Hot Shots: All Aboard or Train Wreck?

As we move towards the last trading week of September, a period historically renowned for its bumpy corrections and not to mention its sometimes grizzly neighbor of October, 2012 has so far been anything but troublesome for bulls with the SP-500 (SPY) up close to 4% for the month. With the latest action shaping up as a rather constructive and benign looking simple pullback into the 10SMA after setting four-plus year highs and the VIX ($VIX) refusing to shy away from its confident multi-year lows, is it time to say “All aboard” or be careful of an imminent train wreck?

As discussed about two weeks ago, if traders believe in the Dow Theory and its ‘train’ of technical thought which holds confirmation between the industrials (DIA) and transports (IYT) as sacrosanct; bears may be looking to climb on board the market. Despite the DIA setting fresh multi-year highs, the IYT has gone from attempting to break out of a neutral, but bearishly-positioned symmetrical triangle to a quick test of pattern support on Thursday. The grizzly pressure was due largely to a rail-road’ing of sorts from Norfolk Southern’s (NSC) south-of-analyst-views profit warning for its upcoming third quarter.

Figure 1: Dow Jones Transports (IYT) Daily
On the other hand, one chart which was a concern a couple weeks back, but now is potentially trying to bottom, is the world’s largest semi (SMH) outfit Intel (INTC).  Since we last wrote about Intel on September 10^th in this column, shares have proceeded to move lower on the daily and confirm our prior worries on pending weakness. The good news is that same pressured price action when viewed on the big picture of the weekly chart suggests Intel’s downtrend could be near completion.  (more)

Do You Believe Bernanke or This Chart?

About 20 years ago, I learned to trust charts over what others were saying … even if they were central bankers.

Ben Bernanke told us that we’re not really experiencing inflation. However, if I look to the chart of the CRB Commodity Index, which essentially embodies inflation, I see that inflation bottomed in June/July and it has been heading upward ever since.

See larger image

But when did it get a turbo boost? It was when Bernanke provided stimulus to the market at the latest FOMC meeting. But that’s probably just a coincidence, right?

Yeah … I don’t think so either.

This basket of 19 commodities is heading higher, and it could be scary … unless you’re a commodity investor like we are in the Commodity Trend Alert newsletter.

You see, the CRB Commodity Index involves the stuff you buy all the time in one form or another. The index tracks everything from cocoa and coffee to unleaded gas and copper.

In life, you may or may not ever buy a stock. There is no requirement to do so. But be assured you will buy corn, wheat and all the other commodities in this index. That means when this index heads higher, it will hit you in the wallet one way or another.

Inflation is being stoked. I’m going to trust the chart over Bernanke, because charts don’t lie. And the best way I know of to hedge yourself against the rise in food and energy costs is to be invested in commodities.

Here Is the Key To The Global Markets Right Now

from KingWorldNews:
With uncertainty developing in global markets, investors and professionals are wondering where markets are headed from here. Today King World News interviewed 33 year veteran, John Gray, from Investors Intelligence to get the answer. When asked what he is seeing and where he believes markets are headed, Gray responded, “The latest polling of advisory sentiment, and that’s about 130 independently produced stock market newsletters, showed the bulls jumping this week up to 54.2%. The bearish reading declined to 24.5%.”

“The current reading of bulls at 54.2% is the highest reading we’ve had since the start of this year, and that would be mid-February when the Dow was approaching 13,000 for the first time. Readings of bulls over 55% starts to get scary to us, and occasionally, in strong market moves, major bull tops, you will have the bulls up as high as 60%.

That gets to be very dangerous (see chart below).
John Gray continues @ KingWorldNews.com

Lindsey Williams Announcement Mortgage takeover Deep Earth Bunker Illuminati the elite

Crisis Replay… Soon Argentina Will Be on Sale Again

Just over a decade ago Argentina spectacularly unraveled with the biggest default in history — $100 billion. Dollar deposits were converted to pesos. Then, overnight, the peg of one-to-one with the dollar was broken. The unpegged currency immediately devalued. Savings were wiped out. Banks were set alight and locals took to the streets in protest.

 That crisis created the biggest buying opportunity of a decade. During the fire sales you could have picked up a historic, high-end property in Buenos Aires or a vineyard in Mendoza for a song.

 Today, Argentina is back in a bind. There is a strong possibility of another crack-up within the next year. And then we’ll have the same opportunity we had a decade ago. The signs are all there. The streets of Buenos Aires have recently seen the return of the backstreet currency exchange.

According to the official exchange rate, which is subject to capital controls, 4.4 pesos buys you a dollar. But on the street people are happy to pay up to 6.7. Inflation runs at 25%. The purchasing power of an Argentine’s peso savings is going down by one-quarter each year.

 The government claims inflation is 9.9% and has outlawed calculating or quoting any other inflation rate. Forty percent of dollar deposits have been withdrawn from Argentina since last October. Now there are capital controls. You need special permission to move your dollars overseas. (more)

Ben Davies – This Move In Gold Will Take It To $2,400 -$2,500

kingworldnews.com / September 20, 2012
Today Ben Davies spoke with King World News about why he believes the gold market is headed much higher than current levels.  Davies made some bold predictions.  Here is what the rising star had to say:  “Right now, the best expression of our macro view is still to own gold and silver because we believe this is ultimately going to be the survivor of this Debt Supercycle.  We believe it’s going to be the surviving collateral.”
Ben Davies continues:
“The ECB, even in this last meeting, has effectively reduced its criteria again on collateral.  They are effectively saying, ‘We’ll take everything, including the kitchen sink into the ECB, if it allows us to backstop the system.  So in that situation collateral is running out.
We noticed this also in the US.  Smaller banks are now allowed to have gold as a zero risk-weighted provision….
READ MORE

Lindsey Williams & Chris Waltzek: Soon, the Federal Reserve Will Own YOUR House

from radio.goldseek.com:
by SGT,
Pastor Lindsey Williams provides an update on world events from his viewpoint. Stay tuned for this one all the way through. Lindsey explains how QE3 and the mortgage backed securities fraud will make us all serfs to the Federal Reserve, as Lindsey Williams warned would happen more than a year ago. The Banksters will own it all soon enough, just as Thomas Jefferson lamented:

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

CLICK HERE for the interview.