Buzz Bits: Dow, Nasdaq Close Lower
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The most important data point as we enter 2007 and beyond... - Bennet Sedacca - 2:15 PM
Boom Boom stopped releasing M3 data when he took office, citing that it wasn't any longer relevant.
I happen to think it IS relevant - call me old-fashioned.
See the chart here of M3B, kind of a re-constituted version. Note that it is growing at nearly 12% and hasn't grown below 8% since he took office.
But what about GDP? M3 grows $1,000,000,000,000 in a year and foreigners buy $1,000,000,000,000 of our securities and the economy sputters?
This is the most important data point in my opinion for the future. If the economy can't grow faster than 2% with that sort of credit creation, is it a sign of debt finally reaching the point at which it no longer stimulates anything other than financial assets?
See the chart of GDP here. This is what bugs me about the future. Credit market debt has grown from 150% to 330% of GDP over the past 20 years. There is a number at which the debt takes over, I think. Yes, a sobering viewpoint, but an important one.
I hope you and yours have a Happy, Healthy and Prosperous 2007.
Auld Lang Deja Vu - Kevin Depew - 11:54 AM
As a fitting end to the last session of 2006, new PnF buy and sell signals are even at four apiece. Of course, overall buy signals are in the lead (naturally), 11 to 6.
And so we will end this year with the PnF bullish percent indicators in high risk areas, but mostly still on offense... almost exactly like last year.
As of today, these are the PnF indicators and there position:
NYSE Bullish Percent - 74%, Xs
S&P 500 Bullish Percent - 78%, Xs
Nasdaq-100 Bullish Percent - 66%, Os (currently on defense)
Where were they last year?
NYSE Bullish Percent - 70%, Xs
S&P 500 Bullish Percent - 72%, Xs
Nasdaq-100 Bullish Percent - 68%, Xs
Although the field position is virtually identical, this year the NDX Bullish Percent is noticeably weaker and already on defense as we head into 2007.
Anyway, that's all for me for 2006. Apologies as I hit the door early but Meehan and I have a date with the Cats vs. Clemson in the Music City Bowl and they're giving us... 11?! Thanks!
Here's wishing you and yours a prosperous New Year. May you die in bed at 95, shot by a jealous spouse. And no matter the day or what troubles you know, remember what's yours is mine, and what's mine is me own.
I'd buy that for a Dollar - Jeff Macke - 11:19 AM
I got Prof. Succo's back on catching a big whiff of "Sleaze" floating all the way from Cupertino on this Steve Jobs thing. To refresh the background on Jobs and pay, in 1997 when the prodigal son made his return to Apple (AAPL) it was because Apple had just paid over $450 million for Job's NEXT company. At the time, Jobs took an extremely well publicized $1 salary for the work, which he said he was doing out of a motivation to save his creation.
As it turned out, Jobs was being paid 100's of millions in stock all along, in addition to perks such as a personal jet from the board. Not only did paying Jobs this way serve as great publicity for Apple, it saved Jobs scores of millions in tax as it limited his payouts to capital gains realized.
Now the directors of Apple, if not everyone at Apple, claims to be totally unaware of what was going on for a decade. While an appalling breach of the public trust, the "I'm an idiot" defense has been a time-honored tradition, with Enron in 2004 and the NYSE in 2005 immediately preceding Apple of 2006 as our best examples of execs preferring to be thought "Rock Stupid Liars" rather than "Criminals."
What you need to know... - Jon Doctor J Najarian - 8:13 AM
Apple (AAPL) Files 10K & 10K – Apple restated financial results for 2004 – 2006, but found no misconduct by current management. The option volatility (risk) has jumped dramatically over the past three sessions, as investors protect their holdings rather than sell, as they hold out hope for the iPhone to make its debut at MacWorld in early January. I show shares trading up over $1.50 in the pre.
Financial Markets to Observe Ford Passing? As of 6:05 am CT, only the Nasdaq stock market has said it will close to mark the funeral of President Gerald Ford. No word yet from the NYSE, but with the Nasdaq closed it is highly unlikely we will see the S&P 500 futures or any Nasdaq futures (QQQQ or NDX) trade on the CME.
Just What Denver Needed, SNOW! The national weather service said heavy snow accumulations, some topping two feet are hitting the Denver area and will threaten their Airport (DIA) with the second major storm of the season. United and Frontier will be hardest hit, but be sure to check with your carrier, as many airlines hub through DIA.
Pfizer (PFE) Wins Viagra Case In – A Chinese court has ruled that Pfizer's Viagra patent is valid and has thus ordered two companies to stop generic sales of the impotence drug and pay compensation to PFE.
Positions in AAPL, PFE & BBBY
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