Wednesday, 29 November 2017

War or Peace?

Baltic Dry Index. 1477 +19 Brent Crude 63.19
With still no fix (or contact from Microsoft level two,) and an early morning appointment far away, a shortened bubble and war update today. For President Trump, a hard decision. A first strike or no first strike? Put up time or shut up time. That’ll be shut up time according to our long complacent, bubbly markets. Nuclear war, no way.
Below, marketeers ignore President Trump and North Korea. President Trump may huff and puff up a storm all he likes, but like Presidents Clinton, Bush and Obama before him, when it comes to North Korea and nuclear war, the markets think he’s a paper tiger.

Stocks rally to records as Republican tax bill moves toward Senate vote

Published: Nov 28, 2017 4:59 p.m. ET
Stocks closed at records Tuesday after bouncing around during the regular session as geopolitical tensions and domestic developments pulled the market in different directions.

All three main indexes had traded in record territory earlier but came off highs as North Korea tested a ballistic missile for the first time in more than two months. But the indexes soon regained lost ground after a Republican tax proposal moved a step closer to a Senate vote.
The three equity benchmarks have set multiple records in 2017, boosted by factors such as an expanding U.S. economy, rising corporate profits, anemic expected returns for other assets and bets that the Trump administration will deliver tax cuts and other business-friendly policies.
The Senate Budget Committee voted 12-11 to advance the Republican tax bill after Sens. Bob Corker and Ron Johnson joined fellow Republicans as “yes” votes. A full Senate vote could be possible as early as Thursday.

North Korea fired a ballistic missile around 3 a.m. local time which is believed to have flown about 620 miles before landing in the water between the Korean Peninsula and Japan. In retaliation, South Korea launched a “precision strike” missile exercise, according to Korean and U.S. news reports.
Earlier, Jerome Powell, President Donald Trump’s pick to run the Federal Reserve, testified at a Senate confirmation hearing, giving investors their first big clue on how he hopes to operate at the Fed. His opening statement for the hearing was released Monday, indicating he expects to stay on the course set by the current Fed chief, Janet Yellen.
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Asia Stocks Mixed as Missile Offsets U.S. Rally: Markets Wrap

By Adam Haigh
November 28, 2017, 10:06 PM GMT Updated on November 29, 2017, 6:24 AM GMT
Asian stocks were mixed as Chinese shares swung between gains and losses and a North Korean missile test overshadowed a surge in U.S. equities. The dollar was steady as U.S. tax cuts inched closer to reality.

Shares in Tokyo ended higher with bank and insurers underpinning gains, and the S&P 500 Index jumped 1 percent on Tuesday as the Senate budget committee advanced the Republican tax bill, also buoying the greenback. Australian shares rose and Hong Kong equities fluctuated. Stocks in Seoul gave up earlier gains as investors considered the latest intercontinental ballistic missile launch from North Korea. Bitcoin surpassed $10,000 for the first time, bringing this year’s price surge to more than 10-fold.

The crux of it is that people ascribe a very low likelihood of it developing into something more sinister,” said Mark Lister, head of private wealth research at Craigs Investment Partners in Wellington, which manages about $7 billion. “Markets are choosing to focus on the positives: that tax reform might be more likely, we’re still getting good corporate news, and all the economic data is ticking over pretty nicely.”
North Korean leader Kim Jong Un said his regime completed its nuclear program after firing a missile that put the entire U.S. in range. The missile launch shattered a two-month period of relative quiet in its first provocation since U.S. President Donald Trump’s decision this month to label the country a state sponsor of terrorism. Trump responded that “we will take care of that situation.” The U.S. and Japan said the projectile was fired early Wednesday Japan time from North Korea’s west coast at a lofted trajectory before landing in the Sea of Japan.
The Senate tax bill is headed for a marathon debate this week after the budget committee voted Tuesday along party lines to send the Republican plan to the floor. Republican holdouts, Bob Corker of Tennessee and Ron Johnson of Wisconsin, dropped their objections shortly before the vote.
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Bitcoin Blasts to Record $10,000 as Bubble Warnings Multiply

By Todd White and Julie Verhage
November 29, 2017, 1:29 AM GMT Updated on November 29, 2017, 3:07 AM GMT
Bitcoin surpassed $10,000 for the first time, taking this year’s price surge to more than 10-fold even as warnings multiply that the largest digital currency is an asset bubble.

The euphoria is bringing to the mainstream what was once considered the providence of computer developers, futurists and libertarians seeking to create an alternative to central bank-controlled monetary systems. While the actual volume of transactions conducted in cryptocurrencies is relatively small, the optimism surrounding the technology continues to drive it to new highs.

Bitcoin has risen by more than 50 percent since October alone, after developers agreed to cancel a technology update that threatened to split the digital currency. Even as analysts disagree on whether the largest cryptocurrency by market capitalization is truly an asset, its $167 billion value already exceeds that of about 95 percent of the S&P 500 Index members.

“This is a bubble and there is a lot of froth. This is going to be the biggest bubble of our lifetimes,” hedge fund manager Mike Novogratz said at a cryptocurrency conference Tuesday in New York.
Novogratz, who’s says he began investing in bitcoin when it was at $90, is starting a $500 million fund because of the potential for the technology to eventually transform financial markets.
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Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.
Below, it’s put up or shut up time for President Trump. North Korea trumps Trump. The markets say loud and clear “shut up!”
November 28, 2017 / 6:43 PM

North Korea says new ICBM puts U.S. mainland within range of nuclear weapons

SEOUL/WASHINGTON (Reuters) - North Korea said it had successfully tested a powerful new intercontinental ballistic missile (ICBM) that put all of the U.S. mainland within range, declaring it had achieved its long-held goal of becoming a nuclear power.
Wednesday’s missile test, North Korea’s first since mid-September, came a week after U.S. President Donald Trump put North Korea back on a U.S. list of countries it says support terrorism, allowing it to impose more sanctions.
North Korea has conducted dozens of ballistic missile tests under its leader, Kim Jong Un, in defiance of international sanctions. In September, it conducted its sixth and largest nuclear test.
North Korea said the new powerful missile reached an altitude of around 4,475 km (2,780 miles) - more than 10 times the height of the international space station - and flew 950 km (600 miles) during its 53 minute flight.
In the statement, North Korea described itself as a “responsible nuclear power”, saying its strategic weapons were developed to defend itself from “the U.S. imperialists’ nuclear blackmail policy and nuclear threat”.
Many nuclear experts say the North has yet to prove it has mastered all technical hurdles including the ability deliver a nuclear warhead reliably atop an ICBM, but likely soon will.

“We don’t have to like it, but we’re going to have to learn to live with North Korea’s ability to target the United States with nuclear weapons,” said Jeffrey Lewis, head of the East Asia Nonproliferation Program at the Middlebury Institute of Strategic Studies.

U.S., Japanese and South Korean officials all agreed the missile, which landed within Japan’s exclusive economic zone, was likely an ICBM. It did not pose a threat to the United States, its territories or allies, the Pentagon said.

“It went higher frankly than any previous shot they’ve taken, a research and development effort on their part to continue building ballistic missiles that can threaten everywhere in the world, basically,” U.S. Defense Secretary Jim Mattis told reporters at the White House.

----Trump spoke by phone with Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-In, with all three leaders reaffirming their commitment to combat the North Korean threat.
“It is a situation that we will handle,” Trump told reporters.

Moon told Trump that North Korea’s missile technology seemed to have improved, a spokesman for the South Korean leader’s office said.
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Technology Update.

With events happening fast in the development of solar power and graphene, I’ve added this section. Updates as they get reported. Is converting sunlight to usable cheap AC or DC energy mankind’s future from the 21st century onwards? DC? A quantum computer next?
No update today.

The monthly Coppock Indicators finished October

DJIA: 23,277 +233 Up. NASDAQ:  6,728 +284 Up. SP500: 2,575 +183 Up.

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