Zuma's Batcomputer just sent a Wall Street alert that today is gonna be a "DOW-N" day for the Dow. One of those painful down days that reminds you how fragile the economy is. Oil at $110 per barrel ain't helping the already sucky housing, credit and bond markets and weaker than ever dollar. Margin calls are hitting some of the big boys real hard! (See Carlyle story). Oil will continue to skyrocket higher than your worst nightmare ($145-$150 in the short run.) What is causing the rise in dollars per barrel? The U.S. is backing Columbia vs Venezula's Hugo Chavez, so the risk of oil supply disruption is already driving the price up. (Hugo might turn off the oil switch.) Remember, when oil goes up -- so does gold. Silver ain't doing bad, either. GOLD is at $990 and SILVER is at $20.42 in overnight trading.
Recent LA Daily Blog stories
zumadogg@gmail.com
Showing posts with label dow jones. Show all posts
Showing posts with label dow jones. Show all posts
Thursday, March 13, 2008
Tuesday, March 11, 2008
DOW JONES CLOSES UP 416 POINTS -- Biggest SIngle Day Gain In FIVE Years!
It looked like the market was going to tank 500-600 points this morning before the bell, with oil at $109 per barrel in the 8AM hour. Then the Fed took measures to inject some liquidity into the credit market by pumping $200 billion into the banking system. And although many measures have been taken this year to try and remedy the volatile stock market -- this measure actually instilled some confidence on Wall Street. I REPEAT...BE VERY CAUTIOUS OF ANY LONG TERM RALLIES...but have fun while it lasts. (Just keep your eye on the ball.)
The result...the Dow Jones closed at 12156, up 416 points (up 3.5%), and many financial products went through the roof. Biggest one day gain since July 2002.)
Here's the LA Daily Blog.com NEWS WIRE to help break it all down. A lot of short covering today. The Fed took this measure today to help ease the credit market (credit crunch). Some believe this measure will most certainly replace any upcoming Fed rate cut (or keep any rate cut a lower one) now that inflation has staked it's claim in the global market with oil at $108.75 (4PM EST 3/11/08) and commodities at record levels.
Click here for recent LA Daily Blog stories ("Quick Read" Summary)
Monday, March 10, 2008
Oil Now At $108 per Barrel -- Dow Jones D-O-W-N Another 153 Points To 11740
I hope you can handle the g-force. The market has been slip sliding away recently, and today is no exception. Put it this way...the Dow Jones closed at 11740 today.
Until this bond insurer crisis gets worked out, even the bullish of investors are now saying don't look for any sustained rallied.
Oil is at $108.70 per barrel as of 4:49 PM. Look for inflation to creep into everything and drive up the cost of almost all consumer goods. For example, with higher oil (and therefore gas) prices, it will cost more to raise the corn that is used to feed the cows for meat products. THEN, it will cost more to deliver the meat to your grocery store. So they will be raising the prices of food across the board.
Plastic products will also increase in production cost. And it will cost more to deliver all products to the Wal*Marts, Targets and Best Buys across the U.S.
At the same time, wages are down; jobs are down; expenses are up; foreclosures are up; credit defaults will be up; businesses will be going under meaning less jobs.
Meanwhile, property values are down; which means the City of Los Angeles will be taking in less property taxes (revenue) -- which means they will have to create new fees and taxes; and it stagflates out of control from there.
Like I said...hope you can handle the G-force.
Click here for "Quick Summary" of recent LA Daily Blog stories.
zumadogg@gmail.com
Until this bond insurer crisis gets worked out, even the bullish of investors are now saying don't look for any sustained rallied.
Oil is at $108.70 per barrel as of 4:49 PM. Look for inflation to creep into everything and drive up the cost of almost all consumer goods. For example, with higher oil (and therefore gas) prices, it will cost more to raise the corn that is used to feed the cows for meat products. THEN, it will cost more to deliver the meat to your grocery store. So they will be raising the prices of food across the board.
Plastic products will also increase in production cost. And it will cost more to deliver all products to the Wal*Marts, Targets and Best Buys across the U.S.
At the same time, wages are down; jobs are down; expenses are up; foreclosures are up; credit defaults will be up; businesses will be going under meaning less jobs.
Meanwhile, property values are down; which means the City of Los Angeles will be taking in less property taxes (revenue) -- which means they will have to create new fees and taxes; and it stagflates out of control from there.
Like I said...hope you can handle the G-force.
Click here for "Quick Summary" of recent LA Daily Blog stories.
zumadogg@gmail.com
Friday, February 29, 2008
Dow Jones Down 315Points!!!
Zuma Dogg has been warning of economic problems that would be affecting the stock and bond market over the past few months. I posted a subprime bubble burst warning (that would trigger a recession at year's end) in May '07 that came true, right on time. I started a website for all my friends and family to monitor the market and a place to blog my predictions and analysis. StrategyUpdate.com
If you are wondering why the DOW is down 315 points today, although I haven't blogged anything new this week, it's all about what has already been posted that is causing today's sell off. Monday ain't gonna be pretty, either. Neither is this year. (Or next.)
Bond insurer crisis, credit markets (spreads getting wider=bad news), subprime foreclosures, bad job numbers, higher commodity prices, gold/oil at record levels, Fed Chairman Bernanke's doom and gloom comments yesterday, and the muni bond market failing (links to stories on this blog) are all contributing factors, like one big symphony playing a sad, depressing tune.
Gold, wheat, oil, copper, metals, commodities all on a long term upward trend. This isn't your college professor's textbook market anymore. Need to write some new chapters on "global economy and fundamental shifts".
GOTTA FOOD?: Emerging markets like China, India and others gotta eat and they will be consuming more expensive food sources like protein (meat, chicken) as these populations become wealthier, like Americans, now that they have profited off the U.S. long enough, so they are now living the American Dream, causing the market to drop 315 points today (at the time of this post), making it an American Nightmare in the U.S.
StrategyUpdate.com
If you are wondering why the DOW is down 315 points today, although I haven't blogged anything new this week, it's all about what has already been posted that is causing today's sell off. Monday ain't gonna be pretty, either. Neither is this year. (Or next.)
Bond insurer crisis, credit markets (spreads getting wider=bad news), subprime foreclosures, bad job numbers, higher commodity prices, gold/oil at record levels, Fed Chairman Bernanke's doom and gloom comments yesterday, and the muni bond market failing (links to stories on this blog) are all contributing factors, like one big symphony playing a sad, depressing tune.
Gold, wheat, oil, copper, metals, commodities all on a long term upward trend. This isn't your college professor's textbook market anymore. Need to write some new chapters on "global economy and fundamental shifts".
GOTTA FOOD?: Emerging markets like China, India and others gotta eat and they will be consuming more expensive food sources like protein (meat, chicken) as these populations become wealthier, like Americans, now that they have profited off the U.S. long enough, so they are now living the American Dream, causing the market to drop 315 points today (at the time of this post), making it an American Nightmare in the U.S.
StrategyUpdate.com
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