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One of the more amazing whipsaw swings in a stock can be seen on Exxon Mobil Corporation (NYSE:XOM). The stock rose non stop yesterday, climbing over two-percent. Today, the stock has reversed, at one point negating the entire move higher yesterday. The games are definitely being played with XOM this week.
The leading group of the day is the financial sector. Within that sector, JPMorgan Chase & Co. (NYSE:JPM) is leading the charge. It is trading at $47.08, +0.54 (+1.16%). The agriculture stocks are among the weakest sectors on the day. Potash Corp./Saskatchewan (NYSE:POT) is trading at $184.02, -5.92 (-3.12%). These stocks have been the hottest of late on global food prices but are showing significant weakness today. They are due for a pull back.
This week is ruled by options expiration and the games that are played during. The markets are run by the institutions and they will do whatever they need to to make money. That includes whipping the markets to get options to expire worthless so they keep the full premiums. To gain more market insight, hardcore guidance, swing trades and education, join the Research Center. Take a free trial today.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Egypt Followed China's Model
Mubarak Enterprises went about globalization in the Chinese fashion, by setting up factory zones, and in many cases inviting Chinese companies to run them. Discipline was provided brutally by the police forces who otherwise spent their time rounding up political dissidents. Unions and labor organizing were not allowed. Government turned a blind eye to working conditions under the “virtuous necessity” of deregulating the economy so private enterprise could thrive
http://www.economicpopulist.org/content/egyptians-revolt-rubins-folly-and-labor-arbitrage
For the past three decades, the Federal Reserve has been given a dual mandate: keeping prices stable and maximizing employment. This policy relies not only on the fatal conceit of believing in the wisdom of supposed experts, but also on numerical chicanery.
Rather than understanding inflation in the classical sense as a monetary phenomenon-- an increase in the money supply- it has been redefined as an increase in the Consumer Price Index (CPI). The CPI is calculated based on a weighted basket of goods which is constantly fluctuating, allowing for manipulation of the index to keep inflation expectations low. Employment figures are much the same, relying on survey data, seasonal adjustments, and birth/death models, while the major focus remains on the unemployment rate. Of course, the unemployment rate can fall as discouraged workers drop out of the labor market altogether, leading to the phenomenon of a falling unemployment rate with no job growth.
http://www.safehaven.com/article/19987/deception-at-the-fedBoth French and German GDP figures for Q4 of 2010 missed their mark raising questions about growth prospects in the EZ while sending EUR/USD 
lower in early morning European trade today
When we pointed out our volume chart earlier, which indicated that volume is now a laughable joke, we received one of the traditionally amusing responses, "ZH misses the point on volume because they data mine and only compare it to the volume during the crisis. SPY volume is STILL higher today than it was pre-2007. So are we to believe that the crisis volume levels are the "real" levels for volume? If you compare back to pre-crisis, volume is actually still pretty high." Here is our response.
For those who refuse to accept the reality, and/or are unable to interpret what the chart says, allow us to explain: NYSE common stock volume is lower than it was in 2010, in 2009, in 2008, in 2007, in 2006, in 2005, in 2004, in 2003, in 2002 and in 2001. We stopped there (couldn't help it - felt obligated to data mine a little bit).
And incidentally, here is why the Deutsche Borse better be able to sell the NYSE for scrap value.
No worries though - the NYSE liquidation value should be surging quite soon. We hear all those collocation boxes can fetch a pretty penny when the price of stainless steel hits infinity.
Europe has not been mentioned much in the media today, however, the CurrencyShares Euro Trust(NYSE:FXE) is trading lower today by 0.67 cents to $134.32 a share. When the Euro currency trades lower it will usually indicate that the U.S. Dollar Index is trading higher. Last week the European Central Bank had to purchase Portuguese bonds in order to keep the rising yields contained. Traders should expect more of this type of action by the ECB in the coming weeks. These are all events that can cause gold and silver to rise in the near term.
Today the SPDR Gold Trust ETF(NYSE:GLD) is trading higher today by 0.86 cents to $133.17 a share. The popular iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.69 cents to $29.90 a share. These precious metals will usually increase when there is conflict in the world or a devaluing of fiat money by central banks.
There are two paths this can take. As companies produce goods like TV's, plastics and such, their costs are skyrocketing as oil and other energies are used to produce these goods. Right now, these companies have not passed it onto the consumer because they fear the consumer is too weak to handle it. Thus, core CPI (Consumer Price Index) has remained low. This is starting to take a bite out of margins and thus profits. As commodities continue to rise, profits will start to drop more and more. The only way companies can combat this is by raising prices.
Just last Friday, PepsiCo, Inc. (NYSE:PEP) said this very thing in their earnings announcement. Costs are rising! Almost every company is at risk because producing anything, will intimately involve some sort of energy use. Plastics for instance are made with oil. Companies from Caterpillar Inc. (NYSE:CAT) to Apple Inc. (NASDAQ:AAPL) will be facing these head winds.
So that brings out the main point. Which one happens? Will inflation start to rocket higher as companies raise their prices to offset their rising costs? Will profits begin to diminish as they must eat the cost increases in the production of their goods? Most likely, the answer is a mixture of both. Companies will start passing on costs to the consumer. This will send the CPI higher. In addition, profits will start to stagnate as costs continue to rise. There is no great outcome here. A smart trader or investor must monitor this situation closely. To gain more analysis, market guidance, swing trades and education, join the Research Center. Take a free trial now.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
There is really just one question about China, the Western mindset's "enigma wrapped in mystery". How could the Chinese have made the colossal mistake of investing their hard-earned savings in the debt of the U.S. government -- to the tune of $ 1 trillion, the largest sum one country has ever loaned another in all history. (There is only one other puzzle greater than this: How could the U.S. government in good faith allow its debt to accumulate in Chinese hands? But we leave that question for another occasion to discuss.) U.S. debt is easy to buy but hard to get rid of. The harder, the larger are the sums involved.
