Tuesday, July 19, 2011

Wall of Worry at 22 Blocks?

Very interesting article on all the different head-ways that are standing in front of the market now. Yet we are climbing that wall at least of the time being with today's 200 point move upward. Thanks IBM you did wonders. You got the market to not focus on Washington BS and onto companies that are making piles of money with great products. Here are the 22 blocks as put out by Lloyd Khaner.

QE III: Okay maybe just a little scratch to get us over the hump…again.

U.S. ECONOMY: Down, but not out. Emphasis on “down”.

UNEMPLOYMENT: Not looking for some corner office c-suite position, “just talking about some shiftwork, a big ol’ pile of shiftwork, working 7-to-3, 3-to-11, 11-to-7…”
U.S. DEBT CEILING: Playing catch with a hand grenade. Not advisable. (Our Debt Ceiling Countdown Clock is still sticking!)

INVESTOR SENTIMENT:
The patient isn’t dead yet, but we're getting a mighty irregular heartbeat.

HOUSING CRISIS: Seeming more and more like the cavemen had it right.

INFLATION: China and the EU are fighting it tooth and nail. And they're promptly losing their teeth and nails.

BOND VIGILANTES:
“We’re baaaaack.” And spending a gloriously torrid summer in Europe.

OIL PRICES: The sub-$100/barrel price on WTI crude is possibly all that’s keeping the recession screamers from re-emerging en masse.

ARAB SPRING: The normally calm, cool and collected Jordan enters the fray.

LIBYA:
Now up to 30-plus countries vs. Mo-Mo & Co., and still no end in sight.

JAPAN:
Taking every positive they can get -- and winning the Women’s Soccer World Cup is worth a psychological boast if not an economic one.

CHINA: Doing their best to compete with the US in a who-can-lose-financial-credibility-faster tourney. I advise not sitting in the front row to watch this race.

EARNINGS SEASON: Not going to be terrible. Not going to be great. Going to be okay, like eating jello or listening to Josh Groban music.

SOVEREIGN DEBT: Daily threats of a downgrade of US Debt which has never happened in history. As my mother says, “Sometimes making history isn’t a good thing.”

COMMODITIES: “Rough rice” (aka regular old raw harvested rice) is spiking to 12-month highs. Not great, as 2 billion of us humans subsist on it.

POLICY MISTAKE: None last week. But not for lack of trying!

EUROPEAN CENTRAL BANK: It’s big decision time and it has been for a month. So maybe it's also get-a-new-calendar (and a watch) time as well.

GREECE:
Some are suggesting that Greece sell off islands to pay off its debt. I myself have taken out a no-interest, 3-year exploding option ARM loan at 5% on Santorini.

SPAIN: Neatly passed the buck to Italy during a siesta.

ITALY: Now starring in the lead role of “Eurolanden Debtnicus Tragedia” Also see: Italian-Inspired Market Panic Pauses, Awaiting Thursday's Greece Summit

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