4:33 pm – FKLI is moving sideway after lot of stops been hit !
Market Report by Bill Feb 22-25, 2010
Dear Traders,
Our short TLT trade is working. This is a bet on a weaker US Bond Market and higher US Interest Rates.
Fundamentally, TLT short is supported because the China Investment Corp (CIC) sold a net 34 Billion in US Treasuries and took a 1.45 million share position in GLD, the gold ETF as well 2 million shares of OYL, the oil ETF.
They also took a 3.5 USD billion position in Canada’s TEC resources.
Why would any investor in his right mind lend money to a dead beat borrower and I think the Chinese are waking up to that fact.
The US is creating vast amounts of money out of thin air and what backs it up ? The promises of Bernenke and Obama ?
In my opinion production of sellable goods creats growth and jobs- this is real effort and efficient use of capital.
I read that there are over 30,000,000 government servants in the US and only 29,000,000 workers in the manufacturing industries that produce real goods for sale. This is a dramatic reversal from 1980 when there were less than 8 million government servants and 40 million manufacturing workers.
What does a government bureaucrat produce and how does he create growth and jobs?
12 noon – DJIA has broken the resistance at 10,300 and closing above it !
Wud see some profit taking soon !
3:53 pm – DJIa has broken out on low vol !
No a good sign in the short term, at least …
