The Daily Charts are either overbought or oversold except for the Dow. Dollar versus Japanese yen are Overbought. The euro and cable are oversold. Gold and Crude Oil are Oversold. Meanwhile the market has been ignoring the adverse affects of Fannie and Freddie.
The rise in yields, the price of gold and crude oil and the euro consolidate. The Dow's negative monthly chart competes with the positive weekly chart, while the daily chart becomes overbought. BKX rallies amidst negative fundamentals.
The widening trend for the Fannie Mae spread versus US Treasury reflects lack of confidence in the "Ben & Hank" show. Bernanke Double-Talk! The Dow is beginning an oversold rally, and will stay above its 120-month in July. (In the video I made the mistake and said below)
The Yield on the five-year has found a range. Fannie spreads widened following the "Ben & Hank" Show. Blank checks and unlimited lines of credit are de-facto nationalization. Gold, Crude oil find resistance as the greenback slumps! The monthly and weekly charts for the Dow Industrial Average describe support and resistance.
Pension Funds have invested $150 billion in swap transactions to emulate the S&P GSCI. This index is 40.8% weighed in Nymex crude oil. I say oil will trade at $75 per barrel before $200, which puts pension funds in harms way.
The 200-week simple moving average at 11,672 is a moving line in the sand. Oil speculation is no different than housing speculation. Consumer Confidence slumps! The FOMC should raise rates today.
I look at the NASDAQ and SOX, Apple, Google and Cisco. The Crude Oil bubble has popped just as Pension Funds hit $300 billion in Commodity Investments. Financials still face additional bad loans.
US Treasury yields are low, gold and crude are sliding, while the euro slips well below its 200-week simple moving average. Investors are realizing that the Dow is in a Multi-Year Bear Market. Meanwhile housing and community and regional banks fall to new lows.
Today's ValuEngine stock of the Day is Goldman Sachs and Warren's Warrants. What's the Rush on spending $700 billion given Buffet's Buffer? Instead, let's give every homeowner a $75,000 loan discount. This would provide "Stimulus Two" and Detox toxic mortgage securities. Lehman should have been "too big to fail". Meanwhile Bank of America is downgraded to SELL according to ValuEngine.
Will Fannie & Freddie be bailed before the Housing Bill becomes law on October 1? The FDIC has a plan to bail out defaulting loans at IndeMac Federal. Why not a National Mortgage Bank and expanded use of Ginnie Mae? Why Recession is unavoidable.
In the guarantee of Fannie & Freddie debt the US Treasury and Federal Reserve broke two laws. Even the Fannie Mae web site still says that there is no guarantee. The FDIC can help, but are in denial. Lower yields and higher gold are clear warnings. The Dow monthly chart is the key at month end in confirming a multi-year BEAR MARKET.
FDIC Total Assets are now declining as earnings slump. C&D Loans starting to contract on writedowns! The Problem Bank list is getting longer. Loan Loss Provisions are up, but not enough to raise the Coverage Ratio.
A Summary of the Financial Events of the week as the Fed kicks sand in its own line in the sand. WaMu can not be allowed to fail, and the FDIC needs to push to guarantee all US Deposits. Watch the monthly chart for the Dow, but respect annual support at 10,747.
The Conservatorship of Fannie and Freddie creates collateral damage, which adversely affect the FDIC. Investors and Wall Street to benefit while Main Street and taxpayers get squeezed. Yields and Fannie Spreads. The weekly chart for the Dow Industrial Average!
JP Morgan created $90 trillion in Notional Amount of Derivative Contracts. Richard Suttmeier's List of Problem Banks! Crude breaks below its 200-day for the first time since May 2007. The weekly chart for the Dow Industrial Average!
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![The \"Ben & Hank\" Show - Part Two](http://img.youtube.com/vi/4vlGqpK4UkI/2.jpg "The \\"Ben & Hank\\" Show - Part Two")
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