Charts: The S&P 500 closed at 1119, up a fraction. The index is facing stiff resistance at 1120, the 50% retracement level and a very significant Fibonacci number. Most likely Friday’s big jobs report will push it above or below 1120. Below is not good.
Fundamentals: Congressional Demos are figuring out parliamentary tactics to get around Republican gridlock. So the once gridlocked unemployment extension is going through after all and the toxic healthcare attempt is gathering steam. If a healthcare bill does not pass by March 26, it is dead for good because of Congress’ Easter vacation. Financial reform is also gathering steam. Demos and some turncoat Republicans seek to create a “consumer advocate” agency that will rewrite regulations for all financial instruments to favor consumers over corporations; very bad indeed.
Today’s service sector PMI survey came in much stronger than expected. Since the service sector is 70% of the economy this is very good news. The market is struggling with good news from the private sector being balanced by bad news from the socialist public sector.
Geopolitics: The Pak Army and ISI are cooperating with the US to an amazing degree and their reward is on the way: A fleet of 12 surveillance drones, plus the most advanced F16 fighter-bombers equipped with high tech smart bombs. This means the ISI is not going to get Reaper strike drones. The F-16s and Pak foot soldiers will do the striking and the surveillance drones will act as spotters. This package is going to require a lot of other US gear not mentioned in press releases and we can deduce what this stuff will be. Feed from the drones will have to be linked to Pak air bases and infantry units. This means much of the ancillary gear will be supplied by Harris Corporation (HRS). This is a surprise to defense analysts and HRS popped up today. We all thought the ISI was going to get Reaper drones because giving the Pak Army advanced F-16s and smart bombs is a terrible blow to India.
The Pak Army might be getting ready to launch its offensive into N. Waziristan much sooner than expected. There are reports of Pak Army movements along the Waziristan border. Curfews in this region are being imposed. Leaflets are being dropped from airplanes. If the timetable for the N. Waziristan invasion is being radically advanced we must ask why. The Pak Army could put several hundred thousand troops in the tribal regions tomorrow if it had no fear of India. If your superpower buddy is coming out strongly against India, then obviously your fear of the Asian giant is diminished.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment