Video Bar

Loading...

Friday, September 30, 2011

9/30/2011 - Five Banks Account For 96% Of The $250 Trillion In Outstanding US Derivative Exposure


Source: Zero Hedge
The latest quarterly report from the Office Of the Currency Comptroller is out and as usual it presents in a crisp, clear and very much glaring format the fact that the top 4 banks in the US now account for a massively disproportionate amount of the derivative risk in the financial system. Specifically, of the $250 trillion in gross notional amount of derivative contracts outstanding (consisting of Interest Rate, FX, Equity Contracts, Commodity and CDS) among the Top 25 commercial banks (a number that swells to $333 trillion when looking at the Top 25 Bank Holding Companies), a mere 5 banks (and really 4) account for 95.9% of all derivative exposure (HSBC replaced Wells as the Top 5th bank, which at $3.9 trillion in derivative exposure is a distant place from #4 Goldman with $47.7 trillion). The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total exposure. As historically has been the case, the bulk of consolidated exposure is in Interest Rate swaps ($204.6 trillion), followed by FX ($26.5TR), CDS ($15.2 trillion), and Equity and Commodity with $1.6 and $1.4 trillion, respectively. And that's your definition of Too Big To Fail right there: the biggest banks are not only getting bigger, but their risk exposure is now at a new all time high and up $5.3 trillion from Q1 as they have to risk ever more in the derivatives market to generate that incremental penny of return.


At this point the economist PhD readers will scream: "this is total BS - after all you have bilateral netting which eliminates net bank exposure almost entirely." True: that is precisely what the OCC will say too. As the chart below shows, according to the chief regulator of the derivative space in Q2 netting benefits amounted to an almost record 90.8% of gross exposure, so while seemingly massive, those XXX trillion numbers are really quite, quite small... Right?


...Wrong. The problem with bilateral netting is that it is based on one massively flawed assumption, namely that in an orderly collapse all derivative contracts will be honored by the issuing bank (in this case the company that has sold the protection, and which the buyer of protection hopes will offset the protection it in turn has sold). The best example of how the flaw behind bilateral netting almost destroyed the system is AIG: the insurance company was hours away from making trillions of derivative contracts worthless if it were to implode, leaving all those who had bought protection from the firm worthless, a contingency only Goldman hedged by buying protection on AIG. And while the argument can further be extended that in bankruptcy a perfectly netted bankrupt entity would make someone else whole on claims they have written, this is not true, as the bankrupt estate will pursue 100 cent recovery on its claims even under Chapter 11, while claims the estate had written end up as General Unsecured Claims which as Lehman has demonstrated will collect 20 cents on the dollar if they are lucky.


The point of this detour being that if any of these four banks fails, the repercussions would be disastrous. And no, Frank Dodd's bank "resolution" provision would do absolutely nothing to prevent an epic systemic collapse. 
...
Lastly, and tangentially on a topic that recently has gotten much prominent attention in the media, we present the exposure by product for the biggest commercial banks. Of particular note is that while virtually every single bank has a preponderance of its derivative exposure in the form of plain vanilla IR swaps (on average accounting for more than 80% of total), Morgan Stanley, and specifically its Utah-based commercial bank Morgan Stanley Bank NA, has almost exclusively all of its exposure tied in with the far riskier FX contracts, or 98.3% of the total $1.793 trillion. For a bank with no deposit buffer, and which has massive exposure to European banks regardless of how hard management and various other banks scramble to defend Morgan Stanley, the fact that it has such an abnormal amount of exposure (but, but, it is "bilaterally netted" we can just hear Dick Bove screaming on Monday) to the ridiculously volatile FX space should perhaps raise some further eyebrows...




Thursday, September 29, 2011

9/29/2011 - Popular Science article from 1936 "How Will The World End?"

75 years ago, we had similar theories as ones we ponder today.

What happened to the other Sun, and its circling planet material we do not know. It may still be visible through powerful telescopes, as one of those faint stars which the "red shift" of the spectroscope tells us are receding steadily from our Solar System. We have no means of knowing where to look for this wanderer, for we do not know in which direction it left us.


And that is exactly the uncertain state of affairs with regard to a possible invasion of our peace by another wandering Sun. We do not know which way to look for its possible approach.

books.google.com...=onepage&q=end%20of%20world&f=false

Minor planet just passed by Earth in 1936?? 







Here is the planetoid that passed month's before!!! 


definition of a minor planet:
A minor planet is an astronomical object in direct orbit around the Sun that is neither a dominant planet nor a comet. The first minor planet discovered was Ceres in 1801. Since then, more than 200,000 minor planets have been discovered, most of them lying in the asteroid belt.


So... minor planets are continuously referenced in all areas of the media... a shooting star is/was a minor planet



Carl Sagan tried to explain the pointlessness of our posturings when he was alive. He recommended an image be taken of the earth from voyager when earth no longer had any distinguishable features and just looked like a pale blue dot. He wanted people to look at this image of an insignificant dot and think about this(only part of what he said), "The aggregate of our joy and suffering thousands of confident religions ideologies and economic doctrines every hunter and forager every hero and coward every creator and destroyer of civilization every king and peasant every young couple in love every mother and father hopeful child inventor and explorer every teacher of morals every corrupt politician every "superstar " every "supreme leader " every saint and sinner in the history of our species lived there – on a mote of dust suspended in a sunbeam."

More notably in reply to this post directly is this part of his "speech", "The Earth is a very small stage in a vast cosmic arena. Think of the rivers of blood spilled by all those generals and emperors so that, in glory and triumph, they could become the momentary masters of a fraction of a dot. Think of the endless cruelties visited by the inhabitants of one corner of this pixel on the scarcely distinguishable inhabitants of some other corner, how frequent their misunderstandings, how eager they are to kill one another, how fervent their hatreds." 



The video:






9/29/2011 - Baking Soda Cures Cancer

I've been hearing alot about this recently. In the past couple week I've heard two different guests on Coast to Coast AM discussing how baking soda can cure cancer. The theory is that tumours are actually a protective mechanism to trap harmful toxins, usually because our bodies have become too acidic. So by ingesting baking soda it can raise the ph level in our bodies and shrink tumours over time.

Apparently this information is being suppressed and anyone who practices these methods are being ridiculed and being stripped of their medical licenses.

The two guests on Coast to Coast AM are: 
Dr Leonard Coldwell
Dr. Tullio Simoncini

With regards to Leonard Coldwell in particular, apparently he has been offered bribes by many pharmaceutical companies. After refusing bribes there were 3 attempts on his life. He was shot at twice, and an explosive was placed on his car which was detonated shortly after he stepped away. 








scienceblogs.com...
mymalignantmelanoma.blogspot.com...
anaximperator.wordpress.com...



 www.curenaturalicancro.com... www.cancerfungus.com...


Dr Coldwell claims that he has a 100% success rate in curing his patients.
When listening to the radio program they suggested 95% water, 5% pure baking soda. Apparently some baking sodas contain aluminum, so by pure baking soda he means 100% sodium bicarbonate.





Sodium Bicarbonate is alkaline.

Baking Soda consists of Sodium Bicarbonate and Tartaric Acid.

When an acid and an alkaline combine (in this case in the presence of water) the result tends towards being a neutral salt.

When you wet baking soda, the acidic and alkaline components combine and react, releasing carbon dioxide gas (the bubbles), especially if you input sufficient heat which helps to liquify the ingredients so they can mix more fully. This is why it is used in cooking, the heat & water causes the solution to bubble which creates light fluffy baked items.

The fact that those behind this don't seem to realize there is a difference between Baking Soda and Bi-Carb Soda would tend to support the idea that they are quacks who are lying about the wonders of their "cure".

I have not heard of Sodium Bicarbonate curing Candida fungal infections before either but that may be because I haven't researched it enough. Most of the cures I have read about are acidic cultures (Yoghurt & etc) or reduce the "food source" from this yeast by reducing carbohydrate intake.





9/29/2011 - (9/27/2011) Webbot Clif High with Marshall








P 4 (9/27/2011) Webbot Clif High with Marshall Masters








9/29/2011 - 17 Facts That Prove That The Average American Family Is Getting Absolutely Pulverized By This Economy


How in the world does the average American family survive in this economy?  The median household income is a little bit less than $50,000 a year right now.  So let's call that about $4000 a month.  But before any of that money gets spent, you have to take out at least $1000 in taxes.  That leaves about $3000 a month to pay all the bills with.  With that $3000 you have to pay the mortgage (or rent), make the car payments, make the student loan payments, pay for power and water, pay for health insurance, pay for home insurance, pay for car insurance, pay the phone bill, pay the Internet bill and pay the cable bill.  On top of all that, every member of the family needs three meals a day and the cars need to be filled up with gasoline or they won't go anywhere.  Of course I haven't even mentioned expenses that don't happen every month such as car repairs or new shoes.  No wonder so many families are feeling so financially stressed!
The truth is that American families are getting squeezed harder than they have been in ages.  The number of good jobs is declining, incomes are going down, and the cost of living just keeps going up.
The following are 17 facts that prove that the average American family is getting absolutely pulverized by this economy....
#1 The cost of a health insurance policy for the average American family rose by a whopping 9 percent last year.  According to a report put out by the Kaiser Family Foundation and the Health Research and Educational Trust, the average family health insurance policy now costs over $15,000 a year.
How in the world can most families afford that?  Yes, in many cases employers are paying for at least a portion of that, but still that seems absolutely outrageous.
#2 Due to rising costs, a lot of employers are completely getting rid of health plans for their employees.  In fact, the percentage of Americans covered by employer-based health plans has fallen for 11 years in a row.
#3 The number of uninsured Americans continues to rise.  Things have gotten so bad that an all-time record 49.9 million Americans do not have any health insurance at all.
#4 At this point, most American families are tapped out financially.  According to the U.S. Labor Department, incomes and spending were both down for the second straight year in 2010.
#5 At the same time, the employment picture continues to look worse with each passing month.  According to the U.S. Bureau of Labor Statistics, the number of layoffs in the United States was up 14 percent in August.
#6 Even if you do have a job that doesn't mean that you are doing much more than surviving.  According to Paul Osterman, a professor of economics at MIT, approximately 20 percent of all employed Americans are making $10.65 an hour or less.
#7 The amount of debt that the average American family has piled up is absolutely staggering.  The median yearly wage in the United States is just$26,261, but the average American household is carrying $75,600 in debt.
#8 Consumer confidence is extremely low right now.  If the U.S. economy was in good shape, the Consumer Confidence Index would be up around 90.  Instead, it is sitting at 45.4.
#9 Nearly every recent survey shows that the American people are feeling really depressed about the economy right now.  In fact, one poll found that 80 percent of them believe that we are actually in a recession right now.
#10 Many consumers are seriously starting to cut back on spending again, and that is not a good sign for the U.S. economy.  According to one recent study, 40 percent of all Americans have cut back on their spending within the last 60 days.
#11 It certainly does not help that millions of good jobs have been shipped out of the country.  Sadly, the trend of offshoring our jobs is going to continue to accelerate if something is not done.  According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades.
#12 There is a lot of fear in the workforce right now.  According to Gallup, 30 percent of all employed Americans are worried that they will be laid off soon.
#13 Today, there are 5.9 million Americans between the ages of 25 and 34 that are living with their parents.  That is putting an even greater strain on the budgets of many families.
#14 American families have gotten very accustomed to using plastic to pay for things.  Today, the average U.S. household has 13 different credit cards.
#15 Many American families are not making it at all in this economy.  Last year, 2.6 million more Americans dropped into poverty.  That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.
#16 For many American families, living on food stamps has become a way of life.  Today, there are more than 45 million Americans on food stamps and we keep setting a brand new record almost every single month.
#17 Things have gotten so bad that many American families are selling off whatever they can in order to survive.  For example, down in Florida hundreds of people have been selling off their burial plots in an attempt to raise cash.  The following is an excerpt from a local news report about this new trend....
Sellers are posting online, using burial plot brokers, and also funeral homes to market the real estate. Some of those advertisements show single plots starting at about $1,000, while family plots can go for up to $50,000.
Most American families are living in a state of almost constant financial stress.  Way too many parents are spending way too many sleepless nights wondering how in the world they will be able to keep their heads above water for another month.
Very few families seem to have "extra money" for stuff these days.  Yeah, there are the "privileged few", but most people are really struggling to get by.
In America today, if you are able to keep your home from being foreclosed and you are able to put food on the table and clothes on the backs of your family then you are doing pretty good.
Sadly, as our current economic crisis deepens, the average American family is going to have an even more difficult time trying to survive financially.
So do you have any tips to share for how the average American family can survive in this very tough economy?  Please feel free to share your ideas and thoughts below....

9/29/2011 - Depression Leaves Investors Feeling 'Like a Dog Without a Bone


Wednesday, September 28, 2011 – by Staff Report


Don't Let Volatile Markets Get You Off Your Game ... With the 4-day slump in stocks momentarily taking a breather, investors are tentatively coming out of their bunkers to assess the damage. The 7% storm that battered the markets this week destroyed more than $1 trillion of wealth held in the New York Stock Exchange Composite Index (NYA), according to Factset data. – Yahoo Finance
Dominant Social Theme: Look. Depressions happen. But what would you do in 1932. You'd stick it out! By, say, 1960, you'd be back where you were! No problem ...
Free-Market Analysis: This is a big dominant social theme for the masses of confused people who have heeded the prescription to put their hard-earned dollars into stock and bond markets. (See article excerpt above.) Just wait. The sun will come out tomorrow.
Of course, many people missed the big gold and silver runup of the past decade (because what can you do with gold, after all?) and they've been watching their savings erode because of inflation. Now they are waiting for the bull market to begin. They are waiting and waiting, like Godot.
Bull markets in stocks usually happen after recession, people have been told. And the recession ended in 2009, didn't it? Didn't it? So when's the market going to snap back? Soon. Soon. It's been delayed a bit, that's all. Maybe next year won't be so good. But it will come. It will come.

9/29/2011 - Flying PIIGS

Flying PIIGS

Recently by Gary North: Busted Europe, Busted Dream
"The politicians giveth, and the free market taketh away."~ traditional saying that I just made up.



The Greek government is going to default on its interest payments to the bonehead European bankers and investors who thought that getting high interest rates on Greek debt was a great way to avoid suffering the low-interest rates on German government bonds. After all, Greece would pay interest in euros. No problem!
Then the incoming socialist government discovered that the outgoing government had cooked the books. As soon as the naive Greek socialists announced this, the crisis in the Eurozone began. That was in April 2010.
It keeps getting worse.


This is the central fact. It keeps getting worse. The experts keep holding meetings. They keep announcing plans to solve the problem. Nothing works. Interest rates on one-year Greek government bonds are over 100% per annum. That screams "inevitable default."


It is not that the Greek government will not repay the debt. No government will ever repay its debt. Apart from Austrian School analysts, there is no school of economic opinion that argues that national governments should ever pay off their loans. The debts are assumed to be permanent. And so they are.
What bothers bankers is when governments cannot make their interest payments. Then governments have their central banks inflate. So, to protect themselves, lenders insist that the interest payments are made in a foreign currency: either dollars or euros.


This was the situation with Greece. Greece is in the European Monetary Union. This means that it settles its debts – makes interest payments – in euros. But it has become clear to investors that Greece will not do this. It will instead default. The only question is when.


The salaried bureaucrats hold meetings. They announce tentative solutions. European stock markets rise. Then the interest rates on Greek debt rise. European stock markets fall. The salaried bureaucrats hold another meeting. Then someone who was in attendance tells a reporter that this or that scheme is "under consideration," and that something definitive is due in four or five weeks. Maybe six. This sends the stock markets up for a day. Then they fall.


This has gone on for a year and a half. Every plan faces these problems.


1. The Greek government is a bottomless pit.
2. Big banks in Europe are undercapitalized.
3. Big banks are loaded with Greek debt.
4. Big banks are loaded with other PIIGS debts.
5. The European Central Bank will bail out banks.
6. Other PIIGS will face default.
7. The size of the PIIGS debts is enormous.
8. German voters oppose more bailouts.
9. German politicians ignore German voters.
10. German voters will replace them.
11. A recession is looming.
12. Recessions increase government deficits.
13. More PIIGS will get into fiscal trouble.
14. More PIIGS will threaten default.
15. And the beat goes on.
16. And the beat goes on.

THE FUNDAMENTAL PROBLEM
The fundamental problem is this: bureaucrats designed the present system and then sold it to Europe's politicians two decades ago. The politicians worked in the 1990s to cobble together a new monetary system, which voters generally opposed. They could not get enough votes to put all of the national legislatures into one taxing and spending system. The voters would not have allowed it. So, they created a jerry-rigged system: a unified central bank but national legislatures that could run deficits.


There were rules against running deficits above 3% of Gross Domestic Product. There is no way to enforce such rules.


The result is what we now see, and which was predicted by critics in the mid-1990s. The present-oriented nations in the south of Europe, plus Ireland, ran up huge debts, while the bankers in the north bought the IOUs. Bankers pretended that the temporal perspective of the North – future-oriented – also governed the time perspective of the South: "Let's party! It's sunshine forever around here."


They have known for approximately 500 years that, with the brief exceptions of a handful of northern Italian city-states in the 14th through 16th centuries, the southern outlook was fundamentally different from the north. It was analogous to the time perspectives dividing Canada and the United States from the nations south of the Rio Grande. The operational phrase in the South was "stiff the gringos!" Gringo investors have never caught on.


The best solution is for governments to let the dummies take their losses. But big banks are the main lenders, so the central bank moves to bail them out. The unofficial #1 task of all central banks is to protect the largest domestic banks from the inevitable consequences of their high-risk folly: seeking high returns irrespective of risk.


The central bankers then warn the politicians of the looming bankruptcy of the big banks. There will be a disaster, they tell politicians. So, politicians consent to the bailout.


The voters have no say. They elect new politicians, but the central bankers remain the same, and the big commercial banks remain the same.


The bailouts kick the can down the road. That's all the bankers expect. It is a profitable road.
The politicians say they will not make that mistake again. But, as soon as the crisis of default reappears, the politicians buckle. They get scared, and they pony up more money to enable the debtors to make their interest payments on their IOUs to big banks.


JONAH MUST NOW SWALLOW THE WHALE
Or so it has been ever since 1946. But, these days, there is a major problem. The size of the debts of the PIIGS is greater than the available reserves of the northern governments. They have handled Greece so far. They could barely handle Ireland. But they cannot handle Italy and Spain. In May 2010, shortly after the Greek debt crisis began, the New York Times posted a handy graph of the size of each government's debts. The Greek debt situation is the tip of the iceberg.


The politicians of the North decided that the goal of European unification was so desirable that they discounted the possibility of anything like the Greek crisis. For a decade, their optimism prevailed. The Greek politicians took advantage of this continuing optimism. "Put it on our tab!" The North's bankers did. And why not? They knew that the ECB, the IMF, and the German politicians would come to their rescue.


Now the capital market is calling into question the ability of the Eurocrats to bail out the system. The salaried experts are hard-pressed to come up with a solution.


There was an annual meeting of the International Monetary Fund over the weekend. Out of this meeting came a vague assurance that the European governments and the IMF and the central bank are working on the problem. One official said there could be a plan in five or six weeks.


Five or six weeks is a long time when a nation is paying 100% on its one-year debt.


We have heard estimates of a default within weeks. These are merely guesses, but they are guesses from people with a lot of money on the line. Mohammed El-Erian, the head of PIMCO, the world's largest bond fund, predicted in June that Greece and other PIIGS will default.


On September 21, just prior to the annual IMF meeting, he reiterated his concern.


It is no longer just about the "outer peripheral" economies such as Ireland and Greece, but also the "inner peripheral" ones like Italy and Spain, the banking sector, and balance sheets at the very core of the eurozone – and worryingly at the European Central Bank (ECB).
Interest rates on Italian government debt are at alarming levels, despite visible buying by the ECB. Banks are having difficulties convincing other private institutions to lend them money. And the ECB's balance sheet is increasingly burdened, fueling internal divisions and turning this critical institution from being part of the solution to a part of the problem.

As in the fall of 2008, virtually no country will be spared if continued policy incoherence leads – as it inevitably will – to a recession in Europe, dysfunctional financial markets, and bank failures. When policymakers convened at the IMF/World Bank meetings three years ago to contend with this situation, they at least had a road map of sorts: a bold bank recapitalization plan that Britain brought to the meetings and that served as a catalyst for common analysis and joint policy actions.

This year, it seems that policymakers will have no such luck. The international community lacks an effective policy coordinator. Indeed, it does not even share a common analysis of what ails the global economy. And the sense of shared responsibility has fallen victim to bickering and finger-pointing.

He went on to outline what is necessary . . . and soon.

Instead of seeking to maintain an increasingly unstable and dangerous situation, policymakers must now attempt bold and coordinated approaches. As I have argued elsewhere, Europe must lead by recognizing the inherent inconsistencies of the current eurozone and opt for a smaller, less imperfect, and therefore stronger union. At the same time, national governments must embark on proper structural reforms that increase actual and potential growth and jobs. Banks must be forced to recapitalize and come to terms quickly with their weakening asset quality. And the rest of the world must help by providing focused capital injections and, in the case of some developed and emerging economies, more expansionary policies rather than austerity for the sake of austerity.

Yes, I see! PIIGS must fly! And it is the task of non-European governments, already running huge deficits, to pony up even more borrowed money from their bond investors to see to it that PIIGS do fly. "Policymakers face a stark choice. They can either lead an orderly economic response or be forced to clean up after a chaotic, ad hoc, messy one. Europe's problem is now the world's; and such a global problem requires a global solution."


"Global solution" is a code phrase for a multinational governmental bailout. That's always the solution recommended by investors who are sitting on a portfolio of government IOUs. More IOUs.


IT JUST KEEPS GETTING WORSE
Week by week, the news out of Europe gets worse. It is clear by now that the various mini-bailouts since the summer of 2010 have only delayed any fundamental resolution to the Greek debt crisis. There have been official assurances from Greek politicians that Greece will not default, that the government will cut spending, and that the country will remain in the European Monetary Union. These promises have not brought Greek interest rates to (say) a mere 30%.


The promises are political. The interest rates are free market. The twain do not seem to be meeting.
The promises escalate as the interest rates rise. The promises become more comprehensive as interest rates rise.


Bond market investors are only marginally less naive than stock market investors. But bond market investors have been hammered so badly by the collapse of Greek bonds that they are scared to lend more money to what appears to be a bankrupt nation. Stock market investors invest in companies. Bond market investors invest in Greek politicians. There is greater hope for European companies than there is for Greek politicians.
What did the G-20 conference held by the IMF announce after its weekend meeting? Not much. Things are taking shape. They are moving along. Have no fear.


The outline of a large and ambitious eurozone rescue plan is taking shape, reports from the International Monetary Fund (IMF) in Washington suggest.
It is expected to involve a 50% write-down of Greece's massive government debt, the BBC's business editor Robert Peston says.
The plan also envisages an increase in the size of the eurozone bailout fund to 2 trillion euros (£1.7tn; $2.7tn).
European governments hope to have the plan in place in five to six weeks.
The unofficial announcements led to a big increase in European stocks, then the USA.


It is all blather. The stock market fund managers cannot bear the thought of being left out for five or six weeks, in the hope that there will be a resolution of a problem that has gotten worse, month by month, since April 2010. "There has to be a solution! There must be a solution! Therefore, there will be a solution!"
There won't be a solution. Greece will default. Nothing bad will happen to the Greek economy that has not already happened. That was the lesson sent by Iceland three years ago, when it creased pegging its currency to the euro. The Eurocrats do not want to admit this.


When Greece gets no worse, the politicians on the other PIIGS will figure out that IMF-imposed "austerity" measures are not necessary.


This lesson will spread northward. The big banks in the North that were so foolish as to lend to PIIGS governments will turn to the ECB. The ECB will do whatever is necessary to bail out the big banks. It will inflate.


CONCLUSION
Politicians really do believe that they are wiser than investors who have their money on the line. Investors are trusting. But at some point they decide that it is safer to sell their bonds than remain on a sinking ship. Bond prices fall, i.e., interest rates rise.
PIIGS will not learn how to fly. But they remain aboard the Eurozone's central bank-funded hot air balloon by fattening up on loans from governments and the ECB until they finally relieve themselves from on high.
Stay out from under.


http://lewrockwell.com/north/north1040.html



9/29/2011 - VXX - IPTH SP 500 VIX SHT FTRS ETN

THE VULCAN REPORT
Review of $0$ VXX -  IPTH SP 500 VIX SHT FTRS ETN (VXX)
as of Wednesday, September 28, 2011


Today's Price Action


Change    3.0900 (6.49%) prices closed higher than they opened.  with strong Bids going into the close.This is generally considered bullish, as prices closed significantly higher than they opened.  If the candle appears when prices are "low," it may be the first sign of a bottom.  If it occurs when prices are rebounding off of a support area , the long white candle adds credibility to the support.  Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.




     MARKET SENTIMENT
  
PulseScan Swing Vix


PulseScan:     32.07
Swing Vix:     29.32


The Market Pulse is positive since it is trading above its zero signal line.The PulseScan crossed above the Swing Vix creating a UP Trend Channel as of    4 period(s) ago. The Swing Vix is above 29.  This is where it usually forms Resistance.  The Swing Vix usually forms Resistance before the underlying security.  
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.  


*The last signal was a Over-Bought Sell 23 period(s) Ago.
The Swing Vix has just reached its highest value in the last 14 period(s).  This is bullish.
      
  *Since the last Swing Vix signal, $0$ VXX -  IPTH SP 500 VIX SHT FTRS ETN's price has increased 1.79% , and has ranged from a high of  51.36 to a low of  45.55.


     MOMENTUM


     MARKET TREND - Currently the TREND is VERY-BULLISH - Heavy Accumulation.


        TREND STRENGTH - WEAK - RANGE BOUND (Prices have ceased trending and have become consolidated at this time) The market has put in a short term top. This means that the bulls are liquidating long positions thus taking some profit off the table.,,BULLISH MOMENTUM,


TRENDLINE RETRACEMENT
The close is currently Above it's PulseWave Cycle TRENDLINE RETRACEMENT. -    45.74


The close is currently Above it's Long Term TRENDLINE RETRACEMENT. -    45.35




INTRADAY PRICE PROJECTIONS
RESISTANCE    53.56 -  GO LONG here    51.02 place stoploss here    45.24


SUPPORT    45.24 -  -  


WEEKLY PULSE WAVE PRICE PROJECTIONS
PulseWave BreakOut RESISTANCE -    50.26-  


PulseWave BreakOut SUPPORT -    39.79-  




MONTHLY PRICE PROJECTIONS
BULL MARKET UPTREND - (12-18mo) PRICE TARGET =   123.32
Long term Trend Line resistance is currently at -    71.60
Long term Trend Line support is currently at -    45.74




VOLATILITY
On 9/28/2011, $0$ VXX -  IPTH SP 500 VIX SHT FTRS ETN closed   
below the upper band by 5.2%.
   

9/29/2011 - CL - LIGHT CRUDE COMPOSITE Continuous

THE VULCAN REPORT
Review of $0$ CL - LIGHT CRUDE COMPOSITE Continuous (@:CLC1#I)
as of Wednesday, September 28, 2011


Today's Price Action


Change   -2.8200 (-3.37%) prices closed lower than they opened. with weak Bids going into the close.This is bearish, as prices closed significantly lower than they opened.  If the candle appears when prices are "high," it may be the first sign of a top.  If it occurs when prices are confronting an overhead resistance area the long black candle adds credibility to the resistance.  Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area. 




     MARKET SENTIMENT
  
PulseScan Swing Vix


PulseScan:    -21.90
Swing Vix:    -22.29


The Market Pulse is negative since it is trading below its zero signal line.The PulseScan crossed above the Swing Vix creating a UP Trend Channel as of    1 period(s) ago. The Swing Vix is not currently in a topping (above 39) or bottoming (below -39) range.    
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.  


*The last signal was a Over-Sold Buy 36 period(s) Ago.
The Swing Vix does not currently show any Failure Swings.The Swing Vix and price are not diverging.
      
  *Since the last Swing Vix signal, $0$ CL - LIGHT CRUDE COMPOSITE Continuous's price has decreased 3.37%, and has ranged from a high of  84.77 to a low of  80.54.


     MOMENTUM


     MARKET TREND - Currently the TREND is VERY-BEARISH - Heavy Distribution.


        TREND STRENGTH - WEAK - RANGE BOUND  (Prices have ceased trending and have become consolidated at this time) The market has put in a short term bottom. This means that the bears are liquidating short positions thus taking some profit off the table.,,,BEARISH MOMENTUM


TRENDLINE RETRACEMENT
The close is currently Below it's PulseWave Cycle TRENDLINE RETRACEMENT. -    93.79


The close is currently Below it's Long Term TRENDLINE RETRACEMENT. -    90.75




INTRADAY PRICE PROJECTIONS
RESISTANCE    86.08 -   


SUPPORT    77.92 - GO SHORT here    80.34 - place stoploss here    86.08 


WEEKLY PULSE WAVE PRICE PROJECTIONS
PulseWave BreakOut RESISTANCE -    93.24-  


PulseWave BreakOut SUPPORT -    81.53-  




MONTHLY PRICE PROJECTIONS
Long term Trend Line resistance is currently at -    93.79
Long term Trend Line support is currently at -    72.75
BEAR MARKET DOWNTREND - (12-18mo)  PRICE TARGET =    30.67


VOLATILITY
On 9/28/2011, $0$ CL - LIGHT CRUDE COMPOSITE Continuous closed   
above the lower band by 9.6%.
     

9/29/2011 - XAG/USD - SILVER Spot/SILVER FUTURES

THE VULCAN REPORT
Review of $0$ XAG/USD - SILVER Spot/SILVER FUTURES (XAG USD)
as of Wednesday, September 28, 2011


Today's Price Action


Change   -1.9500 (-6.11%) prices closed lower than they opened. with weak Bids going into the close. 


An engulfing bearish line occurred (where a black candle's real body completely contains the previous white candle's real body).  The engulfing bearish pattern is bearish during an uptrend.  It then signifies that the momentum may be shifting from the bulls to the bears.  


If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with $0$ XAG/USD - SILVER Spot/SILVER FUTURES), it may be a last engulfing bottom which indicates a bullish reversal.  The test to see if this is the case is if the next candle closes above the bottom the current (black) candle's real body.


     MARKET SENTIMENT
  
PulseScan Swing Vix


PulseScan:    -27.93
Swing Vix:    -28.90


The Market Pulse is negative since it is trading below its zero signal line.The PulseScan crossed above the Swing Vix creating a UP Trend Channel as of    2 period(s) ago. The Swing Vix is not currently in a topping (above 39) or bottoming (below -39) range.    
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.  


*The last signal was a Over-Sold Buy  2 period(s) Ago.
The Swing Vix does not currently show any Failure Swings.The security price has set a new 14-period low while the Swing Vix has not.  This is a bullish divergence. Since the PulseScan leads the market 3-5 days out we will wait to see if an upside breakout occurs.
      
  *Since the last Swing Vix signal, $0$ XAG/USD - SILVER Spot/SILVER FUTURES's price has decreased 2.66%, and has ranged from a high of  33.58 to a low of  26.15.


     MOMENTUM


     MARKET TREND - Currently the TREND is VERY-BEARISH - Heavy Distribution.


        TREND STRENGTH - WEAK - RANGE BOUND  (Prices have ceased trending and have become consolidated at this time) The market has put in a short term bottom. This means that the bears are liquidating short positions thus taking some profit off the table.,,,BEARISH MOMENTUM


TRENDLINE RETRACEMENT
The close is currently Below it's PulseWave Cycle TRENDLINE RETRACEMENT. -    35.42


The close is currently Below it's Long Term TRENDLINE RETRACEMENT. -    33.78




INTRADAY PRICE PROJECTIONS
RESISTANCE    34.17 -   


SUPPORT    27.37 -  -  


WEEKLY PULSE WAVE PRICE PROJECTIONS
PulseWave BreakOut RESISTANCE -    44.75-  


PulseWave BreakOut SUPPORT -    37.04-  




MONTHLY PRICE PROJECTIONS
Long term Trend Line resistance is currently at -    35.42
Long term Trend Line support is currently at -    21.03
BEAR MARKET DOWNTREND - (12-18mo)  PRICE TARGET =    -7.76


VOLATILITY
On 9/28/2011, $0$ XAG/USD - SILVER Spot/SILVER FUTURES closed below the lower band by 2.3%.