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Stock Market Update. March 21st, 2014. InvestWithAlex.com

Daily Chart March 21, 2014 investwithalex

A down day with the Dow Jones down -31 points (0.19%)  and the Nasdaq down -42 points (0.98%) 

While the market rallied early on it spent the rest of the day closing the gap which it opened up in the morning. While the Dow held up relatively well, the Nasdaq lost 1% of it’s value, amplifying the divergence over the last couple of day. This not atypical when marketing topping formations develop themselves. Simply put, various markets and industries top out on different days, sometimes different months. Today’s move on iShares Nasdaq Biotechnology (IBB) and it’s break into a technical downtrend is a clear indication of that. 

Does that mean the bear market has already started?

I have long maintained that the US Equity markets will go through a sever bear market between 2014-2017. Unfortunately, the information on exactly when this bear market will start (to the day) is available only to my subscribers. If you would be interested in gaining that information as well as the internal composition of the bear market over the next 3 years, please Click Here. Don’t forget, we have a 14 day free trial offer. 

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Stock Market Update. March 21st, 2014. InvestWithAlex.com Google

Shocking Truth Revealed: Sun Declares War On Earth

In a bit of interesting scientific news, the Earth was almost hit by devastating and massive solar flares back in 2012. 

“Had it hit Earth, it probably would have been like the big one in 1859, but the effect today, with our modern technologies, would have been tremendous,” Janet Luhmann, part of the STEREO (Solar Terrestrial Observatory) team a University of California Berkley researcher, said to Reuters.

Specifically, a blast that powerful could bring down electrical grids, knock down satellites and GPS technology, and ultimately cost nations billions of dollars in damages. Considering modern society’s reliance on such technology to function, it would be extremely disruptive.

For the love of God, can you imagine what would have happened if those “algos” black boxes on Wall Street would have been fried. You know, I don’t even want to think about that. Not having the American Idol or The Biggest Loser on TV for a few days would be bad enough. When we reached out to John McCain for a comment he responded with “I declare war on the sun”. 

On a more serious note, its a great article (see below) and something we should all know. Give it some attention.

smilling sun

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Shocking Truth Revealed: Sun Declares War On Earth  Google

 

Near miss: Enormous solar blast could have devastated Earth in 2012

Citizens of Earth had no idea how close the planet was to getting slammed with a devastating solar flare back in July 2012, but scientists claim we only missed the damaging event by nine days.

As noted by Reuters, scientists found that a series of coronal mass ejections – powerful eruptions on the sun’s surface that send waves of magnetized plasma through the solar system – occurred last year sometime between July 22 and 23. The blasts traveled through Earth’ orbit, but narrowly missed colliding with the planet.

According to a new report published in the Nature Communications journal on Tuesday, if the solar eruptions occurred just nine days earlier, they would have likely hit Earth and caused a great deal of damage to the planet’s magnetic field. Fortunately for us, the Earth was on the other side of the sun by that point.

Scientists believe the blast would have equaled the might of the most powerful magnetic storm ever recorded: the Carrington event of 1859, which took down telegraph services around the world.

“Had it hit Earth, it probably would have been like the big one in 1859, but the effect today, with our modern technologies, would have been tremendous,” Janet Luhmann, part of the STEREO (Solar Terrestrial Observatory) team a University of California Berkley researcher, said to Reuters.

Specifically, a blast that powerful could bring down electrical grids, knock down satellites and GPS technology, and ultimately cost nations billions of dollars in damages. Considering modern society’s reliance on such technology to function, it would be extremely disruptive.

 

AFP photo/EPFL

AFP photo/EPFL

 

Last year, a study produced with the Atmospheric and Environmental Research group found that a solar flare equivalent to Carrington could cost the world $2.6 trillion.

“An extreme space weather storm – a solar superstorm – is a low-probability, high-consequence event that poses severe threats to critical infrastructures of the modern society,” said Ying Liu, a physicist at China’s State Key Laboratory of Space Weather to Forbes.

“The cost of an extreme space weather event, if it hits Earth, could reach trillions of dollars with a potential recovery time of 4-10 years,” Liu added. “Therefore, it is paramount to the security and economic interest of the modern society to understand solar superstorms.”

Although flares occur every day during the sun’s solar maximum – a period in the sun’s cycle highlighted by increased solar activity – they are rarely as powerful as the one that struck Earth in 1859. Still, the amount of damage they can inflict means preparation is tough but necessary,

“People keep saying that these are rare natural hazards, but they are happening in the Solar System even though we don’t always see them,” Luhmann told Forbes. “It’s like with earthquakes – it is hard to impress upon people the importance of preparing unless you suffer a magnitude 9 earthquake.”

What Do Economists & Hookers Have In Common

Daily Ticker Asks: What keeps some of the greatest minds in economics up at night?

I don’t know, hookers and booze? 

I was wrong….as always. According to the Daily Ticker it’s a lot of things. If you really want to know what keeps the “most brilliant” minds awake, you can read the article below. From my vantage point neither hookers nor economists know what they are talking about. If they did, they would be on Wall Street managing billions of dollars, not argue if the GDP of growth Zimbabwe will be 2.7% or 2.8% in 2027. 

hooker economists

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What Do Economists & Hookers Have In Common Google

What keeps some of the greatest minds in economics up at night

The world is a scary place. Planes are disappearing, regions are seceding, countries are overthrowing governments and income inequality is growing larger everyday. There’s a lot  to worry about during the wee hours of the night.

Yahoo Finance’s editor-in-chief Aaron Task asked some of the biggest and brightest economic minds today what keeps them up at night. Watch the video above and read on below for their anxiety-inducing answers. 

Jared Bernstein, former chief economist for Vice President Joe Biden

“What really worries me”, says Bernstein, “is hysteresis.” That may sound like a strange medical ailment but it’s actually what happens when a cyclical economic problem morphs into a structural problem.

Related: Fed hawks are ‘out of sync with the data’: Jared Bernstein

“We’ve had a lot of long-term unemployment and if that were just a cyclical problem when the economy came back those unemployed people would come back into the job market and your labor force would grow again,” he says. “But if the down cycle lasts long enough then those folks are permanently out of the job market and that kind of a permanent restructuring of growth and livelihoods, that keeps me up at night.”

Sheila Bair, former chair, FDIC; now director, Banco Santander

Monetary policy is what keeps Bair up at night. “During the crisis we had this toxic brew of very easy monetary policy and very relaxed regulatory policy and while regulation has lightened up, monetary policy has become more aggressive,” she says.

Related: ‘Banks need more capital – the good times won’t last forever’: Sheila Bair

This could lead to excesses and imbalances. “The Fed is getting out but … can they get out? Can the markets get off of that drug and stabilize and find their own equilibrium without us having a very ugly transition?”

Richard Vague, chair, Governor’s Woods Foundation

The Chinese economy worries Vague, who chairs this non-profit philanthropic organization based in Philadelphia. He’s specifically concerned about China’s ability to deal with its overcapacity problem. “I think the effects [could] be manageable, but if they stumble it could have a ripple effect,” he says.

Alice Rivlin, former vice-chair of the Federal Reserve and senior fellow, Brookings Institute

Rivlin is bothered by the U.S. government’s inability to compromise. “We have a constitution which requires compromise across several different lines,” she says. “Nothing gets done in this country unless we compromise across political lines.”

Related: Fed guidance to become more vague under Yellen: Alice Rivlin

Compromise, says Rivlin, has gotten a bad name recently. “I think that is the most serious thing we face.”

Simon Johnson, former chief economist, IMF; now professor of entrepreneurship, MIT

“I think the Russia and Ukraine situation is very unstable,” says Johnson.

Related: Banks pass stress test but they’re not taking regulations seriously: Simon Johnson

According to Johnson the U.S. and European response has not been helpful. “This is a real flashpoint and a danger to the European economy.”

Grover Norquist, president, Americans for Tax Reform

Grover Norquist’s fears are more abstract. He is worried about electro-magnetic pulses and solar flares or “some rogue country tossing a nuke up and frying all of our cars and handhelds.”

Did The US Navy Land Malaysia Airlines Flight 370 At It’s Diego Garcia Base In The Indian Ocean? (Part 3)

flight 370

Why am I following this crazy conspiracy theory? Well, quite frankly because it makes a lot more sense than some of the reports coming out of more traditional places. As of today, no one has the slightest clue as to what happened to the flight. Further, this theory is just as good (if not better) than widely circulated traditional media reports. Even though Australians claim to have found “something”, that something may or may not be there and it may or may not have anything to do with Flight 370. Questions remain. 

Apparently, these reports are coming out of Russian Intelligence (who tend to know their stuff). To summarize, Malaysia Airline Flight 370 was intercepted by the US Navy right before it entered Chinese airspace and flown remotely to Diego Garcia US Naval Base in the Indian Ocean. It has been circulated before that the US Military has the technology to intercept and remotely control (like a drones) most of Boeing planes (Boeing is one of the largest US Defense Contractors). 

According to Russian intelligence the plane was intercepted due to it’s cargo hold. While no one knows what was on the plane (no cargo manifest has been released) a number of scientist and disease specialists were flown to Diego Garcia base for further consultations. Later, contents of Flight 370 cargo were destroyed in a fiery explosion. 

Fact or fiction? Read and decide for yourself. I have no idea….I just find the whole case fascinating.  Either way, we will never know. If the report is true, the US Government will be forced to crash the plane into the Indian Ocean to be “promptly found” at a later date to cover up the evidence. That might have already occurred. Either way, my condolences go out to the families. 

FULL REPORT 

Malaysia Airlines “Suspicious Cargo” Destroyed In Massive New Mexico Explosion

By: Sorcha Faal, and as reported to her Western Subscribers

The GRU had previously, on 14 March, reported their “puzzlement” as to why the United States Navy “captured and then diverted” this Malaysia Airlines civilian aircraft from its intended flight-path to the Diego Garcia atoll, an assessment that has subsequently been verified by radar tracks showing the mysterious US military flights moving about this aircraft immediately prior to its “disappearance.” (See video below) The Main Intelligence Directorate of the General Staff of the Armed Forces (GRU) is reporting today that the “highly suspicious” cargo retrieved by the US from Malaysia Airlines Flight 370 that had been “disappeared” to one of the United States most secretive bases in the Indian Ocean, Diego Garcia, was flown this past week to the White Sands Missile Range in New Mexico where it was then destroyed in a “massive fireball.”

Flight 370, it is important to note, was already under GRU “surveillance” after it received a “highly suspicious” cargo load that had been traced to the Indian Oceannation Republic of Seychelles, and where it had previously been aboard the US-flagged container ship MV Maersk Alabama.

What first aroused GRU suspicions regarding the MV Maersk Alabama was that within 24-hours of its off-loading this “highly suspicious” cargo load bound for Malaysia Airlines Flight 370, the two highly-trained US Navy Seals assigned to protect it, Mark Daniel Kennedy, 43, and Jeffrey Keith Reynolds, 44, were found dead under“suspicious circumstances.”

After this “highly suspicious” cargo was off loaded from MV Maersk Alabama, on 17 February, the GRU reported it was then transferred to Seychelles International Airport where it was loaded on an Emirates flight bound for Kuala Lumpur International Airport in Malaysia, after first stopping over in Dubai, where it was subsequently loaded onto Flight 370 on 8 March for its scheduled flight to Beijing.

The GRU further reported, on 16 March, that after Flight 370’s “diversion” it was “nearly immediately” followed by some of the top disease scientists and experts from the United States Centers for Disease Control and Prevention (CDC) and the Chinese Center for Disease Control and Prevention (CCDCP) embarking to Diego Garcia on at least four flights.

On 18 March, this new GRU report says, this “highly suspicious” cargo was flown from Diego Garcia to the White Sands Missile Range in New Mexico where it was destroyed in a 19 March explosion so massive it stunned the residents of this region due to the massive plume of smoke [photo 2nd left] Russian munitions experts speculate was caused by US military-grade Thermate (a variation of thermite) devices.

Important to note, this report says, is that the US appears to have been planning this operation involving Flight 370 since this “highly suspicious” cargo was first offloaded in the Republic of Seychelles on 17 February, as three days later, 20 February, the Defense Threat Reduction Agency (DTRAplaced an order for 1,200 sets of Personal Protective Equipment (PPE) single use overgarments which are meant to protect the wearer from radiological contamination in the form of radiological particulates.

These PPE suits, which include hoods and boots, this report says, were delivered to the DTRA at their location on Kirtland Air Force Base, located in New Mexico, where they are tasked with protecting the United Statesagainst weapons of mass destruction.

Equally important to note, this report continues, is that the US Department of Health and Human Services, on 6 December, ordered 14 million 65 mg doses of Potassium Iodide, the standard treatment protocol for someone exposed to high levels of radiation, to be delivered to them by the end of January 2014.

As to the US-Chinese connection regarding the “highly suspicious” cargo aboard Flight 370 this report does not say, but does note that is of such concern that President Obama dispatched his wife to China as his“personal emissary” and stunned the American media by refusing to allow any reporters to accompany her.

As US forces begin flooding into the European Union to counter Russian forces amassing on the Ukrainian border, this report concludes, the “mysterious” events surrounding Flight 370’s “highly suspicious” cargo cannot be separated from Obama’s sudden announcement today to cancel his planned Persian Gulf summit, especially in light of Saudi Arabia’s 11 March branding of the Obama regime as a “terrorist organization” and this cargos having transversed this most volatile Middle East region.

Google Encrypts Gmail To Stop The NSA

 It’s About Time. See full article below. 

“Starting today, Gmail will always use an encrypted HTTPS connection when you check or send email.

“Today’s change means that no one can listen in on your messages as they go back and forth between you and Gmail’s servers — no matter if you’re using public WiFi or logging in from your computer, phone or tablet.”

Now it’s time for the rest of the tech companies to do the same.  

fuck nsa investwithalex

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Google Encrypts Gmail To Stop The NSA Google

Google encrypts Gmail to safeguard against NSA snooping

Google is doing its best to put a lid on the NSA’s prying eyes by using enhanced encryption technology to make its flagship email service airtight.

“Your email is important to you, and making sure it stays safe and always available is important to us,” Gmail engineering security chief, Nicolas Lidzborski, said in a blog post.

“Starting today, Gmail will always use an encrypted HTTPS connection when you check or send email.

“Today’s change means that no one can listen in on your messages as they go back and forth between you and Gmail’s servers — no matter if you’re using public WiFi or logging in from your computer, phone or tablet.”

The internet giant’s announcement is the latest attempt to bolster the company’s widely used email service and follows a similar step in 2010, when the company made HTTPS the default connection option.

At the time, however, users had the option to turn this protection feature off. Starting from Friday, Gmail is HTTPS-only. The move is a response to a disclosure made by National Security Agency (NSA) whistleblower, Edward Snowden, that the agency had been secretly tapping into the main communications links that connect Yahoo and Google data centers around the world.

According to a secret January 9, 2013 accounting, millions of records were being sent every day from Yahoo and Google internal networks to data warehouses at the NSA’s Fort Meade, Maryland headquarters.

The NSA’s principal tool to exploit the Google and Yahoo data links is a project called MUSCULAR, operated jointly with the agency’s British counterpart, Government Communications Headquarters (GCHQ).

To do so, the NSA and GCHQ rely on capturing information being sent between company data centers around the globe via fiber optic cables, intercepting those bits and bytes in transit by tapping in as information is moved from the “Public Internet” to the private “clouds” operated by the likes of Google and Yahoo. Those cloud systems involve the linking of international data centers, each processing and containing huge troves of user information for potentially millions of customers. Intelligence officers who can sneak through the cracks when information is decrypted — or never encrypted in the first place — can then see the information sent in real time and take “a retrospective look at target activity,”according to documents seen by the Washington Post.

In November, Google Executive Chairman Eric Schmidt said the alleged snooping operations were “outrageous” and perhaps even illegal.

“It’s really outrageous that the National Security Agency was looking between the Google data centers, if that’s true,” the Wall Street Journal quoted Schmidt, who has served as the Silicon Valley company’s chairman for over a decade, as saying.

“The steps that the organization was willing to do without good judgment to pursue its mission and potentially violate people’s privacy, it’s not OK,” Schmidt said. “The Snowden revelations have assisted us in understanding that it’s perfectly possible that there are more revelations to come.”

However, on Wednesday the top lawyer for the NSA told a civil liberties oversight board that all communications information and metadata collected by the agency pursuant to the 2008 FISA Amendments Act, whether the material was gathered by the agency’s internet data-mining program PRISM or by the “so-called ‘upstream’ collection of communications moving across the internet”, was done so with the direct knowledge of companies like Google and Facebook.

The NSA has previously claimed it only focuses on targets with foreign intelligence value. The agency can also request access via Google and other tech companies with the aid of a court order.

During an on-stage Q&A at the TED conference in Vancouver on Thursday, Google CEO Larry Page maintained that the NSA’s actions had not been done with the company’s knowledge and were a threat to democracy.

Warning: Which Sector Will Lead The Upcoming Bear Market Down?

IBB

Which industry Index will be the first to go in the upcoming bear market. Tech, Internet, Biotech, etc..? My bet is on Biotech as per today’s market action. Even though S&P is hitting an intraday all time high, Nasdaq’s Biotech index is breaking down as we speak. In fact, some of the “short biotech stocks” I outlined on this blog last week are down 10% in just 3 days.This works very well with our overall premise of 2014-2017 Bear Market. that is scheduled to start shortly. If you would like to know the exact date of bear market start as well as it’s internal structure, please Click Here.   

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Warning: Which Sector Will Lead The Upcoming Bear Market Down? Google

Putin To Obama: Next Time Take The Bus To The Space Station

As sanction and Cold War 2 continue to escalate I don’ believe we are that far off from the point where Vladimir Putin actually tells President Obama to take a hike and to take a bus to the space station next time. Now, that would be sanctions.   

If you are not aware, the US Government and NASA now pay the Russians to take Astronauts to the space station and back. Since 2011 and with no plans to relaunch its space program. Trust me, this is much more important than some fu#$ing Crimea. What was once a great space exploring nation is now paying our “enemies” to get us into space. It’s a sad state of affairs when instead of science and exploration we choose war.  

NASA Budget: $16 Billion.
PENTAGON Budget: $682 Billion.     

Enough said. “Put your sword back into its place, for all those who take the sword will die by the sword” – Some dude named Jesus.  

nasa investwithalex

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Putin To Obama: Next Time Take The Bus To The Space Station Google

CNBC Is Negative On Gold. Time To Buy?

CNBC and their guests are negative on Gold. Based on economic growth, supply/demand, gold overvaluation, higher upcoming interest rates, calmer geopolitical environment going forward, technical setup, etc…..anticipating gold to crater.

Here is what they don’t get.   

None of them can anticipate nor predict the bear market of 2014-2017 and a severe recession that our mathematical and timing work so clearly shows. Further, even though most people anticipate Janel Yellen to continue tightening and raising interest rates, it’s not going to happen. Not when the US Economy slips into a severe recession and the stock market craters. If nothing else, Janet Yellen will be trying to re-inflate the market by pumping a lot of credit/money into the system around this time next year.

I am a firm believer that Gold is starting to signal just that.  Any break above $1,420 will be a confirmation of the fact. Based on our mathematical work, Gold Bugs don’t have that much longer to wait. If you would be interested in learning when the bear market of 2014-2017 starts and it’s internal composition, please CLICK HERE. 

CNBC Idiots

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CNBC Is Negative On Gold. Time To Buy?  Google

 

Did Yellen just ruin the gold trade

It was all working for gold. And then Janet Yellen spoke.

In her first news conference as the Fed chairwoman, Yellen seemed to imply the Fed might raise short-term rates sooner than many market participants expected.

Immediately following those remarks, gold continued to head south, capping off a four-day stretch in which the shiny metal has lost almost 5%. The move also marks quite a reversal for gold, which was in the midst of its best Q1 performance since 1985.

So is that as good as it gets for gold? According to some traders: Yes

“Gold is a competitor to cash in a zero interest rate environment,” said Kathy Lien of BK Asset Management.  “But when interest rates are on the rise, or expected to be, gold becomes a far less attractive investment.”

Traders point to some recent changes in the overall market that could provide significant headwinds for gold; higher rates, a stronger dollar and an easing in geopolitical tension.  

Now that Ukraine has cooled, “the need for safe haven seems decreased,” said Gina Sanchez of Chantico Global . 

Those factors are unlikely to change in the near-term. 

“You still have increasingly hawkish central banks and overly bullish sentiment in gold,” said Enis Taner ofriskreversal.com. “That’s probably not changing anytime soon.  I expect gold to be range-bound between $1,200 and $1,400 for the next few months.”

Unfortunately for gold bugs, the technical set up isn’t looking much better. In fact, according to Steven Pytlar of Prime Executions, the charts point to more pain for gold. 

Said Pytlar, “we could see a substantial drop to $1200.”

What Ron Paul Thinks About Russia and Crimea

In short, same thing that I do. The US has no business in being in that region (6,000 miles from home), starting the next Cold War. I will let Ron Paul tell you. Watch the video.

“I think it was wrong for us to get involved and participate in the overthrow of the government,”exclaims Ron Paul in this brief clip, adding the US is “stirring up trouble in Crimea.” The American people are “tired of it,” and “it would be best for us to stay out.” The US doesn’t need another war – and certainly can’t afford it – and “we don’t want trade wars.” Simply put, he concludes, “it’s best we stay out.”

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What Ron Paul Thinks About Russia and Crimea Google