Morning Corner 5.12.11

CSCO (weekly info)
direction=up (2 bars)
high= 17.59
rev= 16.98; mid= 17.29

It seems like every 12-13 weeks a bearish long candle is formed. This is the 13th week since the last one. Considering the earnings report they released after the close the long bearish may happen by Friday. They had a profit that was -18% YoY. So these small moves higher must have been just for show.

AIG (weekly info)
new low 30.82
low= 30.82
rev= 32.11; mid= 31.47

Are they really going to the market to raise funds? With the performance they were having this year who would want to buy the new debt? At this rate of decline the March 2009 lows are going to be tested.


AmenRa said...

Gold, silver and oil being taken out back and put down.

AmenRa said...

Initial Claims 434k from a revised 478k
PPI 0.8% MoM (inline with estimates)
Retail sales 0.5% (versus est 0.6%)

wunsacon said...

It feels like the world is falling apart.

- ME instability:
* Democracy vs dictatorships (including "kingdoms")
* Plenty of fuel but draining aquifers. (Have to choose between pumping fresh water into ground to drive fuel towards exit pumps or to grow food.)
* religious views from 5th century?
* Centrally-managed idiocy masquerading as free market in Dubai.

- European instability:
* Not much fossil fuel in Europe. They're more F'd than we are.
* Unity -- did you see the article on Denmark trying to institute border controls? -- Who'd want to own Euros?

- China:
* Looks like slowdown is here.
* Multiple families of working poor live in what are best called "shacks" next to large, empty upscale condos.
* Farmland losses from desertification and condo dev.

- US:
* Import 60% of oil.
* Politically unwilling to tax more and spend less. Might continue this way until fuel and food become unbearable for most.
* Plenty of arable land but draining ogallala aquifer.
* Religious views from 16th century?
* Increasingly negative ROI on increasing complexity of centrally-managed economy.

- Japan:
* Aging nuke plants of poor design ("gray swans") sleeping everywhere.
* China/Korea replacing Japan as major exporters. Means less foreign reserves Japan can use to buy oil imports.


wunsacon said...

I guess I woke up less-than-cheery this morning. Ahh....feel better now. ;-)

BinT said...

Yet the headline is that "claims decrease"...434k with this participation rate is simply awful...

AmenRa said...

PPI Crude goods
Food 4.0%
Energy 4.8%
core 2.6%
YoY 23.7% (highest since April 2010)

Andy T said...

It's OK Wunsacon.

Obama tells Companies to "step up" and hire workers.

He's got it covered....

cv said...

@wunsacon (8:58)

In a word... #winning

wunsacon said...

Amen, 4% for food in a MONTH??


wunsacon said...

>> He's got it covered....

LOL. Whew! I'm relieved now, Andy. This is the kind of leadership I expect from a team that includes a GE-jobs-cutting-chief-turned-jobs-czar. Because nothing says "free market" like titles of Russian origin.

wunsacon said...

Off to my Newport Beach lifeguard station...
Have fun trading, y'all.

Andy T said...

Woo Hoo.

Silver approaching bigger support....

BinT said...


Layoffs in the transportation and service industries.

...very large spike in NY layoffs...

AmenRa said...

See if you can find the clip of Raj's lawyer talking to CNBC after the trial...LMAO.

qqqqtrader said...

@ wunsacon
"Off to my Newport Beach lifeguard station...
Have fun trading, y'all."

Are you one of the unlucky(poor) lifeguards that only makes $150K/YR, or are you in the $211K+/YR range?

Bruce in Tennessee said...

"SAN FRANCISCO (MarketWatch) — Crude-oil futures fell Thursday morning, extending the previous session’s losses, as the International Energy Agency warned that high oil prices are resulting in lower demand, especially in the U.S.

Natural gas futures had moved higher immediately after a U.S. report on supplies matched market expectations, but have failed to hold gains as crude prices continued lower."

...Adam Smith must be smiling. I wonder if Ben the Wonderboy is too....?

AmenRa said...

30 yr Auction

Bid to cover 2.43 (lowest since 11/10)
Primary Dealers 58.23%
Direct Bidders 8.73%
Indirect Bidders 33.03%

AmenRa said...

Gold ande oil may be higher but the foot is still on silvers neck keeping it down.

qqqqtrader said...

woohoo, down to 1332 area then back up to 1350... rangebound, guess there's still dip(shit) buyers out there. 18's and 18 halves last few days have been good turning points....

AmenRa said...

Pretty much a failed auction when Indirects bailed and Primary dealers had to pick up the slack. The question is will they be able to flip them back to the Fed during an upcoming POMO.

Andy T said...

Alert: It's about to Rain in Houston for the first time in 60 days. It's been since late Jan since we've had more than 1/2 inch. Incredible for this area.

Bill Gross said...

Didn't your fixed income guy tell you to get short Ts yesterday?
That dude is pretty good, we should give him a job at PIMPCO.

Mohamed El-Erian said...

I hardly think we need a street urchin here in Newport Beach.
One already has the best strategist in the world, William.

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