No "Bears" to be Found

Executive Order #6102

President Franklin Roosevelt signed Executive Order #6102 requiring all gold to be handed over to the government.  The government gave everyone approximately one month from April 3, 1933 to May 1, 1933 to return all gold coins, gold bullion and gold certificates to the Federal Reserve in exchange for $20.67 per ounce.  Failure to do this was punishable by a $10,000 fine, which is equivalent to over $150,000 in today's dollars and/or up to ten years in prison.  Wow!  Could it happen again?  This, of course, is a rhetorical question, and you already know the answer.

Medicaid Consequences of Obamacare

If you have ever enrolled in Medicaid or are contemplating signing up for it, please read on.  “The current law will result in your house and other financial assets being seized to pay all Medicaid-incurred expenses if and when you die.  Sorry, but that is the current law.  Therefore, make sure you spend and/or give away all equity you have to the limit of your ability if you are currently on Medicaid or have ever used this program.  Now, if you have Medicaid or ever have used it, the reverse mortgage strategy makes perfect financial sense, especially for older Americans.”  Why?  You definitely want to draw down the size of those financial assets to make sure Obamacare (federal government) cannot seize those assets upon your death.  In other words, there really is no such thing as a free lunch.

What Happens When the $INDU Reaches Point E, or 16,000 +/- 200?

It's All About Wall Street, Not Main Street!

 I have been posting for quite sometime about the true intent of quantitative easing (QE) by the FED was to benefit Wall Street and not Main Street.  Well, in today's Wall Street Journal, a former Fed official, Andrew Huszar had this to say: "I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time." 

Wow.  What a confession!  But, wait, he goes on to say: "It wasn't long before my old doubts resurfaced. Despite the Fed's rhetoric, my program wasn't helping to make credit any more accessible for the average American. The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn't getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash."

And, the impact to date of all this QE to the tune of the Fed's $4 trillion investment.  Well, the Fed's ROI has been to increase GDP by a mere 0.25%, or $40 billion.  But, the stock prices of those Wall Street banks have seen their stock prices more than "triple" since March 2009.  These institutions are the so-called "Too-Big-Too-Fail" money center banks.  These banks, which are only .2% of all the banks in the U.S., control in excess of 70% of all U.S. Bank assets.  To say the least, the Fed has accomplished its mission of enhancing the wealth of Wall Street Banks at the direct expense of Main Street. 

$INDU Heading Back Down to its 50-Day EMA

Twitter (TWTR)

Twitter just opened-up 75% from its IPO price, which beats Facebook on its opening day.  As of now, Facebook (FB) has a "market cap" of $117 billion; and Twitter (TWTR) has a current "market cap" of around $30 billion.  Can anyone say "irrational exuberance?"  But, then again, with the likes of Bernanke and soon to be Yellen in the "Quantitative Easing" driving seat, the current market believes that it's rational exuberance. 

Gold Continues to Trade Within a Stage 4 Selling Phase

Affordable Care Act (Obamacare) Includes Incentives for Individuals to Work Less and Earn Less Money

Under the Affordable Care Act (ACA), if your 2014 income is between 138% and 400% of the "Federal Poverty Level" for your household size, you can purchase health insurance on a state-run exchange and receive a federal tax subsidy to offset all or part of your premium.  "Because of the manner in which ACA defines who gets subsidies and who doesn’t, there is a huge “cliff effect” at 400% of the federal poverty line (FPL).  If you make a penny more, you won’t receive health care subsidies. If you make a penny less, you could receive thousands in subsidies.  Therefore, what is the result?  Rational people who are right around the 400% FPL threshold will choose to work less in order to increase their income after paying for health insurance."

As an example, in California, a couple earning $64,000 (412% of the FPL) a year would not qualify for health care subsidies.  A bronze plan for them through Kaiser would cost them about $1,300 each month, or $15,600 a year.  But, if that same family earned just $2,000 less, or $62,000 (399% of FPL) it would qualify for over $14,000 in annual health care subsidies, dropping their premiums for that same Kaiser plan to less than $100 per month.  Therefore, the after-insurance income for the couple earning $64,000 is $48,400.  The after-insurance income for the couple making $62,000, which is just under the 400% FPL threshold, is $60,800. I don't know about you, but $60,800 in spendable income is better than $48,400! 

Why is this knowledge relevant to your financial well being?  Because it makes no sense for a couple on the FPL bubble to work harder to earn a little extra money.  In other words, the ACA would severely punish them for their desire to increase their income, which translates into less GDP growth.

The Henry J. Kaiser Family Foundation has a great Affordable Care Act subsidy calculator. Click here for a direct link to the site.

Well, You Can't Win Them All!

What Will it Cost You in the Obamacare Exchanges?

Total U.S. Debt Soars Over $17 Trillion

I don't know what all the fuss was about, right?  Hey, another trillion here and there, and soon we will be talking about some real serious debt.  But, in the mean time, our debt level is just barely over $17 trillion.  Enjoy your weekend!  (The above Table III-C was taken from the Daily Treasury Statement.) 

Chinese Agency Downgrades US Credit Rating

Dagong lowered its ratings for U.S. credit from A to A-, maintaining a negative outlook, the agency said in a statement.  Dagong is far less prominent than its Western competitors including Moody's, Fitch, and Standard and Poor's.  On Tuesday, Fitch issued a "warning," not a down grade to the U.S. credit status if the debt crisis was not resolved.  Of course, the debt crisis has not been resolved, simply put off until February.  Those two agencies, Dagong and Fitch, are foreign rating agencies.  Fitch is a French concern.  I find it very interesting that the two rating agencies that have spoken out about the credit worthiness of the U.S. are foreign entities.  I guess Moody's and Standard and Poor's were too afraid of any negative consequences from our government if they came out with a so-called negative warning. 

Does anyone really believe that at a debt level of $17 trillion plus that our country can continue to go down this path of ever expanding levels of debt, or, for that matter, kick the proverbial "debt can" down the road forever without a resolution?  

American Adults are Dumber than Average

The results are from a study called the "Program for the International Assessment of Adult Competencies,"  and it tested 166,000 people aged 16 to 65 in more than 20 countries.  The study found that in math, reading, and problem solving, American adults scored below the international average.  The results should not be a surprise, since America’s school kids have not measured well compared with international peers. Now, we know that adults don’t either. 

Moody's Offers Different View on Debt Limit

In a memo being circulated on Capitol Hill today, Wednesday, October, 9,  Moody’s Investors Service says that the U.S. Treasury Department is likely to continue paying interest on the government’s debt even if Congress fails to lift the limit on borrowing next week, preserving the nation’s sterling AAA credit rating.  At least someone has read the 14th Amendment of the U.S. Constitution.  I would appreciate it if not only the Administration but Congress pick-up a copy of the U.S. Constitution and read it.  I am sure that there is at least one copy someway to found in Washington, D.C.

Social Security Warns Benefits Could Get Cut

The Social Security Administration has begun warning the public it cannot guarantee full benefit payments if the debt ceiling isn’t increased.  (But the government can pay $47,174 for a mechanical bull.)  The agency made the following statement: “Unlike a federal shutdown which has no impact on the payment of Social Security benefits, failure to raise the debt ceiling puts Social Security benefits at risk.”  Bull!  Our government takes in $250 billion a month, or $3 trillion in a year.  In other words, it has sufficient funds to not only pay its social security obligations but the interest on the debt, medicare & medicaid, veteran's benefits, and defense.  Such a statement being made by the Social Security Administration is nothing but a "Scare Tactic," which is shameful. 

No Bull Here!

On Monday, the U.S. Army contracted to buy a mechanical bull.  The $47,174 contract was awarded on October 7 to Mechanical Bull Sales Inc. of State College, PA.  According to the General Services Administration (GSA) listing, the National Guard of Utah made the request for a “bull which needs to be durable and low maintenance” for its recruiting endeavors.  The National Guard of Utah stated that its old mechanical bull is beyond repair.

He Was Right in 2006 but Not in 2013

The U.S. Treasury takes in approximately $250 billion a month, which is 10 times what the monthly Treasury interest payments are on our debt. The United States will not default on its debt. The 14th Amendment (Sections 4 and 5) of the U.S. Constitution spells out that, as a nation, we must pay off our Treasury debts (interest) first, before we pay anything else.  So, we not only have sufficient revenue coming into the Treasury to pay the interest due but the 14th Amendment, which spells out what must be paid first. 

What to Know if You Opt Out of Buying Health Insurance Under Obamacare

 If one opts out of getting health insurance, one will have to pay a penalty, or I like to refer to it as a tax!  The penalties are not very high to start.  In 2014, the fine to remain uninsured is $95 per person (up to a family maximum of $285, or 1 percent of family income, whichever is greater).  However, the penalty will increase significantly in the next two years, with the tax running as much as $695 per person by 2016.  The family maximum would be as high as $2,085, or 2.5 % of family income, whichever is greater.

One can calculate how much your health insurance premium would cost by using the Kaiser Family Foundation Subsidy Calculator, and then you can compare the tax you would be assessed for having no insurance. 

America's Laziest Postwoman?

Did you notice that she drove all the way across the front lawn to the door to deliver the small package.  And, by the way she looks, she could have used a little exercise by walking from the street to the porch.

What Government Shutdown?

Based on estimates drawn from the Congressional Budget Office (CBO) and Office of Management and Budget (OMB) data, government operations continue to function at 83%.  So, this government shutdown, as measured by money spent, is really only a 17% government shutdown. 

Happy Birthday Federal Income Tax on Being 100 Years Old

In 1913, the tax code consisted of 400 pages.  By 2012, the tax code was 73,608 pages.  Today, we have a very complex tax system that is far from its inception 100 years ago.  It is time for the current tax system to be replaced with the Fair Tax. 

$INDU: Updated Comments Remain the Same!

My comments of August 27, 2013 entitled, "$INDU: Break of 14,600 Has Significant Positive Consequences for the Bear Case" remain the same.  See the following chart and comments:

Who Says the Economy is in Bad Shape? Not the One Percenters!

According to Reuters, "Daimler's luxury brand Mercedes-Benz sold the most cars in one month in its history in September.  It sold over 142,000 cars last month, a rise of 15.9 percent, driven by demand in China and the United States.  I guess the wealth-effect does work when it comes to the "One Percenters" of the economy who have been blessed with all the QEs of the Federal Reserve System. 

Government Closed for Non-essential Services

The government is closed for non-essential services like the EPA and IRS.  The IRS has furloughed 91% of its workforce of 94,516, while the EPA has furloughed 93% of its workforce of 16,205.  That is, only 9% of the IRS and 7% of the EPA workforces to go.  I would say that is an excellent start.

Does This Stock Look Like a Buy or Sell Candidate?

So Goes $WMT, So Goes the Economy (GDP)

And yet, there are individuals out there that refuse to see what is really happening within our economy.  If Wal-Mart is struggling to stay above water, what does that say about the underlying financial health of the average company out there? 

Society's So-Called All Students Are Exceptional Are Not So Exceptional After All

Doing Your Best Doesn't Really Count Anymore

Schools took away playing tag in our school yards; then dodge-ball was outlawed from those school yards.  Schools then removed the recognition of being a valedictorian and salutatorian from our outstanding scholarly students, because those schools wanted to tell all students that they are all academically exceptional.  In other words, students' self esteem had to be protected.  Well, now it has really gone way too far.  The Northern California Federation Youth Football League has imposed a $200 fine and possible suspension of any coach who allows his team to win a game by 35 points or more under its "Mercy Rule."

Food Stamp Nation: Who Benefits?

Who really is the major beneficiary of our food stamp program (EBT)?  View the following video, and you just might learn something that will really make you mad.  Why is that?  Well, you will just have to watch the video!

Insanity Continues

The insanity continues in the auto and home lending business.  In other words, we have not learned absolutely anything from the 2008 financial debacle in sub-prime auto loans and home loans.  Why do I state this?  Well, let's look at today's sub-prime auto loans.  You can now get a 97-month sub-prime auto loan if you have bad credit.  The average loan to value on vehicle sale to individuals that have bad credit is 114.5%.  And, car loans to individuals with bad credit have doubled since 2009 to reach over $18 billion.

Now, let's look at the current sub-prime mortgage area.  You say, "Who in their right mind would again be pushing sub-prime mortgages?"  Oh, that is an easy question to answer.  The Government, of course, or more specifically the Federal Housing Administration (FHA).  FHA recently went so far as to cut to one year from three how long borrowers must wait after losing a home to foreclosure or a short sale before qualifying for a new mortgage.  Further, FHA states that lenders are to ignore all the talk about large down payments, and ensuring mortgage borrowers’ ability to repay on loan applications.

Does anyone really believe that things are different this time around from 2008?  I guess they do, because the insanity of the past continues into 2013.

My Explicit Expression on the Fed's Action to not Taper but Continue QE

What is Scaring the Fed?

Do You Know What Goes Into the CPI Numbers?

The following pie chart and graph are extracted from Doug Short.  The pie chart gives the components and its weights.  That is, food is weighted at 15.3% of the CPI; while housing is weighted at 41%.

The next chart shows the annualized rate of change (solid lines) and the cumulative change (dotted lines) in CPI and Core CPI, or core inflation, since 2000.  Core inflation is the overall inflation rate (CPI) excluding Food and Energy, which doesn't make any sense at all to exclude those two components.  Why?  Well, it would only make sense if you do not eat nor heat your home or put gasoline into your car.  But, then again, what do I know.  However, I am sure that our policy makers at the Bureau of Labor and Statistics and the Federal Reserve System would provide you with a perfectly sane and rational explanation. 

Looking at the bottom part of the above chart, one just might conclude that an annualized CPI rate of 2.5% is not that bad to your wallet.  However, when you look at the cumulative (dotted) lines, it takes on a whole new perspective.  That is, what cost you $100 in 2000 would now cost you $140, or a 40% increase.  Now, tell me has your "real" income and/or wages gone up by at least 40% since 2000?  I didn't thing so!

Student Loan Debacle

Direct Federal Loans to students have exploded higher, from $93 billion in 2007 to $560 billion in early 2013, or a 602% increase.  This dollar amount exceeds the Gross Domestic Product (GDP) of entire nations, such as Sweden ($538 billion) and Iran ($521 billion) just to name tow countries.  Now, if you add in non-Federal student loans of $500 billion, you get a grand total of $1.081 trillion.


The following chart illustrates just another "financial bubble" that is going to burst.  Does anyone remember the "sub-prime mortgage" debacle of 2007/08?  What is the common denominator between the student loan bubble and sub-prime mortgage bubble?  Look no further than the monetary polices of the Federal Reserve System.  Does anyone really care?  I do!  But, then again, my rants wouldn't matter to anyone until they matter to everyone.

How to Make the Dow Jones Industrial Average Stay Permanently Higher

Simply eliminate the losers.  And, that is exactly what Dow Jones will do!  The DJIA will eliminate such recent losers as Alcoa, Hewlett Packard, and Bank of America, and they will be replaced by Goldman, Nike and Visa.  Next, I guess the Dow Jones will be adding such companies as Herbalife, Tesla, Netflix, and, of course, Apple.  By the way, of the 30 Dow stocks in the Dow Jones Industrial Average, only 10 are industrial stocks.  That alone should tell us something about our manufacturing base in America.

$INDU: 14,600 Remains Critical for the Bears and Bulls

Syria: Our Achilles Heel

What is the difference, if any, between the "Free Syrian Army and the Al Nusra Front?"  What is the media not telling us about the Syrian chemical attack?  If you want to know the answers to those questions, you better watch the following video by Ben Swann.

$INDU: Break of 14,600 Has Significant Postive Consequences for the Bear Case

Friday's Update on $SLV

Point & Figure Charts are really good at identifying a stock's stage.  That is, accumulation (Stage 1), advancing (Stage 2), distribution (Stage 3), and selling (Stage 4).  For $SLV, its current stage is "selling, or Stage Four."  That is why the recent rally would simply be categorized as a throw-back to resistance at $24 to relieve an overbought condition within a Stage 4 phase, which is clearly observed with a Point & Figure Chart.

Detroitification

Detroit had everything.  Now, it has nothing. Over the past sixty years, Detroit has gone from one of the most prosperous cities in the world to one of the poorest.  Its average annual per capita income is approximately $13,969, which is less than the average per capita income of Belarus, Botswana, and Romania.

Detroit has over 150,000 abandoned buildings. It has 11,000 unsolved homicides. Police response times average almost an hours.  Forty percent of the city's stoplights don't work.  Almost half of all property owners are refusing to pay property taxes.  In other words, Detroit is America's first third-world city.  However, it is not going to be the only city to collapse.  Other cities in various stages of Detroitification are Chicago, Baltimore, New York, Los Angeles, Oakland, San Diego, Portland, Providence, and Houston.  Welcome to Eschaton!

Investment Instrument That Benefits From a Rising Interest Rate Environment

Vulnerability of the Economy Based on Wal-Mart's (WMT) Performance

Since our economy, as measured by GDP, constitutes approximately 70% of consumer expenditures, the trend of the revenue growth for WMT is definitely not an encouraging sign.

Common Core for Math: New National Curriculum for Public Schools

The emphasis on the "New Math Common Core" is moving more towards the explanation, and the how, and the procedures at arriving to get an answer, rather than on the correct solution.  In other words, as long as a student can explain the process to a math problem, say 3*4,  but arrives at 11, not 12, it would be close enough, because the student was able to explain the process involved.  Welcome to the new "normal."  Please tell me what was wrong with the basic fundamentals of "reading, writing and arithmetic?" 
 

Real Median Household Income

Since the consumer accounts for approximately 70% of GDP, the above chart of household income does not portend well for GDP going forward.  The current real income level for consumers is at the same level as it was in 1995. 

$SLV: Is This the Time to Bet the House?

The Big, Bad Bear

Is the "BEAR" finally coming out of hibernation?

DJIA: Short-term Price Objective Has Been Reached!

On July 26, 2013, my comments on the DJIA were as follows: "DJIA is in the early phase of declining to its 50-day EMA at 15,198, or 360 lower!  Full Stochastics and PPO are in "overbought" and turning down from these levels."  Currently, we have reached that level on the DJIA (15,136).  On a daily basis, the DJIA has just reached oversold levels, based on Full Stochastics and Wm%R.  Further weakness is still possible; but, given these oversold readings, a relief rally should occur over the next several days to relieve the current selling pressure.  However, what happens after any sort of relieve rally needs to be watched carefully.  Why?  Because it's 200-day EMA is currently 14,526, which would be the next major support level.

The Day of Cheap Money is Over!

Over the past month or so, my focus has been on the outlook for interest rates, specifically the rate on the 10-year Treasury Note.  This is the "key rate" that determines the rates on car loans, consumer loans, and mortgages.  During this time, my forecast has called for a major trend change in interest rates.  If you are not convinced that rates are heading higher, you may want to go back and read my following posts: "Interest Rates Going Forward from July 3, 2013," "$TNX: Stage 2 Advancing Phase for 10-Year Treasury Rate Confirmed from July 5, 2013," "Don't Buy Bonds from July 30, 2013," and "Avoid Bonds, Period from August 2, 2013." 

I believe you have now been sufficiently warned.  How you use this information is totally up to you.

$SLV: No Change in My Price Forecast Since June 21, 2013

My post on $SLV from June 21, 2013 stated the following: "The derivative for silver is closing in on my downside price objective of $18, which should provide some near-term support and possible reflect rally back to $21. If $18 is penetrated, the next downside price objective is $14. All of the current price action is taking place in a Stage 4 -- Declining Phase."  Since June 21, $SLV did reach $18 and has retraced back to a close of yesterday at $21.09.  Currently, $SLV has entered into the overbought levels, based on the Full-Stochastics and Wm%R.  If $SLV weakens from the $21 level, $18 remains the key support price.  The proverbial bottom-lines remains that $SLV is in a "Stage 4 Selling Phase."

Gallup: President Obama Falls to a 41% Approval Rating

Watch out President Obama, because you are fast approaching the average approval ratings for a second-term President set by Presidents Bush, Nixon, and Truman.

Second-Term Approval Averages

President	Dates of second term	Ave. Rating
		%
Harry Truman	January 1949-January 1953	36.5
Dwight Eisenhower	January 1957-January 1961	60.5
Lyndon Johnson	January 1965-January 1969	50.3
Richard Nixon	January 1973-August 1974	34.4
Ronald Reagan	January 1985-January 1989	55.3
Bill Clinton	January 1997-January 2001	60.6
George W. Bush	January 2005-January 2009	36.5

Government Motors (GM) Cuts Volt's Price by $5,000 Plus Free Fire Insurance

The first Volt, a 2010 model, cost $41,000.  Today, you can purchase a Volt for $34,995 with free fire hazard insurance for 100,000 miles or 10 years, which ever comes first.  Volt sales in July totaled 1,788.  For the first seven months of the year, Volt sales were 11,643.  I really like that free fire insurance.

Avoid Bonds, Period!

Part-time Employment: The New Normal

Of the 953,000 jobs created so far in 2013, only 23%, or 222,000 were full-time jobs.  That means, of course, part-time jobs created were 731,000.  Welcome to the new, normal economy where it is extremely difficult to get a full-time position.

Source: ZeroHedge

Don't Buy Bonds!

Dow's Short-term Outlook

$SLV: Critical Price Support at $18

The Great Bamboozle Perpetuated by the Financial Accounting Standards Board (FASB) and Wall Street

Yes, you, “Main Street,” have been bamboozled into believing that all is well with the “Too Big to Fail Financial Institutions.”  (Why do you think they are called “Too Big to Fail Institutions”?  There must be a reason.)  And, that reason is due to “Mark-to-Market” accounting, which went away in 2009.  Securities, such as mortgages, with exposure to interest rates are now defined as being “Available For Sale (AFS)” as per FAS 115, which in turn prevents any profits or losses from hitting the income statement even if they did impact retained earnings through the “Accumulated Other Comprehensive Income (AOCI) line.   In other words, as interest rates rise, prices of debt securities like mortgages will decline.  However, with the elimination of “Mark-to-Market” accounting, financial institutions do not have to reflect those losses as such.  Therefore, the financial position of those institutions will appear to be healthier that what they are. 

Case in point is Bank of America’s most recent quarterly financial report.  It reported a profit of $4.012 billion.  Well done, indeed! Not so fast, “Main Street.”  See, this is the great bamboozle.  That profit of $4,012 billion absent of “Mark-to-Market” accounting should have been a loss of $221 million.  (See the following Chart).  Oh, since the fourth quarter of 2011, Bank of America has effectively swept under the rug some $7.6 billion in cumulative losses, which are not losses only thanks to the demise of “Mark-to-Market.” 

Which Is Greater: Full Time Jobs or Americans on Food Assistance and Disability?

The answer is "full-time jobs."  I bet you thought I was going to say that Americans on "Food Assistance and Disability."  I can hear you give a sigh of relieve.  Be careful!  Why?  According to the Bureau of Labor Statistics (BLS), there are 116 million Americans with full-time jobs, which includes 21.9 million government workers.  (Keep-in-mind that government workers are not the productive ones within our society when it comes to increasing ones standard of living.  That is, these workers do not produce goods and services that we Americans buy.  If anything, these workers are to some extent a necessary evil.)  Now, on the other hand, there are 112.5 million individuals on food assistance and disability, or something like 1 out of 3 Americans.  Therefore, there are only 3.5 million more Americans with full-time jobs than there are Americans who are reliant on the government for their daily bread.  And, if you exclude government workers from the productive side of society, then, you have 40.3 million more Americans on government support than those Americans who actually produce something of value.  Let me be very clear on the state of the economy, given these statistics, it is dismal and only going to get worse.

Too Big to Fail Banks Now Extended to the U.S. Economy

"If the economy is so fragile that the government cannot allow failure, then we are indeed close to collapse.  For if you must rescue everything, then ultimately you will be able to rescue nothing." So, stated Seth Klarman.  Who is Mr. Klarman.  He is an American billionaire who founded the Baupost Group, a Boston-based private investment partnership and the author of Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.

TBT-ProShares UltraShort the Long Treasury Bond (20+Years)

$TNX: Stage 2 Advancing Phase for 10-Year Rates Confirmed!

Quality of Jobs for June 2013

The following chart depicts the "quality vs. quantity" aspect of job creation in America for the month June.  For June, 360,000 part-time jobs were created; 240,000 full-time jobs were lost.  Can anyone say "Obamacare?"

10-year Treasury Note: Point & Figure Perspective

The following "Point & Figure Chart" illustrates the interest rate objective for the 10-year Treasury Note at 4.55%.

Interest Rates Going Forward

The rates on the 10-year Treasury Note correlates inversely with risk assets, such as stocks.  Why is this important?  Well, according to the following chart, the interest rate trend on the key 10-year Treasury Note is now up.  The infamous exponential moving average strategy has signaled a reversal in trend for the 10-year rates on Treasury Notes.  That is, the 15-week EMA has exceeded the 40-week EMA, which simply means that the trend for this key rate has shifted from a declining trend to a positive, rising, trend.  In addition, if 2.65% is penetrated, that will be a clear break of the downward resistance line from 2007 and further confirmation of a rising interest rate trend going forward.

Please, Tell Me This is Not True

Electric cars, despite their supposed green credentials, are among the environmentally dirtiest transportation options, a U.S. researcher, Zehner, suggests.  Writing in the journal IEEE Spectrum, Dr. Zehner says electric cars lead to hidden environmental and health damages and are likely more harmful than gasoline cars and other transportation options.  He further states, "Upon closer consideration, moving from petroleum-fueled vehicles to electric cars starts to appear tantamount to shifting from one brand of cigarettes to another."  Dr. Zehner is a visiting scholar at the University of California, Berkeley, which is definitely not a bastion of conservatives.