Not bad for a pullback day. Afternoon strength signals bullishness. Economic reports should continue to be good this week and propel the market higher.
Assuming a 12 to 1 reserve limit. Let’s say you deposit $100 in the bank. They can loan out $1,200 dollars at a 10% interest rate attached to your $100 deposit. So let’s say the interest rate you earn is 5% a year.
You would earn $5 in interest while they would earn $120 off your own MONEY. Your money is diluted and inflation increases.
Looks like we got our “pause” day. Not sure about Wednesday, but short term charts are pointing up. Hard too say right now though, as the big money injection from POMO, (and new mutual fund money) was on Monday.
Next big injection of POMO is this Thursday and Friday… how convenient?
We just have to look back to 2008 for an example. On it’s way to $147/barrel, the stock market was basically going down (May – July S&P down ~150 pts). Now the market didn’t really tank until oil came crashing down into the 30’s, but the market was going down while the TPTB had their manipulation up to $147…uhhhhh, I mean while supply/demand warranted $147, right?
I wish I could answer that, but I can’t. I will say that at some point the market and the dollar will collapse together… because of fear of the devalued dollar I would assume.
Then when a bottom of some kind is hit, they will both rally together. We should see oil fall back down at that same time too. Traders know that with extremely high oil prices companies’ profits will fall, and that’s why the market will go down and oil up.
Then will oil backs off some, traders will buy the market in anticipation of companies being able to profit again from cheaper oil.
Remember, just because the price of oil goes up, it doesn’t necessarily mean that oil companies (like BP, Exxon, Shell, etc… which weigh heavy in the dow) will increase their profit. Other factors are involved in whether there make more money or less.
While that has been the case lately, it’s not something written in stone. They can make more or less profit with higher oil levels.
The collapsing dollar, while the market also tanks, will lower their profit (in real terms), and therefore their stock could be dumped by investors regardless of the price per barrel of oil.
While I don’t fully understand the correlation between all of them, I do know that they can all become out of sync at any time.
if we all agree that the markets are planned, then by extension – it seems very likely that so are the correlations between different markets. it seems that when it is convenient for tptb to have a certain correlation (US dollar up – equities down) then it is so…. or like yesterday – opposite moving risk assets of oil down but equity up…i wonder if there is a way they tell us what correlations they will decide to use?
Anyone see this chart over at ETF Corner? Pretty telling
http://www.etf-corner.com/.a/6a010535da87f8970c0147e1436c35970b-pi
AGQ baby! Stomp JP Morgan’s brains out!!!
How high is silver supposed to go? Have you heard any estimates?
NEM fell hard today…If NEM gets anywhere near it’s 57’s—I think that is a good signal to use, for going long GLD and that 3x etf silver—
Not bad for a pullback day. Afternoon strength signals bullishness. Economic reports should continue to be good this week and propel the market higher.
Sorry, I meant to explain why banks can loan out more money than they actually have. It’s called, “Fractional Reserve Banking”.
http://en.wikipedia.org/wiki/Fractional-reserve_banking
Assuming a 12 to 1 reserve limit. Let’s say you deposit $100 in the bank. They can loan out $1,200 dollars at a 10% interest rate attached to your $100 deposit. So let’s say the interest rate you earn is 5% a year.
You would earn $5 in interest while they would earn $120 off your own MONEY. Your money is diluted and inflation increases.
Looks like we got our “pause” day. Not sure about Wednesday, but short term charts are pointing up. Hard too say right now though, as the big money injection from POMO, (and new mutual fund money) was on Monday.
Next big injection of POMO is this Thursday and Friday… how convenient?
http://www.newyorkfed.org/markets/tot_operation_schedule.html
We just have to look back to 2008 for an example. On it’s way to $147/barrel, the stock market was basically going down (May – July S&P down ~150 pts). Now the market didn’t really tank until oil came crashing down into the 30’s, but the market was going down while the TPTB had their manipulation up to $147…uhhhhh, I mean while supply/demand warranted $147, right?
I wish I could answer that, but I can’t. I will say that at some point the market and the dollar will collapse together… because of fear of the devalued dollar I would assume.
Then when a bottom of some kind is hit, they will both rally together. We should see oil fall back down at that same time too. Traders know that with extremely high oil prices companies’ profits will fall, and that’s why the market will go down and oil up.
Then will oil backs off some, traders will buy the market in anticipation of companies being able to profit again from cheaper oil.
Remember, just because the price of oil goes up, it doesn’t necessarily mean that oil companies (like BP, Exxon, Shell, etc… which weigh heavy in the dow) will increase their profit. Other factors are involved in whether there make more money or less.
While that has been the case lately, it’s not something written in stone. They can make more or less profit with higher oil levels.
The collapsing dollar, while the market also tanks, will lower their profit (in real terms), and therefore their stock could be dumped by investors regardless of the price per barrel of oil.
While I don’t fully understand the correlation between all of them, I do know that they can all become out of sync at any time.
red,
if we all agree that the markets are planned, then by extension – it seems very likely that so are the correlations between different markets. it seems that when it is convenient for tptb to have a certain correlation (US dollar up – equities down) then it is so…. or like yesterday – opposite moving risk assets of oil down but equity up…i wonder if there is a way they tell us what correlations they will decide to use?