Monday, October 25, 2010

Don't Believe the Hype!

Wall St's propaganda machine came out in full force this morning as Goldman came out with an upgrade on Citigroup.  This goosed the markets higher. 

CNBC meanwhile was pumping the 10% increase in existing home, sales which at 4.53 million, was the 3rd lowest on record.   Also note that this number stil includes tax credit sales which were extended until September 30th.  This number is essentially meaningless.

We continue to see unprecedented moves in the markets this morning.

The dollar is once again falling, and the Yen is soaring which is bad bad bad for Japan.  Their central bank must be in a panic as their export driven economy gets crushed by the soaring Yen.  Here is a chart of the dollar:

Gold, oil, and commodities all surged higher on the news which is bad news for prices down the road.

Treasuries also soared today as well despite the 100 point rally in stocks.  This of course makes no sense but let's be honest:  Does anything make sense at this point when it comes to the stock market?  Here is the 10 year yield:

Folks, none of this is good.  I see we have already given back half of the gains since I started this post. 

None of this makes any fundamental sense, and the Citigroup upgrade is a complete joke. 

Lot's of noise and zero substance.

Until later.

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