SATURDAY 10/10/15

SPX 2015. INDU 17084. COMPQ 4830. RUT 1165. DAX 10097. CAC 4701. FTSE 6416. MIB 22258. IBEX 10310. PSI 5519. NIKK 18439. SPASX200 5280. KOSPI 2020. SSEC 3183. HSI 22459. BSE 27080. The Dow Industrials, the UK, Spain, Portugal, Korea, Hong Kong and India indexes lead the upside global stock market rally off the September lows.

Euro 1.1357. Dollar/yen 120.25. Pound 1.5303. WTIC oil 49.49. Brent oil 52.65. Natural gas 2.52. Gold 1156. Silver 15.82. Copper 2.4195.

Treasury yields are; 2-year 0.64%, 5-year 1.40%, 10-year 2.09%, 30-year 2.92%. The 2-10 spread is 145 basis points in the 140-150 range for the last few weeks one day the yield curve appearing to steepen only for the next day the curve flattens. With the 2-10 spread staying within the range listed, the yields along all durations are 














[Text is Redacted: Purchase October 2015-10 to Read the Complete Chronology]

Social unrest and racism violence increases in America fueled by the militarization of government and police. Gone are the days of the friendly beat cop now replaced with jack-booted police officers in body armor and military gear that frightens children. If the US economy turns south into recession, social unrest and violence will increase dramatically in America. The split between rich and poor, caused by the Federal Reserve’s easy money Keynesian policies that reward the wealthy, is at the widest divide since the 1970’s. People that have nothing left to lose become violent over time.

Complaints are rising concerning Pepsi’s new recipe change replacing aspartame (Equal or NutraSweet typically seen in blue packets) with sucralose (Splenda typically seen in yellow packets). Diet Pepsi sales are lackluster and the negative publicity will not help. Pepsi is not concerned thinking that customers will get used to the new taste over time. PEP traded up +0.5% on Friday and is at record highs.

Americans and world citizens are drinking less carbonated beverages instead choosing water, vitamin drinks, bottled teas and other non-carbonated selections. KO and PEP have their fingers in these pies in addition to the traditional Coke and Pepsi offerings, respectively, which maintains profits and dividends and keeps the stock prices elevated.