Morning Audibles 6.24.10 - G-20 Cometh

Around the horn this morning:

Merkel Tells Obama to "stick it where the sun don't shine" Germany Won’t Heed Calls to Focus on Growth

http://noir.bloomberg.com/apps/news?pid=20601010&sid=a3xlXH_FZw7s

Excerpt:
OBAMA
The G-20 must “safeguard and strengthen” the economic recovery and promote “global demand growth that avoids the imbalances of the past,”


"order to public finances should be restored in the “medium term.”

MERKEL

"Germans are more likely to spend money if they feel the government “is taking precautions” to ensure solid finances..."

Gimme a minute to try and figure out which of these ideas is moronic...

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Mortgage Bond Prices Rise to ‘Insane’ Records: Credit Markets

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aC0TeonWOPiI&pos=5

Excerpt:
“It’s gotten insane,” said Scott Simon, the head of mortgage-backed securities at Newport Beach, California-based Pacific Investment Management Co., manager of the world’s biggest bond fund. “This is rarefied air.”


U.S. existing home sales unexpectedly fell last month and purchases of new houses tumbled to a record low, underscoring how borrowers’ ability to qualify for financing is limited even as rates drop."


First of all they forgot the "P" in PIMPCO... Anyway, I'm trying for the life of me to figure out how in the world home sales could POSSIBLY be falling (after homebuyer tax credits expired)... 


Oh wait... Maybe I found something...

Prison Inmates Claimed Homebuyer Tax Credit, $28 Million in Fraud

http://www.americanconsumernews.com/2010/06/prison-inmates-claimed-homebuyer-tax-credit-28-million-in-fraud.html

Excerpt:
"The United States Treasury Department released a report today declaring $9.1 million in tax credits were fraudulently claimed and received by more than 1,200 prison inmates. Some 241 inmates who filed for homebuyer tax credit are on death row."

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But I'm sure Chris Dodd & the rest of those hardworking CONgress people are working on "fixing" that today... Well, not "TODAY" today because this is what they have to vote on...

Hollywood Backs Ban on Box-Office Futures in Financial Overhaul

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aF.pn1oI2wgg&pos=7

Excerpt:
"Lawmakers negotiating an overhaul of financial-markets regulation are weighing a ban on futures contracts pegged to box-office receipts"


Hollywood, meet Lloyd... "We're from Goldman Sachs & we're here to help you"

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Or... If you prefer your news on the LITE side...


CNBC (clickables)


- 'Fast' Traders: Horrible Housing—Hold Your Nose & Buy?
- Euro Zone Industry Orders Log Top Gain in Decade
- Hope For Afghanistan: Minerals and Economics
- Obama Approval Rating Slips to 45%: NBC-WSJ Poll
- Cramer ‘Applauds’ Fed Decision
- Why Are There So Few New Homeowners?
- Cool Android Apps 
- Trichet Explains Why Soros Is Wrong About the Euro


Can't you just wait to sink your teeth into any of that "hard hitting" journalism?

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CV was fooling around with some charts yesterday... I'm kind of "fixated" on the idea of this imminent "Golden Cross" (50 day MA crosses over the 200MA)... Technically, I think it's called something else when it crossed DOWN in that fashion...


Nevertheless, it ought to happen within the next 8-13 trading days... It looks like this (potentially) on the chart...

& I'll give you this chart to pull the 200DAY line into full view...

We're coming to End of Quarter... 


I gotta admit... I was reading all the HFT riff raff on ZH last evening... It seems everyone on the planet has a bee in their bonnet about "order stuffing", FED interventions, etc. 


But it seems to me that something as simple as this "CROSS" could really be much more overwhelming than any of those other market operations that happen in a low volume trend environment...


To many basic fund managers (just trying to beat their "Lipper Averages" - whatever the hell that is), this is the ONLY thing they look at... 


50 over 200 and trending up = GOOD
50 under 200 and trending down = BAD


It's something to consider... Big question is... "When do the rats start fleeing the ship"?... Because the way the charts look, you're going to need to put 11 players (all with extra sized Hamburger Helper mitts) in front of the goal to prevent this one from getting through...