Bill Cara’s Blog for Mar 12, 2012
CTA Trading Desk Morning Report
[7:00am ET] Good morning.
As market prices seem to be meandering this morning, my brief scan of the media picked up this item, which seems to have gone viral
As the People speak up, we should listen. After all, the topic is Social Equity.
Good morning, Geoff here.
Stock futures are lower this morning as traders focus on China’s economy.
China recorded its biggest trade gap in a decade as exports rose less than expected. Exports are what drive China’s economic growth so this data coming on the heels of a cut in the growth target is seen as a negative. However, a slowing economy often leads to easing monetary policy and this may end up being a positive for the equity markets so keep your eye out for that scenario.
Commodities are also lower today as worries grow about China’s demand growth.
Gold continues to drop as I write this, but the 200 dma has held the last few trading days as traders are buying at that level which is roughly $1675. Unless we get a decoupling, a rising dollar will put pressure on the price of gold. The fundamentals of gold continue to strengthen and I expect gold to move much higher once the dollar rally is over. With that in mind, those of us with a longer term view than a week or two should be looking at prices to add to gold holdings should the price drop on a dollar rally. If you need a core holding, weakness is the time to build it at technical support levels.
Today, the US federal budget deficit numbers will be released. Expectations are for a year over year growth in the deficit from $222 billion last year to $229 this year.
Right now, things look a little cloudy to me. Equity markets are poised to breakout to new highs which should have investors in high spirits, yet I overheard some people complaining about paying over $4 at the pump. When it takes $75 to fill up my tank, I start to notice too.
The consumer sector did breakout last week on the good news from the jobs front. However, the tech and financial sectors couldn’t find new highs and of course worries of the Chinese slowdown hurt the basic materials sector. With the dollar rallying, I would like to see tech and financials breakout to new highs with basic materials and industrials at least consolidating at these levels to get really bullish again. For now, it is wait and see.
Have a great trading day!
Here are the 7:00am ET snapshots of the latest equity market trading results for Europe, and futures prices plus 5-minute charts of the futures for S&P 500, 30-year US Treasury Bond, US Dollar index, Gold and Crude Oil.
|Symbol||Name||Last Trade||Change||Related Info|
||0.78 (0.04%)||Components, Chart, More|
||3.62 (0.16%)||Components, Chart, More|
||5.12 (0.15%)||Components, Chart, More|
||12.30 (0.18%)||Components, Chart, More|
||0.47 (0.14%)||Components, Chart, More|
|^OSEAX||OSE All Share||481.10
||3.39 (0.70%)||Components, Chart, More|
||0.20 (0.06%)||Components, Chart, More|
||15.24 (0.25%)||Components, Chart, More|
||3.79 (0.06%)||Components, Chart, More|
||5.80 (0.58%)||Chart, More|
||0.48 (0.03%)||Chart, More|
|GD.AT||Athex Composite Share Price Index||743.73
||8.62 (1.15%)||Chart, More|
The team will check in during the day, reporting in the Discourse when there is a new entry.
Enjoy your day.
Cara on Trends & Cycles
Vad’s Catch of the Day
Kaimu’s Sound Money
CTA Trading Desk Mid-Day Report
CTA Trading Desk Post-Close Report
Jeff Borsato’s Hidden Truth
The Not so Lone Gunman
This piece by Tariq Ali on the LRB blog that highlights the complexities of wars of occupation.
The Not so Lone Gunman
by Tariq Ali (March 12, 2012)
In most colonial wars people are arrested, tortured at random and killed. Not even a façade of legality is considered necessary. The ‘lone’ American gunman who butchered innocents in Afghanistan in the early hours of Sunday morning was far from being an exception. For this is not the act of a deranged maniac killing schoolchildren in an American city. The ‘lone’ killer is a sergeant in the US army. He’s not the first and won’t be the last to kill like this.
The French did the same in Algeria, the Belgians in the Congo, the British in Kenya and Aden, the Italians in Libya, the Germans in South West Africa, the Boers in South Africa, the Israelis in Palestine, the US in Korea, Vietnam and Central America; and their surrogates have behaved similarly against their own populations throughout South America and much of Asia.
The Russian occupation of Afghanistan also witnessed ‘lone gunmen’ behaving in this fashion, but better-educated than many of their US counterparts they would write about the whys and wherefores in anguished diaries after they had been withdrawn. Rodric Braithwaite’s Afgantsy cites chapter and verse. There is no such thing as a ‘humanitarian’ war. The sooner this fact is accepted by the citizens of the occupying countries the easier it might become to mobilise support to oppose neocolonial adventures and the attendant atrocities.
It’s hardly a secret that most Afghans are opposed to the occupation of their country. Occupying soldiers are well aware of the fact. The ‘enemy’ is not hidden. It is the public. So wiping out women and children is part of the war. Helicopter gunships, bomber jets and drones are more effective killers than ‘lone’ gunmen. The situation in Afghanistan today is so dire that the occupying forces have no way of telling whether Afghans working with them are actually on their side or not. Some of the recent attacks on US and Nato soldiers have come from Afghans wearing police and military uniforms tailored by Nato. So everyone is now the enemy – even the puppet president Karzai, who knows his days are numbered though he, at least, has a few safe havens and numbered bank accounts waiting for him. For the US, the contradictions are implacable. The Afghans want them out and the war has become unwinnable.
So what is to be done? Get out now. These wars that dehumanise the ‘enemy’ also dehumanise the citizens of warmongering nations. We are made to live in a state of ignorance, but by our apathy contribute to making sure that such a state continues indefinitely. The individual gunman will soon disappear from our thoughts and we can then settle down to the routine killings that take place every day, carried out collectively on the orders of politicians that we elect.