http://www.option-letter-daily.com Daily Commentary from Professional Traders Fri, 19 Mar 2010 04:00:00 +0000 http://backend.userland.com/rss092 en $SPX has broken out to new highs, as have all the other indices. The support is now at 1150 (the old highs). From a merely chart perspective, $SPX measures to a rise to 1210 or further. Equity-only put-call ratios remain on intermediate-term buy signals, and they are not overbought. This ... http://www.option-letter-daily.com/2597/options-news/.html In the US, producer prices fell in February, more than expected. Core inflation was barely positive. That is not just a US trend. In Europe, price increases have fallen to the lowest level in 11 years. Japan is experiencing the biggest price drops in many years. This sounds like a ... http://www.option-letter-daily.com/2598/options-news/.html Financial Times: US Household Debt Falls for First Time Since WWII Yes, dear reader, we have been a voice howling in the wilderness. First the wilderness around the Café des Dames in Paris’s 19th arrondissement…recently the wilderness of Bethesda, Maryland…and lately the wilderness near the Taj Mahal Hotel in old ... http://www.option-letter-daily.com/2596/options-news/.html We’re going to rename our theory. This is more than a depression; it’s more than a financial and economic phenomenon. It includes a shift of power…a return to normal after 4 centuries of aberration…and the failure of a whole line of Nobel Prizing-winning economic claptrap, including the Efficient Market Hypothesis ... http://www.option-letter-daily.com/2594/options-news/.html Here is my dissection of the March 16 Fed Statement FOMC Statement March 16, 2010 Information received since the Federal Open Market Committee met in January suggests that economic activity has continued to strengthen and that the labor market is stabilizing (upgraded “from deterioration in the labor market is abating”). Household spending ... http://www.option-letter-daily.com/2595/options-news/.html Beware the Ides of March…and the rest of the year too! This is the day Caesar was assassinated. What’s it to us? Well, it just reminds us that things go wrong. Even when you’re on top of the world. There are always countercurrents…undercurrents, beneath the surface, where you don’t see ... http://www.option-letter-daily.com/2593/options-news/.html This week we do some review on a very important topic, the velocity of money. If we don’t understand the basics, it is hard to make sense of the hash that our world economy is in, much less understand where we are headed. The Velocity of Money The Federal Reserve ... http://www.option-letter-daily.com/2591/options-news/.html $SPX has been up 8 out of 10 days, and advances have led declines 10 days in a row. March S&P futures have been up 10 days in a row, too, which is supposedly a record. These are all signs of a massive short-term overbought condition. Equity-only put-call ratios remain ... http://www.option-letter-daily.com/2589/options-news/.html “Masked youths…attacked the head of Greece’s largest trade union, who was addressing the crowd, and hurled stones at the police. GSEE union boss Yiannis Panagopoulos traded blows with the rioters before being whisked away, bloodied and with torn clothes.” The Daily Mail account put the blame for these disturbances on ... http://www.option-letter-daily.com/2592/options-news/.html China says it is continuing to buy US bonds “every day.” It doesn’t have much choice. It earns money by selling things abroad. In fact, exports in February were up more than 40% over February ’09. This leaves it with a lot of foreign money – most of it in ... http://www.option-letter-daily.com/2590/options-news/.html