Market Talk / May 14 - 20

[Wizard]

One is for 4.99% until paid and the other is 5.99% until paid - the total is $29,000. The banks must be getting desperate to take the chance to lock in those rates.

If you read the fine print..........

You get those great rates on transfers from another credit card. However new purchases will be charged at 15-20%. How it works Birchy is when you send a payment in you pay the 4.99-5.99% off first.

What is surprising is people transfer money over from a 12% card for the benefit of paying 15% plus interest.

They are not desperate, people are getting desperate and they are feeding that desperation.

:embarrest:

 

[robo]

Birchtree,

Thanks! I'm staying long for now.

 

[Birchtree]

What they say is that you can use these checks to transfer balances from other high interest rate cards. Or write a check to yourself and deposit it into your checking account. It's like giving yourself a fixed-rate loan with no application and no waiting around for approvals. I'm sure I can probably find some way to be productive until paid off.

 

[Spaf]

The Kingdom of TSP
Interim page
Gosh dog, where are we?!
May 19, 2006​

Back in early May Vestors got overly optimistic that the Cartel would pause in their continued rasing of interest rates.
There was also a blindness to the rising cost of lube.

The over optimism got a small rally back on May 5th. After that, reality began to set in that high lube and high rate were a real thing. Well, that killed momentum. And, a sell off ensued, a correction, a pullback, whatever.

The last two weeks have produced a 59 point drop in the S&P 500 [$SPX], from 1326 to 1267. Friday the 19th closed with the market sitting on a ledge. The closing candlestick, while positive, showed both bullish and bearish conditions; or indecision.

We could drop some more, consolidate (run sideways) at this level, or start back up. However, to start back up we are going to need a catalist (good news). Rates and energy seem to be in the forefront, but there are others. We are in a standoff of sorts. It's wait and see!

Memorial Day is week after, and a key period for gasoline. Once the energy and interest rate horsemen (Krude & Rats) get rounded up, the market may find where it lost it's momentum. The economy is still in a growth mode, meaning the bull market, though old, is still running.

Maybe the old Bull just needed to catch his breath! Here's hoping!

Regards and be careful!.............. ...............Spaf

 

[JOVARN]

If you read the fine print..........

You get those great rates on transfers from another credit card. However new purchases will be charged at 15-20%. How it works Birchy is when you send a payment in you pay the 4.99-5.99% off first.

What is surprising is people transfer money over from a 12% card for the benefit of paying 15% plus interest.

They are not desperate, people are getting desperate and they are feeding that desperation.

:embarrest:

The fixed rate applies to the terms as outlined in the agreement. Many agreements read that as long as you are not late the interest rate stays low. Once you are late the rate shoots upwards to as high as 24%. The rate increase is also applied if you are late with any card under your credit rating. The other big one is APR when converted to credit card language a fixed rate of 3.9 on a card has a simple interest APR of about 6% and higher depending on big Ben and his band of desperados.

 

[robo]

Derivatives activity linked to share falls
By Gillian Tett
Published: May 18 2006 21:27 | Last updated: May 18 2006 21:27

The recent sharp falls in stock markets appear to have been exacerbated by an unusual wave of derivatives activity on the part of hedge funds and big banks, some traders on Thursday indicated.


http://news.ft.com/cms/s/f7f83818-e69c-11da-a36e-0000779e2340.html

 

[Fivetears]

Stocks to take fresh look at inflation
"What we're seeing now is the slow cognition by the masses that the economy isn't hunky dory, inflation isn't well contained, and the Fed isn't close to being finished," said Barry Ritholtz, fund manager at Ritholtz Capital Partners. "It's amazing so many market participants have been in denial.
http://news.yahoo.com/s/nm/20060519/bs_nm/column_stocks_outlook_dc_2

If the last 5 days wasn't fresh... :blink:

 

[Fivetears]

Israeli airstrike kills militant commander - Not good for Monday morning markets.
http://news.yahoo.com/news?tmpl=story&cid=578&u=/nm/20060520/ts_nm/mideast_militant_dc_1

Who's next?

 

[Wizard]

Markets ‘are like 1987 crash’

CONDITIONS in the financial markets are eerily similar to those that precipitated the “Black Monday” stock market crash of October 1987

http://www.timesonline.co.uk/article/0,,2095-2189601,00.html

 

[Fivetears]

That's the second article I've read in 5 minutes with Oct '87 overtones; this one courtesy of robo
http://www.tsptalk.com/mb/showpost.php?p=44960&postcount=31
ARTICLE: http://www.safehaven.com/article-5207.htm

 

[Wizard]

http://www.cross-currents.net/monthly.htm

 

[tsptalk]

I am certainly not very optimistic about the next few months for stocks, but one major difference between 1987 and now is the ratio of S&P 500 earnings yields and bond yields. In 1987 bond yields were much greater that the S&P earnings yield. This year it is quite the opposite. This is the main reason I believe we won't "crash" but rather correct 10 or 15%.

 

[robo]

May 21, 2006

Turning Points
by Andre Gratian

A 3-dimensional approach to technical analysis
Cycles - Structure - Price projections

"By the Law of Periodical Repetition, everything which has happened once must happen again, and again, and again -- and not capriciously, but at regular periods, and each thing in its own period, not another's, and each obeying its own law … The same Nature which delights in periodical repetition in the sky is the Nature which orders the affairs of the earth. Let us not underrate the value of that hint." -- Mark Twain



http://www.safehaven.com/article-5212.htm


http://www.safehaven.com/article-5213.htm

 

[Spaf]

Nice post robo!

Will be closing this thread and starting a new one for next week.

Enjoyed the yak!

Regards, and be careful....................

..................Spaf