Every time an establishment figure talks about China, they always say the same thing: “The world will end if we don’t send all of our jobs to China.” But the truth is the exact opposite, as I have been saying for years. And now, a great man, Donald Trump, is telling it like it is: the Chinese think that we are suckers and are laughing at us:
At one point, Trump mentions how all the jobs that we have sent over there are keeping the Chinese working, and then says: “But what about our people?” What, indeed. Note to any American who works for a living: nobody in Washington cares if you have a job or not. Make Trump dictator and send him to DC to bust some heads.
Trump is also right about OPEC. High oil prices always cause a recession, and they certainly were a huge contributor in 2008.
Note: Listen to how high and trembling Cavuto’s voice gets at the end.
2th,
I like your chances with SDS.
Top of the channel, $120 resistance and I did not get any.
If SPY pops above $120 I wonder how many buy stops will trigger?
(Both long & short covering). Shorting that pop seems like a good bet if it does materialize.
Good video Matt.
I have been preaching that to people that China is at our mercy and if we stop buying their things their people stop working and revolt.
but the people “smarter” than me seem to think that china own trillions of our debt and can come take our land.
In the good ole times MAYBE but not in the modern flat world.
Blog Post: Nightly Recap 4-9-2010 http://bit.ly/a42Bpt
K,
Good blog. No Friday bank failure count?
George,
Only 1
The TED is working its way back up though so that SRS might not be a bad idea
Finally had a chance to see that Prechter “interview” on Fast Money (been buried in tax returns…its what I do..), Wow, was he summarily trashed and nearly executed…Prechter has been a real lone wolf at times, especially with his more recent calls about the bottoming of the USD and to short (or go to cash) once the DOW passed 10K. He got the USD right, has been off the mark on the DOW. But while everyone is dancing in the streets again, Prechter seems strangely alone, like he did in March 2009 when he advised his subscribers to cover their shorts…
A few years ago, Peter Schiff was roundly abused, ridiculed, scorned, even openly laughed at and taunted, and then the bottom fell out of real estate…uh oh…or as Scuby Doo would say rut row…I guess he was right….
In the investment world, when someone talks in a way that really goes against the grain, I have found just maybe he might be onto something…
Poland’s President Lech Kaczynski, along with many other government officials, has been killed in a plane crash in Russia.
The plane crashed in Western Russia, with at least 88 confirmed deaths.
Those killed include the President’s wife, Poland’s deputy foreign minister, the head of Poland’s army chief of staff, and the head of Poland’s national bank.
Russian Prime Minister Putin is to head up the investigation into what went wrong with the flight.
Reports suggest that the plane crash landed after failing to land in foggy conditions, leading to an explosion and fire upon collision.
Poland survived recession and now their top guys are out… sad
http://www.dailymail.co.uk/news/article-1264964/BREAKING-NEWS-Plane-carrying-Polish-president-crashes-Russia.html
The Fly is in SRS:
http://ibankcoin.com/flyblog/2010/04/09/god-smiles-upon-those-who-smite-you/
Nice link, Matt. I haven’t heard or used the word “vamoose” in a long time. Nice to see it’s still around.
I thought the comments were interesting. While I prefer setups and triggers to trade, I sometimes use a reasonability test that hinges on logic and gut-feel. They seem to do well at extremes. I think Fly’s take is just as good as any.
SRS is flipping roles from what I can tell. Its sister, URE, went down to the $2 area coming from the $70s, while SRS came from the $90s down to the $5 area. Now it’s SRS’ turn to hit the $2 mark(?).
What’s interesting is how they have both dropped even though they are inverse to each other. Which means, they are nice to trade but terrible investments.
These two were born at the beginning of 2007 and are just now finding their “base” price. Going forward, they should behave better.
Got into SRS a tad early and my system might have given a sell signal again but its ok. when i get a buy signal again i’ll double up
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Thanks Hank. Just looking for some sanity to return to Mr. Market.
As for short stops being popped, I doubt there are many shorts hanging out with bullish % being 86%. Of the remaining 14%, I bet 10% are neutral (all cash) and 4% are truly short the market. If they have been short this entire rally, they have the deepest pockets and are in it for the long haul. If they got caught in the 1044 hammer candle, they covered at 1150-1160 already when the SPX made a new high in 2010.
As for buys being created at 1200, I don’t see that either. I can only see a 10:1 breadth day causing “panic buying” on a breakout and boosting volume. So far, all rises have been melt ups on lousy volume and concentrated volume in the crappy high-beta names: C, AIG, F, and the financials. Subtract out the C and AIG volume on any given trading day and compare THAT volume to past history. Anemic. Just my 2 cents.
Note, SRS is doing a reverse split to get the price back into the $20+ range folks. Read that at the Fly link Matt provided above for those that didn’t jump to it. I was thinking about that in regards to a previous link about 1/infinity aproaches zero. Reverse splits can make that limit easier to approach than most people realize (check out a longer term AIG chart to see the multi-thousand share price compared to today). Nothing like needing a 200x bagger (that would be 20,000% right?) to get back to even! Heck, you only need to double up 8 times…easy.
Ok, that’s just silly. Now the iPad is transformed into a pseudo-notebook! Geeze, are folks gullable or what?
Why not simply get a HP TouchSmart laptop to begin with? Or any other brand for that matter. Does the same thing and has multitasking, flash, JAVA, and all the other freedom goodies.
Apps on the iPhone? You can get the same or similar Apps on a PC. In fact, the best games are PC-based. There are oodles of Flash games available that work similar to the iPhone’s games. Let’s not forget that the PC runs MS Silverlight which is awesome. It’s used to run FreeRealtime charts.
The iPhone is awesome, as I’m sure can be said for the PocketPC (it was the first), Android, Google Phone, etc., because they fill the most-needed gap of having a phone with Internet connectivity along with useful Apps: All of that in a shirt pocked-sized device.
If I have to lug anything around larger than an iPhone, may as well be worth the effort. IMHO
…just sayin’
2thfixr,
Yes, I saw the SRS reverse split. My question would be if the same thing is going to happen to URE, its twin? Maybe not since it is in a move to the upside.
Yep, raising the price of SRS so it can continue its drop to the 2 handle. Wouldn’t want that puppy to go to zero now, would they. Fairly good indication that it is expected to drop even more. I don’t know how that works, just guessing.
They are? Well then I need to get out!!!
2thfixr,
Just looking for some sanity to return to Mr. Market. — Whose sanity yours or the market’s? Check your bias at the keyboard and trade the tape.
“As for short stops being popped, I doubt there are many shorts hanging out with bullish % being 86%.” — As you pointed out lots of people bought SDS at the close. If we gap and go Monday they will cover. Lots of people see 1200 as stiff resistance if we drive through it will be seen as a bullish breakout. Lots of long buy stops await I would presume. If we pop above 1200 then drop back down to kiss it and find support then we may be headed for Phil land!
At this point the bears are just stubborn fools. Those still with capital have played the get in, get stopped out, repeat, repeat, repeat game. Been there, done that. One day it will change, been saying that for a year, no more. TTIYF till the bend at the end. I’ll wait for that bend my friend.
If we start down I’ll play it, but with an eye towards going long.
If on 1/19 you went long with a 10% stop it would have been ugly but you would be in the green today.
GLTA
K,
NO! Don’t get out unless you don’t want to profit. That being said, read an article on SafeHaven’s site called “SPX Levitation Act 2″. The case is made that this is a bull market and will have minor pull backs.
Blog Post: Current Picks Updated 4-11-2010 http://bit.ly/9zmqKq
Steve Jobs is serious about killing off Flash, and this Adobe guy is incensed:
http://theflashblog.com/?p=1888
In case you don’t know, in addition to littering the web with annoying, time-wasting animations that crash your computer, Flash is also a programming language, and Jobs has just banned all other languages from the iPhone:
http://www.businessinsider.com/are-the-new-apple-app-store-terms-illegal-2010-4
True, Flash is all over the web. The main reason for this is because it was developed to be used across almost all platforms. If Quicktime had been used, it could be the whipping post because until recently, it under-performed Flash with respect to quality. And had it been #1, it too would be used for all of the ads and garbage.
Flash is a CPU hog for sure. Silverlight and Quicktime do a better job in that area. I have iTunes on my laptop, a necessity to backup my iPhone as well as new OS fixes/updates, and Quicktime is used on that PC to view the iPhone movies and other content. Quicktime does a great job with resolution, etc. Silverlight is just a slick product for sure, that can’t be hacked, while Flash is the worse of the bunch in that regard.
What it comes down to is one’s need for viewable content. Hulu and a ton of other streaming sites, for the most part, use Flash or Silverlight. So if I want to use them, I need those two players.
With a PC, I can have the best of both worlds.
Matt, thanks for linking the Prechter video, i see your points about how the panel reacted…I think they should have elaborated on the viewpoint, at least to consider ca$h as an option, maybe not shorting as yet…
On 4/14 after the close, these stocks will reverse split. The first 7 are 1:5 while the last two are 1:10.
DUG EEV FXP GLL SMN SRS URE
UYG ZSL
I’m on the iPhone so I may have fat fingered something.
BLAAAAAH
reverse splits are bad
More about Flash.
I forgot to mention that an Apple computer, not any of their hand-helds, can run a copy of Windows along with the Apple OS. With that setup, Flash and other video players can be used on a Mac.
K,
I don’t know if reverse splits, or any kind of split for that matter, are good or not. Reversing means higher price per share, so in that sense, you’re right.
Here is what happens when you green light Moral Hazard – in less than two hours after the videoconference in which the EMU announced €30 billion in aid for Greece, a Greek senior official has already come up and said that they were only kidding about needing just €40 or so billion (with the IMF’s 10). The full amount will actually be double that, or €80 billion, for the three year period. Look for Portugal, Spain, Ireland, Bulgaria, Hungary, Latvia, and Lithuania to come knocking in the next 45 minutes.
http://www.zerohedge.com/article/and-proverbial-moral-hazard-foot-shooting-ensues-ink-not-dry-first-bail-out-greece-already-d
George,
2:1 splits are great!
Reverse splits… well look at this
Investopedia explains Reverse Stock Split
For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It’s usually a bad sign if a company is forced to reverse split – firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.
http://www.thereformedbroker.com/2010/04/11/earnings-season-q1s-the-river-card/
Ha, think ETF’s will be delisted? Wouldn’t that be a hoot!
Nah! they’re trying to make it attractive for people to buy them because from $5 they will be $25
Thats basically a reason to go short and ride it back to 5
if lets say a stock is at 0.60 and needs to be at $1 or higher to avoid being delisted they will do 1:2 split to get to 1.20 their market cap stays same but their shares go from 100 million to 50 million
Foreign markets and emerging markets have taken the lead the past year from what I’ve read and see. Talk about flipping the card. Have the tables been turned, or what?
I never give foreign markets a thought. That might be a mistake. Although, since they have been trail blazers, they could be the first to reverse. I don’t know, but I’m looking into them now.
K,
I get it now… reverse split, ride it down $19, reverse split again, ride it down another $19… on and on… what a nice plan. Sign me up!
Several months ago, as a way to prevent the use of cellular phones in criminal activities, the government of Mexico started a program to require all phone owners to register cell phones in their own names. Yesterday the timeline to register the cell phones expired, and there are [approx 26] million cell phones yet unregistered.
While the procedure is simple, sending a text message with the CURP to a special number, most people do not want to register: some are wary of the uses to which the government will put the data. So in an unprecedented move for any country, the Mexican government is announcing the shutdown of 25.9 million cell phone lines.
Meanwhile, as a measure of protest, hundreds of people have registered their cell phones in the name of the president of Mexico, Felipe Calderon Hinojosa, to show how pointless is the registry.”