Tag Archives: BAC

72 Hour Call for June 9, 2011

Today’s Call:  July Corn Price Per Bushel to rise.  Currently $7.85-4.

Rationale:  USDA Report released today revealed the expected corn surplus to be 23% less than already low expectations.  This will cause tremendous price pressure up and down the food chain.  Corn is to food production what oil is to manufacturing.  As such, we have decided to add it to our Key indicators.

Result of Call for June 6, 2011:  Bank of America (BAC) to rise.  Was $10.83, Currently $10.65.  Bad Call. 

Calls to Date:  Good Calls: 27, Bad Calls: 19, Batting .587

Key Indicators for Thursday, June 9, 2011

Copper Price per Lb: $4.09
Oil Price per Barrel:  $101.86

Corn Price per Bushel:  $7.85
10 Yr US Treasury Bond:  3.00%

Gold Price Per Ounce:  $1,544

MINT Perceived Target Rate*:  2.25%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.4%
Dow Jones Industrial Average:  12,124
M1 Monetary Base:  $2,022,700,000,000 RED ALERT!!!
M2 Monetary Base:  $9,005,800,000,000 STARTING TO DRY UP?  NOT

 *See FED Perceived Economic Effect Rate Chart at bottom of blog.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

72 Hour Call for June 6, 2011

Today’s Call:  Bank of America (BAC) to rise.  Currently $10.83

Rationale:  Banks, of which Bank of America, being the largest consumer bank, is an indicator, had some very bad press today as far at their prospects.  While we believe that in the long run these stocks are nearly worthless, B of A is likely to rise in the face of such negative sentiment.

Result of Call for June 1, 2011:  Greek 5-YR Sovereign Credit Default Swap to fall.  Was 1608.50, Currently 1390.97.  Good Call. 

Calls to Date:  Good Calls: 25, Bad Calls: 18, Batting .581

72 Hour Call for June 2, 2011

Today’s Call:  10yr Bond Yield to fall (price to rise).  Currently 3.064%

Rationale – Duplicating our call from three days ago for a different reason.  Moody’s today threatened today to downgrade the US Government’s Debt rating citing their inability to act on the debt ceiling.  Not surprisingly, Moody’s simultaneously warned some of the largest domestic holders of US Government Debt, namely Bank of America, Wells Fargo, and Citi of possible downgrades of their debt as well.  In the absence of another round of quantitative easing, the FED is now using a scare tactic to push money out of the Treasury markets and into riskier assets.  It will fail as the flight to safety that is to come will overwhelm it.

Result of Call for May 27, 2011:  10yr Bond Yield to fall (price to rise).  Was 3.064%, Currently 3.03%.  Good Call. 

Calls to Date:  Good Calls: 24, Bad Calls: 17, Batting .585