 | Although the market was full of bad news today, it managed to close in the green after recovering from steep losses earlier. Because Tuesday and Wednesday are next to each other, I’m guessing Wednesday’s trade got a “contact high” from Tuesday’s hopium explosion. Can it continue? Oh sure, after all the fat man in the red suit is gonna fly via reindeer in a few days and that’s as good a fairy tale as any other on Fraud Street.
The prior day’s reason for its explosive 3% gain was the latest batch of free money for the bankster class. Well, they gobble up so much cash it scared the market. Bloomberg reported “Earlier today, U.S. stocks followed Europe’s shares lower as banks sought more funds from the European Central Bank than economists predicted, reducing optimism that the debt crisis will be contained.”
The latest acronym for the soon-to-be-failed bailout fund is called the LTRO. The LTRO fund is being supplied, as mentioned yesterday, by the ECB to the banking mafia at near free interest rates. You see, the banksters fed on Italian, Greek, Irish, Spanish, etc debt like a pig at the trough. The sovereigns are going broke as you know, so the banks are stuck with massive unrealized loss on their bond portfolios. The ECB has figured the LTRO “mechanism” will save the day by giving free money to the banksters to…buy MORE sovereign debt. Wow.
Is this for real or a joke? It’s real all right and some big players are coming right out and calling it what it is: another Ponzi scheme. After the results of the LTRO, manager of PIMCO Bill Gross tweeted – What does LTRO stand for? 1) A shell game; 2) Cash for trash; 3) Three-card “monti;” 4) All of the above.
I’m voting for #4.
In other news…(Reuters) - Oracle Corp's dismal quarterly results sent shock waves across the technology sector as investors feared they may have overestimated the resilience of corporate tech spending in a deteriorating global economy.
The first earnings miss in a decade from Oracle, whose fiscal second quarter ended on November 30, drove its shares down more than 11 percent on Wednesday, destroying about $20 billion of market value. The shortfall from the No. 3 software maker also hit shares of many other technology companies, with VMware Inc, NetSuite Inc, and SAP among those suffering the biggest losses.
"Is this a preliminary example of what we could expect in January from Microsoft and other players? It raises an eyebrow that things may not be as hunky dory as we've been led to believe in terms of IT spending," said Daniel Morgan, a portfolio manager at Synovus Securities in Atlanta.
Luckily when one company beats earnings the news will drive the entire market up wildly, but that same reasoning does not apply to the general market on the downside. Pfheeew, that’s good.
In other news, oil supplies fell by some measures more than any other time since early 2001, which caused oil prices to jump – again. This sent stocks higher because higher energy prices in general and gasoline specifically, are very bullish for the economy. Sorry, I had that backwards; higher energy prices are better for Exxon, Conoco Phillips, etc. Who cares about the “economy.” Trade well and follow the trend, not the so-called “experts.”
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.
larrylevin@tradingadvantage.com
Trading Advantage
(888) 755-3846 | 
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Trading Signals from the Electronic (ES) mini-SP 500 - No “Secrets” signals today.
- Algorithm positions (4)
- “Reading the Tape” positions (7) …combined Secret’s, Algo, & “Reading the Tape” total… -7.00
| ES 1235.25 / 1226.25
POC... 1231.25
YM 12021 / 11963
NQ 2245.75 / 2227.75
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