Anger - Taking Back Our Nations and Financial Markets

The blog this Sunday evening includes "part one" of a needed academic interlude that will be continued. For those learned and impatient technical analysts, we have also included a weekly SP500 chart.

In many ways, weekly charts are far more powerful than daily or hourly charts. Not only do they have fewer bars, and therefore less noise, they also show the bigger more powerful trends. As usual, we have placed a few educational comments on the chart.

We have already told you in many ways that November will be far different than October or September, as changes are both imminent and more importantly, will also come later in the month. Are you ready?

We will be back again tomorrow as time permits. Enjoy.

Righteous Justice – An Anger To Bring About Needed Change

So, I want you to get up now,

I want all of you to get up out of your chairs,

I want you to get up now, and go to your window,

Open it, stick your head out and yell,

I’ am as mad as hell and I am not going to take this anymore…

Near the eve of the USA mid-term elections and before one intellectually considers topics such as political or financial reform, or for that matter, the greater good for America, it is necessary to first comprehend a few basic principles of change and reform.

As I write the blog today from a Canadian perspective, there is a noticeable growing anti-government movement taking place all around the world.

Some conservative, uninformed, or indifferent types might respond; so what?

But anyone with eyes or ears must ask; is this mere political activism, a financial canary in a coal mine, or is something far greater at work here?

Clearly political reform has come and gone too many times to count over the ages, as kings, warlords, and politicians were overthrown – usually with cause.

Beyond the growing global political unrest, after the recent sub-prime crisis, there is a parallel public perception of financial injustices as being carried out in America and elsewhere around the globe. This too will be our next topic.

After all, riots and mass angry demonstrations have happened for economic and political reasons in France, Iceland, Greece, the USA, and more countries than can be listed here. Why?

My academic supposition is that people around the world are largely fed up with political leaders that do not listen, fail to act for the people, have watched political leaders grow rich using public coffers, seen abuse of political power, or worse, observed politicians becoming non-transparent, corrupt, and fully untrustworthy.

Is the world going mad? Are politicians growing increasingly evil? How much should any society take?

Perhaps the greatest mistake egotistical blind-sighted politicians make in their ascent to power, is failing to realize their higher duty to the people whom they serve. All too often politicians go back on promises made, or become outright liars instead of serving the higher cause of integrity, fairness, freedom, democracy, the application of law and liberty for all.

When one is paid to act as a so-called civil servant, or as any leader, one carries a distinct fiduciary duty to serve those they oversee.

So, the distasteful causes cited above when proven, and too many other illicit examples to list are indeed nefarious, or perhaps in some rarer cases even criminal in nature.

Citing criminality is a serious matter, yet by the exact definition treason is any grave act made deliberately against a sovereign nation. So frankly, politicians who act in a grave manner against their fiduciary duties could be considered guilty of treason.

So, is it time to take back our nations and put justice and fairness back into the financial markets? If so, how should it be done?

To a large extent, although we must also realize that politicians are sensitive humans too, as we just cited, when one is being paid for public trust and responsibility, and then looks away from their fiduciary duty, then naturally, any prudent man should say that politician or leader in question, fully deserves the full rage and growing movement of anger.

In short, I believe we are now living in an era of needed change. Citizens of many nations believe with cause that they can justify becoming outraged due to more lies and broken promises, more corruption, more convoluted laws and wrongful taxes being imposed on them. What they are demanding is real change.

Equally at the same time, people are determining their leaders and governments are less transparent while they have received less liberty, less freedom, and less fairness than ever before.

So, what does this imply for the future or should we even care? What does change and uncertainty do to financial markets?

Frankly, an academic or intellectual take on all of this outrage is extremely positive, and goes back to the bible and early times when morality and ethics were initially being hammered our by ancient civilizations for their own safety, co-operation and survival.

The essence of change that is long overdue, or badly needed, for proper and deserved cause is all about first creating an anger to demand change. The change we are discussing is found in the definition of righteous justice, dating back to the bible.

Yes, our planet is undergoing some well deserved overhauls and needed change. So when does change occur? Is there a cyclical pattern to such change? What is the obvious answer?

Studies show that people in groups only bring about the needed change when there is enough demand within that group, or nation, or democracy, to get up and become mad, or at least passionate enough to demand that changes be made.

In essence, when Man stops being complacent, or lazy, and gets mad enough or motivated enough to do something about it – change will occur, but not before. What world citizens are now expressing is nothing wrong or distasteful. Frankly, what we are witnessing is all about righteous anger.

Anger in this case, is stated in a positive way and is the anger that motivates us to evolve and change to the next level.

Click the link below and watch the short clip from a famous Hollywood movie. Now consider, this was taken in approximately the mid 1970's.

Finally, study the chart below and ask yourself what financial markets usually do in times of uncertainty and change? How did USA financial markets perform in the 1970's (the era that created the word - stagflation) when this famous movie was created?


Click here (or the picture above) to watch a highly recommended five minute video. Note that this was filmed 34 Years Ago

Sincerely,

James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
www.Facebook.com/KRTTcom
www.twitter.com/KRTTcom

Random Halloween Links

1. Bedbug Registry -- Traveling soon? Check out this free, public database of user-submitted bed bug reports from across the United States and Canada. HT: Mike Carlson

2. Families avoid flying from U.K. to Egypt and Caribbean as air taxes increase. If you tax something.....

3. Hells Angels sue over the use of their logo.

4. The bottom is falling out of global ocean surface temperatures, are we headed for global cooling?  

5. Mount Everest gets 3G.

6. Entrepreneurs as pirates.

The Power of Freedom Overcomes All Obstacles

Don Boudreaux explains how the immense strengths behind freedom and the human spirit provide the power to triumph over all obstacles - both those obstacles that result from natural disasters like earthquakes, and man-made obstacles like taxes and regulation.  Call it a "Ganesha-like" power of freedom to overcome all obstacles: 

"Freedom is a beautiful flower with more robustness than crabgrass. Freedom is not delicate or easily uprooted, and is not a frail institution that collapses and dies the moment it is attacked by some element foreign to its nature. If it were, we all would long ago have been well and truly enslaved.

The human spirit seizes opportunities to flourish even with less-than-maximum scope; it naturally resists being confined to the arbitrary will of others. We do not all fall in line behind the commissar or Congress’s commands simply because we’re ordered to do so. (How many Americans really care if the busboy at a restaurant is an “illegal” alien?) And even when we abide by the letter of legislation, we are wonderfully crafty at violating its spirit if that legislation is felt to be inappropriate.

So, too, with the free market. It is perhaps the most remarkably vigorous of all human institutions. Heavily taxed and loaded with arbitrary regulations, the market keeps on keeping on. Entrepreneurs creatively find ways around government intrusions or they discover techniques for reducing the intrusions’ ill effects.

Everyone who understands the logic of markets knows that, say, the unexpected destruction of a factory by an earthquake will barely slow the market’s relentless push to improve living standards. We understand that markets are remarkably resilient at dealing with natural obstacles such as mountains that separate suppliers from customers, or weather disasters that destroy existing inventories and supply lines.

Although we’d be even wealthier if these obstacles and weather disasters never materialized, their existence does not condemn us to everlasting poverty. Entrepreneurs—given sufficient freedom—are guided by prices and profits to overcome these obstacles. Likewise, entrepreneurs—given sufficient freedom—are guided by prices and profits to overcome government-erected obstacles.

To point out that freedom can be hobbled and hamstrung by a predatory State and nevertheless continue to shower blessings on ordinary men and women is to praise freedom—to applaud it loudly and lovingly."

Restaurant Performance Index Rises Above 100 For 1st Time in 5 Mos., Current Index Highest in 3 Yrs.

"Driven by improving same-store sales and customer traffic levels as well as growing optimism among restaurant operators, the outlook for the restaurant industry improved in September. The National Restaurant Association’s Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.3 in September, up a solid 0.8 percent from its August level (see chart above). In addition, the RPI rose above 100 for the first time in five months, which signifies expansion in the index of key industry indicators.

The RPI’s solid gain in September was the result of broad-based improvements among both the current situation and forward-looking indicators. Restaurant operators reported positive same-store sales and customer traffic levels for the first time in six months, which propelled the RPI’s Current Situation Index to its highest level in nearly three years."

MP: On a year-over-year basis, the RPI increased by 2.87% in September, the highest annual increase in at least four years (see bottom chart above). 

Happy Halloween

HT: Coyote Blog

How To Carve a Pumpkin

without getting your hands messy......

HT: Andy Roth

Higher Education Bubble Update; New York Daily News Calls It a "Government-Sanctioned Racket"

The College Board released new data this week on "Trends in College Pricing" for 2010, and reported that four-year public universities raised tuition this year by 8%, almost twice the 4.5% average increase for tuition at America's private universities.  That differential follows a well-established pattern over the last decade of higher tuition increases at America's public universities than at private schools (see the chart above).  Public university tuition has increased faster than private tuition in each of the last four years, and in eight out of the last nine years, by an average of 3% per year.  As the chart above shows, the trajectory of college tuition in the U.S. is on a path that makes the recent housing bubble seem like a minor historical footnote by comparison. 

In assessing the College Board data, a NY Times article "As College Fees Climb, Aid Does Too" finds some "good news," but only by reversing cause and effect:

"The good news in the 2010 “Trends in College Pricing” and “Trends in Student Aid” reports is that fast-rising tuition costs have been accompanied by a huge increase in financial aid, which helped keep down the actual amount students and families pay."

The New York Daily News does a much better job of reporting the true causal relationship in an editorial that could be titled "As College Financial Aid Climbs, Tuition Follows:"

"College financial aid comes largely from the federal government. Meaning, out of your pocket. And ours. And out of the pockets of families scraping to raise that extra 8% for tuition. A government-sanctioned racket is what it is. States cut back on assistance to schools, so the schools raise tuition. Then the feds jump in, dish out billions in taxpayer dollars in student aid, and tuition goes up again. And again (see chart above).

Meanwhile, those fortunate folks who inhabit the groves of academe feel absolutely no need to hold the line on expenses. They ought to be ashamed, most of all for sending so many graduates out into the world with diplomas and loan statements showing a near-lifetime's worth of debt."

And this ongoing "higher education bubble" is especially troubling at a time when economist Richard Vedder reported recently that millions of students with college degrees not only graduate with debt, but "are doing jobs that the BLS says require less than the skill levels associated with a bachelor’s degree."  Some of those jobs include bartenders, janitors, and food preparation workers, all the more reason to call it a "government-sanctioned racket."

Thanks to Gregory Tetrault. 

Hispanics: Longer Life Expectancy, Less Insurance

John Goodman points out on The Health Care Blog that Hispanics live longer than non-Hispanic whites on average, and the table above based on CDC data shows that life expectancy is greater for Hispanics than for whites both at birth (by 2.5 years), but also at other selected ages (20, 40, 60 and 80 years).  At the same time, Census data for 2009 shows that only about two out of every three Hispanics is covered by health insurance, compared to 88% of whites being covered, so that Hispanics are almost three times as likely as whites to be uninsured (32.4% vs. 12%).  

John concludes that these findings "make mincemeat out of the oft-repeated idea that the uninsured get less health care and die earlier than everyone else."

Coming in November - Financial War

Hello BBTL blog followers,

As it is late Friday evening I want to keep it short, but have posted two technical analysis charts below for your perusal. They are self - explanatory with our usual educational comments and mark ups.

Over the weekend and before the North American markets open Monday November 01, 2010 , I will post some interesting financial concepts I recently shared with our paid clients.

Our topic will be the coming financial war being raged between Man and Natural Cycles.

In a preview to that feature - let me say this now, November will be extremely different month in many ways, and the ongoing financial war will hit a most important inflection point of huge potential change.

If you are recently new to the blog, you may wish to go back and read some of our recent posts to fully comprehend and get the most out what we will be discussing.

Enjoy your weekend.

Respectfully,

James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
www.Facebook.com/KRTTcom
www.twitter.com/KRTTcom

Global Economic Recovery Watch

1. The Conference Board Leading Economic Index for Australia increased 0.2% and the Conference Board Coincident Economic Index increased 0.3% in August.

2. The Conference Board Leading Economic Index for Mexico increased 0.8% and the Conference Board Coincident Economic Index increased 0.5% in August.

Average GDP Growth of 2.81% Over Last 5 Quarters Compares Favorably to the Last Two Expansions

We're now in the fifth quarter of economic expansion since the recession officially ended in June 2009.  How does this economic expansion compare to the last two?  Most reports describe the recovery as "sub-par," "weak," "fragile," and "anemic," etc.  

And yet real GDP growth over the last five quarters of expansion (1.6%, 5%, 3.7%, 1.7% and 2% for an average of 2.81%) compares very favorably with the five-quarter periods following the 2001 recession (3.5%, 2.1%, 2%, 0.1% and 1.6%, for an average of 1.87%) and the 1990-1991 recession (2.7%, 1.7%, 1.6%, 4.5% and 4.3% for an average of 2.96%).  Based on average real GDP growth (subject to revisions of third quarter GDP) for the five quarters following recession, this expansion is stronger than the 2002 expansion by almost a full percentage point (2.81% vs. 1.87%), and just slightly below the 1991-1992 period (2.96%). 

Strongest Consumer Spending Growth Since 2006

The BEA reported today that real GDP grew at 2.0% in the third quarter, boosted by a 2.6% rise in inflation-adjusted consumer spending, the highest quarterly increase since the 4.1% growth in the fourth quarter of 2006, 15 quarters ago.  This healthy growth in consumer spending from July through September is consistent with:  a) the many states that have been reporting increases in tax revenues in the third quarter from sales, individual income and corporate income taxes, and b) the stronger-than-expected retail sales report for September (7.2% annual growth).   

SP 500 Index - DEFCON ONE BEGINS

Hello BBTL Blog followers,

Our missive is short and to the point this evening. We are near an important equity market inflection point for the SP 500 Index.

In our view, the coming equity market top will be highly tradable and profitable, by those whom have the know how and discipline. We also expect global equity indices such as the TSX, FTSE, DAX, Nikkei, and Shanghai will correlate closely and correct simultaneously.

In the SP 500 assuming our wave count holds up - it will involve an Elliott Wave Four Down - within the context of a larger degree five wave up that we have previously discussed in considerable detail, complete with many of the coming characteristics to expect.

However, as many of you probably noticed by the low equity market volatility today, the SP 500 Index and several other global indices are acting as if they were fixed in cement. Every rally sells off, and equally every sell-off rallies back. Low volatility and range contraction bars invariably precede higher volatility.

In fact, this is the major premise of Bollinger Bands as well as trading systems used by several market wizards.

It is as if the PPT is now protecting the overall USA equity market stability, until after the USA mid-term elections.

As a result, our latest calculated cycle target for the rapid change in trends that are coming (from past up - to future down) are about the middle of next week. Our chart exhibits below discuss exact dates that we believe are now "in play".

Remember, any catalyst or trigger mechanism could start the sell-off sooner.

Only a massive planned capital injection such as that of the PPT could hold the markets steady - once that process begins. Therefore, we recommend that you now have your stops fully in place.

The most logical time for the upcoming sell-off to begin, in view of the probable PPT scenario, or alternatively, for one last sucker rally (sheep for the Wall Street Pros to fleece) is immediately following the Quantitative Easing (QE2) announcement expected by turbo-money-printing Ben Bernanke and the FED on November 03, 2010.

However, if you are new to this blog, please read several of our recent messages regarding the SP500 Index, or otherwise, you may miss the mosaic of important financial information.

So in a nutshell, the vibration has started.

The vibration that I am referring to is the law of vibration as expressed by the great W. D. Gann.

KRTT a tiny unknown company to the world has fully confirmed after thousands of hours of research that the Law of Vibration fully exists as Gann stated. In fact, we believe Gann actually discovered exactly how the financial markets operate in prefect Synchronicity.

Had Gan not fully discovered the exact process, we believe he never would have used the word vibration.

Vibration, a term to describe particles or waves in physics is indeed the correct word.

In the end, we believe Gann never fully disclosed to the world, all of his incredible secret(s). Frankly, as we have also confirmed, he was probably correct to assume that the world was not ready for his science discovery, nor was it respectful of his genius and unprecedented work ethic.

Expressed simply, there are many cycles that inter-operate and impact each other.

Cycles are nested and essentially they vibrate, sum and interact, and exactly, which cycle ultimately becomes the dominant one or catalyst, and then sets into motion the impending change can vary - but only to a degree. These are the trigger mechanisms or "upset mechanism".

Trigger mechanisms or upset mechanisms in these cycles can also be introduced by Man. Thus Nature and Man are invariably inter-twined. What we see daily on technical charts is both, but the dominant cycles of Nature - are without any challenge and appear over and over, just as the great W.D. Gann and a small select few others after him, have stated.    

Yet, who would believe or understand this blog, if we simply stated; "Let's get ready to vibrate?" I am sure the great W.D. Gann would be smiling, and had a great sense of humor.

BTW - There are still a way too few whom have signed up to follow this blog. Also, we do not have the time and resources to promote it, nor should we given the material we can present. We respectfully suggest that you follow this blog, and tell your peers.

We say and believe without reservation, it has the potential to become known as - the most accurate source of free financial equity and commodity information (based on the financial truth) available anywhere on the planet.

Respectfully,

James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
www.Facebook.com/KRTTcom
www.twitter.com/KRTTcom

Food Trucks Spice Up the Nation's Capital

About 20 food trucks are currently operating in the Washington, D.C. area, with another five coming soon, according to the Food Truck Fiesta blog, which also provides a daily, real-time automated "DC Food Truck Tracker" map and updated Twitter feeds with information about where the trucks are located on a given day.  The trucks typically move around each day, and about three locate daily at Farragut Square (conveniently located just down the block from AEI), often with blankets for a full picnic experience (see top picture), and often with ridiculously long lines at the Lobster Truck (see bottom picture), which currently ranks #1 among DC food trucks for having the most Twitter followers.  

Some of the food trucks offer limited State-fair type junk food menus like Fry Captain (fries and milk shakes only, menu here), and others have a more sophisticated international street food menu like Sauca, which sells Mumbai butter chicken, Vietnamese pork banh mi, beef Shawarma, Italian salsiccia con Puttanesca, and Mexicali fish tacos (they come to Farragut Square every Tuesday).

With long, Soviet-style queues like those at the Lobster Truck, it's no surprise that according to the Wall Street Journal:

"A small but growing number of chains—such as Cousins Submarines Inc., Tasti D-Lite LLC and Toppers Pizza Inc.—are following in the tire tracks of those local food-truck businesses popping up on city streets around the U.S. Many brick-and-mortar eateries have added mobile units in recent years, and more are expected to do the same, including national brands. 

Sites like Twitter, Facebook and FourSquare are making it easy for consumers to track mobile vendors' whereabouts, says Hudson Riehle, senior vice president of research for the National Restaurant Association in Washington, D.C."

Jobless Claims Fall to Second-Lowest Level Since Aug. 2008, German Jobless Rate Lowest Since 1991

WASHINGTON (AP)  -- "Fewer people applied for unemployment benefits last week, the second drop in a row and a hopeful sign the job market could be improving.The Labor Department said Thursday that initial claims for jobless benefits dropped 21,000 to a seasonally adjusted 434,000 in the week that ended Oct. 23 (see chart above).  It was the second-lowest number for claims this year. The only time it was lower was during the July 10 week, and that week was affected by the Independence Day holiday when state unemployment offices were closed."

MP: Except for the holiday-related July 10 low, last week's 434,000 seasonally-adjusted weekly claims for unemployment insurance was the lowest since the week of August 23, 2008, more than two year ago (see chart).

In some positive labor market news from Europe, the German unemployment rate fell in September to an 18-year low of 7.5%, the lowest jobless rate since 1991, and analysts expect the positive trend to continue.   

Weekly Rail Traffic Continues Upward Trend

WASHINGTON, D.C. – Oct. 28, 2010 – "The Association of American Railroads (AAR) today reported that weekly rail traffic remains up over 2009 levels with U.S. railroads originating 302,855 carloads for the week ending Oct. 23, 2010, up 9.6 percent compared with the same week last year (see chart).  Intermodal traffic for the week totaled 235,606 trailers and containers, up 13.6 percent compared with the same week a year ago, with container volume up 14.6 percent and trailer volume up 8.2 percent."

MP: Rail traffic continued on an upward trend for the week that ended last Saturday, with both carloads and intermodal traffic registering solid gains versus the same week last year of 9.6% and 13.6% respectively.  The trend lines in the graph above show the steady improvements in both measures of rail traffic over the last 22 months.  Compared to January 2009, carload volume is up by 16.6% and intermodal volume by 26%.  The ongoing gains in the demand for raw materials, inputs and commodities will eventually translate into gains in final output and employment.     

Golden Astrology - SP 500 Update

Hello BBTL Blog readership,

SP 500 Update

As most of our blog readers already know by recent posts, we are currently forecasting a soon to be change in trend (CIT) for the SP500 Index (and simultaneously for other global indices), while also attempting to zero in on the exact date for a top.

Although our calculated dates for the final Elliott Wave Three peak range over seven trading days, from October 29, - November 08, 2010, at present we are still focused and planning this Friday (October 29, 2010) for a potential peak EW 3 top, - also known as our plan A.

However, in recent trading sessions the SP500 Index has refused to rally, and has come-up short of our forecast double-top cycle price target. This is one of our forensic clues of a cycle inversion.

As a result, by necessity we introduced the cycle inversion topic in our blog (also called Elliott Wave extension) and a plan B strategy (see Plan B blog and related).

We will update as time permits and as needed over the next few days, but frankly, we are already pushing out slightly the date for the peak price to occur. Essentially, we are saying that the earliest the peak can arrive is this Friday.

For our Friday October 29, 2010 plan A to hold up, we must see a final couple of strong up days on the SP500 beginning tomorrow, otherwise, we believe a cycle inversion will slowly push-out the final peak by another 1 - 6 days.

Notice that we cannot intelligently remove our bearish CIT alert. The next wave four down could be significant.

For now, the good news is the uptrend that we first successfully forecast on September 01, 2010 is still intact, as can be seen by the late-day rally today (possible PPT) and mathematically, using intelligent technical analysis, by the respect for the 21 day moving average (see chart).

In the meantime, we suggest using your favorite moving averages, or some other form of mechanical stop. For instance, the 21 day simple moving average as shown in the chart, is now just 15 points below the SP 500 closing price today, and yet makes a very effective stop.

Golden Astrology

Following yesterday's post on Financial Astrology, Cycles, and W.D. Gann theory, we wanted to encourage those whom find this topic interesting, to further delve into this esoteric topic in more detail. Naturally, the best way to do this would be to attend our KRTT formal training or subscribe to our E-Learning Products.

So tonight, we have included in this Astro Part Two - a real time forecast for gold using the same follow on to financial astrology.

Last night in our astro-finance blog topic, we recommended reading and following our Blog Editorial on Gold (October 09, 2010) which featured an insight into one method or approach of KRTT financial astrology as being applied to Gold.

Essentially in our October 09, 2010 blog feature on gold, KRTT suggested in advance of the dates, that we should become bearish on gold - at least until the Zodiac sign of Scorpio passes. Given the past long uptrend in Gold, we had identified and pointed out how the Zodiac of Scorpio can upset trends in the precious metal.

So far, our feature editorial on gold has indeed been accurate, and gold has not only halted the past uptrend, but recently it has weakened considerably as we suggested and forecast it would.

So, when might gold bottom in the short-term using a similar Astrological approach?

Tonight we have included the Astro Sky chart for November 22, 2010 - more than three weeks from now. This future date also closely approximates to the end of the Scorpio Zodiac in 2010. There is also a full moon - another astrological event of change on November 21, 2010.

Can you notice in our Astro-Sky graphic as shown - the abundance of square or 90 degree angles in the Astro-Sky?

In Astrology, such harsh 90 degree angles are considered negative. One must remember that past bearish trends will end at the peak of bearishness.

Although Gann angles are a very common technical analysis term, in astrology or astro-finance, angles are invariably called aspects, so technically, using proper astrological terminology; a 90 degree angle is termed or labeled a malefic (bearish) aspect.

So essentially, by simply looking out at the astro-sky set-ups in advance, and using this seemingly negative Astro-Finance chart of November 22, 2010, one could conclude or surmise that it may be close to a peak and near ideal bearish low in gold as being made (in the short-term).

In summary after November 22, 2010 gold could start to rally.

For learning and financial education sake in our cyberspace classroom, we thus herein go on record, to suggest and forecast that gold may make a short-term trend low and reverse the trend (to up) around November 22, 2010.

We will keep you posted on our golden astro-finance lessons as time permits.

Remember in making this forecast, we are solely using Astro Finance and applying it by viewing a negative astro-sky with harsh 90 degree angles or as we termed it - malefic aspects.

KRTT and this BBTL Blog do not recommend making real-money trading or financial decisions, by solely using the Astro-Finance topic in any form, no matter how good or how logical an analysis may appear. That however does not imply Astro-finance should not be used.

Virtually savvy students of advanced W.D. Gann theory - as taught by KRTT, will invariably wish to use and apply on a regular basis such astro-finance techniques - as an additional form of trend confirmation or possible change.

See the Astro-Sky chart of November 22, 2010 below and watch for a Golden Trend Change around the time of November 22, 2010.

Sincerely,

James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
www.Facebook.com/KRTTcom
www.twitter.com/KRTTcom

*** Although KRTT discussed Astro-Finance and Astrology in our blog today and as first introduced by W.D. Gann over one hundred years ago, and in that we teach detailed Astro-Finance and Astro-cycles to our clients, we do not profess to be Astrologers. Nor do we endorse or use Astro-finance as a stand-alone method to trading or investing.

We do however strongly endorse and teach all Natural Law theory, including Astro-finance as an extremely valuable method of market confirmation.

Food is Now More Affordable Than Ever, Thanks in Part to International Trade

Charles Campbell, retired senior VP of Gulf Oil, cooks up quite "a stew of errors, misunderstandings, and non sequiturs" about free trade, according to Don Boudreaux, in this Baltimore Sun editorial "Free Trade Has Failed the U.S."

Some of the errors appear in this discussion on U.S. food export and imports:

"In 1970, U.S. technology was superior to that of every other nation in the world; we manufactured nearly everything we consumed; we were essentially self-sufficient in energy; we exported food; and we imported little of consequence.  Over the last 40 years, we have hollowed out our industrial base and .... we now import more food than we export."  

In fact, we typically export more food than we import in most years, and have run trade surpluses for food in 2007, 2008 and 2009.  And we have always imported billions of dollars of food each year (think bananas, coffee), see chart above.  Partly as a result of increasing international trade, food is more affordable than any time in U.S. history, when measured as a share of disposable income (see chart).  Free trade has not failed the U.S., it has contributed to a rising standard of living for all Americans, and the increasing affordability of food is just a small part of the story.     

Global Economic Recovery Watch

1. "The Conference Board's Leading Economic Index (LEI) for Europe remains on an upward trend, and increased 0.3 percent in September, following a 0.7 percent increase in August, and a 0.9 percent increase in July. After increasing in September, the LEI for the Euro Area is 18.4 percent above its March 2009 trough."

2. From the WSJ: "Britain's economy grew more briskly than expected during the third quarter (3.2% at an annual rate), damping fears that the U.K. could tip back into recession and, for now, buttressing the government's move to attack the country's huge deficit with public-spending cuts."

Election Watch 2010

1. Ireland's largest bookie Paddy Power said today it has already paid off all bettors who wagered the GOP would capture the chamber, saying there's no way Democrats can keep control of the House. (Source)

2. From P.J. O'Rourke "This is not an election on November 2. This is a restraining order."

3. Current Intrade odds: 2:1 that Harry Reid will lose in Nevada, 5:1 that Barbara Boxer will win in California, and 13:1 that Jerry Brown will win in California.  

Teranet House Price Index - August 2010

OCTOBER 2010

Monthly price rise of 0.2% in August Canadian home prices in August were up 10.4% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. It was the smallest 12-month gain in six months. The metropolitan markets showing a similar deceleration included Toronto and Vancouver, though their price increases from a year earlier were still in the neighbourhood of 12%. For Ottawa, the market where prices have risen most in the last six months, the 12-month increase was 10.7%. In the other three markets the 12-month gains were more modest: 7.7% in Montreal, 6.8% in Halifax, 5.0% in Calgary. Teranet – National Bank National Composite House Price Index™ Contact Us For general enquiries: info@housepriceindex.ca For licenses covering all index-linked products, please contact: Simon Côté 514 879-5379 Website www.housepriceindex.ca

For a second consecutive month, prices did not rise from the month before in all six markets. The Calgary index was down 0.5% from June and the Vancouver index 0.4%. For Vancouver it was the second monthly decline in a row. In Toronto the monthly rise was 0.4%, the smallest in five months. In Montreal it was 0.5%, in Halifax 0.9% and in Ottawa 1.4%. For the composite index as a whole the monthly increase in August was 0.2%, the smallest since the index began climbing 16 months ago. The uninterrupted string of 16 monthly gains exceeds the 14-month run of August 2005 through September 2006. Teranet – National Bank House Price Index™ The historical data of the Teranet – National Bank House Price Index™ is available at www.housepriceindex.ca. Metropolitan area Index level August 2010 % change m/m % change y/y Calgary 160.40 -0.5 % 5.0 % Halifax 131.19 0.9 % 6.8 % Montreal 136.10 0.5 % 7.7 % Ottawa 133.32 1.4 % 10.7 % Toronto 128.00 0.4 % 12.5 % Vancouver 155.37 -0.4 % 11.8 % National Composite 139.43 0.2 % 10.4 % The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given at www.housepriceindex.ca The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion. All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005. By: Marc Pinsonneault Senior Economist Economy & Strategy Group National Bank Financial Group Teranet - National Bank House Price Index™ thanks the author for their special collaboration on this report. 1 Value of Dwelling for the Owner-occupied Non-farm, Non-reserve Private Dwellings of Canada.

Markets/Websites in Everything

It's not exactly a "market," but here's a free website (donations are accepted) that helps you when you're saying "I Can't Find My Phone."

HT: Nicholas Bretagna II

Sept. Durable Goods Orders Reach Two-Year High

New orders for durable manufactured goods in September reached the highest level ($199.1 billion) since September 2008, two years ago (see top chart above). The 12.2% increase in durable goods orders in September compared to the same month last year was the ninth consecutive double-digit increase starting in January of this year.  From the cyclical low of $160 billion in March 2009, new orders for manufactured goods have increased by about 25% to almost $200 billion last month.  

MP: We haven't heard much lately about a V-shaped recovery, but this 25% surge in orders for durable goods over the last 18 months to a two-year high in September sure seems like solid evidence of a V-shaped recovery for the manufacturing sector of the U.S. economy.  And since two out of the ten economic variables in the Leading Economic Index are based on manufacturers' new orders, this V-shaped increase in durable goods signals future increases in manufacturing output.  

What would W.D. Gann say?

Hello BBTL blog followers ,

In our blog this evening, we decided to change-up our recent SP500 Index technical analysis commentary, and briefly journey into the controversial and esoteric topic of Financial Astrology.

Anyone who has studied or investigated the great W. D. Gann, would have quickly discovered that Gann theory involves and hints about his considerable use of Astrology (and we say Astronomy) as a method to time financial markets.

There is no doubt that Gann believed Universal Laws and Science controlled financial cycles.

As a result of the complex and more difficult to learn nature of such topics, the lazy and uneducated have an excuse to immediately discount or ignore Gann teaching as foolish.

Despite being controversial, Astrology has been around since the dawn of civilization, and around the financial world today there are several high profile financial Astrologers.

Perhaps, one of the most controversial of these Astro-Sooth-Sayers is Arch Crawford who quit a good job at Merrill Lynch as a technical analyst (working for Robert Farrell) to take up financial astrology as a full time career.

Another, famous Astrology related quote comes from J.P. Morgan who stated; "Millionaires do not use Astrology, but Billionaires do".

Finally, perhaps one of the most common statements from the W. D. Gann theory (also found in the bible) is: "There is nothing new under the Sun". This quote of course relates to the concept of time and cycles repeating over and over.

Also, without doubt Gann stated repeatedly, that time (and cycles) was the master control factor which determined the financial markets. So is there a Universal Astrological Financial Clock that W.D. Gann knew of?

KRTT has done considerable astrology research and has advanced Gann theory considerably relating to his use of about Financial Astrology. These theories are taught to our clients.

Naturally, when we discuss astrology, one of the controllers or prime determinants of cycles within any astrological clock is the set-up or arrangement of the Astro Sky at any given time.

To introduce this topic, we have included a current astro-sky chart. Currently, there are several interesting features in the geocentric Astro-Sky including as shown below;

a) A cluster and also conjunctions between Venus, Sun, and Mercury (bottom left of chart)

b) Two large planets Uranus and Jupiter close to each other and both in retrograde (center right of chart)

c) A Grand Trine between the Moon, Neptune, and Saturn (highlighted triangle)

The geocentric Astro-sky chart for today is shown. Those interested in more on KRTT application of financial astrology, are also referred to our October 09, 2010 feature on Gold.

SP 500 Update

Our SP500 Index for the EW Wave 3 cycle peak that we have been discussing in recent posts, and the CIT (change in trend) from past up to down is currently scheduled for Friday, 29th 2010.

In essence, we are strongly suggesting that by next week, and beginning on or around November 01, 2010, Wave Four down will begin.

We have also greatly lowered the chance of a cycle inversion to almost nil. However, we will closely monitor the expected news from the USA FED next week about more Quantitative Easing(QE) The Bernanke and FED announcement about QE is expected on November 02 - 03, 2010.

Sincerely,

James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
www.Facebook.com/KRTTcom
www.twitter.com/KRTTcom

*** Although KRTT discussed Astro-Finance and Astrology in our blog today and as first introduced by W.D. Gann over one hundred years ago, and in that we teach detailed Astro-Finance and Astro-cycles to our clients, we do not profess to be Astrologers. Nor do we endorse or use Astro-finance as a stand-alone method to trading or investing.

We do however strongly endorse and teach all Natural Law theory, including Astro-finance as an extremely valuable method of market confirmation.

Does Financial Astrology work? You be the judge.

One possible way to find out and thus confirm or deny Astro timing, is to read our October 09, 2010 blog gold feature as mentioned. Also, why not monitor the upcoming change in trend we forecast herein on the SP500.

KRTT incorporated our Astro-timing methods into both of these forecasts which were made in advance. KRTT - Training for the Human race

Kauffman Foundation Quarterly Survey of Bloggers

There are lots of economic indicators to track the U.S. economy, but Tim Kane at the Kauffman Foundation came up with a new one about a year ago—a quarterly survey of economics bloggers, and he invited me to join the 13-member board of advisors for the project. The most recent survey was conducted in mid-October, and the results of the fourth “Quarterly Survey of Leading Economics Bloggers” were just released by the Kauffman Foundation (press release here, full report here). 

Tim Kane is featured on the CNBC segment above, where he discusses the background and details of the bloggers survey, and I summarize some of the key findings here at the Enterprise Blog.