Sunday, August 23, 2009

World Market

US markets continue to punish the bears. I'm Looking out for the new foreclosure panic. But then, the banks can have fantasy value, the market may not sell down. The Federal has print so much money. Deflationist says that the money will be used to pay the housing losses. But what losses to pay if the valuation is at fantasy numbers? What do you do with the extra cash if you don't want to lend it out? I think that the answer is to use it to speculate. Yes, banks can use the money to speculate on commodities because they need the profit to payback the government. So, I think that the inflationist will be right.
World Monthly Weekly Daily Note
S&P500 Up Up Up R=1.15k
DJI Up Up Up R=9.8k. Daily bearish divergence
NasdaqComp Up Up Up R=2.18k
Nikkei 225 Up Up Neutral (-) Next R=11k
Kospi Up Up Up Next R=1.6k. Overbought.
SSECI Up Neutral (-) Down (-) R=3.5k. S=2.8k. Correction.
HSI Up Up Neutral (-) R=21k, S=19.5k
TWII Up Up Neutral (-) Toppish
STI Up Up Neutral (-) R=2.7k.
JKSE Up Up Neutral (-) At R=2.5k, overbought
SENSEX Up Up Neutral (-) R=16k
AORD Up Up Neutral (-) R=4.6k
NZX50 Up Up Neutral (-) R=3.2k
FTSE Up Up Up R=5.1k
DAX Up Up Up (+) R=5.5k
Bovespa Up Up Up R=55.8k

Looking at commodities:
Commodity Monthly Weekly Daily
Gold Up Up Neutral
Crude Oil Up Up Up (+)
Crude Palm Oil Up Up Neutral
Rough Rice Down Up Neutral

Why is oil going up when the biggest consumer, USA is in the great recession? Peak oil or speculation?

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