Its a financial metric I invented.
It quantifies the inflationary gift transfer of debt value in terms of a stocks value.
Companies with high debt (long dated and fixed) have high IG numbers.
The value of the debt is inflated away and transferred as value to the shareholders.
This is currently 2% of debt per annum.
So for a ten year bond 20% of its value is going to be transferred to the shareholders.
But if inflation is 5% over the life of the bond 50% of its value gets transferred to shareholders.
So the IG number depends on four factors:
I was bored so I shorted Game Stop at 103, 115 & 138. Sadly, it looks like my order for 155 will not be filled.
And the stock is halted for at least the second time today.
Normally, I would just short a stock like this all the way up from $25. This is much more enjoyable.
THE FED's YEILD CURVE CONTROL
The Fed has been exercising yeild curve control since September 2019 when it started the REPO flood to bail out the wall street banks which had lent too much to the hedge funds which were using the repo money to lever up and go long bonds.
The current calmness in the REPO market suggests that it worked for this purpose.
The hedge funds have delevered.
Of course it set of a stock market mania that is still in full swing.
The party now requires a constant avalanche on money printing and bond buying to keep going.
In keeping with our new focus on modern Technical Analcystics, I present today's pattern.
It's important to keep in mind that in Moderna TA, all patterns resolve up. Only in cases where there is no pattern is there a question, but all non patterns eventually form patterns. Therefore, they too will always resolve up, eventually.
However, prior to the formation of the pattern, the bearish trader may experience hallucinations that lead to delusional thinking. Such thinking ends with the trader experiencing a squeezing sensation in the groin and nausea. Unfortunately, there is no cure.
Hey SiP- I've been on Otodom, looking for an apartment in Sródmieście and Wola. Even with the USD collapse, they are still extremely cheap for an American. I mean the idea of getting a prime downtown apartment in a world class national capital for $700-750/mo is crazy. Even though last year it would have been 650. 🙃
I hope to go to Warsaw for 3 months to do some genealogy research and see the homeland of my ancestors. My grandfather came from Makow Mazowiecky. I found his birth registered in Nowy Dwor. My grandmother and great grandfather lived in Zychlin before coming to US. Found my gr
Danes Get 20-Year 0% Mortgages
The Dow Theory is not a technical indicator. That was a subsequent bastardization of its original intent to be an economic indicator. A Dow Theory confirmation implies nothing about the market's future. For that, we need to do actual TA.
The market is going higher.
From Zadar, Croatia, have a half decent weekend if you can.
Good night, and good luck.
Read on Tweetlandia that Dow Theory had new highs on both industrials & transports today.
We go higher, I guess.
It's like a new dawn. An MMT dawn. A dawn like none before.
“Oh, to be alive in such an age, when miracles are everywhere, and every inch of common air throbs a tremendous prophecy, of greater marvels yet to be.”
More likely to avoid one a sell off was arranged. Most other commodities are soaring. Beans above $13 and corn above $5.
40% of farm income in 20 was government payments. Luckily 90% of farmers vote against socialism
This is an hourly chart of the ES- S&P 500 fucutures, 24 hour basis. As they say in my hometown of Philly, "Hard to believe, Harry."
It's like somebody took a bite out of the middle of the thing this week.
It almost made a new high while the US Capitol was under attack by a Nazi mob, a mob that the US Capitol Police allowed in, and allowed to roam freely, giving them minimal resistance.
As always, if the cops aren't leading the violence against the American people, they are complicit in it. There were a few brave heroes who stood their ground and did their jobs, but
Trump is no laughing matter. He is a narcissistic, dictatorial fascist at heart. That's as anti-American as you can get. We should all be afraid. Very afraid.
January 26, 2017
6 days after Trump's inauguration
As of this morning, the ES fucutures, representing the broad big cap US market, are at a price level it first reached on December 4. Reminds me of the old stock market adage, up the escalator, down the elevator.
One day, we're gonna get the shaft.
Without the elevator cab.
Those daily oscillators aren't looking too sprightly either.
At the moment, the ES has settled on the centerline of the channel that began forming from the November 9 peak. A little lower here and they should plunge right to the bottom of the channel now around 3625. Of course, they might hold
If the dollar were to lose its reserve-currency status, abruptly & unexpectedly, TNX could soar handsomely and grotesquely over 1.00 in the blink of an eye and for decades, without any ability of the Fed/Treasury nexus to stem or reverse it.
CONTAINER RATES FROM ASIA TO US RISE
The US tsunami of government spending and FED printing to cover that spending has led to a boom in imports from asia.
Hence freight rates rise.
Dollar is dumped by Asian exporters leading to dollar fall.
Rince wash repeat.
This does nothing for the US economy.
But its great for asian economies.