Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

U.S. Debt Deal Reached, Republicans Got Nothing, Now 90 Days Until Next Crisis

Stock-Markets / Financial Markets 2013 Oct 17, 2013 - 05:21 PM GMT

By: PhilStockWorld

Stock-Markets

What idiocy!

As I told you yesterday, the damage is done. Extending the crisis past Christmas doesn't make it go away and the Dollar fell 1% today on the "great' news that we "fixed" the debt ceiling. So Congresses "fix" cost you 1% of EVERYTHING you EVER earning in your ENTIRE life. It's all worth 1% less now – happy?


If it took you 40 years to earn what you have, that's about 6 months of your life murdered by Government idiocy and, believe me, they are not done yet. As I warned yesterday, this may only be stage one of the decline of the American Empire – just like Rome, we have Senators constantly plotting against the Emperor while lining their own pockets and doing anything it takes to remain in power, rather than actually trying to do what's right for their country.

I was particularly disturbed this morning by a clip from the Daily Show which highlighted what's going on at the State Governemnt level with 26 GOP states refusing to cover millions of people who fall through the Medicare/Obamacare crack, which was meant to be covered by Federal Aid but GOP Governors, like Rick Perry, are refusing the aid – a political stand that is literally killing people!

In the interest of being "fair and blanced," here's a good Conservative cartoon from Investors.com, which, like almost all of the Financial Media, is a thinly-masked right-wing propaganda sheet. Still, this they can make good points in that, regardless of who you want to blame for Obama's inbility to magically completely reverse 8 years of Bush destruction in less than 4 years, there are still a TON of problems facing us that this debt fiasco only managed to distract us from:

Notice how they use the word "gravity" because it's a popular movie at the moment and, despite the fact that the cartoon has nothing to do with gravity, focus groups show it helps get your attention and focus groups are how we run the GOP, right? Speaking of how we run the GOP, congrats to Senate Minority Leader Mitch McConnell, who agreed to sell out for a $2.918Bn earmark for a dam project in his state – a 300% increase from the original $775M alloted. Now THAT's how you compromise, right?

Sen. Jeff Sessions (R-Ala.) called the provision an "abuse" of McConnell's position. "One of the tricks around here, one of the abuses around here, is you get a big bill that needs to go forward and needs to pass, and the people try to load it up with things that are important to them," Sessions told reporters. "In the long run, that's not good for the public."

That's right, as you can see from the picture on the left, AMC's hit series "The Walking Dead" is back! Joe from CNBC is a big proponent of the upcoming Zombie Apocalypse and it's the perfect scenario to justify the "grab all you can because the World is going to Hell anyway" attitude that passes for political "thought" these days.

Speaking of Walking Dead, China is looking a little scary, especially after IBM earnings show a 22% sales drop in our reddest of states.

There are already China anomalies popping up in the results of some of the biggest U.S. tech names. At Cisco last quarter, sales in India and Mexico were up double digits, Russia and Brazil were flat, but China was down 6 percent. Apple's business in mainland China was up only 5 percent in the June quarter, a startlingly low number given that it had been up 8 percent and 67 percent in the previous two. Don't expect any signs of a China turnaround until July, when their next rounds of stimulus kick in. Meanwhile, we'll be looking for signs of China strain in Apple and Cisco's reports over the next couple of weeks.

Because of IBM, China, that cartoon and the fact that yesterday's rally was way overdone – we shorted a couple of indexes agressively in yesterday's Member Chat with:

  • DIA Oct $152.50 puts at .55
  • Oil Futures (/CL) shorts at $102.50
  • Dow Futures (/YM) shorts at 15,200
  • TZA Nov $22 calls at $1.07 

Those were to replace our very successful Wednesday short positions which, thankfully, we had cashed out. We'll see how our new set winds up today but our simple premise was – so what? All this deal has done is avoid a MASSIVE crisis that never needed to happen.

Now we have to focus on everything else that's wrong with the economy…

- Phil

Click here for a free trial to Stock World Weekly.

www.philstockworld.com

Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)

© 2013 Copyright  PhilStockWorld - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PhilStockWorld Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules