OECD COMMENTS after euro explodes 2 days before. Got to love it

Hi readers

Emails are asking questions so here are some answers which some individuals won't approve of but its the facts.
Australian ASX is continuing to be liquidated by overseas funds.
While many believe the market is a transparent markets it's not.
Overseas have been liquidating portfolios and locals are not stepping up to take the slack.
Have the fundementals changed that much in a fortnight to freak out superfund managers.
If they where that eager to buy the market at the 5750-5800 area now is a bargin at the 5500 area.
So come to terms with reality markets around the world are not a level playing field.
That's why you have to be smart and understand the market your in.
The Australia economy has been living on credit for the last 4 years and time is running out.
Time has come to live within your means.

The OECD is lowering growth around the world and is now asking the fed not to raise rates?
Really it's the world that weak...LOL You now realise it ....
The U.S. needs to raise rates to reload for the next Stockmarket shake up.

Just so your all aware , none of the real reforms went through from Subprime collapse.
The investment banks are up to there eyeball in it again .
The only thing that changed for the public eyes was that they got out of there own hedgefunds.

To the property believers, the only reason property hasnt collapsed yet is in China a house on a 600square block near the city could fetch for around $10 million, so to buy land and a huge house near the city under $5 million is a bargain in Australia . But that's now about to end with the new government restriction coming in on Chinese lenders, money is no longer for free, for these activities

As for gold , I am not a believer of the gold story at all, it's just to park your money when there is inflation... At the present time there is the potential of deflation. So it's a dead commodity.
Your life doesn't depend on it like grains.
I had a look at the supply and demand levels and there at record highs.
There is way too much of it and sales of it are coming down, yet supply is just pumping out.
I haven't changed my view gold over $1000 is extremely expensive.

Half way through the Mercury retrograde.

Hi readers

Hope your ok with the Mercury retrograde motion presently.
Not too many confusions.
We see the US showing numbers of a slowdown in the economy.
While this is expected, there are serious fundamentals wrong with the economy.
So the question comes back to how can you justify the high valuations?
Even APPL is very overpriced!
All I can say is astrology does not lie.

We are seeing some tightening of money by the banks which I might say is now forced by them regulatory wise.
You still need insurance for everything under the sun ( life, house, loan, income) and you are only able to borrow I believe it's 80% of whatever you pay for the property.
I believe before it was a case of borrowing up to 95% of the prices, plus the insurance spaghetti, and signing over access to you super/401k.

Mid last week I went to a conference and meet up with some bankers from the UK and Australia in Singapore.
85-90% of the morgage holders only pay interest.
They don't have the capacity to pay the capital also.
The rude awakening is as of the 1st of July banks are going to reevaluate property and all holders will need to have the 20% equity in there properties.
This is due to regulation which has been force on them.
But here is the beauty, it needs to be done in an orderly fashion, without panic to the market.
How cool is that!!!
Does someone know something?    LOL

In regards to the market.
Only for the U.S. market at the present time.
2nd is a good down 1+% day
With the full moon on that day should be a bottom.
3rd,4th,5th are drift days to the up side slightly.
Until the new moon on the 15-16th depending where you live please trade small.

How stupid are central banks.

Hi readers

Economy's around the world thrive on marco economic reform.
We live in a new world where past tools no longer work.
In Australia we have seen interest rates cut how many times and yet growth is almost non existent.
What central banks around the world don't understand is that this premertive tool to boost the economy no longer works.
All you are doing is diluting pensioners from obtaining interest on there bank deposits and letting the wealthy become even more wealthy..
Perfect example look at the U.S. model.
It's a complete illusionary idea that the economy has restored growth.
Numbers are being manipulated to make the economy look rosy.
Fact is ask how many people have full time work in your street, (38 hour weeks not 18)
If housing is growing why is California or any other state in the US apart from New York, vacancies are over 50%.
Remember last year when we said that hedge funds bought homes and sat on them, well there just starting to let them slowly go, at same to lower prices.
I got told of this yesterday by a HSBC Fund which bought 1300 homes in the US.
Could end up loosing 100-240 million.
So where is this BULLSHIT growth.

In Australia people are in so much debt that a small cut is a life saver to many households.
But people aren't spending that to buy something else, there actually putting it on the mortgage.
Which is annoying government.
Figures which come out quarterly showed that 72% of mortgages have defaulted at least once.
It's these figures that the RBA is looking at and scared shitless that if they don't do anything it will all collapse.
Retail spend, and housing starts are irrelevant, as more and more people buy online now not through foot stores, but they can't measure that.
Facts are it will take you at least 23 years of your working life to pay off your home.
That's without dependants or a wife.
What happened to 10 year!!!
Banks will never say it but they now have a new breed of slaves working for them.
They are fully aware that the majority of loans they write up can't pay, that's why they make sure you have life insurance, loan insurance and your super is tied up also.
Government around the world need to spend on infustructure and modern up there cities and create work for people, but that too isn't in there interests as they tax fuel and want congestion, the more the better.

Solutions..
Any business under 5 million in taxable income should not be paying tax as long as they are employing 10 people minimum.
So in Australia there are 3.2 million registered small business.. You do the maths people.
That's how you build a strong economy, not cutting rates and then  taxing from the other end.

In America 54.2 million registered small business.

It's the everyday people who are going to kick start economic growth, not the wealthy 2%.
There tight asses who are out to screw everyone for the dollar.
I know this as I am one too.
But what would I know I'm just a financial astrologer...

Mercury retrograde respect required

Hi readers.

At the present time we are seeing a very lopsided market.
You can basically witness where the money is flowing out from and where it's going.
The ASX200 is being drain while the U.S. is the beneficiary.

We are also people in a Mercury retrograde period which is basically 2 steps forward and 2 steps back.
This retrograde will bring a lot of arguments between couples, business colleague and people of financial authority.( bank manager).
Rejection will be at the forefront.
People please be humble.
Not the time to stand up and defend ones principals or ego, as reputation will suffer.

On the market front we are diving first and then exploding to the moon later is my reading of it.
Astrology is showing the following.
21st Down
22nd Down
25th Memorial Day .. Lucky because it's showing powerful move down.
26th down in the morning but recovering near the close.
27th up some what
28th up could be a good 2% move.
29th up and down day ... Down before open, then up during the day then down in the last hour.

Please note the above is all for the U.S. MARKETS.

Please respect the Mercury retrograde and trade with a quarter of you usual size.

Disclosure

Short FB&TWTR  stock and options

Q&A

Hi readers

Just a few questions that got emailed to me at the same time.
Obviously new readers.

1. Financial astrology is just like another tool or indicator.
 How to use it is simple!
When the astrology is positive and your other technical analysis is also positive the trade could be true.
The more indicators that are showing the same move the more chance of it being right.

2. Financial astrology shows the emotional component of the market.
It's not a computer or technical program that can change it.
It is what it is!

3. Astrology will never tell you when to take profit, that is up to every persons personal risk tolerance.

4. Does Mercury retrograde shadows affect markets or decisions?
Until Mercury retrograde begins the shadow affects has no market influence.
For the amateur astrologers please when you have time go back and research it.. You'll find there has hardly ever been any serious event during this time.

The dark side which is after the retrograde has finished is the most dangerous time .
12 -24 hours after the retrograde period ends is the worst time for decisions.
Any company mergers or profit forecast tend to be deliberately misleading.

Hope the above assists in your understanding of financial astrology.

Why cut rates if China is growing at 7%..

Hi Readers

You need to ask yourself sometimes why is it that rated are being cut.
China cut rates again as you all know again and yet people aren't borrowing.
Truth is that the economy in China has almost stalled.
3% and if we are lucky.. That's the truth!
The bull shit is 6.5%-7.5% or maybe higher depending if they had a few drinks the night before releasing numbers.
Fact is and any economist worth his salt, any economy growing more than 4% you don't cut rates.
As you will overheat the economy.
The stupidity that China is doing will bite them in the ass later on but we already know that.
As I have stated previously in the posts that China will collapse the world economy.
At the time no one believed it which was ok, but now we are starting to see the signs of it.
Next will be restriction of funds investing overseas.
That's when there will be no musical chairs once the decision is take.
That will be the collapse of the property market.
Yes in the space of a week.
( many of you will not remember this but in Australia back in the late 80's the government move rates 3% in 9 working days to protected the dollar from collapse and in the mean time collapsed the housing market.)
Not halfs or quarters, full percentage points.
When economic decisions are made the ramifications aren't realised until it's too late.
Yes it's the high end that will seriously feel the pain, as Chinese buyers always purchase high quality properties.
If the Chinese can't obtain loans or security from assets in China then what chance have they got of purchasing the million dollar properties. ( that's why please be careful)

Tuesday market will drift down some what

Wednesday will be up

Thursday up, down then up again.

Friday down and then pushing up near the close

All above is for the U.S. market..

7:30am singapore time Tuesday

History is a wonderful guide of what people who panic will do over and over again.

Time to take profits and enjoy your weekend

Hi Readers

As you have all witnessed market is bouncing back which we expected.
I've said it before we are traders. We step in make money then step out.
While Friday will be another up day for the U.S. markets, it's wise to start cleaning out trades.
Those of you who trade ASX200 I guess you can use the night market but I found it extremely thin when doing volume.
So take your profits before the close as next week market has strong negative aspect which will move the market lower.
With the Hang Seng look at taking profits in the last hour of trade.
With the NAS position I'm going to be closing out of those also.
Sure market will trade higher but the astrological move coming will push markets a lot lower.
Let the suckers believe that this is a bottom.

Those of you who have made money enjoy it this weekend.
Do something special with family or partners.
If your going to a restaurant or walking past a musician playing outside Wall Street please throw them a tip.
The universe has a way of giving to those who also give.