The end of the World

In the next few weeks scientists will smash 2 atoms together. This could be the end of the world from the cause of a black hole, or this could unlock many mysteries that could tell us more about our universe and some say even cure cancer by revealing the more information about subatomic particles.

Excerpt from THEAGE
"When the beams collide head on, they will create fireballs and showers of subatomic debris never witnessed before.

Dr Varvell said the impacts could produce man-made mini black holes, reveal that the universe has extra dimensions that are normally curled up, and throw light on the nature of the mysterious dark matter which makes up most of the cosmos.

It should also reveal whether the Higgs boson, or God particle, exists or not."

If you haven't heard about the story of the Atom Smasher, checkout this clip.

The stock market is dangerous

If you were like many Americans this summer who just bought a foreclosed house because they were so cheap, you can now look back and say that your timing was a little bit off because Mortgage rates are much lower and the government just took over Fannie Mae and Freddie Mac.



If you think that Washington Mutual will not fail, even after the CEO is thrown out, then you haven't seen stock price of the latest bank failure on the FDIC failed bank list.
Silver State Bancorp

Washington Mutual

If you think that these markets aren't manipulated by rumors, then you probably weren't trading UAUA today.

If you think think that the stock exchanges that handle your trades are fair and orderly and won't fail if there is a major disaster or market crash, then you weren't trading on the London Stock exchange today.

PPT

Ok. This after hours jump could just be the PPT (Plunge Protection Team).
I'm not trying to make predictions on where the market is going based on news, but let me just say that the current news we have this weekend is terrible and the US Economy is in the shitter, and its getting shittier if that's even possible.

WaMu CEO is ousted.

I like this post from Elite Trader on the 5 horseman(thanks to Digs)

1.January-Fed lowers rates dramatically January 2008 to help banks.(January 21st the world stock markets plunge, and on Monday morning the FED does a surprise 50bp interest rate drop, and another 25bp days later at the scheduled FOMC meeting)
2.February-MBI/ABK delay downgrading
3.March-Bear Sterns bailout over the weekend. (interest rates on bonds spike at their lowest levels for the year, BSC to be bought for 2, but then is raised later to a higher price at $10)
4.July- SEC enforces rule of "NO SHORT SALES"(naked shorts) on selected financial stocks, which made it incredibly difficult for anybody to borrow shares to short on selected financial stocks like BAC, C, and GS)
5.September- Government bailout of Fannie Mae and Freddie Mac, which will cost taxpayers billions in an economy seeing record levels of unemployment and mortgage foreclosures.
6. Whats next- AutoMaker Bailout? WaMu or other big bank failure? FDIC failure?

With that acknowledgment out of the way, I'm ready to trade my signals no matter if the market goes up or down. 300pts can become 600pts, and 300pts can become -300pts.

Who owns FRE and FNM?
Institutional Holdings for FRE
Institutional Holdings for FNM

Paulson warned stock holders 2 months ago.

YM is up nearly 300pts?

It's sunday night. A night I wish was January 21, because YM futures are up 280pts right now. Why? Is it the government bailout of FRE and FNM that has everyone jumping for joy? It seems I'm wrong on all my calls, so its probably just best to fade my ideas. Crude Oil is up, Gold is up, Treasury yields are set to open up, and guess what, the Euro is up. I guess everything I said that was going down, is now up. Is 12,500 the next target on the Dow like I thought a week ago? Or are we going down like I thought yesterday. My conclusion is, I have no fucking clue where this market is going anymore. Maybe I should buy a house....Whatever.

Here's the 2yr bond future contract. Looks just like January/March all over again.

Where do US Treasuries go Now?

We have the largest corporate failure of all time occurring over the weekend and I don't see that big of a reaction from people as I would expect.

If the current trends keep going, stocks will go lower, mortgage rates will go lower, bond yields will go lower, housing prices will go lower, the Euro will go lower, Crude oil will go lower, and investor confidence will go lower.

I thought that interest rates were likely to be raised next year and that treasury yields were likely to bounce at these levels and never return, but, with the government taking over FNM and FRE, I'm not so sure.

The FED could lower interest rates more and mortgage rates could go lower. With the FED taking over FNM and FRE, I'm wondering how big of an affect this will have on US treasuries. Will there be a lack of buyers? What happens if a large bank like Washington Mutual collapses and the FDIC needs to go to the US treasuries for bailout money? We already saw the FDIC increasing reserves a couple weeks ago. The FDIC failed bank list is growing, with expectations of over 100 banks to fail before it is all said and done. I'm not sure where treasuries are headed right now. Even though we are at historically low levels, we could still go lower. The best thing I can do is to stay on the side of the trend and the trend is down.

McCain- Man in the Box

They Call him the man in the box. When I hear man in the box I think of Alice in Chains, who by the way, has a new singer. This video has the original singer Layne Staley, who passed away in 2002.

Failed Banks

The FDIC failed bank list gets longer every Friday.

Drop dead Freddie Mac and Fannie Mae

Fannie and Freddie news has finally come. Yeppie. Lets do it over the weekend. I love these weekend surprises.

I'm curious to see Mondays open.

I'm not voting for McCain. Too bad Ron Paul backed out. I would have voted for him even though he wouldn't have won.

Freaky Fridays

If I ever go to prison, I'm going to request to be sent to the Philippines to the CPDRC.



I'm sure you all remember there old Viral Video of "THE THRILLER".

Sep 5 Trading

Here's another hint.


Bond Yields dipped to 3.58% on the 10yr note; a 3 month low.

2yr bond future


I sold out of my long on YM too soon. I was thinking of re-entering long, but ZF was at its lows at the time. I was expecting a bounce in ZF around 8:30 AM (at which time I was expecting YM to pullback a bit after its bounce off its lows) but it didn't happen, so I waited and watched YM rally higher, missing 2/3rds of the total bounce. Oh'well.


Not bad for an hours work.

Credit Spreads

Corporate Bond Credit Spreads are still rising and most forecasters see corporate bond yields to continue rising until the middle of next year.

Market Breadth Charts

Daily Advance Decline
NYSE

NASDAQ
Advance Decline Weekly
NYSE
NASDAQ
There is a huge difference between NYSE and NASDAQ A/D line, but remember the NASDAQ exchange has many more stocks. Assuming NYSE A/D line needs to fall below the 2006 lows just because the NASDAQ A/D line is already past its 2006 lows is probably bad reasoning.

AMEX
Weekly Advancing Issues
NYSE
NASDAQ
AMEX
Weekly New Highs/Lows
NYSE

NASDAQ

AMEX

Go to StockCharts.com for THESE CHARTS

PornStar Thursdays

This one is real easy.

There's probably 10 different versions to "Party like a Pornstar". This one had a real music video.