Floyd's Trading Blog

As we expected, the market continued it's climb and hit highs of 9673, and lows of 9468. We took no entry to the call, but added to our trade buy on the open

As I'm off on holiday I'm having fun keeping up with the news, which I'm doing more by TV than computer, and am amazed by the amount of dribble we allow ourselves to listen to and believe.

I'm off on an island this week, walking the beaches and relaxing, and gathering input in my early morning and late evening studies, as I do when studying and trading for you. But I've experimented a bit and watched TV economics one day to then read Reuters, Bloomberg and qualified sources on the web, and it helps put what YOU as subscribers deal with much more in perspective.
You see, I am not one for TV. I seldom watch it, don't like most things on TV (because they are mind numbingly stupid, nothing more) and have spent years analyzing Big Brother and how it could stay on the air for 11 years.

I want to meet the people that watch this stuff.

So, not being a TV guy, I spend little time dealing with the propaganda you hear on the financial channels, or on general news media. It's not bias, it's simply that they do not tell us anything. They repeat false facts, and interpret, and analyze around events.

You'll do better with 30 minutes on Bloomberg, or the like, a day to truly understand economics and the market.

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There are two credit crunches still coming. First, commercial real estate has yet to even be realized fully for the impact it can have on real estate and the general market. There are empty shopping plazas, and leasing tenants are not able to get their rents reduced. Even Sarah Palin could figure out this means someone is not paying the bills to the banks and insurance companies that own these loans, and that these loans themselves have not yet been correctly recalculated for "real value." It's a disaster waiting to happen.

The second crunch is bigger, it is YOU. As the banks scramble to make up for their slimey losses of the last few years, and in advance of the new law going in protecting us from usury, each bank has quietly raised interest rates to astronomical 24% plus levels, lowered amount of time to pay on time (thusly allowing interest to accumulate), and cut credit limits. This is hitting small businesses, families, and the many Americans that buy on credit card, and use the cards for "living".
Living within means, and going back to "lay a way" sounds very good, very much like the Waltons lived, and it is no longer Walton time. I project a lowering of consumer credit without the use of commercial credit cards, and that it will all catch up with us.

I have one personal comment about the Republicans behavior during President Obama's speech: Children that have yet to learn to play in the sandbox. So sad.