Monday, October 12, 2009

Technically Precious with Merv. Oct 9, 2009

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Gerald Celente: 2012 forecast: Food riots, ghost malls, mob rule, terror

A trends forecaster says the current economic "rebound" from last winter's Wall Street collapse of banks, insurance companies

and automobile manufacturers is an artificial blip created by 'phantom money printed out of thin air backed by nothing."

And Gerald Celente of, says people right now should be bracing for "the greatest recession" which will hit worldwide and will mark the "decline of empire America." Crop failures could be among the minor concerns.

"Here we are in 2012. Food riots, tax protests, farmer rebellions, student revolts, squatter diggins, homeless uprisings, tent cities, ghost malls, general strikes, bossnappings, kidnappings, industrial saboteurs, gang warfare, mob rule, terror," he writes for a quarterly publication that is available through subscription on his website. (more)

PBS with Bill Moyers

Just over a year after economic calamity brought promises of reform from Washington, has Wall Street really changed? Former International Monetary Fund chief economist Simon Johnson and US Rep. Marcy Kaptur (D-OH) report on the state of the economy.
(watch the video click here)

Aren't you the least bit suspicious that Goldman is talking up the banks?

Goldman Sachs has raised its rating on large banks to "attractive." In related news, Neal Barofsky, the special inspector general for the Troubled Asset Relief Program has said that the Feds may have, er, not quite told the truth about the health of the banks receiving TARP funds. He didn't use the word, lie though. How are these two items related? We'll explain below.

First, Goldman's buy on the banks seemed to buoy the market. The Dow finished up 112 points and is just under 9,600. Meanwhile, Aussie stocks shrugged off that sense of impending doom and rallied 43 points yesterday. The ASX 200 is at 4,622 and thoughts of 5,000 by the end of the year must surely be dancing like sugarplums in the heads of some investors. (more)

October 2009 Stock Market Crash Ahead

Technicals indicate a 1987-style stock market crash is anticipated for the current month. The Rising Wedge pattern on today's DJIA daily chart is technically perfect as was the 1987 Nasdaq weekly chart before the crash of that fateful year. Soon, I anticipate opening a position in QID to take advantage of this event.

Observe how the technicals repeat, this time on a daily chart: (more)

Worst BRIC China Becomes Best Buy for Fisher, Schiff

China’s stocks, the worst performers among the largest emerging markets in the third quarter, are poised to rebound as investors say shares are too cheap to pass up with economic growth accelerating.

“They are the best value equity play anywhere in the world,” said Robert Froehlich, senior managing director at Hartford Financial Services Group, which oversees $352 billion. “Valuations and the Chinese consumer are a one-two punch.”

The Shanghai Composite Index surged 4.8 percent at the 3 p.m. close today as markets in China opened following an eight- day holiday. The benchmark index lost 6.1 percent in three months amid concern that a lending slowdown would stifle the world’s third-largest economy. Stock gauges in Brazil, Russia and India -- the three other so-called BRIC nations -- each gained at least 18 percent in the same period, the first time since the end of 2007 that they’ve risen as Chinese shares fell. (more)

Trend Trader for Monday Oct. 12, 2009