Greece is the word!

Full market report tonight but first Greece!

We love Greece. We have visited a few times. Some of the most beautiful places on the globe can be found there. Santorini, Mykonos, Corfu are bucket list places to visit but there is a lot of crap going on there and it is all about the bucks.

We remember the old line that if someone owes a little money to a bank, it is their problem but if someone owed a ton of money to a bank, it is the bank’s problem and that’s where things stand. The bank is the Eurozone and the number is over $300 billion. This is a gargantuan number considering the size of Greece. If Greece decides to shoot a certain finger back at the Eurozone, you would see massive write-downs as well as quick raises of capital. It would also open the potential for other debt-laden countries like Italy and Spain to do the same. Thus we think it is long odds for a default right now as no one wins. The problem is that all we will get is an extension of an extension and nothing more than more kicking the can down the road…which is ULTIMATELY not good. We capitalize the word ULTIMATELY because massive long run debts always end badly. Keep that in mind. And just remember, the great old U.S. of A is sitting on an $18 trillion debt time bomb that is being glossed over because of a rigged bond market, the printing of money and a media that hears no evil, sees no evil and speaks no evil as long as the great corrupt socialist is in power.

The bigger laugh is to hear the new head of Greece complaining there has been too much austerity. Yup…and the Knicks are going to win the NBA championship.

Breaking out!

Major indices have either edged above breakout levels or are about to from 11 week trading ranges. If successful and all evidence so far looks good, do not argue.

Remember, if the S&P 500 breaks out, that represents 500 names. If the NASDAQ 100 breaks out, that represents 100 names and so on.

As we have told you for ages, anything is possible. Breakouts do fail but breakouts for indices out of constructive patterns usually do not. And with other countries announcing negative interest rates and the printing of money to buy those bonds even though rates are negative, the easy money just gets easier. We still don’t understand why this is being done.

Just one more note in that oil prices are going to open above the first stairstep off the lows.

Weekend report is next.

Knicks are a horror show and now Carmelo is sitting for rest of the year. Way to go Phil Jackson!


This is one amazing story!


And closer!

What do you know? Sweden’s Riksbank is now delving into the negative interest rates world and also announcing their own printing of money to…you guessed it…buy bonds. The question is why would anyone buy their own bonds that have negative yields? Simple. They are following the template of Bernanke and the rest thinking it will help. But all this does is inflate the bubble even more.

But enjoy the bubble. Embrace it…as now it looks like major indices will open at the tips of recent highs. As you know, a breakout above the 11 week trading range should not be fought with. We had all kinds of other thoughts this morning but they pale in comparison to more easy money and a market hopefully ready to move out.

Getting closer!

Major averages are now on the verge of going topside. We never jump the gun but with yesterday’s action, we are getting closer. There is nothing bad about a move above the range…as long as the move holds. Aren’t we geniuses?

The important part of yesterday’s action was the SEMIS. As you know, they are vital to our work along with the FINANCIALS. These areas simply have been great leaders of the market, both up and down. The SEMIS ramped well yesterday as they also now set up for potentially higher prices.

There is still a very short list of new highs but many names looking like the major indices. A break above for the indices should show many new names breaking out. Stay tuned!


They still cannot sell the indices down!

Just a short note this morning:

Despite the 50-50 market. Despite the many areas that are not working. Despite not having a bear market since the big flood of 42. Despite nary a good correction…despite all of this, major indices continue to be range-bound. There is an old motto…if they can’t sell them off, they are eventually going higher. As always, we will let the market decide but so far, support levels get tested and support levels hold. A couple of good days will take major indices out of the range. A couple of bad days will do the opposite. That’s how tight the range is.

This morning, indices are again in gap city as Greece this and Greece that. Just keep in mind, nothing has changed with central banks. Rates continue to be at 0% and in some places are negative. The printing of trillions continues and since the lows, the over-the-top, never-been-seen, easy monetary policy has been the best friend of markets.

Friday’s radio show!

Here is Friday’s show. The show posted was wrong. Should be fixed soon. Sorry. Stop yelling!