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From WSJ…

There is no way this will end well. You would have to be crazy to believe that this does not matter and go out and buy stocks. There will definitely be a huge impact to the economy and it won’t be pretty.

Q2 GDP growth came in at 4% but let’s look at what’s really going on. Here’s a table of the contributions to percent change for each of the components in the GDP for Q1 and Q2.

With gross private domestic investment sucking in Q1, you would have to expect some decent improvement in Q2. [...]

On Saturday I blogged that the rally was doubtful since volume was low and I expressed concern that investors were stupid enough to push the S&P 500 to 1490 and possibly even 1520. Fortunately that did not happen and the break above the upper trendline has now failed.

The low volume on Friday when the [...]

Cell phone rings
Me: Hello?
Mom: Do you have time to talk now?
Me: Yes, but I have class in 5 minutes.
Mom: You have class?
Me: Yeah, today’s the first day of school. I’m walking to my class right now.
Mom: Oh, I thought your summer lasted forever.
Me: Blah blah blah blah blah.
Mom: Blah blah blah blah blah.
Me: Blah [...]

It looks like the S&P 500 will test the 1490-1500 level this week but I wouldn’t be surprised if it makes it all the way to 1520. I won’t be dumping my TWM.

I don’t normally plot the 50EMA of the volume but this time you can see it on the volume chart. Volume [...]

Not long ago I blogged that I would consider selling some of my TWM (2x short Russell 2000) shares to buy SRS (2x short DJ Real Estate) if the price was right. In particular, I said I would do the swap if TWM/SRS was greater than 1.6 because I want to catch some momentum, [...]

The S&P 500 closed right at the upper trendline today. If it breaks above, we’ll have a retest of 1490-1500. If it doesn’t break above, well then you know what I think.

Volume was pretty lame the last few days so chances are the S&P 500 heads back down again. However, given the [...]

SHOO! GO AWAY! GO BACK TO YOUR PIECE OF CRAP CDOS AND CORPORATE DEBT!
The yields on the 1 month and 3 month treasury bills fell like a rock today. Look at these 3-year charts.

I own a Treasury Money Market fund and I guess the action in the yield in the last few days [...]

I am writing this post because…
1. My research hit a brick wall in the last 24 hours and I can’t sleep because I keep thinking about it.
2. A few girls asked me about my research yesterday. I tried to explain but they stopped me short and asked what a circuit was. Completely [...]

TWM fell 3.66% today but it never felt so good to lose money. The Fed cut the discount rate from 6.25% to 5.75% and the market rallied like all the problems with the economy had been solved.
Why does it feel so good to lose money today?
The Fed cutting the discount rate from 6.25% to [...]