The CRB Commodities Index broke support at 295, warning of another primary decline. Respect of zero by 63-day Twiggs Momentum strengthens the signal. Divergence between the S&P 500 Index and commodities warns that stocks are over-priced and likely to fall.
* Target calculation: 295 – ( 325 – 295 ) = 265
Former Senator Alan Simpson, Co-Chair of President Obama’s Fiscal Commission, doesn’t believe the national debt can be solved without a financial or political crisis. He speaks with WSJ’s Alan Murray at the latest Wall Street Journal Viewpoints panel.
[gigya src=”http://s.wsj.net/media/swf/VideoPlayerMain.swf” bgcolor=”#FFFFFF” flashVars=”videoGUID={BDA341B1-2ADA-420C-ADA6-9586B4CF30C8}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false” base=”http://s.wsj.net/media/swf/” name=”flashPlayer” width=”512″ height=”363″ seamlesstabbing=”false” type=”application/x-shockwave-flash” swLiveConnect=”true”]
FedEx CEO Frederick W. Smith talks about how exports to China remain stagnant given China’s recent protectionist policies and its focus on “indigenous innovation.” He speaks with WSJ’s Alan Murray at Viewpoints West.
[gigya src=”http://s.wsj.net/media/swf/VideoPlayerMain.swf” bgcolor=”#FFFFFF” flashVars=”videoGUID={F0C86C0F-2F73-4308-987A-5FA6ACBB8188}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false” base=”http://s.wsj.net/media/swf/” name=”flashPlayer” width=”512″ height=”363″ seamlesstabbing=”false” type=”application/x-shockwave-flash” swLiveConnect=”true”]
FedEx CEO Frederick W. Smith talks about how capital investment and lowering corporate tax rates are the main solutions to creating U.S. jobs. He speaks with WSJ’s Alan Murray at Viewpoints West.
[gigya src=”http://s.wsj.net/media/swf/VideoPlayerMain.swf” bgcolor=”#FFFFFF” flashVars=”videoGUID={373227EF-3970-4BF3-8CFB-8E85745FB44A}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false” base=”http://s.wsj.net/media/swf/” name=”flashPlayer” width=”512″ height=”363″ seamlesstabbing=”false” type=”application/x-shockwave-flash” swLiveConnect=”true”]
David Weidner: A return to Glass-Steagall in the U.S. would effectively force the world to separate traditional banking from casino banking.
That system would be attractive to both sides. The banking system that holds our loans, our deposits, debts and assets would be separate from a Wild West free market unfettered by bank regulators and their constant worries about risk.
So why can’t the big financial institutions get behind this one? Simple. They want to gamble your money in the casino.
via Dimon may be ‘stupid,’ but he’s right on banks – David Weidner’s Writing on the Wall – MarketWatch.
The TSX 60 is testing primary support at 650. Failure would signal a primary down-trend, already indicated by 63-day Twiggs Momentum reversal below zero. 13-Week Twiggs Money Flow, however, continues to reflect reasonable buying pressure so we need to guard against a bear trap.
* Target calculation: 650 – ( 725 – 650 ) = 575
The S&P 500 broke support at 1340 to confirm the correction. Initial target is 1300. Reversal of 21-day Twiggs Money Flow below zero confirms medium-term selling pressure signaled by an earlier bearish divergence . Recovery above 1360 is most unlikely but would warn of a bear trap.
* Target calculation: 1360 – ( 1420 – 1360 ) = 1300
A similar 21-day Twiggs Money Flow signal on the Nasdaq 100 warns of medium-term selling pressure. Retracement respected resistance at 2630, confirming a correction. Initial target is 2500*.
* Target calculation: 2630 – ( 2760 – 2630 ) = 2500
Lakshman Achuthan of ECRI sticks to his forecast of a double-dip:
[gigya name=”cnbcplayer” PLUGINSPAGE=”http://www.macromedia.com/go/getflashplayer” allowfullscreen=”true” allowscriptaccess=”always” bgcolor=”#000000″ height=”380″ width=”400″ quality=”best” wmode=”transparent” scale=”noscale” salign=”lt” src=”http://plus.cnbc.com/rssvideosearch/action/player/id/3000089189/code/cnbcplayershare” type=”application/x-shockwave-flash”]
“Labor force participation for unskilled men has dropped off the table the last few decades,” [Timothy Taylor, managing editor of the Journal of Economic Perspectives] said. “Wages for that group aren’t high enough to encourage them to work. For a lot of those men, going on disability may be a better option. Working off the books may be going on. The benefits of working at $10 or $11 an hour just isn’t enticing 50-year-old men into the labor force,” he said.
Another factor in play: there were an estimated 2.3 million people in U.S. prisons at the end of 2010, the highest rate of incarceration in the world. That’s quadruple the number imprisoned in 1980. The rate of imprisonment has gone from 100 per 100,000 people in the mid-1970s to 500 per 100,000 today.
JPMorgan Chase & Co lost $2 billion on a failed hedge, an unexpected revelation that hit hard the bank that had been seen as the smartest and safest player through the credit crisis that began to erupt in 2007.
via Dimon in the Rough: JP Morgan Loses $2B on Failed Trade.
Comment: Writing good headlines is an art. Occasionally you find a gem like this. It wins my vote for headline of the week.
