Markets in Limbo, Devil May Cry

(Palestine, TX)  I bet you have no idea what this morning’s headline is about, do you?

Well, time to school you up because most gamers know what I’m talking about:  There is this video game called Devil May Cry…and you can find details about it over here.  But the short version is…

Devil May Cry is an action-adventure hack and slash video game developed and published by Capcom, released in 2001 for the PlayStation 2. While the game primarily focuses on swordfighting, the player

And this has exactly what to do with markets?

Well, according to Wikia:

Limbo City is the main setting of DmC: Devil May Cry. It is a city under the control of demons with a brainwashed population.

Notice any similarities to, oh, real life?

As luck would have it, Limbo City is where the markets are this morning, so if you play that other wildly popular video game (that might also be a candidate for Resident Evil) – the stock market – you will want to pay close attention.

The market (earlier) was about flat.  Within the pasty week, the Dow has fallen 292 points (plus or minus a ham sandwich) and that means a wave one down of some kind. 

What goes down usually bounces so a PERFECT Fibonacci bounce (.618) would have us expecting a 180 point rally off the bottom.

Since the bottom yesterday was around 17,047, that leaves us a “bounce target” of what?

If you’ve had enough coffee 17,227 plus or minus a side of fries would spring to mind.

What’s remarkable is that yesterday’s session high was? 17,226.60.

Error?  Oh, uh 4-10ths of a point.

To be sure, we could market up to a 75% or 80% retracement, but it’s this kind of financial numerology that makes playing options a lot more fun that gambling in Las Vegas or Reno. 

So where might we go?  Well, if we go past the 80% retracement level, then the market is out of Limbo City and on to new highs.  In which case, the Devil May Cry, indeed.

But if we go flat (which is also argued by the sickeningly pathetic volume/number of shares traded Wednesday) then we can pencil out what the coming few weeks could look like.

If 292 points was the A down of something,  and the (manic crack pipe) rally of Wednesday was the B, then a wave C of 1.5 times A (292 times 1.5) suggests 16,679 within  two weeks, or less.  That would be followed by a rally (4) and the final decline (5) of the present move.

Then  we would stand back and go “Hmmm…what does this look like?

Of course, you already know the answer to that one:  Any other fall decline.  And if the Devil doesn’t cry, your account balances may, instead.

Durable Goods

Oh?  They are?

Hot off the pixelators:

New Orders
New orders for manufactured durable goods in August
decreased $54.5 billion or 18.2 percent to $245.4 billion,
the U.S. Census Bureau announced today. This
decrease, down following two consecutive monthly
increases, followed a 22.5 percent July increase.
Excluding transportation, new orders increased 0.7
percent. Excluding defense, new orders decreased 19.0
Transportation equipment, also down following two
consecutive monthly increases, drove the decrease, $55.6
billion or 42.0 percent to $76.8 billion.
Shipments of manufactured durable goods in August,
down following two consecutive monthly increases,
decreased $3.7 billion or 1.5 percent to $246.1 billion.
This followed a 3.7 percent July increase.
Transportation equipment, also down following two
consecutive monthly increases, drove the decrease, $3.9
billion or 5.1 percent to $72.5 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in
August, up sixteen of the last seventeen months,
increased $7.4 billion or 0.6 percent to $1,165.0 billion.
This was at the highest level since the series was first
published on a NAICS

Not exactly a stunning report, is it?

The futures which had been flat to up a bit earlier, are now down about 20 on t5he Dow so maybe out Fibo bounce is over.

Ebola Optimism?

The number of deaths is over 2,900, but the NY Times report over here uses the word “stabilized” which we’ll see about after an incubation cycle or three…

Frances Goes Next

After the US bombing raids on ISIS targets, it’s France stepping up to the flight lines this morning.  Going after the mobile refineries that are the cash cow for the troublemakers who want to wipe out the Kurdish population in the area.

Immigration Bullet Points

From the Center for Immigration Studies a couple of hair-curlers this morning:

• The nation’s immigrant population (legal and illegal) hit a record 41.3 million in July 2013, an increase of 1.4 million since July 2010. Since 2000 the immigrant population is up 10.2 million.
• The 41.3 million immigrant population (legal and illegal) in 2013 was double the number in 1990, nearly triple the number in 1980, and quadruple that in 1970, when it stood at 9.6 million.

The rest of the report is available over here and it’s worth your time to read.  Mexico has 11.6 million people in the USA right now.

So here’s the pisser part:  Do you know that in 2012 your federal government spent $209+ million on foreign aid to Mexico?


Yes, that’s right: 10% of Mexico’s entire population is here in the US.

And we’re sending them money so they can what?  Make more people and grow more drugs to send us?  FMTT economics ain’t that hard, people.

Wake the F up.