Commentary: Chicago Fed: Economy in Liquidity Trap

Mars - TUE SP500

|2011-08-30 09:58:49

The day's 1st SP500 magnetic zone has been placed @ 1200.50......perhaps we'll drop to 1197 (the site of MON's first 2 zones). Also, maybe it's coincidence, but this morning's low is 1195.77 just 0.10 beneath MON's DejaVu signal @ 1195.87
Remaining zones are 11:O1 to 11:O7, 11:43 to 11:57, 2:O6 to 2:O9 (all times Eastern).

Diary of a professional commodity trader : lessons from 21 weeks of real trading by Peter Brandt (2011). This was an enjoyable book from a successful trader. His approach is that of a classical chartist, and may surprise you with some of his techniques.

While the key market moving event from last Friday may have been Bernanke's Jackson Hole speech which merely left the door open to future QE episodes, the most important event from an economic standpoint was the first GDP revision Q2, which dropped from preliminary 1.3% to a sub stall speed, in real terms, 1.0%. What is just as important is that as the following chart from Bloomberg demonstrates, the YoY change in real GDP, which is now at 1.5%, is a slam dunk indicator of recession: "Since 1948, every time the four-quarter change has fallen below 2 percent, the economy has entered a recession. It’s hard to argue against an indicator with such a long history of accuracy." Bernanke agreed that "growth has for the most part been at rates insufficient to achieve sustained reductions in unemployment." ZeroHedge

" 7 days without God makes one weak." from a church s...

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