I hope everyone had a happy Independence day!
Equity futures are down slightly this morning, the dollar is higher, bonds are higher, oil is higher, gold & silver are significantly higher with gold so far refusing to fall beneath the $1,500 an ounce mark, and most food commodities are also higher.
The dollar has been forming a very clear triangle, and today it is bouncing off lower support. Again, the direction of break from this triangle will tell us what the next trend for equities and commodities will likely be:
Last week’s bounce in equities was very bullish with the weekly candle erasing the past two weeks of decline, and placing the major averages above their respective 50dma’s once again. That said, they are also over their upper Bollinger bands and in overbought territory. Also remember that the full version of QE2 is now officially over and the continuing version of QE3 does not have the same horsepower behind it (that we know of).
Factory Orders are released at 10 Eastern this morning. The rest of the week is fairly light data wise, but the Employment Situation Report for July is released Friday morning.
Below is a chart from Martin Weiss showing the Greek 5 year default risk still climbing even after the second “bailout.”
Of course it was no bailout at all, what is was is the exact same thing as throwing a drowning man a big chunk of concrete – gee, thanks for the help! Part of their bizarre attempt to kick the can was to force “rollovers” of big portions of their previous debts whether agreed to or not by those holding said debt… and that, is what is otherwise known as a default. Amazingly, the ratings agencies picked up on this not so little fact, that you can’t just change the terms of a contract unilaterally without deserving a default rating.
It’s still amazing to me that after all this time we collectively still can’t acknowledge the reality of the situation and then truly deal with it. The impossible math is glaringly obvious to even the most casual observer. What this says is that we are pressing on regardless because of special interest capture of government. It is complete and it is total. Proof of that is to even consider for one moment appointing Jamie Dimon, the CEO of JPMorgan, to head the Treasury Department. If they do that, then the shift to corpocracy/ kleptocracy will be complete. There’s really only one step worse, and that would be someone like Dimon assuming the role of President – not that he isn’t effectively already in that role.
And the tragic truth of the matter is that these sick narcissist figures like Dimon are literally destroying many, many lives, both economically and physically. The tragedy that is Fukushima is yet another example of special interest capture that is literally going to cost thousands upon thousands of lives. The cover-up and lies emanating from Japan are tsunami-like in proportion. The NRC is complicit and will never do the right thing until forced.
I hope everyone realizes that you are not living the “Independence” that is being spun at you. Be careful WHO and what you pledge your allegiance to.