DislikedThere's no rate cut coming. It doesn't fit into the Princeton manualIgnored
Then he better throw the book out the window on this one or the freefall will continue.
HOLLA
Walk the Talk from a fun loving discretionary trader 46 replies
You talk the talk I walk the talk 8 replies
DislikedThere's no rate cut coming. It doesn't fit into the Princeton manualIgnored
THE RED FLAG OF CUMMINS IS FLYING
Our high-horsepower economic indicator is getting laid low right now.
Several years ago, we pointed out the soaring share price of Cummins (CMI) as a sign of the healthy global economy. As the world's largest independent maker of diesel engines, Cummins serves a broad spectrum of industry... producing the motive power for over-the-road trucks, bulldozers, cranes, oil pumps, mining shovels, and generators.
As goes the global economy, so goes the share price of Cummins. Problem is, Cummins isn't "going" right now. After soaring hundreds of percent from '03 to '07, the stock has been hammered with a 30% loss in the past few weeks. Chart watchers would call this one a "breakdown."
This big drop isn't reason to dump your portfolio and crawl into a bomb shelter – poor economic times actually create great investment opportunities. But from an economic standpoint, Cummins' chart is one of the biggest red flags in the market right now.
DislikedI figured I joined the party, but Ernie is hogging the piece pipe.....doesn't he know that it is puff...puff...give.....
Enjoy your weekend....
HOLLA
Attached Images
http://www.forexfactory.com/attachme...1&d=1200588030Ignored
DislikedFrom cnbc.com
The concern over bond insurers is that they enabled financial giants like Merrill Lynch (MER, news, msgs) and Citigroup (C, news, msgs) to hedge the value of their portfolios of mortgage-related securities. If a bond insurer goes under, the hedges are "worthless"...
An imagine this running right into the Japanese Fiscal Year.....
HOLLAIgnored
DislikedI never looked at it from that angle. These are exciting times that we are living in.Ignored
Dislikedhttp://www.dailywealth.com/images/bh...otes_title.gifTHE RED FLAG OF CUMMINS IS FLYING
Our high-horsepower economic indicator is getting laid low right now.
Several years ago, we pointed out the soaring share price of Cummins (CMI) as a sign of the healthy global economy. As the world's largest independent maker of diesel engines, Cummins serves a broad spectrum of industry...
Ignored
DislikedThats why I posted my theory about the next leg down. The Bond insurers are the next domino to fall. This whole sub-prime issue now goes from front office to back office, whereas before it went the other way.Ignored
DislikedInteresting, never thought of diesel engines as an economic indicator before but it makes sense.
Other traditional measures have been job classified ads space in newspapers and corrugated cardboard box shipments and the direction of the $DJT transportation index covering rails and truckers. Now I also follow BDI Baltic Dry Index for bulk and containerships. That had a double top in Nov'07. and has been in steep decline ever since.Ignored
DislikedInteresting, never thought of diesel engines as an economic indicator before but it makes sense.
Other traditional measures have been job classified ads space in newspapers and corrugated cardboard box shipments and the direction of the $DJT transportation index covering rails and truckers. Now I also follow BDI Baltic Dry Index for bulk and containerships. That had a double top in Nov'07. and has been in steep decline ever since.Ignored
DislikedThanks Dutch. That's what makes this thread fun / interesting and full of knowledge (if someone knows where to look).
The fun has only begun. It is not about the average Joe anymore, the ones who got into these mortgages, over extended and drowned themselves in debt, it is about the big boys who, knowingly, took unnecessary risks and shoved credit products down the throats of the those who did not deserve them. Wave a piece of candy in front of a child and guess what happens? The child doesn't know any better.
While my stint (after my federal employment) working for a Major US Bank (will not name any names but they suffering at the moment) for a very short time, they were qualifying and selling credit products to those who were already mired in knee shit debt. I was disgusted. They didn't care, they were looking at the bank would receive in interest from loans as high as 16.99%, credit card interest rates as high as 32.99%. Granted, the folks who took them were desperate but the banks are just as guilty.
The Banks / Mortgage / Credit Card / Bond Insurance Companies Danced with devil and now they are getting burned. That is the way I look at it.
No matter what the Federal Government does, will not stem the losses on Wall Street nor stop home values from falling.
(Just my humble opinion)Ignored
DislikedYea, like that reversable mortgage stuff.........
I too, hope that the companies who pushed this on people, are the ones who pay the piper....
HOLLAIgnored
DislikedNINJA - funny use of the word.
For those who haven't heard - No Income No Job or Assets.Ignored
http://www.dailywealth.com/images/st...week_title.gif
DislikedInteresting, never thought of diesel engines as an economic indicator before but it makes sense.
Other traditional measures have been job classified ads space in newspapers and corrugated cardboard box shipments and the direction of the $DJT transportation index covering rails and truckers. Now I also follow BDI Baltic Dry Index for bulk and containerships. That had a double top in Nov'07. and has been in steep decline ever since.Ignored
DislikedI think, we'll be in some very wide ranges next week ahead of the FOMC. Just my .02
I used to sell Real Estate in Cali, I know people in the mortgage business that were underwriting NINJA loans. The house of cards was being built by people who knew what they were doing but they didn't care.Ignored