Ghost Town(s)

 

 

by Larry Levin

As Pollyanna whistled past the grave yard today, another report was released: durable goods.  Like all of the others, it was very bad and Pollyanna took the Dow up another +100 points.
 
From the report…New orders for manufactured durable goods in February decreased $1.9 billion or 0.9 percent to $200.0 billion, the U.S. Census Bureau announced today. This decrease, down four of the last five months, followed a 3.6 percent January increase. Excluding transportation, new orders decreased 0.6 percent. Excluding defense, new orders increased 0.4 percent. Machinery, down two consecutive months, had the largest decrease, $1.2 billion or 4.2 percent to $26.6 billion.
 
China bulls may also be “investing” (read: speculating) on borrowed time, like all of the clowns in the US that said real estate would go up forever in 2007.  I have written about this in the past: the Chinese government is building MASSIVE cities for nobody, just to keep people working and keep speculators happy but today I have a great video.  
 
Although the financing of the following properties is radically different than the subprime madness in the US, it simply can not and will not go on forever.  
 
Please see the following video on ghost town(s).
 
http://www.sbs.com.au/dateline/story/watch/id/601007/n/China-s-Ghost-Cities

 

Trade Date: 3/24/11
E-Mini S&P Trades*
(before fees and commissions):

OTF sell @ 12:40pm at 1302.50 = +1.25 & +1.75 (2 lots)  Algorithm positions (6)  "Reading the Tape" positions (6) ...combined Secret's, Algo, & "Reading the Tape" total... +4.50

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