Did the Fed Buy Futures Today?

We are not on the distro list, but we need to ask:  is it reasonable that the futures market would only be down 56 points on the Dow after a weekend like this one?

I mean think about it:

Japan was down more than 3-1/2 percent overnight.

Hong Kong was down 2-1/2 percent.

Europe is bleeding red all over the place so far with Germany and France down 1-1/4th’s percent. The UK, which may have enough sense to exit the clutches of the EU this morning, was down ¾% of one percent.

Yet percentage-wise, the US market was down what? One-third of one percent?

Uh…yeah, sure, you bet-cha.

While we will be comfortably in the money on our short position anyway, the real question (above both of our pay grades) is how much money from the exchange stabilization fund (ESF) did this morning cost us? I mean, if anything, of course.

It is an intriguing question following the disastrous and world-changing events in Orlando early Sunday morning. New York Times coverage is over here.

But more important is what we are learning about the shooter – beyond the pledging allegiance to ISIS. Turns out that in addition to being described by a co-worker as homophobic and unhinged, Omar Mateen apparently worked for a major Department of Homeland Security contractor.

As you would expect, this has instantly spilled over into the hotly contested US presidential contest. And, perhaps morer significantly, it underscores how the press is sharpening its axe as extensions of the Dump Trump movement.

Politico, for example, decries “Trump’s Tragic Victory Lap.” Painting Trump’s response as “reality-show small” we didn’t have too much trouble figuring out the reporting sentiments.

A bit more evenly Slate headlined “In Statement on Orlando Shooting, Trump Says “We Can’t Afford to Be Politically Correct Anymore.”

Former UN ambassador John Bolton made a couple of key points to Fox News: One is that terror is still growing and two we need to understand that there is a price for failing to aggressively seek it out.

There is also an open question about whether the arrest of John Wesley Howell by California authorities, on his way to an LA Gay Pride event where he intended harm according to police, was strangely “coincidental” – at least so far.

So as the daylight comes up over the coffee cup, we have many possibilities to consider:

1. We wonder if the Fed/Treasury went out and bought a ton of futures?

2. What will Donald Trump say in Vermont, and Hillary Clinton is Ohio, to promote their presidential aspirations?

Another point to watch is how Donald Trump and Ted Cruz are really capitalizing on president Obama’s failure to specifically call out radical Islamic terrorism.

While there are some accounts that attempt to apologize the president for his lack of clear-speaking, it will be instructive today in her Ohio speech, whether Hillary Clinton can name fundamentalist Islamic terror directly, or whether she will continue the mumble-speak and continuing lack of mental acuity that has allowed the problem to fester for so long, all the while continuing to bring in planeloads of un-vetted Middle East refugees. A direct result of the misguided Nasty Nest of Neocons who even now persists with regime change plans – all of which have blown up in our faces.

My expectation is that the Left will use the event as yet-another pretext to abridge the Constitution via gun control which, as I see it, is exactly back-asswards of the direction we should be taking. It is a “Shameless Pivot.”

But you really ought to be used to that kind of thing by now.

So we return to our original question:

How much is the futures being down 64 points gonna cost us?”

My guess the market will slide more than a hundred, and possibly twice that ahead of the Fed this week.

Even if the market falls today, the Fed is ahead of the problem with their latest 3-month H.6 Money Stocks report showing the M1 money supply screaming ahead at more than 11% per year. (M1 is up more than 14% in the past two years, too. And the previous 13 weeks prior to May 30 is up 12.1% seasonally adjusted an annualized. But hey, don’t let me kill the illusion of economic growth for you. But it WILL POWER METALS UP.)

Eventually, that full-tilt boogy at the presses will flood back into the market, stocks will soar, and the myth of a healthy American economy will persist until the grim reaping to come in 2018. That’s about when you’ve be swimming in ducats that won’t buy anything. Which is why you need to pay off debts while you can….

“Never Stops Selling”

Remember those Yellow Pages ads from back in the day: “Never stops selling” was the tagline/positioning statement.

At last, however, something other than the usual anti-BREXIT pap out of the UK as Boris Johnson says Brexit would bring Australia and the UK closer together.

I will have to defer to our ex-NYC marketing maven in Ecuador for an analysis of who’s getting more useless press: The Kardashians or anti-BREITeers.

3-1/2 Inches of Rain

That was how much was in the gauge here at the official UrbanSurvivial East Texas Outback Weather Station. (Which doesn’t seem to be referenced anywhere else….hmmm….)

On the other hand, the fact that we were up half the night with thunderstorms moving through the area means this could be a terrible week for severe weather, so you want to check your family for storm preps before heading out.

Useless Story of the Day

About some dog that smiles

More Useful: Quora Monday

Best country to travel on a budget? Vietnam…explained over here.

Ah, a hot, steamy humid morning…just the kind of day that screams “Pizza for breakfast!” don’t you think?

Comments

Did the Fed Buy Futures Today? — 14 Comments

  1. On the Tragedy in Orlando, and ESF intervention in the US market. The way I see this is that there were a bunch of scum bags that made a lot of money shorting United and AA just before Sept 11 ’01. So in this case; that the terrorists will fail to capitalize on the short side of their mass murdering in Orlando. I salute the ESF. !

      • How high with the bush or pole beans grow before I have the need to harvest them comma is it immediate. Hyphen? Or is it this evening is it tomorrow this morning this evening or just right now at what point should I harvest I guess I am metamorphic Lee speaking about stocks and controlling stocks since I planted the seeds and I control all of those seeds and I’m able to reap the rewards from that but there’s other people out there that have interest in my seeds and they put little stock into it but they never know when I’m going to harvest my seeds unless I give them an indication of doing so

  2. Re your observation “American economy will persist until the grim reaping to come in 2018. That’s about when you’ve be swimming in ducats that won’t buy anything. Which is why you need to pay off debts while you can….

    If one can preserve capital through means such as gold, silver, or interests in productive assets that provide people with essential stuff (food, etc.)…

    why not wait to pay off debts with the worthless paper money coming at that time?

  3. Ha ha ha…Useless press is useless press no matter what the volume. What I find encouraging is that Trump’s supporters recognize that the mainstream media is nothing but lies and manipulation. The media spins, and the founding fathers spin in their graves…Intelligent people have to rely on the Internet and sites like this one for the truth. Even with eye surgeries…you still see things CLEARLY for which I and my spouse are grateful!

  4. There is no legislation, wishful thinking, pointing fingers, etc. that will fix what is wrong with Americans and America today.

    Everyone needs to look in the mirror as to who’s to blame, myself included.

    However, as to the White House and FBI not doing anything, check out this video …. http://www.huffingtonpost.com/entry/obama-orlando-shooting-nra_us_575e4801e4b0ced23ca879bb.

    Secondly, I highly suggest one take the time to learn about Mohammad; how Islam came about and what being Muslim is all about.

    The people being called “radical Islamic terrorists” are not Muslims, only people hiding behind a passive religion, just as those who have committed more horrible atrocities in the name of many of the other organized religions over the millenia.

    Do your own thinking. Don’t let others do it for you.

    • When did you learn?? I Learned in 1991, Beginning Arabic class at UT, way before it was trendy. Do not assume we are ignorant. Do not assume that we cannot think for ourselves.

      • So, you should understand what I was trying to say better than most because of your background then. Instead, you are offended?

        I’m curious, why is that?

  5. Market Makers are at work today bringing things up. American markets lead, the rest of the world follows.

    June won’t have a Fed rate hike. Being priced in now, it looks like.

    The Orlando trajedy was a signal to the world that “terrorism is now in America”. It is a sort-of consideration of weakness and may only be a temporary one. There are similar acts of terrorism in other countries on an almost consistent basis.

  6. Now that my Bitcoin is in the $700 range, it makes silver and gold look like a good buy, but wait, Bit will go up some more today.

  7. The ‘useless’ story of the smiling dog – it isn’t all that useless. It informs the uninformed and reiterates to the knowing that micro ruling laws passed by cities, counties and states that don’t have a full deck of cards on board who make such rules and laws, can affect each and every citizen and SHOULD be consideration when relocating to another city/township. That our freedoms are rapidly becoming mere illusions of such.

  8. So, MSFT buys Linked-In – why? Why now? You got to be kidding me. I guess, based on their current upgrade strategy, they will hold your OS hostage until you sign up for their social media?

  9. Yes it is your policies fault mr white house and stooges 535 worthless self serving trash get OUT