The FDIC has a new plan to save itself, one that has already prompted cheering and backslapping in the banking industry. Instead of hitting the industry with a huge one-time fee, which would hurt profits and stock prices, and instead of running hat in hand to the Treasury for a direct bailout, which would force Sheila Bair to genuflect before Tim Geithner,...

Courtesy of Mish Inquiring minds are once again reading excellent commentary by John Hussman. Please consider Strenuously Overbought. Last week, we closed out our modest “anti-hedge” in index call options, which we have carried in the Strategic Growth Fund during recent months, and we moved back to a fully hedged investment stance. I should...

The NASDAQ 100 closed higher on Monday as it extends this month’s rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends this summer’s rally, weekly resistance...

Gary Grimes Is the most powerful of all waves right around the corner? The short answer is “YES.” See an idealized impulse wave 3 in bull and bear markets. [+] CLICK TO ENLARGE The long answer will help you anticipate where and when … First, let’s describe wave 3. If wave 3 was a superhero, he’d probably...

Zero Hedge Sentiment Trader demonstrates how bullish speculative mania as measured by option activity is now at a decade, if not all time, high. With moral hazard having become the only game in town, everyone believes their investments are implicitly guaranteed by the government, which if recent indications are to be believed, is on deck to repeat the...

The S&P 500 has seen remarkable recovery from the lows that were seen earlier this year. However, all of that may come to an end as we fast approach a strategic level for this market. There are two major technical indicators that are colliding at a crucial point and time. Unless you’re aware of these indicators, it could be very expensive. In...

Last week, VeriChip announced its plans to fund its existing partnership with RECEPTORS to develop the virus triage detection system for the H1N1 virus. Today VeriChip has been granted an exclusive license to RECEPTORS’ Patent No. 7,504,364 titled “Methods of Making Arrays and Artificial Receptors” and Patent No. 7,469,076 “Sensors Employing...

At a seminar in Helsinki today, Paul Krugman explained once again how massive government stimulus postponed “the end of the world”. Still, he made it clear that we don’t really know what the long-term results will be. Bloomberg: “The trouble is, we really have no road maps. The only model is the Great Depression itself.” That “was...

Courtesy Of MISH Inquiring minds are wondering about the possibility of “pent-up” inflation from the massive expansion money supply by the Fed. Our search for the truth starts with the question “Which Comes First: The Printing or The Lending?” This is a critical question given the massive expansion of base money by the Fed as...

Crude oil was lower due to profit taking overnight and trading below the 20 day moving average crossing at 70.80. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 72.90 are needed to renew this month’s rally. Closes below the reaction low...

Bank of America has until noon today to answer a powerful Congressman’s questions about the merger with Merrill Lynch. On Friday, Congressman Edolphus Towns sent a sternly worded letter instructing the bank to reveal by noon today when it became aware of the gigantic losses at Merrill Lynch. BOFA didn’t tell shareholders about these losses,...

From September 30 last year, this is how the major indexes stack up

October Gold closed lower due to profit taking on Friday as it consolidates some of this week’s rally but remains above last February’s high crossing at 1008.70. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways...

Courtesy of MISH Numerous people sent me a link to a preposterous statement by fund manager Ken Fisher regarding debt. Please consider Too Much Debt? Please. We Need MORE Debt, Says Ken Fisher. The conventional wisdom is that Americans are struggling to crawl out from under a mountain of debt that will restrain growth and weigh down the economy for...