Float like a butterfly, sting like a bee
-Muhammad Ali

My favorite sports movie of all time is When We Were Kings. The chronicles of The Rumble in the Jungle. Don King’s first boxing promotion. Everyone doubted Ali. Even Howard Cosell. And then you see a ferocious looking George Foreman walk down the stairs of whatever the G 5 of the day was. German Shepherd by leash. He was big and he was bad. And everyone doubted Ali. And then it may not go off because of promotion troubles.

“Ali, boom-ba-yay”
“Ali, boom-ba-yay”

And everyone thought Foreman was going to crush him.
And Ali wasn’t going to last three rounds.

But his light was too bright.

“Ali, boom-ba-yay”
“Ali, boom-ba-yay”

And then it finally goes down and the big lights are beaming hard and the sweat is pouring off and the rain is pouring down and

“Ali, boom-ba-yay”
“Ali, boom-ba-yay”

And Ali did what was planned and what he said he’d do all along.
Float like a butterfly sting like a bee he did.

Ali boom-ba-yay came alive again.
Because it was written and he was chose to and he was supposed to.

I dare you to walk that line. Where everyone doubts you.
And you persist.
And you break through.
Cuz you were chose to.
And you’re supposed to.

Peace

"Ali, boom-ba-yay"

There is a light, that shines
special for you, and me
-Common

The market gave a classic little tease to the upside yesterday. Today we gave it back. The selling was intense today. More intense than the buying yesterday. I have a target on the S&P futures of 675. We’ll call 675 the next yellow light. It may get stopped there, or it may speed right through. No matter the outcome, it is going to the intersection. Calling intersection 675. We will get to you. The calculations are correct. Nature’s math is for real. Tease it up all you want. The path to the intersection isn’t a straight line. We will get there, though. My navigation system rarely steers me wrong.

Peace

Just Rollin down to 675

You’re so money and you don’t even know it!

-Trent

Gold
Always believe in your soul
You’ve got the power to know
You’re indestructible
Always believe in, because you are
Gold

-Spandau Ballet

A view of Gold on a monthly chart. Gold made a 9 times move from 1976 to 1980. Longer term, the yellow metal will be the preferred store of energy.

Peace

Gold circa 1970's

1. If the Bank of America February 5 puts weren’t so expensive, I’d be buying a few thousand of them. It isn’t if this stock is going to trade on the pink sheets, it is when this stock will trade on the pink sheets.

2. 847 remains the level to watch on the S&P 500. Stronger above weaker below.

3. Existing home sales numbers came out this morning. They were better than expected based on revised downward manipulated estimates. REITs will go lower. They have no choice. Nature’s math will prevail. It always does.

Peace

The Golden Ratio

General Electric (GE) announces a horrid, dismal quarter. Then, they fire up their Public Relations machine by putting their delusional thinking into a press release that says not to worry.

“The first quarter dividend is done, and we are committed to our plan for $1.24 per share for the year. We believe the GE dividend provides our investors with a solid return in this uncertain time,” Immelt said.

Stop believing. You are hoping when you should fear. GE’s dividend will be cut. It is already written. GE grew through acquisitions. That games works really well…until it doesn’t. GE is an over leveraged hedge fund. When you grow through acquisitions and you are over leveraged, the survival of your business becomes dependent on the price of your equity. As GE’s common stock moves lower, it’s probability of gambler’s ruin increases. Moodys already looks ridiculous for not yet having lowered GE’s Triple A rating. As the stock moves below 10, they will look even more ridiculous.

Peace

The dividend is safe, until it isn't