Sunday, June 7, 2009

6/6/2009 - Stock Market Review

The 'Lie-a-Thon' Continues

The Bernanke rally that began March 9 continues. Monday saw a huge spurt higher at the open and the rest of the week stayed strong. You can see that Wednesday morning feel at the open and stayed weak until the afternoon. Obviously, the stock market has become somewhat of a GPS for Bernanke. He was busy Wednesday morning testifying in front of the nitwits we call 'Congressmen' discussing trivial nonsense. What else would these idiots talk about? Anyway, we our man Ben is away from the printing press, the market always falls. When he got back to work in the afternoon, the market went back up. He must have left early on Friday because the nice rally of the morning faded a bit as the day closed. Yes, this is the pathetic state of the American stock market.

The Friday rally was built on the job loss number that came in quite less bad than expected. How can that be? Doesn't everyone know by now that the government is 'selling' an economic recovery and therefore all the news will be good? You know - we aren't losing jobs as rapidly, home sales are getting better, car sales are picking up, we are making more money, everybody is pretty, blah, blah, blah. Our government is a lying propaganda machine the likes of which have never been seen. 

For instance, the White House Economic Advisor, Christina Romer, appeared on Bloomberg Friday morning and when asked why Treasury yields were rising, she responded that 'it was hard to tell' and she really wasn't sure. Well, Ms. Romer has a PhD from MIT and teaches at Berkley. 'Piled Higher and Deeper' has never been applied more accurately than here. Even I know that printing the currency like a drunken Zimbabwean while borrowing like a gypsy is the recipe for higher interest rates. Duh. Would someone please send the link to this blog to Ms. Romer? Then she won't look so stupid the next time the government trots out a hand puppet to disseminate preposterous propaganda of an economic recovery. To recover from the first depression of '29, it took twenty years, massive government spending, and a terrible world war that extinguished the lives of millions. So far in this depression, it has only been a few months and as yet, there has not been a great loss of life. Anything for a rally, Ms. Goebbels. Uh, I mean Ms. Romer.

In the meantime, Mr. Obama has put forth a shining light as to our court system. His nominee for the Supreme Court is Ms. Sotomayor. As a Latino women, she stated publicly that her ethnicity and background rendered her decision-making abilities superior to those of inferior white males. To be specific, her parents are Puerto Rican. Whew! I'm glad we got that in to the open. This revelation by logic, also renders her decision making skills superior to black males, Asians, Indians, Germans, and Australians. It is therefore obvious that the eight other members of the Supreme Court resign immediately so that Mr. O can appoint Puerto Ricans only to the highest court in the land. 

Back to the markets, GM declared bankruptcy on Monday morning. That prompted a rally. Do you get the intoxicating aroma of 'insanity'? Yes, nothing like a behemoth manufacturing company going belly up to stock a market rally. In the process of nationalization, the government is infusing billions of your cash, screwing the bond holders, and partnering with the unions to 'build a better company'.  To that, the President of Venezuela, Mr. Chavez, called Mr. O a 'comrade' in socialism and mused that he and pal Fidel better get on the ball least they find themselves to the right of Mr. O. His words, not mine. I couldn't agree more! 

Here's an idea to save the economy (unless of course Mr. O already did so in 100 days or less). The banks were, and are, broke and needed money. Ditto for average Americans. We, as Americans, owe some trillion dollars to the banks in credit card debt. Instead of giving the banks the money in a nationalization effort, our government could have forgiven all credit card debt and paid the tab off. Wouldn't we all be in better shape now? Why didn't Mr. O think of this? Oh, I know. He's not really in charge, is he? I wonder who is? Whoever he is, he sure is stoking a nice stock market rally with his printing press. Again, we have to take out Dow 9000 first, and then surmount 9600 to officially end the downtrend that is currently in place. You can bank on it!! Did I say 'bank'? Yeah, that's what it's all about!!!! Oh,  have you noticed the price of everything going up? I told you that you would be sacrificed. Peace!

DJIA - 1 Week 60-minute bars ending 6/5/09
Chart courtesy StockCharts.com



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