Last Night’s

Republican Debate


When the moderators of the debate Point blank call you “dangerous,” “outrageous,” and “totally irresponsible” you know the deck is stacked against you.  This is the kind of debate run last night by Fox News.  Their target was Newt Gingrich.

Fox News, Washington lobbyists and the Carl Rove Republican establishment have already crowned Mitt Romney as their man. The deck is stacked.

Needless to say there was virtually nothing substantive in the debate about how to prevent Europe’s collapse, the job crisis or a host of other major issues.

As whacky as these debates are, $$$$ wins in politics. Between now and the first  vote in Iowa an avalanche of negative adds from PAC’s from the wealthy oligarchy will determine the outcome. Everyone says they HATE negative adds, but the simple fact is they work.  Romney’s PACs have the money to club any serious Republican opponent.

Romney nor any of his Son’s have ever served in the military

Has Romney Gone Rabid?


What should frighten you about Romney is far more than his promise to take China to the world court on day 1 in office – thereby starting the same kind of trade war that sunk us into Great Depression.

Romney wants to go beyond the Bush/Cheney just use brute force

“us vs. them” foreign policy.

Quote from Andrew Sullivan at 10:12 PM of the Republican Debate

“Again, Romney accuses the president of treason, saying he backs Chinese power over American. Romney wants a doubling of warships and 100,000 new troops. How to pay for that? No answer.

But what’s notable about Romney is his resolute intention to play the treason card.”

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By far my favorite in the Republican debates has been Jon Huntsman who has a plan to end to big to fail shadow banks.

Huntsman, last night admitted illegal immigration levels were the lowest they’ve been in 40 years. There is a  also huge gap between his and Romney’s extremest views on immigration.


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STOCKS

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Commodities


  • Inter market technical analysis teaches that if commodities sink, stocks will soon follow. Commodity charts especially oil are breaking down.  Tuesday saw a massive 5.05% fall in oil and yesterday confirmed the drop with another 1.45% decline.  The chart is just plane ugly. There is a support level 3% lower, but if that falls things could get very  very ugly.
  • The other inter market technical analysis that is relevant now is Europe

Germany’s DAX up 0.07% at 7:20 AM EST and FLAT at 8:30 EST

Italian 10 year bond down significantly at 6.34% at 7:20 AM EST  Up to 6.40% at 8:30 EST

Italian bonds have out of the extreme danger zone, but there is obviously still cause for concern.

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Reading The Tea Leaves

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Our #1 technical forecasting tool, the McCellan Oscillator rose  to -33.02 . 50DMA at +10.59 = NEUTRAL/bullish

Shorter term Outlook (week)

  • Europe is settling a bit as the Italian bond rate falls – Worries over a credit rating downgrade in future.
  • Oil prices plummeting is a very significant problem because this is probably related to global growth.  Two biggest emerging markets - India did rally off its low for the year yesterday & China while better off, is dropping and 3% away from a major support level.

Europe has flattened, but oil is flashing a major bearish signal.

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Longer Term Outlook

3 months

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NEUTRAL

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Investors411 has 5 different valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.

Everything written in BROWN is a repeat from a previous day(s)

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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