Tag Archives: COF

72 Hour Call

72 Hour Call for June 21, 2011

Today’s Call:  US Dollar Index to fall.  Currently 74.61.

Rationale:  The Federal Reserve is beginning its policy meeting today surrounded by the news of an economy that is “headed for” (already in) a depression.  Anticipation of Greek “progress” via a confidence vote to lift the Euro temporarily.  This, along with news that Obama and Boehner are making progress on the US debt ceiling standoff, should shoot the dollar higher.  The Fed cannot let this happen and may even recommend more direct stimulus to taxpayers since QE measures have failed to spur consumer confidence.  This should weaken the dollar.

Result of Call for June 16, 2011:  Capital One Financial Corporation (COF) to fall.  Was $49.00., Currently $50.40.  Bad Call.

Calls to Date:  Good Calls: 29, Bad Calls: 25, Batting .537, seriously reverting to the mean!

Key Indicators for Tuesday, June 21, 2011

Copper Price per Lb: $4.10
Oil Price per Barrel:  $93.40 A FAILURE TO INFLATE

Corn Price per Bushel:  $7.07   MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond:  2.99%
FED Target Rate:  0.10%  FED IN PERMANENT DESPERATION MODE

Gold Price Per Ounce:  $1,546 BENEFITING FROM PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.25%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,207
M1 Monetary Base:  $1,921,900,000,000 RED ALERT!!!
M2 Monetary Base:  $9,084,400,000,000 YIKES!!!

 *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

72 Hour Call for June 16, 2011

Today’s Call:  Capital One Financial Corporation (COF) to fall.  Currently $49.00.

Rationale:  News that Capital One is purchasing ING Direct USA for $6.2 billion in cash and 56 million shares of stock.  Apart from the traditional tendency for the shares of the acquired company to rise and the shares for acquiring company to fall after an acquisition, you simply can’t create 56 million shares out of thin air and expect your per share price to increase.

Result of Call for June 13, 2011:  Price of Gold to fall.  Was $1,534.80, Currently $1,528.80.  Good Call. 

Calls to Date:  Good Calls: 29, Bad Calls: 22, Batting .569

Key Indicators for Thursday, June 16, 2011

Copper Price per Lb: $4.11
Oil Price per Barrel:  $94.95

Corn Price per Bushel:  $7.01
10 Yr US Treasury Bond:  2.91%
FED Target Rate:  0.10%  FED IN PERMANENT DESPERATION MODE

Gold Price Per Ounce:  $1,529

MINT Perceived Target Rate*:  2.25%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  11,962
M1 Monetary Base:  $1,921,900,000,000 RED ALERT!!!
M2 Monetary Base:  $9,084,400,000,000 YIKES!!!

*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.