That rally was like a Hanson song….

Posted on 08/09/2011

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……short and poppy, but with little conviction.

You can start pushing back your retirement plans because it’s getting UGLY now.

Welcome to a Japanese style lost decade (except the US spends a LOT more on Defense as a percentage of GDP) – stats from Stockholm International Peace Research Institute (SIPRI)

1 United States United States 698,105,000,000 4.7%
2 People's Republic of China People’s Republic of China 114,000,000,000 2.2%
3 France France 61,285,000,000 2.5%
4 United Kingdom United Kingdom 57,424,000,000 2.7%
5 Russia Russia 52,586,000,000 4.3%
6 Japan Japan 51,420,000,000 1.0%
7 Germany Germany 46,848,000,000 1.4%
8 Italy Italy 38,303,000,000 1.8%
9 Saudi Arabia Saudi Arabia 39,200,000,000 11.2%
10 India India 36,030,000,000 1.8%

Here’s a 15 minute S&P chart (keep your eyes or stops on the overnight lows around 1094).

Crude is officially pricing in a recession. Apparently Libya’s lost production isn’t as concerning as it once was because you need a job to justify demand. I’m not sure I’ve ever seen option vol as high as it’s trading in there.

Gold is up nearly $60 and now we start talking about $1,800/ounce.  This “barbaric relic” was selling around $320/ounce when we invaded Iraq. Interesting point of reference.

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