A GOOD OLD FASHIONED CURRENCY WAR

  “A GOOD OLD FASHIONED CURRENCY WAR?”
By Gary Kaltbaum 8/11/2015
@GaryKaltbaum
garyk.com
Don’t worry. We’ll just gap up 200 tomorrow. Bazinga!
What’s all this complaining and whining about China? Did you just realize they were in dire straits and needed to do something? Haven’t you not seen the videos of their ghost cities? Of course, a move like ripping on your currency could be good in the near term but not so sure longer term. Haven’t we seen enough of that already? The bottom line is we have been telling you that China’s numbers are about as good as our unemployment number…just made up. But let’s not put this all on China. We, us, the U.S. of A is the biggest manipulator and the biggest rigger of everything. This country started it all up with 0% rates for over 7 years, the printing of almost $5 trillion in order to rig interest rates down and asset prices up and the pounding away at other countries to do the same as we did. This led to Japan printing a few trillion, Europe printing a few trillion, U.K. printing a few and who knows who else. Have you seen the yen and euro lately? The globe has printed anywhere between $15-20 trillion depending on whose abacus you are using and it started with Mr. Bubble Bernanke himself.
We knew something was up Monday when the leading areas of the day were the worst areas. We were asked on tv on whether we thought it meant anything. Our only answer was that it was one day. Today’s action is just the continuance of the nausea. Remember, it is not the news. It is how the market reacts to the news. How many times in past years did the market get hit with some bad news but still went up? This tells you markets have changed and right now, it’s not for the good.
As we have stated, the market’s deterioration continues. We are not sure what day or at what point the major indices break but it is a lock for it to happen if more and more stocks and sectors go to the negative side of the page. It is not good that the market has lost names like Apple and Disney and now, the financials need to be watched as we are not so sure currency issues are good for banks. And by the way, did you notice how easily the almighty Apple sold off after a one day, low volume bounce?
Lastly, we have told you on many occasions that the central-bank induced markets have turned into what we call “the one-sided trade!” It is the trade where everyone is all in. It is the trade where nothing can ever go wrong. It is the trade where everyone is comfy. It is the over-leveraged trade. It is the over-owned and over-loved trade. We mention this now because we do not like anyone that predicts meltdowns and crashes. Wall street is littered with people who call for crashes and big bear markets on a daily basis. They will miss 10,000 Dow points to the upside and when a bear finally hits, they tell you how right they have been. Thus, we will not call for one. But…we felt it necessary to let you know we are worried that everyone is on one side…and worry about what happens if that changes quickly. Good old currency wars could have repercussions. Watch that 2.040 S&P. If it holds, terrific. If it breaks…

Chart of The Day: China Gets Desperate!

Don’t worry. There’s no bubble! Part 276!

Aquinox Pharmaceuticals (AQXP), an IPO in March 2014 was just another of those “no sales’ biotechs foisted upon the public by the lovelies who continue to put a ton of this stuff into the market. Unlike many soaring “no sales” names, the stock did nothing.  This led to July 9th where the stock got hit hard from $7 down to $2 because of a bad drug trial.

But somehow, just a month later, that same drug was all of a sudden a hit during trials. We will not quibble with that. But something else happened. The stock went from $2 to $11 in just one day this past Friday. But that was nothing. Just yesterday, off the Friday news, the stock went from $11 to $55 and that was by 1015 am. Unfortunately, it finished the day under $19. Anyone who bought in at 1015 had a bad day. Let me be clear on this, someone was willing to buy this stock at $55 even though 2 days before it was less than $2 and even though the company is still a long way away from any sales. But guess what happens this morning? As we write this, the stock is up over $6 premarket…a measly 30% gain on nothing. But don’t worry. There is no bubble. Just ask Janet!

 

 

Audibled report!

We had a nice report for you this morning based on yesterday’s action. Then, China did something with their currency. So the “guess the gap” game is down this morning.

The bigger question is why does a country even have to control its own currency like China does? The answer is: they are communists. They like control. They know their economic numbers come straight out of Fantasy land and they know they are an accident waiting to happen. But don’t worry, governments have you covered.

More tomorrow as yesterday’s big move was led by the worst areas. Hmm!

 

Dictate and mandate businesses pay $15/hour and…

SOURCE: http://dailycaller.com/2015/08/10/report-seattle-restaurants-suffer-worse-job-loss-since-the-great-recession/

See what communism, dictatorship and an iron fist buys you!

Yup…the Chavez clan was for the people!

Source: http://www.dailymail.co.uk/news/article-3192933/Hugo-Chavez-s-ambassador-daughter-Venezuela-s-richest-woman-according-new-report.html

Ad-Blocking Software Will Cost the Ad Industry $22 Billion This Year

http://blogs.wsj.com/digits/2015/08/10/ad-blocking-software-will-cost-the-ad-industry-22-billion-this-year/