Classic Cosby:
Bill Cosby: "Jesus Christ"
One of Bill Cosby’s funniest routines:
Australia: ASX 200 retraces
The ASX 200 is retracing after a healthy rally. Reversal of 21-day Twiggs Money Flow below zero indicates short-term selling pressure. Expect a test of the lower trend channel.
Canada: TSX60 rising broadening wedge
The TSX 60 continues in a rising broadening wedge on the daily chart. Thomas Bulkowski warns these are bearish formations, ending with a downward breakout almost 3 out of 4 times. That would threaten primary support at 640 and a decline to 600*. Bearish divergence on 21-day Twiggs Money Flow warns of short-term selling pressure. Respect of support at 640, however, would suggest a rally to 720.
* Target calculation: 640 – ( 680 – 640 ) = 600
Europe: Signs of a revival
Bullish divergence on Madrid General Index (13-week Twiggs Money Flow) indicates buying pressure. Breakout above 720 would complete a double-bottom reversal with a target of 840*. Penetration of the descending trendline would strengthen the signal.
* Target calculation: 720 + ( 720 – 600 ) = 840
FTSE 100 broke resistance at 5750 and is headed for a test of 6000 on the weekly chart. The 13-week Twiggs Money Flow trough above zero indicates a healthy primary up-trend. Expect strong resistance at 6000 because of the number of previous peaks at this level. Breakout would offer a long-term target of 6750*.
* Target calculation: 6000 + ( 6000 – 5250 ) = 6750
S&P 500 and Nasdaq
Bearish divergence on the S&P 500 Index (21-day Twiggs Money Flow) warns of increasing resistance as the index approaches 1420. Expect retracement to 1360/1380 followed by another attempt at 1420. Breakout would signal another primary advance. Reversal below the trend channel is unlikely but would warn of a correction to test primary support at 1280.
* Target calculation: 1420 + ( 1420 – 1280 ) = 1560
The Nasdaq 100 is headed for 2800 on the weekly chart. A 63-day Twiggs Momentum trough above zero indicates a healthy primary up-trend.
* Target calculation: 2800 + ( 2800 – 2450 ) = 3150
Bellwether transport stock Fedex, however, is edging lower. Reversal of 63-day Twiggs Momentum below zero warns of a primary down-trend. Failure of primary support at $84 would confirm the primary down trend signaled by the March-April double-top. That would warn of an economic down-turn.
Romney’s VP: Paul Ryan—A Bold Choice, a Big Risk
By JOSH BOAK, The Fiscal Times
August 11, 2012
Bowing to pressure from the conservative wing of his party, Republican Mitt Romney has picked House Budget Committee Chairman Paul Ryan as his vice presidential running mate, and ensured that the congressman’s controversial plan to transform Medicare into a voucher-type program will become a central issue in the presidential race.
Forex: Euro, Pound Sterling, Canadian Loonie, Australian Dollar, South African Rand and Japanese Yen
The Euro retreated after encountering resistance at $1.2400/1.2450. Respect of the rising trendline, however, would confirm that the primary down-trend is losing momentum and a bottom is forming. Recovery above $1.2450 would strengthen the signal. Reversal below $1.2150 would warn of another down-swing — confirmed if primary support at $1.2050 is broken — with a target of $1.185.
* Target calculation: 1.215 – ( 1.245 – 1.215 ) = 1.185
Pound Sterling’s up-trend against the Euro continues on the Weekly chart. Respect of support at €1.255 would indicate an advance to €1.315*. Rising 63-day Twiggs Momentum is evidence of a strong primary up-trend.
* Target calculation: 1.285 + ( 1.285 – 1.255 ) = 1.315
Canada’s Loonie broke above parity, headed for a test of resistance against the greenback at $1.02. Long-term bullish divergence on 63-day Twiggs Momentum and recovery above zero suggest a primary up-trend.
The Aussie Dollar is similarly headed for a test of resistance at $1.08 against the greenback. Breakout would offer a long-term target of $1.20* but calls for RBA intervention to prevent further appreciation are growing. Professor Warwick McKibbin told The Australian Financial Review:
When a portfolio shift into Australian currency is observed, the exchange rate change should be completely offset so the shock only affects the money markets rather than the real economy. If the shock cannot be observed precisely then the central bank should “lean against the wind”, that is intervene to slow down the extent of appreciation of the exchange rate.
* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20
The Aussie retreated from resistance at R8.75 against the South African Rand and is testing support at R8.50. Failure of support would signal a primary down-trend with an initial target of $8.25*.
* Target calculation: 8.50 – ( 8.75 – 8.50 ) = 8.25
The Aussie broke medium-term resistance at ¥82.50 against the Japanese Yen, heading for a test of the upper range border at ¥88/¥90. The Australian Dollar/Japanese Yen has been a good reflection of global risk tolerance since 2009, oscillating between ¥72 and ¥90 as risk tolerance rises or falls. Rising 63-Day Twiggs Momentum and recovery above zero suggest a primary up-trend as the Aussie Dollar’s status as a reserve currency grows, attracting capital inflows.
Meltdown: History of the Global Financial Collapse 2010 | Part 4
Aftermath of the GFC.
Meltdown: History of the Global Financial Collapse 2010 | Part 3
Collapse of the Icelandic government, unemployment and homelessness rises, street protests and industrial action.