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There were a lot of cracks created in the dam last week, but so far they are hard to see. Though causing great structural issues for the market, the impact wont be seen for a while.
NO ECONOMIC NUMBERS TODAY
This is not all of the earnings, rather a small portion that Random Walk has been watching in POT.
Yesterday and Today
The markets we up almost as much as they had sold off the previous day. Recall that on Thursday we had a double feature of Israel going into the Gaza hunting Hamas (sounds like a chick-pea spread) and the Downing of a Malaysian flight.
Though there are no economic numbers out today, we do have the start of the real portion of earnings coming out. Last week’s corporate earnings were light and a preamble to the next few weeks. 135 companies report today, 140 report Tuesday, 218 report on Wednesday and 332 on Thursday. Nice!
Who knows what is going to happen today. I suspect that we will continue on with the bullish move, but in a guarded manner UNLESS more bone head moves come out of Russia, the US and Middle East.
The Middle East has always been a mess, but contained. After the Persian Gulf War Part 1&2 America over there was more hated than before, but as Machiavelli would say, “It is better to be feared than loved”. Now with all roads leading to weakness in American foreign policy the nut cases of the world are more embolden than ever to do something. They KNOW there will be no repercussions from the US.
Libya is heating up again – nothing done over their after out Ambassador and Seals we killed.
Iraq/ISIS -s heating up and the Muslim authorities are hunting down Christians
(I don’t believe for one second anything about a rogue group of Ukrainians wanting to be part of Russia, or they would just walk into Russia like Mexicans walk into the US). They shot down an airliner and have been stealing the debris and bodies in the Ukraine and taking them back to Moscow.
Iran – Scary Kerry is releasing $2.8 billion in money for them to help with humanitarian needs – like enriching Uranium.
Gaza – Humas soldiers (and by that I mean Iranian sponsored soldiers) are getting whacked by Israel, but have taken an Israeli soldier captive. This is a problem because unlike the US where we have a soldier sitting in a Mexican jail for being being forced to accidentally cross the boarder (and the President is doing nothing to get him back) Israel will NOT tolerate one of their soldiers being held captive. This is going to flare up even bigger until the soldier is returned.
Syria – After Kerry opened his mouth and let Putin checkmate him in staying out of Syria, they are now supporting ISIS in Iraq.
So the troubled area is no longer “troubled but quiet”.
One of these days a big event will occur that will not take weeks to figure out what happened. Then the half-life of news will not make culpability seem too far in the past to warrant punishment. And then the market will have its down day. But that is cool, too! Very cool. VERY COOL!
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