WTIC oil 57.31. Brent oil 61.51. Natty gas 3.32.

The dollar/yen is 119.35. the euro is 1.2230 printing a low last week at 1.220 the lowest since August 2012. Pound 1.5629. Aussie dollar 0.8146. Gold 1195. Silver 16.09. Copper 2.89.

US Treasury yields are; 2-year 0.64%, 5-year 1.65%, 10-year 2.16%, 30-year 2.76%. +64.

Friday, December 19, 2014

SATURDAY 12/20/14; Super Saturday

Kurdish peshmerga fighters retake Mt Sinjar in Iraq beating back the ISIS radicals. ISIS is trying to maintain its grip on Syria and Iraq but the US and coalition air strikes are helping to stop any further advance. The fight for the Turkey-Syria town of Kobani continues with over 1400 ISIS militants killed in the city in the last three months.

North Korea says it is framed over the Sony cyber hacking incident. The US State Department issues a worldwide terror alert effective into March and encourages Americans traveling abroad to remain vigilant.

‘Super Saturday’ is the last Saturday before Christmas a very robust 

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 Federal Reserve’s easy money policies making the wealthy wealthier but the other one-half of the nation that do not own stocks struggle daily and are in no position to think about retirement. Many disadvantaged individuals and families in America will have to work until the day they are placed in the casket while the elite wealthy class dines on steak and fine wine receiving the best medical care available. The Fed’s policies create the two America’s. The split between rich and poor will increase social unrest in the State’s for the months and years ahead.

FRIDAY 12/19/14; Cascading Global Rally Continues; Cyber Wars; BBRY; KMX; FINL; PAYX; OpEx Quadruple Witching; US Stocks Print Three-Day Historic +5% Fed-Induced Yellen Rally; UTIL All-Time Record High

Asia is a sea of green with the cascading global rally performing another loop. The Asian theatre logs the strongest stock market gains in 15 months. All major Asian indexes are higher except for the Bangkok SET that is only down a smidge. The NIKK gains +2.4% as the yen weakens with dollar/yen above 119. The BOJ maintains a steady monetary policy at the conclusion of the two-day meeting. Eyebrows are raised over the ongoing BOJ inflation target of +2% which is too optimistic with the tumbling oil prices. Japan is a large importer of oil. The BOJ may lose credibility going forward with the unrealistic inflation target.

SPASX200 +2.5%. SSEC +1.7%. HSI +1.3%. KOSPI +1.7%. India’s Sensex gains +1.1%. China says 

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Chrysler expands the Takata airbag recall to over three million vehicles worldwide.

The NYA remains above the 40-week MA signaling a cyclical bull market (months) ahead but this fight will continue next week and into January before the firm winner forward is clearly identified. The stock market has been in a solid cyclical bull pattern since late summer 2012 (NYA above the 40-week MA).

The new moon approaches the darkest time of the month. Military operations may occur since the side with superior night vision technology has a distinct advantage. Israel launches an air strike on Gaza reopening the Israeli-Palestinian conflict that had calmed since summer time. Hamas radicals launched a rocket into Israel today and the Israeli attack targets a suspected militant location.

Thursday, December 18, 2014

THURSDAY 12/18/14; Fed Aftermath; Cascading Global Rally; ACN; RAD; PMI Services; Philly Fed; Leading Indicators; US Stocks Explode Higher in Yellen Rally; CTAS; NKE

The Fed keeps the “considerable time” phrase in the FOMC statement that references when the first rate hike will occur. This creates a huge stock market rally in the US since the Fed is in no hurry to raise rates. At the same time, the Fed adds a “patience” statement that originates from Fed Greenspan’s days which typically means the first rate hike will occur in six months which is June-July 2015. Further, in the Q&A session, Fed Chair Yellen says the FOMC will not raise rates for the next couple meetings and clarifies to say ‘couple’ means ‘two’. This opens the door for an April 2015 rate hike earlier than the consensus expects.

The Fed wants it both ways. The bottom line is that the Fed left the considerable time phrase in the statement so that negates the April to June target for the rate hike and maintains the ongoing projection that the rate hike will occur from June-July 2015 or later and creates the stock market rally. The Fed tried to use worlds to create a hawkish tone but by balking at removing the considerable time statement is instead professing ongoing dovishness. The confusion will continue into the next meeting on 1/27/15 and 1/28/15 where traders will be watching to see if the considerable time phrase is completely removed or not. When considerable time is removed the first rate hike is definitely on tap in six months or sooner.

The central bankers control the markets. This is what modern day capitalism has descended into; a group of Fed members dictating the ongoing directional moves in markets. It is absolutely shameful. The free market principal has become a joke. The Fed has nine meetings scheduled for 2015 the first in January, then 3/17-18/15, then 4/28-29/15, then 6/23-24/15. Yellen says the first rate hike would not occur for two meetings which targets 4/29/15 as the first potential date for a rate hike but as explained above, the market expects summer 2015 or later which creates an ongoing bid in the stock market.

Asian markets feed off the US rally 

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The 2-10 spread is 158 bips and the 5-30 spread is 116 bips.

There are over 30 million adult American men between 25 and 54 years old that are underemployed or unemployed. As today’s stock market action illustrates, the Fed’s easy money policies reward the rich that own stocks and ignore the disadvantaged. The wealthy elite are raping the upside in stocks courtesy of the Fed. The rich become richer high-fiving each other while laughing at the common people that do not own stocks and suffer through structural unemployment.

The Fed has created two America’s that will lead to future social unrest. For now, if you are wealthy, it is time for a steak dinner, wine and song. If you are a ‘have not’ that is too bad; enjoy your franks and beans and do not look for help from the Fed, government or Chair Yellen; she is too busy dining with the banksters this evening. The two-day Fed-induced Yellen Rally rewards the wealthy with a +5% gain in their portfolios.

Tuesday, December 16, 2014

WEDNESDAY 12/17/24; Russian Ruble Stabilizes; Greece Elections; FDX; JOY; CPI (Consumer Price Index): FOMC Rate Decision, Forecasts and Fed Chair Yellen Press Conference; US Stocks Rally; ORCL

WTIC oil keeps dipping to and fro under 55. Asian stocks are a mixed bag generally positive. The NIKK is up +0.4%. Japan exports are up +4.9% year on year but miss expectations. The SSEC gains +1.3% with Chinese banks continuing to rocket higher each day as traders sniff out further PBOC stimulus. HSI loses -0.4%. Geely Automobile collapses -17% due to Russia exposure.

The SPASX 200 is up marginally and KOSPI down marginally. Iron ore prices remain at five-year lows. Aussie dollar is 0.8148 at near five-year lows. Kia Motors and Hyundai Motor tumble about -4% each. Global auto makers are trading soft across the board. Southeast Asia stocks recover with the Bankgkok SET up +1% but is down -8.5% over the last few sessions.

US Treasury yields are; 2-year 0.58%, 5-year 1.55%, 10-year 2.09%, 30-year 2.71%.

The Russian central bank is in the market selling foreign currency to stem the drop in the ruble. The central bank says that current reserves will be sold until the ruble stabilizes and plans to do “whatever it takes.” But oddly, $7 billion is used overnight to stabilize the ruble but the money is from the Finance Ministry rather than central bank. This strangeness does not create confidence and calls into question the liquidity and availability of the approximate $400 billion central bank reserves. The Russian Ruble is 68.54 dropping from 72 to 64 overnight then back up to 68 moving sideways. The Russian Ruble weakened to 80 yesterday (a higher Russian Ruble currency pair indicates a weakening ruble). Euro/Ruble 86.1718. Pound/Ruble 109.1928.

The Russian central bank maintains the key interest rate at 17%. Russia is no stranger to currency crises. In 1998, the 

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ORCL is up +3% in AH trading after beating by a penny on EPS and edging out the top line estimate by a hair $9.6 billion versus $9.5 expected. JBL launches +8.3% after beating on earnings and raising guidance. Bulk liquids (oil) operator KEX pukes -6.2% after cutting guidance. AKS gains +6% after reporting stronger guidance.

Sony cancels the release of the “The Interview” movie a comedy about the assassination of Kim Jong-un buckling under the demands of the North Korean computer hackers. The decision sets a precedent and will encourage other nefarious global cyber criminals to attack Western computer systems and demand ransom. Computer experts are not yet able to confirm that the hackers are associated with North Korea.

Monday, December 15, 2014

TUESDAY 12/16/14; Oil Collapses; Brent Oil Under 60; Global PMI's; Russian Central Bank Loses Control; Ruble Collapses; Russia in Chaos; Global Contagion; FOMC Two-Day Meeting Begins; Housing Starts; US Stocks Selloff; DRI; Hanukkah

Contagion continues around the globe. Asian indexes are weak across the board following the weakness in the US and Europe. The NIKK is collapsing -2% dropping under 17K. The SSEC, HSI and KOSPI are each down -0.7% as the new trading day begins. The SPASX200 is down -0.3% as Australia is picking up the pieces after the terrorist attack in Sydney. Russia is temporarily stabilizing but the ongoing weakness cascades to Germany which in turn hurts Europe. The European weakness cascades to the US and now back to Asia looping around the world.

The China Flash PMI drops to 49.5 into contraction for the first time in seven months under the previous reading of 50. The world’s second largest economy is on the skids. In these perverted central banker-controlled markets, however, the SSEC bounces strongly since the weak number will force the PBOC to provide more easy money. Chinese banks rocket higher. Traders love bad news since the central bankers will print more money and goose the stock market higher just like in the States for the last six years. What a sick world the Keynesian dolts have created.

The Russian Ruble recovers to 60 after the Russian central bank 

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DRI bounces +2.4% in afterhours trading after beating on earnings (with an EPS loss) and raising guidance. APP catapults +9% after firing CEO Dov Charney.  SEAS will drown on news that the divvy is delayed. S faces a $105 million fine from the FCC for shady billing methods but the stock trades higher.

The Jewish holiday of Hanukkah begins at sundown. There are only seven shopping days remaining until Christmas. The mini drones are a popular holiday gift this season.

Anecdotal data at Russian shopping centers, banks and businesses show growing concern that is turning into panic. Russians have lost confidence in the ruble and are seeking euro’s and US dollars instead. One bank branch is closing for the evening and burned through its entire $100K US cash allotment for today. Repeat this scenario across 100’s of bank branches and the gravity of the problem becomes apparent. The world awaits news from the Russian central bank overnight. 

Sunday, December 14, 2014

MONDAY 12/15/14; Japan Elections; Japan Tankan Survey; Sydney Terrorist Incident; Japan 10-Year Yield Record Low 0.376%; Russian Ruble Collapses; Green Monday; Empire State Mfg Survey; Industrial Production; PAY; Russia Raises Key Rate

The week begins with the global oil rout continuing. Oil drops -2% with WTIC at 56.37 and Brent at 60.64. The Japan elections produce a victory for PM Abe, however, the number of seats remains relatively the same. Abe claims he has a mandate for Abenomics despite the low turnout and criticism on spending money on the election. Traders expected the result and are not inspired. The Tankan Survey disappoints at 12 missing the expectations at 13 so the dollar/yen leaks lower towards 118 and the NIKK drops -1.6%. All 10 major sectors in Japan trade lower. The JGB 10-year yield drops to a record low at 0.376%. Car makers are hit; Nissan, Suzuki and TM are each down from -2% to -3%. The weak Japan business sentiment creates a somber mood in Asia.

The SPASX200 starts off very weak but 

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FCEL is up +6.5% recovering the -5% loss during the session despite reporting a loss on earnings.

Chinese smartphone maker Xiaomi continues to gain market share taking over as the fourth largest seller worldwide. Samsung (first) and AAPL (second) are the top two smartphone providers and two other Chinese companies Lenovo (fifth) and Huawei (third) complete the top five. Samsung sells about twice as many smartphones as Apple but Samsung’s market share is dropping as Xiaomi flexes its muscles. These five companies produce and sell 60% of all smarphones in the world (3 out of every 5 smartphones sold).

Zurich Airport in Switzerland is in a partial shutdown on threats of a terrorist attack.

SUNDAY 12/14/14; Japan Snap Elections

The PBOC is lowering China’s growth target to +7.1% according to the latest reports. The Beijing communist leaders targeted +7.5% for this year and the numbers are slowly slipping away currently at +7.3% year over year. There are rosy prognostications that retail sales will grow as well as import and export activity, however, exports will only grow if the global economy recovers and imports and retail sales will only increase if the domestic recovery picks up. It would be surprising to see China’s growth rate remain above +7% in 2015 although the data is routinely fudged.

The near misses in Sweden’s air space are becoming more alarming. Russian military jets are increasingly flying over European air space and are 

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 millions flocking to the polls. PM Shinzo Abe is hoping for positive support for Abenomics, the obscene Keynesian program that is trying to jump start Japan out of deflation by creating mountains of debt. Despite the unprecedented BOJ actions, Japan is mired in recession. 475 government seats are on the line. The Japan elections will set the tone for global trading for the week ahead.

The Japan elections are in Abe’s favor as expected. Voter turnout is a record low with only one in four voters venturing to the polls as snow falls. Abe receives a new majority in the ruling body and four more years in power. The results are baked in to markets as the dollar/yen trails lower and the stronger yen creates weakness in the Nikkei futures. Dollar/yen 118.38. Euro 1.2471. Pound 1.5726. The Aussie dollar trails lower at 0.8245.

Saturday, December 13, 2014

SATURDAY 12/13/14; Senate Passes Budget Bill

Today’s date is a unique sequential date; 12-13-14. The next sequential day will not occur for 20 years with ‘1/2/34’ which is January 2, 2034. After another 70 years ‘1/2/3’ will occur with January 2, 2103. A greater number of weddings are occurring in Las Vegas and all across the US with couples taking advantage of the special date one couple marrying at 12:13 AM this morning.

In Libya, warlord factions are 

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 the Senate passes the $1.1 trillion spending bill and President Obama is expected to sign the bill eliminating any threat of a government shutdown for another nine months. Banks receive protections with bailouts if another financial crisis occurs. Defense spending is increased. Money is allotted to fight Ebola. The republicans and democrats spread money around to pet projects and crony friends without accountability; this is how the broken political system functions in America.

Friday, December 12, 2014

FRIDAY 12/12/14; China Industrial Production; Russian Ruble Collapses; IEA Cuts Oil Demand Forecast; Oil Collapses; German Bund Record Low Yield 0.618%; PPI (Producer Price Index); Consumer Sentiment at Eight-Year High; European Indexes are Crushed; Greece Crashes this Week; US Stocks Collapse

Bad news is good news in the modern day central bank-controlled markets. China industrial production is up +7.2% but misses expectations at +7.5% and is lower than last month’s +7.7%. Retail sales bump a touch higher to +11.7% year over year. Fixed asset investment over the last year is up nearly +16% meeting expectations. Traders cheer the weak industrial production data since the PBOC will have to provide more stimulus that will pump the stock market higher. The PBOC will provide further rate cuts and triple R cuts in 2015 so traders are eager to buy stocks. What a twisted world the central bankers have created. SSEC gains +0.5%.

Chinese banks are sold off with Minsheng Bank and 

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 funds the government though the end of the fiscal year in September 2015. The bill weakens the Dodd-Frank legislation that strives to prevent future bank bailouts. The banksters will always be bailed out with taxpayer money since the wealthy run the country.

A new poll shows that 71% of Americans are dissatisfied with the direction the country is heading; that is nearly three out of every four people. The other one-fourth are probably the wealthy with large stock portfolio’s made richer beyond their dreams courtesy of the Fed’s easy money policies. Former Fed Chairman Bernanke and current Fed Chair Yellen cheer the wealth created since they receive kickbacks from the banksters once out of office rewarded with lucrative speaking engagements. The Fed leaders are fully backed and supported by President Obama verifying that both democrats and republicans are in full agreement at making the rich richer with Keynesian money-printing policies. The remainder of the country carries the elite’s water.