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So they got bonds to rally along with stocks. No liquidity problems today. Good story linked at PruBear about how todays auction of 20 year TIPS got a lukewarm reception, which was seen as a good thing for bonds. Some real tortured logic for a news caused the market to blah blah blah kind of story.

 

Have to hand it to Al. Every single talking point he put out last week is now gospel. Inflation, no problem. Mild slowdown in the economy, an ultra short term glitch and no problem.

 

Read the article and discover yet again how far off the reservation we are. Hilighted by quotes like this " The question comes down to ``do you feel the Fed is hiking quickly enough to keep inflation at bay,'' Spindel said."

 

http://quote.bloomberg.com/apps/news?pid=1...hAsfzc&refer=us

 

 

Great news about the deficit crashing to only $420bln.. All blue skys ahead for sure.

Uh... bonds got crushed today Jorm.

Oops. So they did, and I've been known to give little lectures on the inverse relationship between bond prices and yields. The story said bonds tumbled today and I thought yeilds. Well, in this case it's not near so bad for us, nor so good for them.

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THE SMART AND BRAVE TRADE

 

Here's what happens when 9000 HedgeFunds decide to hit the exit at the same time.

 

Orange Juice got bombed with all those 24-year old Momo Traders hit the sell button.

 

Buy OJ!!!

Classic contrarian play

 

Phscologically very hard - easy way to make a lot of money though

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THE SMART AND BRAVE TRADE

 

Here's what happens when 9000 HedgeFunds decide to hit the exit at the same time.

 

Orange Juice got bombed with all those 24-year old Momo Traders hit the sell button.

 

Buy OJ!!!

Classic contrarian play

 

Phscologically very hard - easy way to make a lot of money though

I humbly suggest you consider waiting for a successful test of the previous low

 

(having been humbled by past experience)

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Deadhead Ed Houdini tries to weasel out of a tight fit:

 

uh...allocation?

 

(CNN) "After rounding up all the usual bearish suspects to blame for the market's disappointing performance this year, I've narrowed the problem to the price of oil," Yardeni wrote in a note to clients Tuesday afternoon. "Investors fear that higher energy costs must eventually depress earnings growth."

 

As a result, Yardeni cut his year-end S&P 500 target to 1190 from 1300 and cut his recommended stock allocation.

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Wonder how this report will be Bullhorned tomorrow, along with the GDP report.

 

Jul 27, 1:11 PM (ET)

 

WASHINGTON (Reuters) - A mid-year White House report will tout fiscal progress with a projected U.S. budget deficit for this year of around $420 billion -- nearly $100 billion less than the forecast offered five months ago, congressional sources said on Tuesday.

Orwell predicted this "Ministry of Plenty" whipsaw BS over half a century ago. I really hope he starts being wrong before we get to the whole "room 101" thing.

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One would never expect these paragraphs, which are at the end of the article, from the headline.

 

http://biz.yahoo.com/rb/040727/construction_housing_1.html

 

Some academic studies suggest that the negative housing wealth effect could be more than twice as powerful as an equity wealth effect because your average person owns a home, but doesn't necessarily own that much stock," he said.

 

Many experts said the areas at most risk are the hot spots of the New York, Boston and Chicago metropolitan areas, and above all, California, where the median cost of an existing home in June rose to a record $469,170 -- up $100,000 in a year. In May, when the median price was slightly lower, only 19 percent of households in the state could qualify to buy a median-priced home, Allen said.

 

But Morris said the risk is spread nearly nationwide.

 

"I get 20 states plus (Washington) D.C. looking pretty rich compared to their histories, and that accounts for half the population," he said. "It's a bit more than a few local bubbles here and there."

 

But what is the headline?

Housing Market Set for a Leak, Not Bust

Tuesday July 27, 9:12 pm ET

By Ilaina Jonas

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WHAT BEAR MARKET?????????????????

 

If you had invested in Casino stocks in 2000 you would have doubled your money by now.

 

If you had invested in big tobacco you would have doubled your money by now.

 

Altria has gone from $20 to $47 and STILL SELLS FOR ONLY TEN TIMES EARNINGS WHAT A JOKE

 

Australian stocks up 40% since 2000.

 

Gold stocks HUI up over several hundred %

 

Oil and Gas stocks up major league

Oxy has gone from$20 to $50 and still sells for only 10 times earnings.

 

 

REITS - good steady returns

 

What a complete joke Altria nd Oxy two great companies that have more than doubled in price since 2000 and can still be bought at give away prices.

 

In the mean time the 6pack wait for their tech stock to recover so they can get out. Of cource the stock will never recover.

 

There are plenty of ways to get rich on the long side even in this major bear market.

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