SUNDAY 4/19/15; China Cuts RRR's

Over 4K families are fleeing Ramadi, Iraq, (central Iraq) as the ISIS Islamist radicals gain more territory. The US and coalition airstrikes are not effective. ISIS moves towards Baghdad. Syria, Iraq, Libya and Yemen are in chaos deteriorating daily. The Middle East and northern Africa are falling apart 









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 ignore the Friday news concerning margin requirements. All Hail the global central bankers! Kneel and worship at the feet of the modern-day money-changers! The global central bankers will not permit the stock markets to correct which leads to continuing complacency (VIX under 14).

SATURDAY 4/18/15

The UN seeks $300 million in funds to begin humanitarian aid in Yemen. Fierce battles are occurring in various Yemeni cities and 80 die in the fight for Aden. ISIS Islamist radicals kill four in Irbil, Iraq, in front of the US Consulate with a car bomb. Fighting continues across Syria, Iraq and Yemen as ISIS, al-Qaeda, Hamas, al-Shabaab and other Islamist militant groups are supported with Iranian money and weapons. The Muslim terrorists target oil fields, air ports, port cities and other strategic areas. The US and coalition airstrikes continue daily across the Middle East but 



















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concerts and rallies into the 420 (April 20) marijuana holiday. In cannabis culture, a group of teenagers in the early 1970’s in California would meet at 4:20 PM (four-twenty) before walking through the woods searching for pot plants. Many pot smokers will take a break at 4:20 PM, or AM, each day to imbibe on a toke. Four-twenty also serves as a code word; if 420 is mentioned in conversation you know the person smokes pot.

FRIDAY 4/17/15; SSEC and KOSPI Record Highs; China Imposes Margin Trading Restrictions; Bloomberg Terminal Outage; European Banks Exiting Greece Debt; German Bund Record Low Yield 0.049%; OpEx; GE; HON; CPI (Consumer Price Index); Consumer Sentiment; Leading Indicators; US Stocks Collapse

Asian indexes are mixed with China and South Korea stock markets moving higher. The SSEC is up +2.2% as cab drivers and housewives invest their entire life savings in stocks. The SSEC ends at 4288 up +6.3% this week at March 2008 highs. The Shanghai Index is running vertically higher gapping up each week of an ongoing six-week rally. The SSEC is up from 3190 to 4317, 1127 points, +35%, in only six weeks time; the Shanghai is rising at a pace of +6% per week! The SSEC was 2150 in July 2014 and has now doubled up +100% in less than nine months! Chinese train and infrastructure stocks, shipbuilders and pharmaceutical companies are all limit up on the session.

The HSI is down -0.3% but finishes the week up +1.4%. Investors are chasing Chinese stocks higher. Chinese are in frenzy throwing money at stocks for fear of missing out on the easy gains.

The NIKK loses -1.2% and finishes down -1.3% this week. Japan’s Topix drops for the first time in three weeks. Sharp drops -6% after securing additional funding, firing 5K workers and planning to sell off assets. The SPASX200 is down -1.2% and down -1.6% this week. GS downgrades the Aussie miners 



































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stock market. After six years of obscene Keynesian spending that makes the wealthy filthy rich, the US muddles through a sick stagnant economy. The wealthy do not care since they got their share (via stock market gains) courtesy of the Fed.

Euro 1.0805. Dollar/yen 118.90. Pound 1.4959. WTIC oil 56.14. Brent oil 63.45. Natural gas 2.641. Gold 1203. Silver 16.225. Copper 2.798.

US Treasury yields are; 2-year 0.51%, 5-year 1.308%, 10-year 1.865%, 30-year 2.52%. German bund 0.072%. Japan 10-year yield 0.31%.

THURSDAY 4/16/15; FTSE Record High; European Record Low Yields; German Bund Record Low Yield 0.079%; GS; C; BLK; BX; UNH; PM; PPG; SHW; Housing Starts; ETSY; Philly Fed; Fed Speak; AXP; MAT; SLB

It is party time in Asia as stocks follow the US lead and end higher across the board. The SSEC jumps nearly +3% to 4195 another fresh seven-year high. The HSI gains +0.4%. The NIKK is up +0.1%. SPASX200 +0.7%. Australia’s job data is far above expectations creating positivity. The Aussie dollar rises to 0.7770.

The KOSPI is up +0.9% and goes parabolic. Price prints a new four-year high at 2140 gapping up for five consecutive days. The KOSPI is up from 2060 to 2140, 80 points, +3.9%, in only five days. In 3-1/2 months, the KOSPI rises from 1880 to 2140, 260 points, +13.8%. India stocks trade lower due to weakness in the heavy-hitters Tata, Infosys and Wipro.

President Putin holds the annual ‘call-in’ press conference event today. Russians are most interested in the economy. Putin stages the event and chooses the questions ahead of time.

European indexes begin trading on the negative side as worries continue over the Greece bailout drama. S&P downgraded Greece’s credit rating last evening. German FM Schaeuble is doubtful that a resolution will occur to the Greece debt problem at the 4/24/15 European finance ministers meeting. Schaeuble says Greece must make concessions and get its house in order otherwise the funding program will end on 6/30/15. Greece is out of time.

Diageo drops -2.5% after missing on booze sales in Europe, Asia and North America. Common people can no longer afford to drown their troubles. Interestingly, more Guinness is now drank in Nigeria than Ireland. Beer sales are doing better. SABMiller posts strong results and surges +2.3% higher. Unilever is up over +2% on robust global sales. BAE Systems drops -4% on a downgrade.

At 3:30 AM, US futures are flat. Euro 1.0639. Dollar/yen 119.40. WTIC oil 56.07. Brent oil 62.60. Natty gas 2.58. Gold 1204. Silver 16.39. Copper is up +1% to 2.7365.

At 4:40 AM EST, the DAX is down -0.7% and other European indexes marginally lower. The FTSE prints another record high at 7119.35 in the opening minutes before retreating. US futures are flat. Euro 1.0641. Dollar/yen 119.31. Pound 1.4826.

WTIC oil 55.97. Brent oil 62.59. Natural Gas 2.576 with inventories on tap in a few hours. Gold 1206. Silver 16.395. Copper is up +1.2% to 2.7445.

US Treasury yields are; 2-year 0.50%, 5-year 1.32%, 10-year 1.89%, 30-year 2.54%. The German 10-year bund yield loses the 0.10 level down to a new record low at 0.093%. The German 30-year yield drops under 0.50% to 0.497%. The central bankers continue to distort pricing in all asset classes around the world. A German 30-year yield at less than 50 basis points is remarkable.

At 5 AM, the France 5-year yield goes negative. Greece yields continue higher as concern grows over the bailout drama and the yield curve remains clearly inverted; 2-year 26.86%, 3-year 26.07% (first time above 26% since 2012), 5-year 16.84%, 10-year 12.80%, 30-year 9.67%. The German 10-year yield drops to a record low at 0.089% losing the 0.09% level. The German bund is falling like a stone in recent days. Other 10-year yields are; US 1.89%, UK 1.56%, Italy 1.29%.

In Frankfurt trading, NFLX is up +14%. GS gains 

















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 Seeing MTW, a crane provider and operator, down -5% in afterhours trading is not a positive sign for the economy. If construction was strong, cranes would be in huge demand.

Yemen is in chaos with Islamist radicals, both the Iran-backed Houthi rebels and al-Qaeda, taking over further territory including port cities and airports. Yemen is developing into a humanitarian crisis as millions of refugees flee the troubled nation. Fires are burning and lawlessness rules in Yemen. Palestinians and Israeli soldiers fire on each other in the West Bank over the last two days and Israel detains two dozen Hamas supporters. 

WEDNESDAY 4/15/15; China GDP; German Bund Record Low Yield 0.126%; ECB Rate Decision and Press Conference; Draghi Attacked; FTSE Record High; BAC; USB; DAL; TITN; Empire State Mfg Survey; Industrial Production; Beige Book; RUT Record High; NFLX; SNDK; IRS Tax Return Deadline

China GDP growth and other economic data are weaker than expected. GDP is 7% at a six-year low; the slowest activity since the financial crisis in 2009 when GDP was 6.6%. Last quarter was 7.3%. Industrial Output data misses the mark growing at only one-half the expected pace. China Retail Sales miss expectations at a nine-year low questioning the strength of the domestic economy.

Traders expect more easy money policies from the PBOC including rate cuts, triple R cuts and other targeted measures but the central bank is dampening expectations. Obviously, Chinese and Asian  traders are already hooked on central banker easy money that pumps stock prices higher just like in the US and Europe; the PBOC is attempting to put the genie back in the bottle. The PBOC says targeted measures will continue which disappoints traders that expect stronger stimulus measures. The SSEC trades down -1.3% but the HSI is up +0.2%.

The NIKK ends down -0.2%. SPASX 200 is down -0.6%. The Aussie dollar weakens on the China data to 0.7583. The KOSPI continues higher on a four-day winning streak gaining +0.4% at 2120. Asiana Airlines drops -4% after an airplane slides off a Japanese runway resulting in minor injuries to a couple dozen passengers.

Chinese power-transformer maker China Power may go into default if a bond interest payment deadline is not met next week. The financial risks are increasing concerning China defaults. Alternative energy investor Baoding Tianwei Group is set to default on a payment next week and Cloud Live Technology missed a bond payment 




















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 ETSY IPO prices at the top of its 14-16 range at $16 per share. The popular online crafts retailer is valued at $1.8 billion. Trading in ETSY is expected to begin tomorrow. Perhaps Etsy representatives will hand out knitted scarves, homemade soaps or handmade candles to commemorate the event.

The high-speed trading company Virtu Financial IPO prices at $19 per share and will trade under the symbol VIRT. Virtu delayed its IPO due to the release of the Micahael Lewis book “Flash Boys” last year that created an intense spotlight on HFT (high-frequency trading). The PRTY IPO prices at $17 per share and is hoping for a big party at Party City tomorrow.

TUESDAY 4/14/15; SSEC and KOSPI Record Highs; German Bund Record Low Yield 0.133%; JPM; WFC; FAST; JBHT; JNJ; Retail Sales; PPI (Producer Price Index); Business Inventories; CSX; INTC

Asian indexes are mixed after the down Monday in the States. The NIKK is dead flat. The SPASX200 loses -0.2%. The KOSPI gains +0.6% printing a new four-year record high at 2112 above the 2100 level. Singapore’s GDP is +2.1% (annualized) better than the +1.8% expectation.

The SSEC gains +0.3% printing another seven-year record high above 4168 but the HSI loses -1.6% retreating from the 28K level. The Chinese stock frenzy continues despite the pull back in the Hang Seng Index. The HSI rocket launched +13% in only eight trading days so traders are quick to lock in the easy money profits. MS strategist Jonathan Garner proclaims that 30000 (for the HSI) is “quite likely.”



























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 meeting estimates but misses on the top line with $12.78 billion versus the $12.90 billion expected. Despite the lackluster report, INTC jumps +3% and should help the tech and semiconductor sectors tomorrow. The IEA says global oil demand should increase more than previously estimated.

In the evening, Fed’s Kocherlakota, an uber dove, is worried that low inflation may continue for years (a disinflationary funk). Kocherlakota maintains his position that a rate hike should not occur this year.

MONDAY 4/13/15; China Export/Import Data; HSI (Hang Seng Index) 28K; RUT All-Time Record High

The BOJ says Japan’s economy is increasing at a moderate pace and core machinery orders are better than expected. China exports shrink nearly -15% from one year ago and imports are down -12.3% so traders will expect more stimulus from the PBOC. The World Bank reduces the growth forecast for China and East Asia. Asian traders are hooked on central banker easy money just like in the States and in Europe. Global stock and bond markets are propped up by central banker money printing rather than 

























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recent poll shows the top 20% of wage earners in the United States pay 84% of the taxes. The top 40% of wage earners pay 98% of the taxes in America while the lower 60% of wage earners pay only 2% of taxes.

The CDC says about 200 people are sick with vomiting and diarrhea on several cruise ships. Workers are shown hosing down the ships in San Diego with disinfectant to remove the nasty Norovirus. An RCL ship returns to port tomorrow with more than 100 sick passengers. RCL and CCL stocks each trade down over -1% during the regular session.