Creditcane™: REPETERE AD INFINITUM: CAVEAT EMPTOR.
SPXSpinning top day. Midpoint above EMA(10). Still above all SMA's. Tested and failed the 0.0% retrace (1543.47). New high on daily 3LB (reversal is 1502.42). QE2infinity. Still below 2 of 3 trend lines and RSI(14) above 50.
DXYBullish long day. Midpoint above EMA(10). Tested and held the 38.2% minor retrace (82.46). Still above all SMA's. New high on dally 3LB (reversal is 81.89).
VIXBullish short day. Midpoint below EMA(10). Still below all SMA's. Still failing its 61.8% minor retrace (17.12). No daily 3LB changes (reversal is 18.98).
GOLDDoji day. Midpoint below EMA(10). Still failing its 61.8% retrace (1609.30). Still failing all SMA's. No daily 3LB changes (reversal is 1615.50). Must have the precious.
EURUSDBearish short day. Midpoint below EMA(10). Tested and failed SMA(144). Still failing its 38.2% retrace (1.3138). New low on daily 3LB (reversal is 1.3122).
JNKBearish short day. Midpoint above EMA(10). Tested and failed SMA(55). Holding above its 38.2% minor retrace (40.58). No daily 3LB changes (reversal is 40.55).
10YR YIELDSpinning top day. Holding above SMA(55). Midpoint above EMA(10). Tested and held its 61.8% minor retrace (19.37). No daily 3LB changes (reversal is 20.19).
WTIBearish short day. Still failing all SMA's. Midpoint below EMA(10). Tested and held its 38.2% minor retrace (89.64). No dally 3LB changes (reversal is 92.63).
SILVERSpinning top day. Still failing all SMA's. Midpoint below EMA(10). Still failing its 61.8% minor retrace (30.25). No daily 3LB changes (reversal is 29.49).
BKXBullish short day. Midpoint above EMA(10). Still above all SMA('s. Still failing its 0.0% retrace (55.79). Daily 3LB reversal up (reversal is 53.02).
HYG/LQDBullish short day. Now above all SMA's. Midpoint above EMA(10). Holding above its 61.8% minor retrace (0.7765). Daily 3LB reversal up (reversal is 0.7769).
COPPERBearish short day. Midpoint below EMA(10). Still failing all SMA's. Still failing its 38.2% retrace (3.681). New low on daily 3LB (reversal is 3.549).
AAPLBearish long day. Still failing all SMA's. Midpoint below EMA(10). Still failing its 61.8% retrace (463.72). Still failing BB(2,200). No daily 3LB changes (reversal is 450.50).
CCIBearish long day. Midpoint below EMA(10). Still failing all SMA's. Still failing its 50.0% retrace (547.13). New low on daily 3LB (reversal is 553.37).
IT HAS BEGUN. YOU HAVE BEEN WARNED.
3 comments:
Hussman Funds - Weekly Market Comment: Out on A Limb - An Investor's Guide to X-treme Monetary and Fiscal Conditions - March 4, 2013
...If you perhaps didn't understand why the Fed was not going to be paying money back to Treasury in the future, Dr. Hussman's weekly letter clarifies that:
"Because of the strong relationship between the size of the monetary base (per dollar of nominal GDP) and short-term interest rates, it appears likely that short-term interest rates will be suppressed by Fed policy for some time, until Fed policy normalizes or inflation accelerates. The Fed is now leveraged 55-to-1 against its own capital. With an estimated duration of about 8 years on $3 trillion of bond holdings, every 100 basis point move in long-term interest rates can be expected to alter the value of the Fed’s holdings by about $240 billion – roughly four times the amount of capital reported on the Fed’s consolidated balance sheet.
Accordingly, the Fed recently indicated that it will create a new line called a “deferred asset” on its balance sheet. This “deferred asset” is a phantom accounting entry that represents the anticipation of future interest on the Treasury securities held by the Fed. This interest will not be paid back to the Treasury for the benefit of the public, as the Fed has historically done. Instead, the interest will be retained by the Fed. As Bernanke indicated in his Congressional testimony last week, in language that seems almost intentionally designed to confuse: “it is an asset in the sense that it embodies a future economic benefit that will be realized as a reduction of future cash outflows.”
Let’s be clear about what Bernanke is saying: “it is an asset in the sense that it embodies a future economic benefit [to the Fed] that will be realized as a reduction of future cash outflows [to the public].”
In effect, to the extent that the Fed experiences losses because it overpaid for Treasury securities that it bought from primary dealers (comprising the too-big-to-fail banks and Wall Street investment firms), the U.S. public will pay for those losses without any need for Congressional legislation. This doesn’t mean that the Fed will refrain from continued quantitative easing, but we should all understand how this policy works, and the risks and potential costs that it quietly imposes on the public."
BTW, this week's letter by Dr. Hussman is probably the meatiest of the year..worth a read.
New.
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