“House Speaker John Boehner said that the GOP would offer a temporary increase in the debt ceiling in return for discussions with President Obama on other budget and deficit issues.” Story at ….
http://www.cnbc.com/id/101093035
WHITE HOUSE RESPONDS TO BOEHNER: “CONGRESS NEEDS TO PASS A
CLEAN DEBT BILL INCREASE (ZeroHedge)
“…we support the Senate Democrats’ efforts to raise the
debt limit for a year with no extraneous political strings attached.
The President also believes that the Republican Leadership in the House should
allow for an up or down vote on the clean continuing resolution passed by the
Senate that would pass with a bipartisan majority to reopen the government.
Once Republicans in Congress act to remove the threat of default and end this
harmful government shutdown, the President will be willing to negotiate…” Story at…http://www.zerohedge.com/news/2013-10-10/white-house-responds-boehner-congress-needs-pass-clean-debt-limit-increase
The final agreement will be a short-term extension of the
Debt limit, but it remains to be seen if a Continuing Resolution will be passed
to temporarily fund Government. This is
a “kick-the-can” solution that simply gives more time for posturing and
political gamesmanship. Most of it seems
pretty wacky to me, but given that we must start actual reductions is the debt
(cutting spending and raising taxes), I appreciate any issue that will get the
parties to the table.
WHO BROKE WASHINGTON? (MISH SHEDLOCK)
“I suggest Obama and Bush are among the worst presidents
in history. I also suggest the congressional approval rating of 19% is
that low for a reason: Spending is out of control, and both political parties
are to blame.”Full story at Global Economic Analysis…
http://globaleconomicanalysis.blogspot.com/#VbsuMU277gBSE7vF.99
DAVID STOCKMAN – THE LAST QUARTER CENTURY (ZeroHedge)
“David Stockman, author of ‘The Great Deformation’,
summarizes the last quarter century thus: ‘What has been growing is the wealth of the rich, the remit of the state, the
girth of Wall Street, the debt burden of the people, the prosperity of the
beltway and the sway of the three great branches of government - that is, the
warfare state, the welfare state and the central bank... what remains
of our free enterprise economy will be buckle under the weight of taxes and
crisis. Sundown in America is well-nigh unavoidable.’” – Full remarks of David
A. Stockman at the Edmond J. Safra Center for Ethics, Harvard University,
September 26, 2013, are posted at ZeroHedge at…http://www.zerohedge.com/news/2013-10-05/david-stockman-explains-keynesian-state-wreck-ahead-sundown-america
I don't know where the market will go from here. The quick answer is "UP", because the Politicians have solved all out problems. Unfortunately, not much has really changed, so it will be interesting to see what happens in the next couple of days.
MARKET REPORT
Thursday, the S&P finished up 2.2% to 1693 (rounded) at the close.
VIX fell 16% to 16.39 as VIX collapsed. Thursday, the S&P finished up 2.2% to 1693 (rounded) at the close.
MARKET INTERNALS (NYSE DATA)
Internals were positive on the day and the daily percent
advancing broke its downward trend, but that was not the case for the 10-day
moving average of stocks advancing. The
10-dMA remained in a downward trend, but it did climb to 45%. It was from 43% Wednesday. (A number below 50% for the 10-day average is
generally bad news for the market.)
New-highs outpaced new-lows Thursday, leaving the spread
(new-hi minus new-low) at +82 (it was -57 Wednesday). The 10-day moving average of change in the
spread is minus 1. That just means that over the last 10-days, the spread has
been getting worse, but not by much.
Market Internals are neutral on the market for this short
term indicator.
NTSM
The overall long-term NTSM analysis switched to HOLD at
the close.
MY INVESTED POSITION
I remain about 20% invested in stocks as of 5 March (S&P 500
-1540). The NTSM system sold at
1575 on 16 April. (This is just another
reminder that I should follow the NTSM analysis and not act emotionally – I am
under-performing my own system by about 2%!)
I have no problems leaving 20% or 30% invested. If the market is cut in half (worst case) I’d
only lose 10%-15% of my investments. It
also hedges the bet if I am wrong since I will have some invested if the market
goes up. No system is perfect.
