07/6/17

US Communist Al Neal: Helping to Make “Russia Great Again”

By: Trevor Loudon | New Zeal

Al Neal, a  member of the no-longer-relevant Communist Party USA, is helping to organize a 20,000 attendee communist youth festival in no-longer-communist Russia, at a venue personally mandated by no-longer-our enemy Vladimir Putin.

The festival is regarded by Russian authorities as the most important international propaganda event since the Sochi Olympics.

Russian President Vladimir Putin met with the Bid Committee of the XIX World Festival of Youth and Students on February 18th and shared his vision concerning the main goal of the event:

Russia has repeatedly held the international forums, and has proven that can do it at the highest level. However, “To create conditions for the participants of this major event is important, but that is not enough,” said Vladimir Putin. ”It is important to fill it with the best, interesting content, build discussions and activities that you will be planning in such way, that it could contribute to the achievement of the objectives for which those activities are held”

Neal, who is the St. Louis Bureau Chief, according to the Communist Party USA‘s news site, People’s World, was in Colombo Sri Lanka in May for the 3rd International Preparatory Meeting, hosted by the National Peace Council-Sri Lanka for the 19th World Festival of Youth and Students.

Al Neal, left

The Conference convener World Federation of Democratic Youth started in the late 1940s as a Soviet-controlled front promoting Soviet foreign policy goals… whether to go with détente and arms control or support for Third World terrorist movements. In recent years, the organization has been mainly steered by Greek and Cuban communists.

The WFDY‘s triennial or quadrennial youth festivals have served as occasions for partying, dancing, sightseeing, socializing and introducing young radicals to communists, terrorist leaders and Moscow’s intelligence services.

This event is by far the largest and the first to be held in the Soviet Union/Russia since the “end” of the Cold War.

It is specifically timed to coincide with the 100th Anniversary of the Bolshevik Revolution.

Al Neal and the Communist Party will be busy recruiting as many young American delegates as possible to help make “Russia Great Again.”

Let’s hope the FBI files the names of every last one of them.

07/6/17

Second Quarter Earnings Season Commences Next Week

By: Kent Engelke | Capitol Securities

Second quarter earnings season commences next week. What makes this reporting season different is that estimates have not been reduced and as noted two weeks ago, value oriented issues are expected to post greater percentage profit gains than growth issues.

Is this a reason for the recent weakness in the NASDAQ, the index that is dominated by the mega-capitalized technology growth issues, five of which were posting 2017 gains of over 30%? Many have commented about the perceived market imbalances, the result of the massive proliferation of ETFs where the number of indices now outnumbers listed equities and technology based trading where the only variable is momentum and size.

If algorithmic trading is as pronounced and as dominant as I and many believe, monies could potentially gravitate violently from the over owned sector/sectors into the unowned sectors producing an outsize loss or gain respectively.

In other words, market activity over the last three weeks could become more pronounced where the averages may post a 7% to 10% decline while an under -owned sector produces a 10% to 15% advance.

Several weeks ago, Bloomberg wrote that technologies — led by five companies — has four times as much effect on the S & P 500 than oil. Technology represents a record 27% of the S & P 500. Energy on the other hand has fallen to the lowest level since 2004.

And then there is the Treasury market. The yield of the benchmark 10-year Treasury has increased by 23 basis points or almost by 10% in one week. Economic expectations have not changed. What is this suggesting? Two weeks ago many were suggesting a sub “two handle.” According to the SEC, 98% of Treasury trading is done electronically, dominated by HFTs and “algos.”

Change is the only certainty with only the velocity of change that changes.

Speaking of change, the NASDAQ advanced about 0.75% while all other markets were flat. The Minutes from the recent FOMC meeting were largely a nonevent.

Tomorrow, June’s employment data is released. How will perceptions be altered? And then there is the Trump/Putin/Jinping meeting.

Last night, the foreign markets were down. London was down 0.63%, Paris was down 1.10% and Frankfurt was down 0.78%. China was up 0.17%, Japan was down 0.44% and Hang Sang was down 0.22%.

The Dow should open moderately lower ahead of the 8:15 ADP Employment data. The 10-year is down 11/32 to yield 2.37%.