Financial Review

Fuld Again

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-05-29-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe DOW – 115 = 18,010 SPX – 13 = 2107 NAS – 27 = 5070 10 YR YLD – .04 = 2.09% OIL + 2.62 = 60.30 GOLD + 2.20 = 1191.00 SILV + .04 = 16.80   The Dow Jones industrial average ended about 115 points lower after falling more than 150 points during the session. The blue chip index posted a 0.9 percent gain for May. The S&P 500 ended up 1.1 percent for the month, and the Nasdaq outperformed with a 2.6 percent monthly gain.   Year to date the Dow Industrials are up about 1 percent, the S&P 500 is up about 2 percent, and the Nasdaq is up about 7%. This has been an extremely tight trading range to start the year. Another way to look at it is consolidation. And at some point the markets will break out of this tight range. The question is whether it will be a breakout or a breakdown. And if you’re looking for a divergent signal, the Dow Transports traded down for the day, for a 3.4 percent loss in May. The index is down 9 percent for the year.   Today’s big economic report was that first quarter Gross Domestic Product in the U.S. shrank at a 0.7 percent annualized rate, revised lower from a previously reported 0.2 percent gain. The revisions showed the trade gap widened …

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Levitational Tools by Sinclair Noe DOW + 48 = 15,105SPX + 6 = 1632NAS + 16 = 341310 YR YLD – .02 = 1.76%OIL + .99 = 96.61GOLD + 21.80 = 1475.40SILV – .01 = 24.05 Another day, another record high. What’s behind this? Nouriel Roubini weighed in from a conference in Las Vegas. Roubini is a professor at NYU and former Senior Economist for the White House Council of Economic Advisors, and notably, one of the few economists to anticipate the collapse in the housing market. Roubini identified the levitational forces, the forces lifting the markets, on “QE, zero policy rates, more money coming into the market, not just from the US, but from other economies” as the reason behind rising asset prices. Roubini also said: “Growth is slow. Earnings growth is also slowing down. Top line and bottom line are not as good as they used to be, but margins are high. They could correct somehow over time.” His best guess is that it could go on for a couple more years. Why two years? Roubini says: “recent data have effectively silenced hints by some Federal Reserve officials that the Fed should begin exiting from its current third (and indefinite) round of quantitative easing (QE3). Given slow growth, high unemployment (which has fallen only because discouraged workers are leaving the labor force), and inflation well below the Fed’s target, this is no time to start constraining liquidity.” Let’s take this a step further; with inflation running at about …

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