THE DOT - if this turns orange or red be alert

Wednesday, April 28, 2010

Brainstorming Wednesday - part 1

1. Art Cashin said months ago when Dow reaches 9000 better enter the nearest bomb shelter and now above 11000 he claims we are nowhere near a high - now he has sunk to the levels of UBS as one propriatary indicator of UBS mentioned a few days ago was crying for o top.

Art Cashin: Markets Are 'Nowhere Near a Top'

    The rally is "long in the tooth," but market technicals show stocks have more room to run, said the director of floor operations for UBS Financial Services.

Well check this out Art and tell me if you stick to your call - I do not recall having seen rydex at this level. I have to admit though that after a severe correction which has started we might see another new high not that the market should go higher but the manipulators might have a chance to get it higher since the FED can not afford to raise rates at all - every 100 bp rise will cost the government additional 130 bil in interest payments on the one hand. the other is bankrupt banks like Citi an others need years to write off their bad loans against the free ride on the steep yield curve.

ate NAV Adjusted N/U Ratio
4/26/2010 1.602
4/23/2010 1.564
4/22/2010 1.272
4/21/2010 1.162
4/20/2010 1.185
4/19/2010 1.202
4/16/2010 1.174
4/15/2010 0.856
4/14/2010 0.845
4/13/2010 0.837

2. Yesterday I took the liberty to watch the goldman grilling and ı have to say the Goldman crowd was not looking that smart at all and the senators were not either. levin did by far the best job but missed to dig deeper at a crucial point where birnbaum got really nervous. first off all the self assesment showed the real culture of Goldman it was not graceful how they bragged about their achievements and they were quite competitive about each other. the crucial spot besides the obvious dumb the crab on any idiots bid you can find attitude was very clearly presented by levin but as he came across the fact that Birnbaum also used short bets on stocks to add momentum to his big short was thee point where levin missed or ignored the chance to nail goldman. he should have found out how big the short position was since by forcing the stock of competitors like bear or mer down he could also used as a strategic measure to force the shorts on ABX and single name CDS his way. The evil mind of Goldman was not displayed in full manner at all since the other Senators did not do their homework at all - the fact that ACA was the biggest buyer in the one Abacus deal was never really understood by them. the fact remains that goldman put himself first and dumbed all the crab on the other morons which is part of the wallstreet game between hedge funds and prop traders but it is criminal intend to do it with investors who are not sophisticated enough to grasp the risk. Basically the whole CDO operation was a criminal scheme they acted like phony car-salesman who take old cars who are close to crash down repaint them have them look classy and sell them as brand new state of the art cars from Germany.

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