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Tuesday, July 31, 2012

1 Aug Pre-FOMC announcement

China chairman of largest shipbuilding company RongSheng is charged by SEC for insider buying of NEXGEN shares ahead of purchase by China CNOCC. He made a $13 million profit. So the plan purchase of NEXGEN by CNOCC is in peril of being rigged. There goes another China dream. This time it is China scoring its own goals. The China government should round up all those officials and tycoons who collabroate for illicit gains.

BTW Shipping has come to a standstill, China importers are stacked with so much of raw materials, iron ores that they have to give up their standing contracts with BHP, Rio Tinto.

El Erian is going to succeed Bill Gross at Pimco, Jamie Dimon would soon step down. Great changes is coming. The veterans are fleeing before the storm. Bill Gross latest "the Cult of Equity is dying", "the cult of Inflation is rising". QE or no QE, inflation expectation is picking up. US heading back to 10% interest rate. Japan has $1.7 Trillion of pension funds investment to redeem. This would be the second wave after the European sellings. JPY is on the verge of a dramatic softening back to 125 JPY.

Taiwan suffered a -1% contraction last quarter. China PMI dipped to 51%, lowest in eight months. It is now between the Soft and Hard landing zone.

Companies in US, Europe are cutting back, reducing staff, and there would be a wave of pullback reaching the shore of Asian countries.

Soft commodities are waiting up Bernanke QE3 to soar. And together with Crude, rising wheat, potatoes, fruits, vegetables and meat, all would crush Obama chance of a 2nd term. And that is the game plan of the Republicans, letting Obama saddle under his own weight, while facing a clumsy Romney if not Ron.

BTW, after my call last week for the disbandment of FED, a columnist Mile Maloney has written about shutting the FED, on RTV.

I have been observing those doomtards blog, talks of doom has intensified, talking about doom on Full Moon day 1 Aug, financial experts warn of crash, charts showing "turning points".

Speaking on CNBC, Richard Duncan, chief economist at Black Horse Asset Management and formerly of the World Bank, says America's $16 trillion federal debt epidemic has escalated into a "death spiral."

Nobody has mentioned about the rally of SPX pass 1400, INDU to 13,800.

So it is going to be a short covering rally coming on Wednesday. So you can go long at current level, anyway it is well supported at 1380.

Long at 1380
Target 1420

wait for the stop clearing stunt before FOMC annoucement to go long.

Some times, the only buyers left are those who shorted.

BTW Schauble denies talks of banking license for ESM, meaning ESM would come
And Draghi emphasis to protect EURO, meaning Greece can leave EU and still EURO is protected.

So it is clear now that Greece would leave EU, printing its own drachma, and then ESM would be given a banking license in exchange, this saving Spain and Italy. A barter trade of sort.
So get ready for a rally and then short into it for the coming departure of Greece. Act 1.

Act 2 would be America fiscal cliff, so Act 1 has to finish soon.

BTW, the doomsters got it wrong, Full Moon is on 2 Aug (Friday). So no doom on 1 Aug.

Meanwhile, the CEO group (European observer) has lodged a complaint against Draghi as he is in the group of 30 (chaired by Trichet).

next week I am travelling to Shanghai, without access to blooger, so do update yourself as follower (to the right) so that I can update you.

anyway, the Black and White messenger (黑白无常 谢必安, 范无救, 大二爷伯) has been despatched to bring the Central Banker and Bankster boss to the presence the underlord (鬼王).
It is not doom for the market, it is DOOM for the Bankster and Central Banker (2 individuals, if you know whom I am talking about).

Panetta has deployed F22 to Japan. and we may see a duel between China 10 and F22 in the near future.

Can't help commenting on India. It has to blame corruption for its current dire state of electric blackout. In India, when they order 10 containers of products, they would staff 3 of the containers with waste,
and the auditor who run the operation together with the owners would certify 10 good containers.

I would not invest with my own monies in India.

31 July India blackout

nothing changed. pull back as a retracement for a rally coming.

Nothing interesting in the market. Despite the meandering, its objective is clear. UP till Skyfall.

When I was in Beijing, I met up a cock-eyed trader, he cannot see straight. And he told me what most so called experienced housewives traders are thinking, China is in a zig-zag market. Up and down, building a bottom. At the juncture, SHCOMP is at 2300, and the recent low then was 2132. This was thought to be the so called Diamond bottom. And on Monday, it was breached to 2101 as of today.  A bounce in dismal volume. The retails have closed their trading accounts. And the Banks are seeking verification of Identities for bank accounts. Meaning those corrupt Fund Managers, Officials who open hundreds accounts to trade big monies, have now to validate those accounts. They use to open 100 hundred accounts to trade 1 million RMB each, instead of 100 Millions in one single accounts, as this would immediately attract attention.

The objective of the Euro crisis is clear, Germany is the prize. You bring down Germany, you have the entire Europe in your pocket. Now Bernanke is waiting upon ECB to do another LTRO. and ECB is waiting upon Bernanke to do QE3, who would blink first ? And China is waiting on both of them.

No Israel war with Iran, no Syrian intervention by NATO, no North Korea firing on South Korea, no China battling with Vietnam and Philippine. It is all peaceful and  "All quiet on the western front".

Gold is being bought by Funds ahead of QE3 announcement, with support going higher and higher, 1555 to 1570, 1600, then 1616, the next would be 1630, now hovering at 1620.
The Funds want to buy up all the gold ahead of retail.

China's Ye Shiwen did a feat that only superwoman can do, she swam faster than Ryan Lochte in the last 50 m of the individual medley. And people are accusing it as doping.

If Americans are that good, show it that the American stock market can drop faster than that of China's.

now I got desperate request from my Indian readers who are facing a electricity blackout, due to country wide failure of the electric grid. They are stuck in positions and would want to take profit before the FOMC.

Meanwhile the CNBC host has read it correct, a sucker IPO is coming to America. United Manchester is now doing its IPO in US after failing to get approval in Singapore. Basically, the sucker company uses leveraging to boost its value.

The Facegeek is another sucker IPO, during the 2 hours of chaos, MS unloaded tonnes of worthless shares onto rampaging retail. And now its founding employees and shareholders are leaving the company after taken profit. The market now want to force Mark Suckerbug to give up ownership of his company by forcing the stock to the value of let say $10.
Facegeek is a farce. It was started by the Suckerbug to track gals on campus. The intention was evil, and it would end no good. And a lot of personal secrets are leaked on Facegeek to the advantage of others. If you dun want your private life screwed, you better delete your account now.

Sunday, July 29, 2012


Watched the ever briliant performance by Robert De Niro and Sigourney Weaver in RED LIGHTS.

Some enlightening speech, "The magician can pull a rabbit out of the hat, is because the Rabbit is there in the first place".
Bernanke can pull a stock market rally with QE, is because he planted his trading desk there in the first place.

Red lights to break the fraud, Sigourney looks for RED LIGHTS, subtle signs that should not be there in the first place. What are the RED LIGHTS you see ?

There was once a National Geographic documentary of a Tibetan monk levitating infront of cameras.

Meanwhile nothing happened over weekend, except Shauble, German finance manager said not considering ESM or loan to Spain.

Saturday, July 28, 2012

28 July Olympics 2nd day

AS you can see 13949 is the ultimate for the current rally. After annoucement of QE3, DOW would sprint to 13900 and then the whole rally since 2009 would be complete.

While China is not willing to start a war, Philippine is planing to send warships to the vicinity, Vietnam is signing treaties with Russia, Tokyo wants to buy the disputed island from a Japanese owner.

The nation held at hostage because of the politician agenda. In the event of war breakout, the handover of party leadership and military command would be delayed. Hence pretty sure, there is a ongoing power struggle in China now. And the military is holding sway in this tussle.

Similarly for US, the Syrian resistance is held high and dry by Obama reluctance to send troops. 

And Israel is held hostage when Iran is rapidly maturing its weaponisation of enriched plutonium.

Politicians ought to be removed. A revolution is needed !!!! Send the politicians to the gullotine.

Friday, July 27, 2012

27 July London Olympics Opening

yes, before London Olympics, Merkel and Hollande is going to hold a joint conference. Yesterday Draghi bragged about supporting the Euros. Sounds like they are really paniking. May be they would announce something in relation to ESM.
Bundesbank today spoke against granting license to ESM.
Later in the day, I am joining a brokerage get together, to open the systems and inspect the stops. It is a Stop taking Friday, depending on where they are, long or short.
Euro shorts are going to get killed.

True, Euro shorts are getting killed. My forecast for Euro have been most accurate over the years. We should expect selling in other currencies, e.g. AUD and buying Euro. As more LTRO and ESM is in the cards.

Rather, the brokerages need to pay their bills next week to the landlord, webmaster, employees and Barney the Dino slush funds, stops taken today would means monies into the bank account next Monday, and bills paid before 30 July.

As the Audit Fed bill is passed and it is the signal for FED to start housekeeping with over 10 Trillions in Assets, something must be glaringly not appropriate. Bernanke has to start to cover his tracks. May be we would see some bodies thrown out of the FED in coming weeks. Some even say that the FED may have to shut down before the Audit.

I met my master yesterday, and he said that in near future, Greece and Spain would be forgotten by pple, we would be QE to the power of "N", Gold would then be at 5000.

FED is the end game, not Spain, Greece, Italy or Euro for that matter.

Next week is FOMC and it happens before NFP, and ECB as well. So expect sideways till Friday. Good time to do scalping, buy stocks and gold on dips.

One of newspaper headline has it that UK is exporting more than the Eurozone, evidence that it do not need EU. The fair value of GBP is much higher, as it has rid of most debt in the system. I would put it at 1.7000 to a dollar. Infact, GBP can be the replacement currency for EUR. With German debt rating dropped, Gilts wold be a good alternative. Would not be surprised if we see an Olympic rally in GBP. EURGBP may just goes to 0.7.

Meanwhile Jamie Dimon bought $17 million JPM ahead of next week QE3 announcement.

Powerful moves today. The trend is up and the Euro debt, bank split talk are just noises. My target for INDU has been 13800. And next week is July month end window dressing. Gold should goto 1650 at least. Market would sneak up and everybody is watching Olympics. So called Olympics euphoria.

Remember the Beijing Olympics in 2008, all was good in China. After which market crash came, and then house prices popped. The same would happen, but meanwhile for August, it is a up month and then into November, the Presidential Cycle has begun.

BTW, Draghi has no Trichet credibility. So his talk would soon fade after next week ECB meeting, expect a Euphoric High on ECB announcement.

Thursday, July 26, 2012

25 July QE3 confirmed

As Faber of Faber's report has said "it is a waste of time". Yes, it is a waste of time following whatever is out there in the market. Geithner co-act with Barney Frank in the LIBOR is a testimonial as well.

Am travelling to London for the Olympics, at least something which is not a waste of time.

China hit a recent low at 2132 and bounced. Most worthy is Sandy Weil calling for splitting Banks and marked to market. Let see if it reverberates through the MSM, at least Yahoo has picked it up.

Ron Paul "Audit the FED" up for vote. Hoorray. A major milestone. A day to remember 072512.


Revenge, Bernanke is ordering QE3 next week. That is why the sudden surge in Gold, and SPX to 1361.
Bernanke in revenge of Republicans passing the Audit the FED bill, is ordering QE3 to assist Obama to win in November.
The news has been leaked, somehow, and the trading houses already got wind of it, and some have even spoken on national TV.
Go Long at all cost !!!!!
Gold last at 1621. Gold just broke consolidation pattern.

1 August is the day, get ready.
While GOLD is pulling back now to 1613, it is a buy you would never regret for next months, years, decades. Buy of the Century. The breakout point is at 1611.

The Greenland icesheet which covers almost 70% of its land mass has disappeared within a week. The Gulf stream has virtually stopped. And Winter would be awfully cold this winter, Europe is entering into mini-ice age. Crude, NatGas would be in high demand, and governments would be stockpiling them. Not to mention the same happening to China.

Wednesday, July 25, 2012

25 July Swine on Fire 丁亥

HSI just dropped 0.6% 100 points to about 18800, no big deal, await bigger action after lunch.

Gold just painted a diamond bottom at 1570. now at 1580.

Audit the FED vote delayed to Wednesday, just nice for the Fiery Swine day.


Jamie Dimon sits on NY Fed board, wow!!!!!

HangSeng Index still holding on well above 18830, it is a down day alright, but no major crash at 3am ET.
One more hour to go.

no crash for HK Index. Looks like a bottom fishing seassion ahead for America, with the arrival of ESFS->ESM. Watch out for a major Euro rally.

Sanford Weil talking about government should do Glas-Steagull. and the most affected bank would be Jamie Dimon. Wow, everything about Dimon nowadays. Like Dick Fuck.

Tuesday, July 24, 2012

24 July "Audit the FED" vote 虎哮天门

yes, the vote is on today for the "Audit the FED" bill.
The Monday market has a bounce from open, GE went up 1% on heavy volume.
Corporate buying back into support their stock, depleting the cash pile.
Corporate cash no where to go, buy back stock, increase PE immediately. Basically corporate has no investment program, no hiring.

Meanwhile FED is buying back the Gold it sold off in swaps, and it has to buy ahead of other interests, essentially ahead of 1555.

Nations are repatriating their GOLD away from London vaults.


Let us see if the Congress manages to get the 16 marginal votes needed for a total of 290 votes to fast track the bill.

The MSM did not report on this vote, they keep it a hush hush from the public. If it is passed, Bernanke has to worry about its loose financing of international banks. He may be called up after the fast track audit, and possibly has to leave before his term ends.

So now on Bernanke's mind, he is not thinking of QE.

As CNBC says if Spain goes for full bailout, EU breakup is more likely. What does the market says ? Bull shit, and continue its climb.

You may join as a Follower (on the right side) to be updated constantly amidst the pending turmoil.

23 July (六月初六 天门开) is a Big Day in Chinese tradition. It is the date when Heaven Gate open, and the Heavenly Emperor descends to inspect people.

Century 16 is the Cinema, Century=100, 100+16=116 upside down mirror of 911.

Hang Seng index lost 19000 today in half day trading. The storm hitting Southern China is immense, HK has to raise storm stage to 10, the first in more than decade. Not to mention wide spread unhappiness in Beijing on the massive flooding and failing canals and drains.

Tomorrow is Swine on Fire, 丁亥。A startling plunge is in the cards for HK market. There was a record 1000 points plunge in recent history. That means HSI would breach 18,000.

Tokyo radiation is getting into MSM.

I am advising my friends especially ladies not to travel to Japan if they want to conceive. Their chances are not able to conceive, or having conceived and give birth to defective babies.
Tokyo birds with albinos heads are already commonly spotted. Logarithmically increasing children having diabetes at early age.
When Japan is facing this spectre of having 50% of its territory under radiation, JPY is unbelievably strong. Perhaps as a cover for the Japanese companies to relocate overseas.

Fox news has it, Obama spending $10billion a day. Lame duck looting session coming, Obama going to fund his re-election spending in coming sessions. Time to downgrade US debt and US dollar.

Buying accelerates, China CNOOC is buying Canadian company Nexen for $15b.

The story with Spain this time is that Spain would apply to ESFS for funding, and got approval, to fuel the next rally.
The story would go on and on, reason ? Greece has vast undeveloped Natural Gas fields, the creditors want to lay their hands on it, and would force Greece into surrendering this asset. Probably, the China and some German parties are fighting over the gas fields.

Monday, July 23, 2012

23 July Century 16 Aurora Cinema 116 911

Today, Japan congressman tabled a motion to move the Capital away from Tokyo, the reason is the anticipated collapse of the deep sea trench off the Eastern coast of Japan. In that event, a Tsunamis of 30 feet is expected. It is more like a guise to shift place because of the ever increasing radiation in the city.

CLSA, a French research house based in HK is sold to a China securities company for almost 1b. This rally since last year October, essentially is for the European companies to sell their assets and raise cash. So with CLSA, a prominant market maker having completed its sale. The end is near.

Day after, 25 July Wednesday is 丁亥,the day of the Swine with Fire, a day much feared by Chinese investors, especially the HK people.  2007 was the year 丁亥 as well.

As the wiseman said, when someone shouts fire, everyone rush out of the cinema at the same time. But in modern times, as James Holmes has shown us. There is no runaway, some people just die in the seat.

CNBC Bob Pisani has said it, wait for September to see some action from FED, the common market expectation. So for Investors, stay put in your cinema seat. Wait for James.

Meanwhile a lot of Southeast Asia currencies are tumbling, Malaysian Ringitt, Philippine Pesos. The Funds are pulling monies out of Southeast Asia. The Association of Southeast Asian countries, belatedly issue a communique without mentioning China and Philippine in their sea grab.

As in Sun Tzu Art of War, first you fight on associations with nations, second you fight on strategies, lastly you fight the war. 伐交, 伐谋, 伐战。 With Philippine President asking for a stronger military with 1.5b spending in his State of Union speech, and China setting up a township for the islands in South Sea, we are moving into the last stage. China would set up garrisons on islands. And those oil rigs and ships of Gazprom, Connocphilips blocks would soon begin withdrawal.

This James Holmes thing is really a market shocker, with 71 people injured or killed, the largest in American history. INDU fell by more than 200 at some point. Bernanke has to call in his trading desk to activate the robots to soften the fall. How many James Holmes are out there ?

The awe and fixation with this Aurora Century 16 cinema events would infuriate further copycats.

Gold at 1570 seems to be a good buy, have been a support for almost 1 month now, above the legendary 1555.

Sunday, July 22, 2012

22 July The Dark Knight

If Colorado allows Gun ownership, then the Aurora fatality would not be 12 but may be 2 or 3. There may be more copycats, you are advised to protect yourself. With election coming closer, a lot of disillusioned youngsters are resorting to desperation. Holmes was part of the Occupy movement.

Nancy Leider has it that Holmes was possessed:

He is acting like the Norway Brevik mass murder. The culprit has an agenda to act.

As Obama has said, "there is another day for politics", "it is Armageddon now".

Meanwhile, China is removing some of its liberal editors. A lock down would soon take place before the 18th People Congress. Expect something similar to the 2008 Olympics lock down, when foreigners are denied visa to enter country,  heavy surveillance of internet, monies flow.
With the new team about to take ownership for the next decade, power bases would shift, allegiance would change. Another power struggle may just break out.

I would sounding a RED alert, issuing advice to people to take a "careful look" at their monies in China. A wave of capital flee cannot be ruled out.

German Budestag approved the Euro debt loan, but their judicial would takes another month to decide.
No one is looking at Europe now.

Was in Joburg, South Africa retail sales has lagged for past 2 months. The slow down is now global.

China market is back to where it started 10 years ago.Except the national banks, other industries are having dismal performance in the first 2 Qtrs. Through accounting tricks, the China government is rigging its GDP. In actual, China has already hard landed.

 Beijing just had it biggest rain in 60 years, 12 dead, and massive flooding, bullet trains stopped, airport at standstill. Ominous sign for the 18th People Congress.

With the Aurora incident on the New Moon, the end time has started. Having this vision that the Republicans would drop Romney and give it to Ron Paul. Ron Paul holds the spear to Obama.

Wednesday, July 18, 2012

17 Jul Greetings from Joburg

Johanessburg has big malls that rival those in Beijing, and friendly people are everywhere to be found. Looking at the headlines, one would doubt if there is any more order in the world.
World organisation is breaking down,
NATO unable make an impression on Syria, when massacres keep happening. And Hilary getting the shoe treatment in Eqypt.
South East Asia ASEAN silenced Philippine at a recent meeting, when Philippine foreign minister got his mike silenced, when he wants to protest against China.
Now with the Liborgate spreading to US, HSBC monies laundering, London Olympics G4S fiasco, the entire world is in chaos, not to mention immense heat, drought, tornado, flood over every where in the world.
Even if the Mayan proverbial end of the world never comes, the world sure feels like the end of the world.
And SPX is holding well. Bernanke levitation. Makes us wonder what is really down there in the rabbit hole ?

CNN sent its broad smiling Richard to a Asian metropolitan city, to interview an ex-Citibanker who is heading up the South East Asian largest bank. The fellow was asked if there would be a similar scandal for the Singapore version called SIBOR.
The SIBOR is the benchmark of multi-hundreds billions of mortgage loans in the country.
The SGD is the preferred currency of trading in that part of Asia, but hardly visible outside that region.
With the arrival of RMB, the SGD may well becomes obsolete in near future.
Hence, the plot thickens.

Thursday, July 12, 2012

12 Jul waiting for Dimon

SPX futures dive below 1333. Nonetheless if 1303 holds we are still in a wave 3 up trend. If 1300 breaks convincingly, then we are looking at the earlier doomsday floor of 1285. If 1285 breaks, it is going to be messy all the way down to 1075. HENCE that is not going to happen. And probably 1310 would hold waiting for Friday 7am Dimon announcement. Finally Dimon has to come out openly to prop the market.

MS comes out on TV and say buy JPM. Think we can all sell BAC, C, MS and buy JPM.

Euro incessant drop, a good momentum ride down. So if you are really shortist, you short EURO. SPX is buying on dips. When market opens, the makers would decide the opening price of SPX, and buy or sell equivalent amount of ETF, which then triggers the pricing of individual stocks. That is why when market opens you see the Index first before the stocks.

Today I am going to Johannesburg to seal some mining deals. So response would be slow.

Meanwhile, Gold looks awfully weak. Demand from India have dwindled to a trickle. And China is self-sufficient. Meanwhile, my readers have already emptied Gold long time ago.

seems like the market is in sync now, SPX 1333 is the bottom, Gold 1555 is the bottom.
Go Long now !!!! for a good trade. remember it is a trade.
Dimon is going to play the king maker, if he wants to hand the Presidency to Obama, he wold life the market tomorrow. the trade, AG let the bank off on all Libor investigation.
Or if he is going for Romney, he would drop the market like a stone back to 1000. And he himself face the Congressional investigation.

That is why Dimon wears Presidential cufflinks at the last hearing. HE is the President.

Wednesday, July 11, 2012

11 July Futures reached 1333

Futures touched 1333 and bounced in Asia trading.
remember this is a trading market, spot Gold held 1564.
1333 was mentioned in my earlier post as the target to go long.

Some readers have pressed me for the Game Plan. The plan was that the German constitution court approve ESM this week, this would be the final step to the ESM lending monies like a bank to the countries, while ESM is backstopped by ECB. However the German constitution court is taking its time, like 3 weeks till end of July to contemplate. Hence this has thrown the spanner into the works of the Hedge Funds. They plan to ram the SPX up through 1400 this week, and a pull back on Friday when JPM announces.

However the delay has caused uncertainty, and the Funds would have difficulty distributing at the top. Hence now they are stalling for time, and negotiating with Dimon to cut its announced loss to like $3.5b, instead of $5b, which would naturally seed a rally.

Gold is supposed to hold 1600 and ram towards 1700, now it is dindling at 1570, buying time. Direction is still up. Monies have moved into Asia market, notably HK and Singapore, both were well supported. This is in anticipation of boosting measures from China government.

At least, this was their plans, now the Fundsters are back to the drawing board. Would keep you informed of their plan.

Tuesday, July 10, 2012


US Caterpillar has not been doing well. so does China's Caterpillar equivalent. 70 engineers just got retrenched over the weekend.

Seems like China is preparing for a harsh winter, before the 18th People's Congress.

Not to mention the dismal trade data. SHCOMP made a recent low at 2178, the last low in September 2011 was 2132.
Premier Wen warned on weekend that housing prices have to be kept down.

However Trade shows a growth for the first half of the year.

We should be seeing the completion of the retracement and the begin of the last wave. Asia held well. and Gold is now vaulting over 1600.

on CNBC, Cramer is said to look like a Butcher block. So in 15 mins times, who would be on the Butcher block ?
Gold shorts are now on butcher block,
Euro longs and shorts are both on butcher block,

Equities shorts ?

BTW, I am not encouraging Trading. I am asking my subscribers to take their monies out of their brokerage account immediately. Look at what happened to the few who refused to listen and got funds stuck with PFGBest, unit of Peregrine Financial Group.
More and more brokerages would fail, because participation is dwindling by the day. The only pple trading are those operating robots account who hoping the robot would rake in daily earnings, only to find capital wiped off with the swings.

The next thing that would happen is that CNBC would even cut its anchors, and Cramer would be let off as well.

CNBC runs a cliplet of some fundster asking Bernanke to raise rate to 2%.


First time I ever posted to post something this urgent. While senate hearing of Bernanke is going to take place on LIBOR later in July.
Prepare for market liquidations of positions of all sort in futures, options, commodities, equities, bonds, money market funds, etc.
Major shutdown of brokerages across the globe when contagion and counter-part risks permeates triggered by PFG, and then Jeffries, and then......
Americans citizens are already liquidating their 401K holdings.

The DATE is in the near future, next few days, if not next week. not immediate. Apology is I am not clear.

Assange may have some inciminating emails on FED exchange with the Banks on LIBOR rates.
This earning season is oready done.

Obama has a problem, he asked Americans to buy stock 2 weeks before March 2009, since then he never asked them to take profit.

Monday, July 9, 2012

9 July Rates ?

Martin Feldstein ran an article lambasting the FED for inaction in the election year, and warned of escalating rates going forth. On the weekend, the HK Treasurer warned HK citizen that "the rate is near zero, the only direction is UP". With the LIBORGATE debacle, the outcome would be higher rates to reflect the current risk conditions.
Rates rise would probably be led by the Emerging Countries, then the US and Europe.
And whether FED can hold its promise of ZIRP till 2014 would be in doubt.

While Clinton is buying time in Japan, seemingly winning back support from Afghanistan, and warning Russia and China on reprisal. Russia and China are not paying attention to her. A.k.a, United States is complete marginalised in world affairs.

China is establishing HK, Singapore, Tokyo and London as RMB clearing centers, with Bonds, Secutities issued locally in RMB. USD is in less demand, and massive USD is flowing back into US, like the tsunamis, and nobdoy in US would want to hold USD and Rates have to go up.

Market is said to watch China data this week, which is more often distorted by the local governments, especially ahead of their 18th Congress. With the pending 18th Congress, pressure on the China/HK market would increase.

There is a HK listed stock (00802 Regal Cyber Group) which deals in biometric identification products which went from 30 HKD to 0.7 HKD. Its PE is cheap at 7x, and profits are almost 30%. But it is "rumoured" to make fake financial reporting. Just like what happened to those China listed companies in NASDAQ.
More and more vigilante (like Citron) would be in action to debunk a lot of fake financial reporting in China listed companies.
JP Morgue results out on Friday.
This is going to be an interesting week.

Many years back in 2005, I wrote on public forum that US rates would goto Zero. And now I write that US rates would goto 13% in the midterm future. Noting Bernanke terms end January 31 2014. Would the Chairman lasts his term ?

In China, one of the favourite way of buying GOLD is through "paper GOLD" with the major banks in China. Buyer literally holds paper certificate and can trade. Most players have accumulated substantial positions, i.e. all their spare monies went long, and lesser and lesser to cover their margins. Once a plunge comes, their capital would be wiped out. Chinese lost their monies to the scoundrels who IPOs their stock, and this scoundrels took their monies into GOLD, making their monies accessible to the world fundsters.

Death of restaurant owner after Obama visit
Obama visited Oregon and made an impromptu visit to a road side restaurant for breakfast. The old lady owner rushed to the outlet to meet Obama. Hours after HE left, the lady dies of heart attack.
Now the Beast is manifesting his power.

On Friday evening, an article by FOMC throat Hilsenrath spurred new hopes for QE3 coming closer. Led to the rally towards the close. We may see the same repeated in Asia market closing, with a rally as well.

After Hilary warning to China and Russia for they have to pay the price for their stand on Syria, Russia has its worst flood with hundreds life loss in tsunamis like flood.
Now China is next. Would a R9 Earthquake strikes China soon ? in the middle plain, next to Beijing and Shanghai ? The BEAST is rally angry.

Update 9 July
Asia afternoon, Bloomberg has this article citing BOA and GS to forecast push of ZIRP into 2015 and another 500billion purchase.

So what is so scary that the Banksters are trying to hide ? Why the urgency ? That would be where the pot of GOLD is, if you are looking for one.

Trading tips
1333 should be a good support for SPX, before it starts its 3rd of 3rd into 1518.
JPM losses started at 2 billion, then FT/WSJ reported figure to be 5 billion. Market rumour 9 billion. If it ends up at 4billion, there is going to be a good rally in Financials. That is the game plan. Push then Up on Friday.
If it is 9 billion, Dimon would be summoned again by Congress, likely they would massage it to be some mild  figure.

SPX displaying bottoming characteristics again. The plunge is bought into at 1347. Monday blues set the stage for Tuesday rally after ALCOA results. Gold holding well and back into 1600 again, the Nth time that is.

Friday, July 6, 2012

6 July SPX 1518 INDU 14140

We are into 3rd of 3rd with 14140 as target from projection.
SPX into 1518.

with London, Frankfurt and Shanghai lowering rates.  The market is ripe for rally.
nonetheless, also a symptom of central bankers panic.

Meanwhile Clinton warning China Russia over Syria. Clinton must be dreaming, trying to chase Russian out of their Syria navy base without a single troop deployed. Unfortunately she is against ex-KGB Putin.

and Obama backing another trade spat with China.

Headwind, Lagard met Noda in Japan. and they were concerned about the high YEN. Finance minister threatened intervention.

This Liborgate thing has been investigated for almost 1 year now, throughout all the financial centers in the world. It is only last week, that news broke and Barclays is the first to get hit. Probably the Banksters are already prepared for this. This one is Criminal. Traders who were implicated is not going to sit around and answer emails or phone calls from the prosecutors, like what Jerome Kerviel did. They are going to be killed or vanished. It would be smarter for them to run to Ecuador to join Assange, then sit around for hitman to come, end up drowning in some river, electrocuted or simply run down by cars.
Jim O'Neil looked apprenhensive when asked about Liborgate on national TV.
Are the Banksters sitting around waiting for the target 1518 to hit, or just take the monies and run ?
Now it is too late for Bernanke to announce QE for any material effect. Operation Twist would perhaps add 0.5 to 1% of growth. If QE is announced on 1 August, you would expect Crude and Gasoline to blast, and Obama would be staring at 4 dollar gasoline in no time, just 2 months before election.
As I have always said Bernanke is Republican deep down, like CJ Robert. Bernanke would hint at QE at the Jacksonhole get together. And that wold be the final stab at Obama election. A QE that is of no use if not deterimental to the Democrat.

Obama had the chance to replace Bernanke 2 years ago, and he did not. Of course Obama has other things on his plate, the Birther issue and the long living Assad.

1518, 14140 the target they are aiming for, and a lot of monies at stake.

Thursday, July 5, 2012

6 Jul Prosecute the Central Bankers

Rick Santelli has said it, "class action suits against Central Bankers" for manipulating rates.

when you need to rid of the evils, you invite the Fiery General 中坛元帅, 龙王三太子. The General is looking for Chairman for inflicting harm to human at large, robbing pensioners of their earnings, depriving people to buy a roof, and spawning the greatest financial deceit ever in human history.

Meanwhile Gold went down to test 1600 and held. 1555 held, and now 1600 would be the base for the next leg up to 1650.
SPX taking a rest before the rise tomorrow for a surprisingly good NFP. Earnings starting next week.
SPX should be on its 3 of 3 rally up.

Meanwhile, in the wallstreet of Asia, Singapore financial district, a HSBC Senior VP drowned in the river next to his office in the early hours on Wednesday.


LIBORGATE ? spreading to Asia ? It is getting scarier.
and now 20 banks including HSBC are implicated in LIBORGATE.

Essentially, if you are holding a futures, options, dual currency, mortgage which depends on LIBOR for pricing, and you are losing monies, you can hold the seller responsible for fraudulent misrepresentation using a manipulated benchmark.

Next week, when Obama has done with his barbecue party, and long weekend getaway, he has to face:
(a) the Sheriff has found the person who forge his Birthcert and is holding a news conference
(b) another person has found evidence that his SSN is fake, taken from a dead Hawaiian
(c) Romney claim that "Obama dun care" is a tax plan.
(d) since CJ has rules it as a Tax plan, it has to originate in Congress, not Senate. Hence it is invalid.
(e) helplessness of Kofi Anan entourage on Syria
(f) Iran next move
(g) Arafat possibly poisoned by Israeli Mossad.
(h) Philippine Aquino request for US ships to the disputed South Seas
and the list goes on and on.

5 Jul God's particle found

now God's particle is found, it helped explain how mass comes about. and allow scientist to simulate the big bang.
now God is found, where is Justice.

starting seeing a lot of post about GOLD going to 3000, 5000. that is scary, if GOLD does that far. That means the USD is bankrupt or a major financial metldown. OR just scaring people into buying the top.

seeing also a lot of fake news, like Reactor 4 crumpling, Plutonium released, Iran locking down Homuz, Turkey, Saudi amassing troops at borders.
Those funds have a lot of control over non-MSM, especially doomster sites to exert influence on sentiments.

Wednesday, July 4, 2012

4 Jul Independence day

Diamond is implicating BOE and also NY FED in his testimony. so it is going to be hell of a session. While US goes holiday. nothing much has happened after the Obamacare and EU Summit. except US, Asia markets pushing higher on robots, drawing in spare funds. Buy when there is nobody selling. This is a form of tools, cited by Bernanke.
Besides QE, Twist, Bernanke and other Central Bankers have been deploying a range of tools to manipulate the market. As I have said, if your doctoral thesis fails, then you rig the market to fit the thesis.

If LIBOR is easily rigged, how about HIBOR, Hong Kong rate ? Probably the Chinese would want to have their own BOR eventually. US and Europe markets would be marginalised in years to come, when it is found to be untrustworthy, like the Facebook NASDAQ debacle, MF Global, Gupta, Rajaratnam, Madoff.

Question: If LIBOR is rigged, does it render all past contract/derivatives based on LIBOR fixing to be invalid ? and hence compensation is due from Barclays, other banks or even BOE and NY FED ? You would believe this especially if your instrument is underwater.

Obama still has not spoken on whether his TAX BILL "Obama dun care" has to pass Congress not Senate.
Double blow, he lost his CARE and am going to face the wrath of a nation for introducing TAXes saliently.

Obama is effectively gone. So he has to rely on a WAR to make a comeback.

Tuesday, July 3, 2012

3 Jul Pre-holiday trading

Asia market have a startling day, all rallies. Except China. Nikkei has held 9066, spectacular.
China is going to launch bond futures, which would likely draw a lot of funds. And nobody want to be a national hero to lift the stock market on behalf of government. Neither are they keen to short it down.
Interestingly, Euro has been on its way down from the spurt to 1.2690.

Gold also has a good rally to 1611, expecting more during US trading hours.

Friday is NFP. perhaps that would be the pinnacle.

Hong Kong is having big trouble, the previous chief executive Donald Tsang essentially is branded as a failed Chief Executive, having embroiled in bribery scandal, and lack of effort to alleviate the poor. In HK, there is one or two mass demonstrations everyday. Even since HSI has rammed into 24,000 and trapping a lot of HKers, it has languished under 19,000. Hopefuly the new CE CY Leung can pump some monies into the market.

As for Singapore, with its well administered monetary market has decided to request foreign banks which attract domestics deposits to incorporate in Singapore, essentially locking down where they can deploy the funds.

We would see more of these in coming weeks, when Central Bankers aim to secure their capital.

Europe has imposed sanction against Iran. And Iran has decided to endure it patiently.

Bobby manipulated Libor, and the question is all contracts which were based on Libors are valid ? BOE is obviously involved to allow all these to happen, like they have peg GBP to EURO above 0.8.
Is Bernanke aware of this and agreed silently to the manipulation ?

If one Diamond is gone, how about the other Dimon ?

In Singapore, the bankers always run into trouble. First was a RBS banker whose Bentley was rammed by a woman, then a Australian trader who jumped bail after punching a cab driver. And now a UBS Swiss executive who is accused of sex with underage gal.

Juergen faces a jail term of at least 9 weeks. And in Asian prisons, rectum integrity is of utmost concern. It is akin to the burial ground for Bankers.

Monday, July 2, 2012

2 July Euro 2012 result

Yes, it is around the corner, the showdown between Spain and Italy that would determine the market in the month of July.
Meanwhile, whispers have it that Germany would have a Referendum soon on whether to fund the crisis, and the Germany constitutions courts is finding it difficult to approve ESM (the Europe other commercial bank).
Some of my followers in the East would not be able to trade or even surf after their home was blown away and swept in the storm.
Japan starting its first nuclear reactor,
and Zombie attack has reached China Wenzhou:

God has spoken. Italian has lost big time to Spain, Four: NIL. We are going to see a Full-Monty of the Italian debt crisis. And that would be the Final.

Asia markets inches up, e.g. Nikkei has went up again to 9000, after the 1st nuclear reactor reopened yesterday. Noda has run out of monies, no more monies to buy oil After the Europe final, we are going next to see Japan debt crisis, and lastly American Fiscal Clift in December, when the winning Democrat President is hopeless against the Republican Congress who is not interested in cooperating. What if it is a Republican President and a Republican majority Congress ?

What is happening on the streets ?
well, companies have been busy share repurchase, using their spare cash. and churning out goods that nobody want. E.g. in China, they are still selling IPAD2, though IPAD3 is available if you enquire. There is such a big supply of everything in the market now that propelled the mini-Boom in 2011. Companies make and make and push out to distributors. I was passing by a cake shop, and the owner was asking the delivery man not to send any more stock, and the delivery man says his boss asked him to send, no matter what. Stocks are everywhere accumulating. Bcos of availability of cheap capital, manufacturers went full steam. A analyst survey Shanghai Shenzhen top 300 companies, their average margin went from 30% to 11% in last qtr 2011, and now a meagre 10% in 1Qtr 2012. Monies are more difficult to make, even in China. As Bank makes monies, companies borrow and convert those monies into paper shares, if not bonds. This explains the levitation of both the Stock and Bonds market. IF whatever spare monies that land in the hand of the man in the streets, it went into property purchase, eventually ending up with the government. It is very much a 2 way traffic out there, the slow and the fast.

Nobody is cheered by the German lending to the banks. Merkel has given up, she would probably step down by the end of this year, if not earlier.

Another update
Egypt Morsi has vowed to free the jailed 911 mastermind culprit who is a Sheikh in North Carolina prison. Also has a grand plan for the Peninsula including Israel. Now Nethanyahu has 2 problems, left and right. If Israel bombs Iran now, Israel is guaranteed extinguished. Nethanyahu just has to buy time for his retirement. With a American PhD, Morsi is the new Pharoah of the middle-east, and perhaps he is the Mohammed as promised in St Bernabas  Gospel. Allah is the last religion.

Now stories of gay Obama resurface, and his gay mates were executed in 2007. Wait till it gets to MSM with Republican funding.

Sunday, July 1, 2012

1 July Euro2012 and Hong Kong independence day

Euro2012 and the Euro debt crisis
Here is how the Euro2012 game would be played.
If Italy wins, Spain loses, that means the Euro crisis would stop with Spain, Italy would be excused. I.e. the Euro crisis has come to an milestone settlement.
If Spain wins and Italy loses, Italy would be up next, the fire would spread to Italy, with Italian banks failing.

So this match would be keenly watched in US.

HK 15 years return to China
Today marks Hong Kong return to China 15th year anniversary, and a new Chief Executive CY Leung is in place. We expect Mr Leung to be more adamant against protestors, with clampdown and arrests. He was known to propose harsh measures years ago. Hong Kong would be the firecan for China.
Meanwhile it has big plans to unite the exchanges in Shenzhen, Shanghai and Hong Kong, to resolve the liquidity problem, and hopefully foreigners can buy China shares easier, to resolve the current standdown in the market.
This measure is like the those planned stimulant back in 2007 when it was rumoured that China would allow Chinese to buy HK stocks directly.

Kofi gives the world a joke by organising a Syria summit in Russia and hoping that Assad would step down voluntarily. This marks the breakdown of diplomacy and violent military intervention to ensue, with NATO, Turkey injecting forces into Syria. Followed by response from Iran and Hezbollah.

How to trade
Wait for the creeping up of Euro, worldwide stock indices towards 4 July, a good chance to earn some marginal profits, and ready for the next plunge. The depth of the plunge would depend on the outcome of the fussball today and a Africaan Botellini.
My neighbour 9 year old boy just told me how to trade. He wore a Italian jersey and a Spaniard pants. You bet equally on both sides. Keep a core long investment position on equities, gold. and a partial position on trading the rally up, and then go short.

Any forecast would not be complete without mentioning the coming Presidential election. Post 4 July, we should see "Fast and Furious" playing out. Some may attempt to impeach Obama over the coverup. 

Three more hours and we would have the Final Euro2012.