Everyone ready for another exciting week?

Watch the 1-min TL right here for big clues.

If you don't think this market is totally messed up, or if you think it is okay to let the machines run our world, read this. If I were a regulator and saw these charts I'd shut the market down immediately until I figured it out and corrected it. But, I guess I'm just too much of an idealist, wanting a fair market that trades on supply and demand and is about true price discovery...

http://www.zerohedge.com/news/wtf-skynet-chart-du-jour

I'm back to Carl Futia bashing. I guess I should just change this forum to a gathering for those who like to listen to someone rip Carl. I can't help it. I used to have immense respect for him. I try now. I try hard. But he makes zero sense to me. He has made a big case how the thing with Europe is way overblown. Now he comes out and shows his chart and says the Euro is headed to possibly 0.87! A 50% depreciation!

Now, up until just recently, the correlation, over a long period of time now, of the stock market with the Euro has been profound (it has been less lately). I think any sane person's conclusion to the Euro going to 0.87 is the stock market will be crushed. Retest of the Mar '09 lows at the very least.

First off, it implies Europe basically 'blew up'. Blew sky high. Not good for U.S. stocks at all. Next, they've shown unequivocally that the U.S. has been strong-arming the world to let its currency be the weakest in the race to the bottom, the 'competitive devaluation' race. This greatly boosts the big U.S. multinationals, at our expense.

Everything costs us more, and that difference is 'given' to these big companies, essentially. They have shown how even slight strengthening of the USD just hammers their sales, earnings, and profits. A Euro at 0.87 is beyond catastrophic for them. There isn't even a word for how bad they would get devastated. Now, for the punchline. Carl's conclusion for the Euro going to 0.87?

" I think that a down trend in the Euro necessarily forecasts an improvement in the US economy..."

and

"...I think that investors in the US stock market have pretty much discounted the worst that is likely to occur in the EU. Coupling this with a slowly strengthening US economy makes me think that earnings of US companies will exceed expectations over the next 12 months. This is a recipe for higher stock prices in the US."

The worst of what can happen is discounted in the market? Really? They discount worse and worse news with higher and higher prices, right back near the 'bulls#%&' market highs and that is discounting all that is about to come in Europe? I see what is going on as the biggest case of denial I have witnessed in my entire life. I think essentially nothing is being discounted. I just don't get this guy's logic. I think his reasoning process, in general, is the most flawed I have ever seen in my life.

But, that being said, Europe probably will collapse, the Fed will print like crazy, hyperinflation will set in, and like Zimbabwe our market will soar in nominal terms (and get killed in real terms), and Carl will say 'See, Jim, I told you so!' It only seems right in this Bizarro World that it would end that way...

http://carlfutia.blogspot.com/2012/07/the-euro.html

CMG down a little today, only about a hundred.

yeah, how does a tanking euro translate to no problema? and how do higher prices discount anything? I think people pontificate to hear themselves talk and feel important. maybe if we redefined the need to be right and explain everything people would put less energy into trying to be right about things and admit that the future is unknowable....

That's what I wonder, too, rat. But beyond the lunacy of all that, my biggest concern is all the people who have just some small amount of savings, fighting the dropping standard of living since around 1972 in real terms, and they are being forced by the Fed to seek yield in much riskier investments. Say they are retired or near retired. Imagine being 70 and having to put all your money in the stock market because real yields are now negative. The Fed is doing that on purpose, and admits such. Force people into the market when that is not an appropriate investment for them. This is sick and twisted.

And then along come the propaganda cheerleaders, from all the TV financial shows, to the endless analysts, to guys like Carl. If you are not part of the solution, you are part of the problem. His endless bullish drivel motivates a certain number of people to get long the market from an investment standpoint. He spews propaganda for the evildoers. And that is what I take issue with. Him and all the rest.