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Is Gold About To Surge?

There is very little love for the yellow stuff at the moment. Since topping out less than two weeks ago, gold is down 6%. Today,many people and money managers are falling all over each other, suggesting that the gold has topped out and the time to short is NOW. Not so fast. Not according to our mathematical and timing work.

Here is what most people miss. Most people anticipate strong economy, tightening, stronger dollar and somewhat higher interest rates going forward. That is not what our mathematical and timing work shows. Not at all. Quite the opposite.  Our work shows that a severe bear market of 2014-2017 is about to start, ushering in a deep recession where the FED will be forced to flood the market with liquidity once again. Not tighten by any measure. In such an environment (liquidity pump while equity markets decline) gold tends to perform very well. 

That is on top of a favorable technical setup. While I wouldn’t buy just yet, Gold should be on your BUY watch list. If you would be interested in learning when the bear market will start (to the day) and it’s internal composition, please Click Here.  

Gold bars

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Is Gold About To Surge?  Google

Talking Numbers Writes: Why the top could be in for gold

The world is just as unstable now as it was a month ago. Yet,gold is now close to breaking below the $1,300 per ounce level.

Now, before gold bugs start panicking, let’s put this all in perspective: Gold is still up about 7% since the start of 2014. That’s seven times the return of the benchmark S&P 500 index for stocks. In 2014, gold is beating Google (up 3%),Apple (down 3%), Netflix (flat), Twitter (down 27%), and theUS Dollar index (flat) among countless others.

In other words, gold hasn’t been such a bad buy this year. But will that continue going forward?

Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, says gold may take a hit in the short-term but the technicals are showing the yellow metal to be near a critical support level that could make for a buying opportunity.

“It looks to me as if gold has taken its position as the currency of fear once again,” says Ross. “That’s all well and good when Russia is annexing Crimea. But, when those emerging markets start to bottom and you get a strong rally and the macro unrest subsides, obviously, that going to hurt gold prices. That’s what the catalyst behind this big pullback we’ve seen recently.”

Ross sees notes gold has been trading in a range between $1,180 per ounce and $1,420 per ounce since June 201,3 with bullion testing and holding the $1,180 per ounce level in June and a couple of times in December. But, the level Ross is watching is $1,300 – or, to be more specific, $1,292 per ounce. That’s where gold’s 50-day moving average crossed above its 150-day moving average.

“That should be bullish,” says Ross. “It should provide support for this pullback around current levels. A break below that level could send gold down to the low end of that range [$1,180 per ounce]. I think support holds and I think we get another test of the high end of that trading range [$1,420 per ounce]. I would be a trading buyer here of gold.”

Portfolio manager Chad Morganlander of Stifel’s Washington Crossing Advisors is taking the other side of Ross’ trade. After owning gold for six years, his firm sold out its gold position because it sees improvements ahead in the US and European economies as well as improved capital and credit markets.

“Let’s bottom line it: I would be short gold,” says Morganlander. “I would not own gold in my portfolio. We think that the safe haven asset class is not necessary at this point in time.”

Morganlander doesn’t believe the current crisis in Ukraine will have a long-term effect on gold. 
“We think the Russia/Crimea issue is a storm that’s going to pass,” says Morganlander. “Geopolitical premia are going to be compressed.”

That and his expectations of better economic data ahead are leading Morganlander to see gold prices falling. “We would stay away from gold,” he says.

Warning: Fed Rejects Citigroup. Does Fed Expect Another Credit Event?

I thought that I would never say this, but I actually agree with the FED’s decision. In a “shocking” move Federal Reserve rejects Citigroup and 4 other big banks from raising dividends and boosting buybacks. According to the Fed, Citigroup fell short in some areas of it’s “stress test”, including it’s ability to forecast revenue and losses IF they come under economic or market stress.  

Now, change the IF above into WHEN. The situation we have today is not that dissimilar to the situation in 2007. Before the 2008 collapse. The Fed flooded the market with cheap credit and there was all sort of speculation (primarily in real estate, equities and credit). Based on our mathematical and timing work, the Dow will go through a significant bear market between 2014-2017. While the impact will not be as severe as what had occurred between 2007-2009, the banks will, once again, be stressed to the max. Perhaps the FED realizes this and that’s the real reason behind Citi’s rejection.

OR….perhaps I am giving the FED way too much credit here. 

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Warning: Fed Rejects Citigroup. Does Fed Expect Another Credit Event?  Google

AP Writes: Fed blocks Citigroup from raising dividends

Federal Reserve bars Citigroup, 4 other big banks from raising dividends, boosting buybacks

WASHINGTON (AP) — The Federal Reserve on Wednesday barred Citigroup from raising its dividend or boosting its stock buybacks, saying it’s too hard to predict how some parts of the bank’s global operation would fare in a sharp economic downturn.

It was a setback for Citigroup Inc., one of the nation’s biggest banks, which has been cutting jobs and trimming some businesses in an effort to improve its finances.

Citi was the biggest of five banks whose plans the Fed rejected as part of its so-called “stress tests,” an annual check-up of the nation’s biggest financial institutions. This year 30 banks underwent the tests to determine if they have large enough capital buffers to keep lending through another financial crisis.

Citi had asked the Fed’s permission to buy back $6.4 billion in shares through the first quarter of next year, and to raise its dividend to 5 cents each quarter, up from a penny per quarter now.

New York-based Citigroup was blocked from raising its dividend in 2012, too, after failing its stress test. Later that year it brought in a new CEO, Mike Corbat, with a mandate to speed up its turnaround. .

Corbat said Wednesday that the company is “deeply disappointed” by the Fed decision. The dividend and buyback would have been a “modest level of capital” for shareholders, and Citi still would have exceeded requirements for its financial health, he said in a written statement.

The Fed announcement caused investors to re-assess bank stocks across the board. Citigroup’s stock was down more than 5 percent in after-hours trading.

CLSA analyst Mike Mayo called Citi’s rejection “a shocker.”

“Citi needs to make this defeat into victory by improving the pace of restructuring,” Mayo wrote in a note. That would include selling off businesses and holding managers more accountable, especially after executives had offered reassurances about how the bank is monitoring its finances, Mayo said.

The Fed said that the capital plans of Citigroup fell short in some areas, including its ability to forecast revenues and losses in parts of its global operations, should they come under economic stress.

As with Citigroup, the Fed said it found deficiencies in the capital plans of HSBC North America Holdings, RBS Citizens Financial Group, Santander Holdings USA and Zions Bancorp. The central bank, however, approved requests outright from the other 25 tested banks, which included JPMorgan Chase, Wells Fargo and Morgan Stanley, in addition to Bank of America and Goldman Sachs

Before the financial crisis, Citigroup’s dividend peaked at $5.40 per quarter in 2007. After eliminating its dividend altogether in 2009, it reinstated a payout in June 2011 at a token penny per quarter, where it remains.

The dividends and share buybacks that the Fed weighed are important to ordinary investors, and banks. The banks know that their investors suffered big losses in the financial crisis, and they are eager to reward them. Some shareholders, especially retirees, rely on dividends for a portion of their income.

But raising dividends costs money. The regulators don’t want banks to deplete their capital reserves, making them vulnerable in another recession. Buybacks also are aimed at helping shareholders. By reducing the number of a company’s outstanding shares, earnings per share can increase.

A handful of banks that won approval from the Fed to raise dividends quickly announced plans to reward investors.

Wells Fargo said it would raise its dividend a nickel to 35 cents per share starting in the second quarter. It also boosted its planned share buybacks. Morgan Stanley announced it would double its dividend for the second quarter to 10 cents a share from the current 5 cents. It will also buy back as much as $1 billion of its shares through March 2015. Capital One Financial Corp. expects to buy back $2.5 billion of its shares but maintain its dividend at 30 cents a share.

The announcement Wednesday follows last week’s results of the Fed’s annual “stress tests.” The central bank determined that the U.S. banking industry is better able to withstand a major economic downturn than at any time since the financial crisis struck in 2008. The Fed said that only one of the 30 biggest banks in the country needed to take more steps to shore up its capital base. That bank was Zions.

The companies raising dividends and boosting share buybacks should have an advantage in winning investors, said Michael Scanlon, managing director at John Hancock Asset Management.

“From a total return perspective, all this is good,” he said. “The Fed is recognizing that there is continuing healing that’s taking place at the banks,” he said. “From a capital standpoint, these institutions are in a far better position than they were a few years ago.”

Citigroup and the other big Wall Street banks, as well as hundreds of others, were bailed out by the government during the crisis. The banking industry has been recovering steadily since then, with overall profits rising and banks starting to lend more freely. The banks have mostly repaid the taxpayer bailouts.

The Fed has conducted stress tests of the largest U.S. banks annually since 2009, the year after the financial crisis plunged the country into the worst economic downturn since the Great Depression of the 1930s.

Under the stress tests’ “severely adverse” scenario this year, the U.S. would undergo a recession in which unemployment — now at 6.7 percent — would reach 11.25 percent, stocks would lose nearly half their value and home prices would plunge 25 percent.

Russian Invasion Of Ukraine Is Highly Probable. Stocks To Sell Off?

Western intelligence continues to maintain that Russia’s invasion of Southern and Eastern Ukraine is now “highly probable”. I am starting to get the same type of a feeling after following Russian media. Nothing concrete, just “read between the lines” type of an analysis. In fact, Canada expects the invasion to happen as soon as next week. Here is what we know thus far. 

  • Russian troops on the border of eastern Ukraine — now more than 30,000 — number “significantly more” than what is needed for what Russia is calling a training exercise.
  • These troops include a large number of motorized units, which have the ability to deploy quickly. There also appears to be a higher level of activity among special forces, airborne, and air transport troops inside Russia.
  • Additional intelligence shows more Russian forces “reinforcing” the border region. 

If invasion does happen, the West will not respond militarily. Instead, an all out economic warfare, sanctions and escalation of the cold war are expected. Either way, if invasion occurs, particularly next week, expect the US equity markets to sell off. Big time. 
 

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Russian Invasion Of Ukraine Is Highly Probable. Stocks To Sell Off?  Google

Canada worried about ‘serious possibility’ of Russian invasion in Ukraine within week

OTTAWA – Canada is preparing for a Russian invasion of Eastern Ukraine – and soon, sources say.

“We’re worried about their intentions. I think it’s the view all the G7 leaders that we are very concerned that they haven’t necessarily stopped here,” Prime Minister Stephen Harper said at a press conference in The Hague on Tuesday.

Though the Russian defense ministry says it’s complying with limits, the presence is large, and sources say there’s a “serious possibility” Russia could invade within a week.

“The fact that they explicitly said they have stopped here gives us no confidence. They assured us they wouldn’t do this kind of thing in the first place,” Harper said.

Russia’s next moves are part of the discussion G7 leaders are having, but the government won’t speculate on Canada’s response in the event of an invasion.

Conservative MP James Bezan says for now, sanctions are working.

“I think if we hit them where it hurts – which is in their own personal pocket books – they’ll take a step back,” Bezan said.

And if they don’t – there’s a lot at stake for Canada.

WATCH: Harper says Putin’s mentality on Canadian sanctions has no basis

Russia has made claims to parts of the Arctic – claims Canada doesn’t recognize.

What do its actions in the Ukraine say about the Kremlin’s willingness to pursue those claims?

“If Russia has these ideas of increasing territory, we are a neighbouring state. I think we have to continue to be in lockstep with our partners,” Bezan said.

But Ivan Katchanovski, political studies professor at the University of Ottawa, says any action taken by Putin is less about the West and more about Russia’s interest in Ukraine.

The Ukrainian-born professor says an invasion is likely, but a military response from Canada is not, as long as the battle is contained to Ukraine.

“Western military involvement in Ukraine to prevent such intervention by Russia is not very likely. …It’s not realistic,” he said.

United States President Barack Obama was also asked Tuesday what the U.S. would do if Russia made other land grabs.

He replied that if the country is a NATO member nation – which Canada is – then the U.S. would defend it with force.

Investment Grin Of The Day

10 signs you think about your portfolio too much

  1. You gave your broker a gift on the fifth anniversary of the day you opened your brokerage account, but forgot to give your wife anything on your wedding anniversary.
  2. You tell your children they can’t go to college because you are convinced you can make another 15% on their education accounts when the market turns around.
  3. You go camping, a bear attacks you, and your insurance has run out. You have a choice between selling your Microsoft stock or paying for an operation to save your leg. You choose the stock.
  4. When asked to speak at your graduation, you recited line-for-line Gordon Gekko’s “Greed is Good” speech.
  5. You miss your business partner’s funeral because Cisco is releasing its earnings report… after all, if they were still alive, they would want you to carry on with business as usual.
  6. You make your sixteen year old daughter get a job at a little-known manufacturing company in the hopes she will hear something and give you valuable insider trading tips.
  7. After a company has a disappointing quarter, you throw all of their products out of your house in anger and call your extended family, demanding they do the same.
  8. The Dow Jones drops 10% or more, you demand your family skip one meal a day so you can quickly raise cash to buy stock at the new, cheap levels.
  9. You wander the house on Saturday and Sunday because you have nothing to do. Every hour, on the hour, you loudly announce to the house the time remaining until the Japanese markets open.
  10. Your broker has issued a restraining order.

Stock Market Update. March 26th, 2014. InvestWithAlex.com

z32

A volatile day with the Dow Jones ending the day down 99 points (-0.60%) and the Nasdaq down 61 points (-1.43%)

In short, the market continues to perform as per our forecast (available in our subscriber section). While the Nasdaq continues to underperform, the DOW remains only 300 points away from it’s all time high. Looking at various indicators, the Nasdaq and the Biotech sector remain oversold and due for a bounce. In fact, the Nasdaq left a gap around 4260 that it is likely to close soon. 

I believe such bounce will occur over the next few days. Please note, a slew of negative opinions coming out over the last few days. It is expected from this blog, but not from the mainstream media. I believe the overall psychological perception is changing as well. While it bodes well over the short-term, indicating a bounce, it’s a big problem going forward. 

With that said, as we have been preaching on this site for some time, the bear market of 2014-2017 is just around the corner. If you would be interested in learning exactly when this bear market will start (to the day) and it’s internal composition, please Click Here. 

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Stock Market Update. March 26th, 2014. InvestWithAlex.com Google

China To The USA Military: Get The F*#& Out Of Asia

According to Pentagon-sponsored study, China is waging a “Three Way” political warfare against the United States as part of a strategy to drive the U.S. military out of Asia and control seas near its coasts. (read full article below). This should not come as surprise to the readers of this blog. Developments outlined in This Report are playing out just as predicted. China views itself as a superpower. It’s recent and massive military expenditure are designed specifically to drive the US out of the region.

With China and Russia forming a military alliance over the next decade, this will be hard nut to crack. But not to worry, as President Obama stated yesterday “Russia is just a regional power”. Never underestimate your enemies Mr. President.  Lesson most often learned the hard way throughout history. 

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China To The USA Military: Get The F*#& Out Of Asia  Google

 

Warfare Three Ways

China is waging political warfare against the United States as part of a strategy to drive the U.S. military out of Asia and control seas near its coasts, according to a Pentagon-sponsored study.

A defense contractor report produced for the Office of Net Assessment, the Pentagon’s think tank on future warfare, describes in detail China’s “Three Warfares” as psychological, media, and legal operations. They represent an asymmetric “military technology” that is a surrogate for conflict involving nuclear and conventional weapons.

The unclassified 566-page report warns that the U.S. government and the military lack effective tools for countering the non-kinetic warfare methods, and notes that U.S. military academies do not teach future military leaders about the Chinese use of unconventional warfare. It urges greater efforts to understand the threat and adopt steps to counter it.

The report highlights China’s use of the Three Warfares in various disputes, including dangerous encounters between U.S. and Chinese warships; the crisis over the 2001 mid-air collision between a U.S. EP-3E surveillance plane and a Chinese jet; and China’s growing aggressiveness in various maritime disputes in the South China and East China Seas.

“The Three Warfares is a dynamic three dimensional war-fighting process that constitutes war by other means,” said Cambridge University professor Stefan Halper, who directed the study. “It is China’s weapon of choice in the South China Sea.”

Seven other China specialists, including former Reagan Pentagon policymaker Michael Pillsbury, contributed to the study. A copy of the assessment was obtained by the Washington Free Beacon. Disclosure of the report is unusual as most studies produced for the Office of Net Assessment are withheld from public release.

The May 2013 report was written before the dangerous near collision in the South China Sea last December between the guided missile cruiser USS Cowpens and a Chinese naval vessel. Senior defense officials said the incident could have led to a larger military “miscalculation” between the two nations.

Chinese state media falsely blamed the United States for the incident and falsely asserted that it had declared a no-sail zone prior to the Dec. 5 encounter. The zone was imposed after that date.

According to the final Pentagon report, China’s use of Three Warfares is based on the notion that the modern information age has rendered nuclear weapons unusable and conventional conflict too problematic for achieving political goals. China’s goals are to acquire resources, influence, and territory and to project national will.

“China’s Three Warfares [are] designed to counter U.S. power projection,” the report says. “The United States is one of four key audiences targeted by the campaign, as part of China’s broader military strategy of ‘anti-access/area denial’ in the South China Sea.”

The Pentagon regards China’s high-technology arms, such as anti-satellite missiles and cyber warfare capabilities, as arms designed to prevent the U.S. military from entering the region or operating freely there.

The study concludes that in the decade ahead China will employ unconventional warfare techniques on issues ranging from the Senkaku Islands dispute in northeast Asia to the disputed Paracels in the South China Sea.

For the United States, the Three Warfares seek to curtail U.S. power projection in Asia that is needed to support allies, such as Japan and South Korea, and to assure freedom of navigation by attempting to set terms for allowing U.S. access to the region.

The use of psychological, media, and legal attacks by China is part of an effort to raise “doubts about the legitimacy of the U.S. presence.”

The use of the techniques threatens to limit U.S. power projection in the region through influence operations that “diminish or rupture U.S. ties with the South China Sea littoral states and deter governments from providing forward basing facilities or other support,” the report says.

Another goal of the Chinese is to limit U.S. surveillance operations through harassment of aircraft and ships and to try and restrict routine U.S. Navy deployments.

China is also using the Three Warfares to facilitate its military expansion and global reach, and to secure sea-lanes needed to transport vitally needed oil from the Middle East.

The Pentagon study urged the development of effective countermeasures to Beijing’s psychological, legal, and media warfare efforts.

They include forceful legal action to challenge China’s so-called “lawfare” initiatives, high profile statements of U.S. security support for states in the region, and expanded support for regional political forums.

Militarily, the United States should continue reconnaissance missions by U.S. ships and aircraft and protect them with force protection weapons to deter harassment or attack. Clear rules of engagement should be developed to prevent a recurrence of the 2001 EP-3E incident.

Increased naval exercises and more “freedom of navigation” exercises also should be held within China’s exclusive economic zones in the region to counter Beijing’s claims in disputed waters.

The report also calls for bolstering “public diplomacy” campaigns in Asia, using targeted investment and development in the region, and expanding military talks and exchanges.

The Pentagon defines psychological warfare as efforts to influence or disrupt an enemy’s decision-making capabilities, to create doubts, foment anti-leadership sentiments, and deceive opponents.

Psychological warfare includes diplomatic pressure, rumors, false narratives, and harassment to “express displeasure, assert hegemony, and convey threats,” the report said.

For example, China’s economy has been used to threaten the United States with the sale of its large U.S. debt holdings, and state-controlled Chinese businesses have pressured U.S. businesses in China. Boycotts, restrictions on critical exports, such as rare earth minerals, and threats to use predatory trade practices are other Chinese soft warfare means.

For media warfare, also known as public opinion warfare, the Chinese use constant activities to influence perceptions and attitudes.

“It leverages all instruments that inform and influence public opinion including films, television programs, books, the internet, and the global media network (particularly Xinhua and CCTV) and is undertaken nationally by the [People’s Liberation Army], locally by the People’s Armed Police, and is directed against domestic populations in target countries,” the report said.

Hollywood has also been influenced by threats from the Chinese government, which threatens to block market access in an effort to pressure movie studios to avoid themes Beijing opposes.

Also, China’s state-controlled television network CCTV maintains a full time White House reporter who regularly joins the rotating media pool, a position that could permit influencing U.S. media on China through pool reports.

The goal of media warfare is to weaken an enemy’s will to fight, alter its awareness, and assist psychological and legal warfare goals.

Legal warfare exploits laws to achieve political or commercial objectives.

China has used lawfare to bolster its territorial claims. An example was the designation of the South China Sea village of Sansha, on the disputed Paracel Islands, as part of Hainan Prefecture. The legal measure sought to extend China’s control far into the South China Sea. Vietnam, Philippines, and other states have claimed the islands.

Tools used in lawfare include domestic laws, international legislation, judicial law, legal pronouncements, and law enforcement. They are often used in combination.

The report warns that the three types of unconventional warfare addressed individually are “manageable” problems, but taken together they challenge traditional U.S. concepts of war.

“Our war colleges and military research traditions emphasize kinetic exchange, the positioning and destruction of assets, and metrics that measure success by kill ratios and infrastructure destruction,” the report said. “By adopting the Three Warfares as an offensive weapon, the Chinese have side-stepped the coda of American military science.”

The use of these warfare techniques allows China to achieve strategic objectives using a new military technology that has not been considered in the past by the West.

To solve the problem, the report recommends setting up a White House office to coordinate countermeasures to the Three Warfares.

“If the Three Warfares is not a ‘game changer,’ it certainly has the capacity to modify the game in substantial ways,” the report said.

Attention: Tech Stocks About To Surge?

With King Digital going public and Facebook’s $2 Billion acquisition, The Daily Ticker asks “Are we on the verge of another tech bubble?”

Idiots. 

On “the verge” implies that today’s valuation are normal and we are about to experience a huge run up, leading to an eventual “bubble”. We are in a massive bubble already. Today. Thanks to the FED and their monetary policy or lack thereof. The valuations are at astronomical levels and today’s active IPO market is a clear indication of that. Further, with our mathematical and timing work clearly predicting a severe bear market and a US recession between 2014-2017, the bubble is about to POP.  

Dumb and Dumber (Screengrab)

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Attention: Tech Stocks About To Surge?  Google

Daily Ticker Are we on the verge of another tech bubble?

Shares of King Digital Entertainment (KING), the mobile game maker of the popular Candy Crush, started  trading today for the very first time but below an IPO price of $22.50 a share which valued the company at  $7.1 billion. In early trading shares were down about 8% at $20.70.

Facebook (FB) announced it’s buying virtual reality firm Oculus VR for $2 billion--$400 million in cash plus stock–just five weeks after it announced a $19 billion acquisition of WhatsApp. Oculus makes virtual reality goggles used to play video games, but Facebook CEO Mark Zuckerberg said Tuesday he plans to expand its platform to include education, medicine and more.

Finally, Box Inc., a cloud storage company, announced Monday plans to raise $250 million through an IPO.Unlike King Digital, which had profits of more than half a billion dollars last year, Box has been operating at a growing deficit despite increasing revenues.

Could we be on the verge of another tech bubble?

“Don’t insult the real bubble of the 1990s,” says Henry Blodget, though he admits “some valuations are breathtaking,” like King’s. Its “numbers are already shrinking,” says Blodget. “I don’t know anyone who plays Candy Crush anymore.”

There are no current numbers for Oculus. Its virtual reality headset is available only as a prototype for developers and not for sale to consumers. “This is as speculative as you can get,” says Blodget. This acquisition is unlike Facebook’s other recent buys: $1 billion for Instagram, a company with 100 million users and $19 billion for WhatsApp with 450 million users (growing at a rate of 1 million users a day).

Most people have never used the Oculus virtual reality headset but those “who have tried it say it’s mind-blowing,” says Blodget. Still, he warns, “there’s a very good chance that this thing is worth zero in two years.”

Shocking Truth: Why The US Chose The Wrong Side In Ukraine/Russia Conflict

Final piece evidence showing that President Obama picked the wrong side in Ukraine/Russia conflict was released on Tuesday.  In it, Ukrainian national security service has put Crimea’s new super hot chief prosecutor Natalia Poklonskaya on its wanted list for unspeakable crimes against Ukraine (see article below). Realizing his mistake President Obama dialed up Putin saying “Sorry bro, I didn’t realize Ukrainians were that crazy”. All was good in the world thereafter.   

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Shocking Truth: Why The US Chose The Wrong Side In Ukraine/Russia Conflict  Google

RT Writes: Crimean chief prosecutor Natalia Poklonskaya ‘wanted’ by Ukraine’s security service

Ukrainian national security service has put Crimea’s chief prosecutor Natalia Poklonskaya on its wanted list. She is charged of taking actions aimed at the violent overthrow of constitutional order and takeover of government power.

Poklonskaya took the office as Crimea defied the coup-imposed government in Kiev and sought independence from Ukraine. After the peninsula joined the Russian Federation, she was appointed as Crimea’s acting chief prosecutor by Russia’s General Prosecutor Yury Chaika.

The Ukrainian National Service for Security and Defense accuse her of violating article 109 of the Criminal Code, which deals with overthrow of the government.

Poklonskaya became somewhat of an internet sensation due you relative youth, attractive appearance and emotional media conferences. A number of anime-style drawings of the official are currency circulation on the web, with many supporters calling her ‘kawaii prosecutor’ after the Japanese term for cuteness.

The now-wanted in Ukraine officer of the law is somewhat irritated with her web popularity, she told the media, because it undermines the serious nature of her job.

Last week the Ukrainian security service said it was investigating 22 alleged cases under Article 109. Seven of the alleged ‘separatists’, as Kiev calls them, are under arrest. Among those charged are several leaders of protests in eastern Ukraine, which defied the new authorities.

 

Image from reddit.com

Image from reddit.com

 

 

Image from reddit.com

Image from reddit.com

 

 

Image from reddit.com

Image from reddit.com

 

Jim Cramer’s Perfect Timing

Last week Jim Cramer said Tesla (TSLA) is the next Apple (AAPL) and issued a buy recommendation. Tesla’s stock promptly went on to lose 8% of its value. Today, Jim is raving about the “undervalued” Blue Chips. Why? Well, because the Dow didn’t sell off last Friday and Monday as Jim’s favorite Nasdaq and IBB did. Duh!!!!

Is Jim right? Does it mean Blue Chips are undervalued? Hell NO. Market action over the last few days is indicative of complex market top formation. It has nothing to do with undervaluation or overvaluation. As I have said so many times before, the bear market of 2014-2017 is just around the corner. The market action and divergences you are seeing today are a clear indication of that. Point being, there is no value left and I would caution you against buying anything. Let alone what Jim suggests. 

If you would like to know exactly when the bear market will start (to the day) and it’s internal composition, please Click Here. 

jim cramer

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Jim Cramer’s Perfect Timing  Google

CNBC Writes:  Cramer: Are these stocks too darn cheap?

Jim Cramer has noticed a remarkable transformation in the market over the last few days. Investors are buying value.

That is, money is going to work in stocks that investors believe are, essentially, too cheap, if the economy is improving.

And in a market that’s been hyper-focused on growth, the “Mad Money” host thinks the shift is remarkable.

“I think this value move may have some real legs,” Cramer said. “The stocks that are attracting buyers are so much cheaper than the average equity that they could rally for days without running into any kind of ceiling.”

What’s likely to rally as value investors snap up bargains? The following stocks were on Jim Cramer’s radar Tuesday March 25, 2014.

Adam Jeffery | CNBC

Caterpillar

Looking at the valuation Cramer said there’s no doubt Caterpillar is cheap relative to the market. “Right now, CAT’s trading at about 14 times earnings estimates. That’s much cheaper than the S&P 500, trading at 17.2 times earnings,” Cramer explained.

Of course, the discount exists for a reason. Caterpillar had been facing serious business challenges. However, Cramer thinks the company’s fortunes may be about to turn. “We know from talking with United Rentals CEO Mike Kneeland that there’s a renaissance in optimism about commercial construction. That’s CAT’s bread and butter. Also, the Fed has suggested the economy is improving. Again, that’s right in Caterpillar’s wheelhouse. And I’m hearing about a revival in trucking. Caterpillar makes engines; they benefit from any kind of rebound in trucking.”

Johnson & Johnson

Like CAT, Johnson & Johnson is trading at a discount to the average stock in the S&P. “Value buyers think that disparity can’t last,” Cramer said. “J&J is the fastest growing major drug company with the best balance sheet of any company in the United States. And CEO Alex Gorsky has talked openly about shaking the company up which should unlock value. Is this the kind of company deserves to trade at a discount to the rest of the market? According to value investors the answer is a resounding ‘no.’ Shares closed more than 2% higher on Tuesday.

IBM

Although Cramer concedes that IBM missed the last quarter, he thinks the relative discount is too substantial given the transformation underway at the company. “It sells for ten times earnings,” he said.

“IBM is rapidly transitioning to the cloud. It’s much more of a software than a hardware play. At ten times earnings with a new cycle coming, it appears value investors just can’t pass up this bargain.”

Microsoft

Microsoft trades at 14 times earnings and yields almost 3% but Cramer thinks value investors could easily send shares higher. “I think the company’s new CEO, Satya Nadella, will usher in a new era of glasnost, where everything is on the table. No sacred cows.” Therefore, at $40, it’s a value.

Schlumberger

Schlumberger is the finest oil service firm in the world with the best technology and the best minds,” Cramer added. However it had been trading at a discount to the S&P.

“That ended today when the company spoke at that Howard Weil conference and gave a tremendous outlook,” Cramer explained. The company’s comments suggested the energy renaissance underway in this country was still in early stages and Schlumberger was positioned to profit as developments unfolded.

Although the stock is no longer cheaper than the S&P average, give the catalysts, Cramer thinks value investors will continue to view it as a bargain.

FED Unemployment Delusions

I have argued, for at least a few years, that the FED is delusional and behind the ball most of the time. If minutes released from their 2008 meetings don’t prove that without a shadow of a doubt, I don’t know what will. If you recall, those minutes clearly showed Bernanke anticipating economic growth and worrying about housing prices going up as late as Q3 of 2008. Mind you, the stock market was already down more than 30% at that stage. To keep their stupidity streak alive, the FED presents us with another gem. Get this, according to James Bullard, president of the Federal Reserve Bank of St. Louis, the unemployment rate will fall below 6% this year. 

The reality, of course, is a little bit different. Never mind the fact that their unemployment calculation understates the real unemployment by a good 2-4%. The most significant issue here has to do with where we are in the economic cycle. Based on our mathematical and timing work, the bear market of 2014-2017 is about to rear its ugly head. Shortly thereafter, the US Economy will fall back into a severe recession where unemployment will quickly surge. To be honest, I am afraid Mr. Bullar will see 10% unemployment before he sees 6%. 

Just more prove, as if you needed any, that the FED is ill-equipped for forecasting future economic developments. 

If you would be interested in learning exactly when the bear market of 2014-2017 will start (to the day) and its internal composition, please Click Here. 

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FED Unemployment Delusions  Google

Reuters: Fed’s Bullard says U.S. jobless rate expected to fall below six percent this year

HONG KONG (Reuters) – The U.S. unemployment rate will fall below 6 percent by the end of this year, a Federal Reserve official said on Wednesday, offering a bullish view on the country’s economy after central bank comments sent shock waves through financial markets last week.

James Bullard, president of the Federal Reserve Bank of St. Louis, said that the outlook for the U.S. economy is “quite good,” despite data from early in the year.

“The biggest thing is that unemployment has come down more quickly than expected,” said Bullard, speaking on a panel at the annual Credit Suisse investor conference in Hong Kong.

He added later during a question and answer session that more progress is needed in the labor market before U.S. policymakers can consider raising interest rates.

Bullard is known to be one of the Fed’s more hawkish policymakers. He previously advocated for a rate hike as early as 2014, a stance he appears to have backed away from.

U.S. monetary policy tightening took center stage last week after a two-day policy meeting, when the Fed said it expected to keep benchmark interest rates near zero for a “considerable time” after it wrapped up a bond-buying stimulus program, which it is widely expected to do toward the end of the year.

Pressed on the statement at a news conference afterward, Fed Chairman Janet Yellen said the phrase “probably means something on the order of around six months or that type of thing.” Stocks and bonds immediately tumbled as traders took the statement to suggest rate hikes could come sooner than they had anticipated.

Bullard has joined other Fed officials in playing down the “six months” comment from Yellen, saying it was in line with what the private sector was anticipating. He repeated that view on Wednesday.

The unemployment rate for February rose to 6.7 percent from a five-year low of 6.6 percent as Americans flooded into the labor market to search for work.

But the rate hovering around the Fed’s previous 6.5 percent benchmark has raised the prospect of the central bank moving to push up rates more quickly than some in the market previously expected.

Fed officials appear increasingly worried that keeping policy so easy for so long could encourage investors to take too many risks, building bubbles that may eventually pop and roil financial markets.

The U.S. economy is “set for a pretty good year,” Bullard said on Wednesday. “Despite the spate of weaker data in the January, February time frame.”

The Fed has held rates near zero since late 2008 to help the economy recover from the 2007-2009 recession.

Bullard was asked about where he saw interest rates in 2016, at which point he referred to his “dot.”

The Fed introduced a “dot chart” in its January 2012 economic projections. Each dot represents the view of an individual policymaker on how they see the appropriate level of interest rates for the coming few years.

“I’m here to tell you that my dot has not changed,” Bullard said.

Data on Tuesday showed U.S. consumer confidence surged to a six-year high in March and house prices increased solidly in January, positioning the economy for stronger growth after a weather-induced soft spot.