Saturday Morning Coffee: New Lies, Old Lies

Click charts to ENLARGE.

The market took some comfort that the economy has stabilized. Let's do some fact checking.

First, from Barrons:

"US employment fell by a hefty 20,000 jobs in April. This was less than in the previous three months and not nearly as many as the 85,000 economists had expected."

Mike Shedlock unveils the facts, in his piece Bizarro World. Mish doesn't live in an underground bunker, but his crime of seeing things as they are might dispatch him there. My only objection remains that our tax dollars go to produce this statistical dreck. Of course, whose agenda gets pushed? Bottom line. Who you gonna believe?

Second from Barrons:

"The Fed expanded its one-month loans to banks to 150 billion from 100 billion, and widened the types of securities eligible to be swapped."

So, it's all good, and the Fed now takes Sammy Sosa rookie cards (wasn't the President hoarding those not long ago?) for treasuries. Eureka. I'm gonna see if Professor Bernanke will swap me a new Lexus for my 1996 Nissan Maxima, just for a month. But I may want to roll over the deal if I like it.

Wasn't Warren Buffett Mr. "Derivatives are Dangerous?"

Let's do a few charts, before I have to go pick up some compost. We're trying to grow some beans, tomatoes, squash, lettuce, and of course corn. You never know.
SP500 weekly. "I'm rich. Dammit, Kudlow's right. Even Don Luskin is right (see biography and achievements). Whoo whoo, get on board now, baby."
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What about the daily chart? Dum, de dum, dum...Is this a 1.27 extension trap off a love fest with counterfeit money, counterfeit data, and Wall Street "gotcha." I'm viewing it that way. Lack of concurrence of new highs, what I see a fundamentally 'flawed' data, and interactions with people struggling to make ends meet tell me 'be careful'.

Pessimism? I don't see pessimism, I see traders saying "get me in, risk be damned."

Volatility on the Russell 2000 has plummeted.

Thought for the day. The risk profile for selling covered calls and selling naked puts is the same. Do you sell naked puts?

Good trading and great risk management to all.

Educational use only. Never intended as investment advice. Positions are subject to change at any time. I take responsibility for my trades and you take responsibility for yours. Wall Street isn't about helping you, it's about helping themselves. Playing their game means accepting that.