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In the Category ‘Spurious Rallies,’ the Winner Is…


The most interesting trait on display in securities markets these days is what might be called the artful levitation. Apple shares, for one, have been strongly on the rise even though iPhone sales are weakening, particularly in China, the company’s second-biggest market. A further discouragement is Apple’s bland strategy for the future, competing against streaming-content giants already well established in a business where profit margins fall well short of iPhone’s. And there is Facebook, which has become a pariah in the eyes of all who value privacy. Incredibly, its shares continue to move higher despite the rising tide of censure.  As for Tesla, a company that could conceivably face bankruptcy, its shares have risen 15% in just the last two weeks.

But of all the markets being magically levitated, crude oil is the most impressive. Spot futures have rallied almost 50% since December, from $43 to $63, even as the economies of China and Europe have weakened dramatically. Chalk it up to Russia’s guiding influence on OPEC.  The cartel’s Arab producers had long been unable to stick to quotas until Russia came along to enforce them with a firm hand. Putin continues to demonstrate that he is the most capable tactician in the geopolitical world. We eagerly await Trump’s response to the Russian’s deployment of 100 troops to Venezuela.  This is not mere mischief, and unless the U.S. confronts him firmly, Venezuela could turn into another Cuba. Dealing with Russia’s now militarized support of Maduro, the dictator from hell, could prove to be the most serious challenge Trump has faced as president. It will be interesting to see how ferociously those afflicted with Trump Derangement Syndrome resist getting behind him. In so doing, they will only deepen the rift between the Democratic Party and America’s mainstream.

Please do not ask trading questions!

  • none April 4, 2019, 6:07 am

    1. LBJ Seals Border After JFK Assassination
    In November 1963, the U.S. Immigration Service closed the border along Mexico to keep anyone from entering or exiting the country.

    2. Nixon and Operation Intercept
    During President Richard Nixon’s first year in office, in September 1969, his administration implemented “Operation Intercept.”

    3. Reagan and Operation Camarena
    During the first year of his second term, President Ronald Reagan enacted a similar policy, this time using the military at the border after a Mexican drug cartel abducted a U.S. Drug Enforcement Administration agent.

    ………………Trump has place the military and is expanding it at the southern broader, the action of the last 40-50 years suggest longer changing patterns than many can see.

    The shift towards the ‘middle east’ oil by Bush2 cause the shift away in needing the large oil reserves under the southern broader. A North Korea DMZ seems a likely course of action for the future even in the near future.

    Shifting history is a realignment as to how we will observe the southern peoples in the future. Mexico has not been a nation state of laws since the time of Poncho Villa days 100 years ago. It has become and is a state of no direction lead by internal gang membership/no law.

    America education systems over time is going to realign itself as toward what it teaches the young over the next generation (25 years) to a more and very negative outlook of the people pass the southern broader.

    South of the Rio Grande will over time be as the continent of Africa. Little hope in the way of any type of common living standard.

    Empires must take ‘to rise’, and continue to take to ‘survive’.

    A shift in the reverse currency (U.S. Dollar) will move towards the east this is one way for the U.S.A. to continue its readjustment of wealth.

    Japan will be the next major Financial Boom to come and for decades of ‘real investment flow’ as the USA has had in the last 4 decades.

    Once we see the JYP rise with the major Japan stock indexes we know that the massive inflow of wealth to come into Japan has begun.

    Have a great day Rick.

  • Pan April 4, 2019, 2:48 am

    Life is so funny sometimes, just when the US could do with an astute tactician to counter the rise of Russia and China, you went and elected in a golf playing clown. The price we pay for special interests huh?

    Three conditions that almost always exist as an empire nears it’s end:

    1. Political implosion
    2. Excessive debt
    3. Expensive failed military campaigns

    Personally, I know a lot of Americans and contrary to what some might think, you really are just normal, balanced and nice people, it’s just that your swamps gotten too big.