Boring markets–UFOs Lurk?

Wednesday, we will be presening what may be a breakthrough in physics.  But for this morning, we’re focused on the more mundane issues like “What is driving the market up?”  The answer may surprise you.

We will also have a look-see at the New Mexico mystery – and our usual ChartPack that looks at the market ahead.

So bean up…it’s that time, again…

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18 thoughts on “Boring markets–UFOs Lurk?”

  1. George, I still don’t get it. Since the beginning, the Golem pointed mostly up, & returned a tidy profit. But I don’t see its inventor following the Golem’s advice. It doesn’t make sense to me.

    • OH, that’s pretty simple, really: the inventor is too damn busy to effectively trade right now. I know that we will break out of the current trend channel one of these days and they I will be back trading (with the new trend) but in the meantime, I don’t have time to write books and work on breakthrough physics while also actively trading… Too easy to lose if you don’t pay attention as I have provben to myself lol

      • George, it seems you need to focus that initiative on break through physics to invent a time warping device to create a 36 hour day so that you can effectively Time Block all of your projects.

      • The only one I have found so far is the usual executive time machine: Declining to volunteer for new projects until existing ones are seen through to completion. But, I appreciate that’s preaching to the choir…

  2. Thanks G, your reluctance to go Short into/out of the weekend gives me some relief in second guessing myself on the purchase of DXD Calls Friday – Jan 28’s @$2.50 per 100. One (1) option contract is leverage for 100 shares of underlying security, in this case Triple Levered/Short ETF.
    The underlying (DXD) closed Friday at 29.48… So $29.48 – 28 (strike price)=$1.48 intrinsic value. Paid .52 cents premium per 100 shares for the right to Buy the DXD in January at 28.00 plus the $2.50 premium..BE is $30.50 want to ring register at DXD = $39.00, or get out at around 26-25 Stop Loss.
    Long dated Puts on hyper valued Tech companies, and Long Dated Calls on several precious Metals/Gold Miners is my current “fund the fun fund” strategy. Keep the analysis going in timely manner..please, very helpful in setting up Long Dated Stops for Auto executes during next “flashcrash” ! Buckle up bunkies.

    *Report from the future sounds like Lefties screaming …”its a trap..Jeff Sessions…its a TRAP!”

    * how does a traitor during time of war who had to be PARDONED by then President Nixon ever get to be “War Hero” let alone a Senator? See grandfather Mcstain, father McStain, = Deutscher Verteigungs Dienst – German DVD

    Who WON WW2? seriously, who?

    • Deutscher Verteigungs Dienst
      Part of that is very interesting..part Isn’t which brings up a hundred questions..
      Part is the suggestion that the Holocaust was a hoax. Even though Adolph in his own words explained his plans..get the majority of the population dependent on govt. Programs for surviving while promoting unlimited growth for the wealthy..then taking the programs the laboring class is dependent on for surviving and openly giving the funds to the wealthy. By doing that the one percent of the wealthiest can be propelled to heights of control and wealth unimaginable while being able to enslave the majority of the wealthy all with the blessings of the laboring class..give a little back to the bottom so they can survive then dividing the remainder.
      I’ve personally known a survivor of Auschwitz a guard of Auschwitz and a member of the military that liberated the survivors of Auschwitz and a woman who escaped with her husband and three kids from being sent to the camps..
      That part is very true it did happen there’s no doubt in my mind..
      But then there is the other story..lol depending on what story you beleive from both points ov view. Such as we setup a safe haven for the survivors inflaming the middle east in turmoil..
      Or they stole the land..
      The slaves of Egypt or were they high paid laborers that wanted more and when they didn’t get what they wanted looted Egypt all in the name of religion..I personally liked the story where they went into a land whose tribe wanted to join theirs..of course but all the men and boys need to be circumcised..once they all had and was laying in pain the tribe killed the men and boys raped the women and girls and turned them into slaves to be sold off. Those to old were killed..
      So that part is extremely intriguing to me..which story is the true one..
      If you read the Torah you can see where the latter can be totally the true events and the reasoning for the extreme struggles of peace in the middle east or the book of jubbilies the ancient saternailia Holliday traditions etc.
      I find the whole thing and the possibilities interesting. Especially since even today there’s a sector that would rather take what they want use the age old ploys of doing it in The name of peace just so they can get control.

      https://interactive.aljazeera.com/aje/2017/50-years-illegal-settlements/index.html

  3. “Simple: If you have (roughly) the same amount of money coming into the market, but the number of shares being traded is actually declining, what are prices bound to do of economic necessity?”

    Could that not mean the price per share is higher, as in a heavy volume concentration in Facebook, Apple, Netflix, and Google. And, as overseas money comes in it is concentrated in the Dow components which may be average price higher than the rest of the market.

    I see that concentration as bad and resulting in a lot of tears down the road just like the cryptos, but it may not necessarily mean the whole market is unhealthy, especially if earnings are catching up. I know the government lies thru its teeth, even under Trump, but there is no doubt the economy is in pretty high gear (compared to where it was). There are so many jobs out there now, its amazing! You may not see it out in a rural area, but it seems like every small business in Cincinnati has a poster out that they are hiring.

    • The point of the article (gosh, I have to put this out for non-subscribers, lol) is that Yardeni’s data shows that Q1 buybacks were in the $190 billion range vs. a more normal $160 billion, vis the S&P 500 broad index. That 15% increase in buybacks could account for:
      — a 15% increase in share prices (roughly) and
      — a 15% increase in earnings as whatever the earnings are will be distributed to 85% as many shares.
      What we’re likely entering is the final blow off where the increased earnings begin to appear and that fuels the final leg up of the Virtuous cycle…
      (See what you miss if you don’t read Peoplenomics? lol…)
      When it all breaks, the double-whammy is there are no buybacks left, the earnings collapse and the virtuous turns vicious..

  4. If this is true…they should be prosecuted to the full extent of the law..unfortunately that will never happen since if it is true it would involve many many high powered people.
    Just like that issue a few years ago..the deeper you dug the uglier it got and that was from posts made by the very ones involved in the alleged activities..which for some reason all vanished like a flash in a pan. Even the articles from federal resources and news posts about investigations suspecting a group doing just those horrendous things.. All of it gone..is it real who knows we never will for sure if any of it is true or has any truth.
    What I find funny is the video came from a persons computer that was trying to get leniency for his despicable actions…
    https://youtu.be/zW0snvLfEEU

  5. The dates on The Golem are so small I can’t read them but is the narrowing of the range that is expressed there significant? Indicative of a breakout in one direction or another?

    Thanks, though, for exploring the incoming repatriated money and the share buy back process. Again, it’s just a matter of time before that incoming money dries up and the Treasury starts “printing money” to make up for the decrease which is another inflationary influence on things.

    I’m of the mind that things will get quiet before some PTB group decides to issue the command to “Pull It” and some black swan event takes it all down even when all the indicators say things will be fine for the foreseeable future. Frankly I’m sick and tired of waiting, too.

    • Brer George has received a note from Brer Buzzard today on a possible PTB worry at the Swan’s Lake:

      “Uh, brer George, in the map below, clipped from your site, the purple rainfall max in Virginia… falls directly on top of the Lake Anna nuclear generation facility, and the northern part of large ugly red bubble around it…pretty much defines, among other things, the entire catchment area of the North and South Forks of the Anna River, from which the dam created Lake Anna is formed – just sayin… So, der may be one a dem nuklear hazzardy dinguses in central Virginia, too, brer George…Don”t look too hard in dat briar patch…

      (With apologies to Joel Chandler Harris, who had he live would have written the closer to IRL book “Uncle Remus in the Electric Chair.”

      • Den maybe I shudda went out an’ boght wun o’ dem gigger counter whatchamahoochies back when I cudda. Wait! It may not be too late befo’ that thar ebay peeple spot goes down since it’s on da udder coast. At th’ very least it’ll make a dang good head konker if’n I caint figger it out. Sure glad I live IN da bria’ patch, tho. It’ll be fun watchin’ all these new city folk go nutz when they figger out they can’ get no mo’ fanzy dis, dat n da utter thang.

        We both be hedded to da same plaze Geo. See ya soon!

      • Gee Bill.. whater you gonna do wit it.. cheaper for a old hickory stick..as a head conker LOL. A total waste of good ole moonshine money..
        https://www.ebay.com/itm/Personal-dosimeter-ID-1-Individualnyy-dozimetr-Soviet-Army-Radiation-Detection-/112993365689

        where would you go what would you do oh me oh my…. the only logical thing you can do in a high radioactive area is assume the position.. and hope its a few years down the road for the cancers to set in..

        https://i.imgflip.com/yxyv6.jpg?a426576

        if your an execurtive type persun you could use that noose around your neck called a tie and pull your head into position to befoe insertion..

  6. “An unintended side effect of buybacks is that they raise earnings per share.”

    This is not an unintended side effect. This is the #1 (or maybe #2) reason for buying back shares.

    Corporations these days are not increasing sales. They are not increasing margins. And they are not increasing bottom line income. Thus, they are not increasing earnings per share.

    And so the big-wigs don’t make their bonus.

    But if they can borrow money at low rates, they can use the debt proceeds to buy back shares with little current impact on earnings. With earnings spread over fewer shares, the EPS goes up, and they get their multi-million bonus.

    The problem of how to repay the debt when interest rates rise and there is still no revenue or income growth, well that will be the next guy’s problem.

    • Have you seen the numbers of the debt?
      Considering that accelerating figure since as it grows it becomes a flash or blurr..years ago a friend made a delivery to the office of a member of the exclusive one percent..in there he had a clock that a bell would ring every few seconds..he asked what is that the man answered oh the bell rings every time I make another million..that was decades ago..my guess is its ringing non stop..
      If you consider that an increase of minimum wage to fifteen dollars would shut down the economy and looking at the national debt today the only logical action is to admit we are bankrupt..start fresh..do away with all the federal funded programs and projects and move to a backed security.

  7. UFO’s… Solar activities..
    Closed government facilities emergency bunker drills hushed activities missing data websites closed…

    First.. There isn’t any activity at the D.U.M.B close by a friends place..nothing not even a delivery..and even if there was a scurry of activity..I wasn’t informed or invited to join in..were you..
    And what do you do if there was an impending war of the worlds scenario about to happen.. Run around in circles pulling at your hair crying what do I do..what do I do.. So pull out the briquets fire up the grill put a few cans in the solar beer cooler along with the baked beans and potato salad.a pot of hot coffee…invite the neighbors over get out the bean bags and botchi balls. Fire up the tv projector to put the game or movies on for backyard lawn viewing And watch the show or game while having a cold drink coffee if your wanting one and a hot bratt.. That way if there is an impending invasion see it unfold in front of you..and pray that if there is they aren’t meat eaters lol..

    https://m.youtube.com/watch?v=QihkWmS7dTI

  8. Dear Mr. Ure,

    Your discussions about Florence earlier this week opened some interesting avenues of inquiry. I will offer a few observations that you may wish to vent forth upon after imbibing what brews with weathermen from your dj days?

    NOAA, now under rule of a non-scientist and Trump-appointed leader, abandoned the alleged “gold standard” of public storm forecasters – ECMWF currently based in the UK – for its own forecasts concerning Hurricane Florence. Mention of NOAA nowadays segues into criticisms from the popular weather app, Wunderground. I did not realize it, but the app is named after the early 70’s Detroit terrorist group The Weather Underground. The current head is a phd grad from the University of Michigan and his mentoring prof there played a role in Google’s early days.

    Can we talk money now? IBM has had a stated interest in local weather forecasting since the Atlanta Olympics. A few years back one of the weather data companies in the stable with Wunderground was bought by IBM for mating with their supercomputers of AI chess fame.

    But wait, please pause as Japan’s Panasonic enters the ring. How ironic that they have bought a South Dakotan enterprise that contracts various airlines around the globe to forward them aircraft meteorological readings of ascent, cruise, and descent phases of flight. This data is fed into (Cray?) supercomputers. Panasonic claims their weather forecasts can be most accurate of anyone.

    Neither IBM nor Panasonic have rolled out an app for the masses. However, they do have corporate clients. One could well imagine a Mr. Bezos type being keen to know if it will rain or shine on the Ure estate tomorrow, and so Zeus can be supplied with sunglasses or galoshes in a timely manner. When it showers on Mickey’s parade, it’s probably not a wave from the Fairy Godmother’s wand that’s causing umbrellas to appear front and centre for purchase.

    By the way, do feel free to extend your frank thoughts to the World Bank for having financed Russia’s national weather forecaster to buy state of the art supercomputers delivered this past March.

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