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2014/06/12

Tea Anyone

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Tea Anyone?

Since the market's volatility and volume continue to plummet daily and refuses to move (read: dead), whether there is news or not, I will talk about a cup of tea today. Well, not so much tea itself but the Tea Party, because of its stunning upset of Eric Cantor Tuesday evening.

There has been a lot of political blowback around the world lately due to politicians ignoring the will of the people. Many of these people seem to be at their wits end and are fighting back in the ballot box.

Recent European elections, for example, showed us all just how frustrated the electorate can get when there are never-ending bailouts and anyone who complains is labeled either a kook or a fool. The hard-right in France won a surprisingly large number of seats, prompting Socialist Hollande to say "unquestionably a defeat." Angela Merkel's party also lost influence as German voters expressed their anger with European bailouts. And perhaps most notably, Nigel Farage's UKIP party made history in Briton: The Eurosceptic party's victory marked the first time in modern history that neither Labour nor the Conservatives have won a British national election.

Although Eric Cantor's defeat was not on a national level, one can hope that the anti-incumbent statement found in this primary grows across the nation like the aforementioned countries in Europe.

From The Hill we read...

House Majority Leader Eric Cantor (R-Va.), the Speaker-in-waiting who was bidding for his seventh term in Congress, was defeated in a primary election by a little-known conservative economics professor, David Brat, in one of the most stunning upsets in modern political history.

Brat defeated Cantor despite having no experience in elected office and despite Cantor outspending him by a margin of nearly 20-to-1. The Associated Press called the race for Brat shortly after 8 p.m., an hour after polls closed in Virginia's 7th district. Brat was leading Cantor, 56 percent to 44 percent, with 80 percent precincts reporting.

And it is perhaps the most significant jolt to the Republican establishment since the emergence of the Tea Party in 2009. While conservative activists have ousted veteran Republicans like Sens. Bob Bennett (Utah) and Richard Lugar (Ind.), a sitting majority leader has never been defeated in a primary election.

Wary of allowing Tea Party groups to turn his district into a top battleground, Cantor unleashed a an early and heavy barrage of negative ads against Brat, an economics professor at Randolph-Macon College who previously lost a race for the state legislature. Cantor spent more than $1 million on the primary and attacked Brat as a "liberal" who served on an advisory board for former Gov. Tim Kaine at a time when the Democrat was pushing tax increases.

In the waning days of the race, conservative radio stars Laura Ingraham and Mark Levin boosted Brat and condemned Cantor for backing "amnesty" for illegal immigrants. The attacks came even as Cantor was under fire from advocates of immigration reform for his refusal to bring legislation to the House floor that would offer legal status for undocumented immigrants.

In other stories we read that the top donors of Eric Cantor are from Wall Street and we know of disgusted most of America is with Wall Street.

What is Amerika coming to when Fraud Street can't buy an election? Additionally, when will this be coming to the Fed?

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The major averages swung lower yesterday over the weaker then expected growth projections by the world bank. As buyers took profits throughout the session, new buyers helped support the markets near the bottom of the trading session. While the DJI had some extension lower, the COMP fought against sellers and held its ground. With a mixed result in the momentum stocks, we can see a rebound back higher. Even though we did have a negative day, volume was still weak overall. Trading conditions mimic the summer session, and I don't see much deviation from this summer time trading.

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TECHNICAL DATA
ES 1944.50/1941.00
POC 1943.25
YM 16865/16831
NQ 3800.50/3790.50
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Sometimes bad news for one company is potential good news for another. Let's look at what happened to Airbus today and how it may affect Boeing (BA). Airbus has received a major blow after Dubai's Emirates airline cancelled its entire purchase of 70 Airbus A350 jets. The deal, which closed in 2007, was worth around $16B ($22B based on the current price catalog). Emirates Air placed an order for 150 of Boeing's newest plane, the 777X, at last November's Dubai Air Show. That order, ​​which also includes options on an additional 50 planes, is worth some $76 billion to Boeing at the current list price of $377 million for the 777-9X

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