Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 12th of July.
We are glad to see that Warren Buffet is in agreement with our Trade Triangle technology, which has being negative on Europe and the United States for sometime.
We were pretty sure that this week was going to be an important week for the markets, and it's turning out to be just such a week. Since tomorrow is Friday, we'll see how the markets behave as JP Morgan Chase drops a bomb on the markets reporting their earnings and derivatives loss.
TODAY'S MARKET MOVING SECTORS and STOCKS:
Percentage changes in stocks are relative to the S&P 500
| CONSUMER GOODS: -1.18% | Biggest Loser GT -4.33% |
| SERVICES: -1.10% | Biggest Loser SHLD -6.04% |
| HEALTHCARE: -0.79% | Biggest Loser ARNA -5.79% |
| ENERGY: -1.55% | Biggest Loser MMR -6.42% |
| TECHNOLOGY: -1.45% | Biggest Loser NCR -3.69% |
| FINANCIAL: -1.01% | Biggest Loser PGR -4.55% |
| INDUSTRIAL GOODS: -0.85% | Biggest Loser WWD -3.69% |
| BASIC MATERIALS: -1.94% | Biggest Loser UAN -6.05% |
| UTILITIES: -0.27% | Biggest Loser OPTT -11.09% |
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology. Click Here to view today's video
Voltaire, in 1764 said, In general, the art of government consists of taking as much money as possible from one party of the citizens to give to the other.
There ain't nothing like real work for real money.
"Boy does it go fast". Do you realize that the EU as a whole (yes, the PIGS included) has much less debt as a % of GNP than the US? Do you realize that much of this debt is internal, while the US is sold out to China? For example, when the interest rates of Belgium end last year skyrocketed to 6%, the government issued 3% bonds that where only intended for local private subscribers and the bonds were largely over-subscribed. Belgium may have a debt of 99% of its GNP (still less than the US) but it is leveraged by the high savings score of its citizens.
The traders are like chicken without head, they simply don't look at the fundamentals. The net result, the Euro going down, will actually be very helpful for the export of Germany and the other EU countries with a positive balance of payments. Greece may be hovering around the edge of bankruptcy but they are only 10 million. How many millions in the state of California?
The slippery slide of too much debt is decievingly slow at first, but towards the end. Boy does it go fast! The we all wake up one morning and see what has happened. Proving again and again, " There ain't no free Lunch"!