WAKE UP, PEOPLE! THE GLOBE IS GOING NUCLEAR!

Not to sound alarmist, but anybody who believes the mainstream media is giving us the truth about what's really happening on the ground, in the air and in the water around the Fukushima plant in Japan, might just as well stick one's head in the sand and hope for the best.

Conditions at the the plant continue to worsen, despite the best efforts of brave individuals trying to keep the entire Eastern coast of Japan from turning into a nuclear wasteland and the media isn't even trying to cover it.

But why listen to me. Here are a few choice links of interest to anyone who doesn't want to grow a third ear or die from thyroid cancer when it could be avoided:

For starters, here' a story about of Australia about how 128 elderly patients were left to die in a hospital six miles from the nuclear plant.

Oh, well, too bad for them, huh? We're here in America, so none of this is affecting any of us, right?

Well, take a look at this map of the dispersion from the disabled plant:



Did that get your attention? Sure, maybe the radiation levels aren't anything to get excited about, but do you trust our dysfunctional media to actually deliver the truth? And why did FOX get their main reporter, Sheppard Smith, out of Japan and CNN do the same with Anderson Cooper, LAST WEEK?

Just ask yourself, how long will it take the "authorities" to put this nuclear disaster to rest? Well, it's been ten days, boys and girls, and we're nowhere close to fixing what's going to become known - I have no doubt about this at all - as the worst disaster - man-made or otherwise - of all time.

Now, maybe the fact that food imports from Japan have been banned, do you feel safer? Oh, and there's more, like black smoke and how Tokyo drinking water now contains iodine-131 at levels unsafe for infants. In case you're wondering how much is too much for adults, the recommended safe level is below 300 becquerels per liter. The water tested in Toyko recorded levels of 190-210 becquerel per liter.

So, why do I bother? The national media gives much more coverage to the stupidity of our

engagement in Libya. Wonder why? The old adage in TV news reporting is, "if it bleeds, it leads," meaning that guys getting shot and killed and bombs blowing up buildings is far more engaging to the dumbed-down populace of the United States (and a lot of the rest of the world) than pictures of steam coming out of blown up nuclear facilities.

Well, maybe that's enough for today. Wouldn't want anyone to get upset or panic. After all, our media and our government have proven, since 9-11, to be worthless, so why should it be any different in Japan? Just go along in your haze of cognitive dissonance, and maybe buy some stocks.

Oh, the Portugese parliament is likely going to dissolve soon, either due to radiation or votes, whichever comes first, I suppose.

So, yes, we should be buying stocks on all this bullish news, some of which is actually being reported.

Dow 12,086.02, +67.39 (0.56%)
NASDAQ 2,698.30, +14.43 (0.54%)
S&P 500 1,297.54, +3.77 (0.29%)
NYSE Composite 8,248.83, +20.42 (0.25%)

Stocks started out negative but ground higher all day. Thank the computers and the algos that do the majority of the trading these days. Advancers slithered by decliners, 3540-2917. On the NASDAQ there were 72 new highs and 42 new lows; the NYSE showed 91 new highs and 18 new lows. Volume was only marginally better than yesterday's which was worse than pathetic. Get ready for a wicked decline some time soon. It may look like a crash, because it just could be one.

NASDAQ Volume 1,715,377,875
NYSE Volume 4,313,727,000

At least those trading in commodities knew what they were doing. Oil was up 78 cents, to $105.75. Gold gained $10.40, to $1,438.00, and silver shot up 93 cents, to $37.20, another new 31-year high. The gold and silver bugs know what's up. If things get any worse, they'll become overnight million-and-billionaires.

Good luck to you still holding any paper assets. They're about to be burned, along with the rest of the fuel rods at Fuk - U - Shima.

Edit: Just had to add that ABC and CBS each began their nightly news broadcasts with nearly 10 minutes of breathless coverage on the death of Elizabeth Taylor. NBC led with Libya, but did report on the drinking water supplies being tainted in Tokyo. Priorities, people, priorities.

A Day Without Disaster

Thankfully, Tuesday is almost over with and there haven't been any grave disasters, though the ones that have been hovering over the globe for the past few weeks are still far from resolved.

It seems to make some sense that markets would just wallow around until the damaged nuclear reactors in Japan are finally shut down, whenever that may happen, Colonel Qadaffi is defeated or found dead in Libya and the level of unrest settles down in various countries in Northern Africa and the Middle East.

That's exactly what went on today. There seemed to be no reason to either buy or sell equities and the major indices traded in narrow ranges all session long.

Naturally, conditions in the hot spots around the world could get better or worse, and nobody is really sure of anything at this juncture, especially when officials in Japan continue to stage a weird kind of kabuki theater in the way they report the situation at the damaged Fukushima nuclear plant, where four reactors have experienced some kind of explosion, accident, fire or other condition as an indirect result of the 9.0 earthquake that rattled the island nation on March 11.

That the reactors are spewing radioactive gasses and material is not disputed, but how much of which particular isotopes are going where and when has not been even remotely reported. All we know is that the radiation levels are higher than they were a week ago in various areas around the site and that the spread has become nearly global in nature, though slight in terms of actual threats to human health.

That's not really very reassuring since the problems persist and any increased exposure to any kind of radiation is potentially a health hazard.

Meanwhile, the US response, in conjunction with a bevy of nations, to the blood-letting in Libya has been met with considerable criticism and even our own representatives are speaking in tongues, with the president, congress and the military all putting out their own spin, none of it making a whole lot of sense.

More than likely, these issues will remain in some kind of focus for the coming weeks, if not months, and there will be other unexpected events in the interim. The best advice would be to expect the unexpected at this juncture, because nothing is for certain and situations are still, as they say, fluid.

Dow 12,018.63, -17.90 (0.15%)
NASDAQ 2,683.87, -8.22 (0.31%)
S&P 500 1,293.77, -4.61 (0.36%)
NYSE Composite 8,228.41, -27.95 (0.34%)

Declining issues dominated winners, 3743-2718. There were 72 new highs and 33 new lows on the NASDAQ; on the NYSE 109 new highs and just 8 new lows. Volume was miserably low. This was, if not the slowest trading day of the year, among the three or four worst. There's simply too much event risk associated to equities in the current cycle.

NASDAQ Volume 1,671,905,000
NYSE Volume 3,995,960,500

Oil finished at an even $104.00, up another $1.67 due to unresolved Middle East issues. Gold managed a squeeze out a gain of $2.30, closing at $1,427.60 in New York, within 1% of its all-time high. Silver gained nicely, adding 27 cents per ounce, to $36.27, the third-highest point in the last 31 years and just pennies away from the nominal high of $36.60, reached just two weeks ago, on March 7.

The longer it takes for Japan's nuclear reactor problems to be resolved, the longer stocks will remain bogged down, stuck in a range between the highs of February 18 and recent lows. Radiation leaks and potential melt-downs are nothing to joke about, and the condition of those plants is such that it could easily become a much more severe problem before it is eventually resolved.

There's already a panic quietly building world-wide, even though the reported radiation levels have been in an "acceptable" range. However, the longer the reactors leak radiation, the lower the tolerance of acceptance becomes. That situation remains highly volatile and potentially upsetting on a global basis, not only to investors but to the health of people.

Meltdown in Japan, Melt-up in US Stocks

Absurdity has found a new home: the US equity markets.

Somebody wake me up when the nightmare is over, because I cannot find any good reason to buy stocks right now, so, I must be dreaming.

War planes fly over Libya and Israeli jets take out a Hammas stronghold in Gaza. So, that's the good news, right? R-r-r-r-i-g-h-t. The Japanese government is lying to its people about radioactivity levels. That must be the bad news. And AT&T is going to gobble up T-Mobile, so we'll have one fewer cell phone provider. Does anyone recall the day that AT&T was broken up because its business constituted a monopoly?

Don't worry, the hologram of Eric Holder will do nothing. Anti-trust? In trust we trust, I guess.

The following numbers mean nothing. It's all just a paper moon.

Dow 12,036.53, +178.01 (1.50%)
NASDAQ 2,692.09, +48.42 (1.83%)
S&P 500 1,298.38, +19.18 (1.50%)
NYSE Composite 8,256.36, +139.96 (1.72%)

Advancing issues absolutely slaughtered decliners, 5182-1379. Stocks shot up at the open and stayed afloat all day. NASDAQ registered 90 new highs and 30 new lows. The NYSE had 129 new highs and just 9 new lows. Pathetic. Volume was in an abyss, especially on the NASDAQ.

NASDAQ Volume 1,766,817,250
NYSE Volume 5,027,389,500

WTI hit $102.33 a barrel on the NYMEX, up $1.26 on the day. Gold soared $10.30, to $1,426.40. Silver was up 94 cents to an even $36.00. Both are approaching recent multi-year or record highs. But everything is just fine. Notice how the news media shifted focus away from Japan and towards Libya. Well, guns and rockets and missiles launched from warships is much more entertaining than those invisible radioactive isotopes being spewed continuously into the air and the sea in Japan. So, bang, bang, bang. It's good TV.

We have entered an age in our culture in which nothing really makes much sense any more. Spend $200,000 for your kid's education so he or she can get a $35,000 a year job and have to pay back a mountain of debt. Blow up a country for its oil. Don't report on uncontrolled radioactivity that will kill thousands, maybe hundreds of thousands, maybe more. Buy stocks because some broker who knows less about economics and money than you do told you it was a good deal. Sit back and relax, watch TV. This is March Madness, after all, and we're not talking basketball.

BTW: According to the Supreme Court, the Fed will have to release documents relating to loans taken out by banks from the discount window in April and May, 2008, before the stock market crash.

They knew. But they wouldn't tell you.

Rally Fades Into Close; Wall Street is Full of Bull

A momentous gap up open - all part of the arbitrage plan for scraping money on quadruple options expiration - finished the rally which began on Thursday, as usual, based upon nothing but "sentiment" and, of course, those computer algos which buy, buy, buy.

As stated here the past two days, any rallies under the current climate will be sharp and short-lived. Consider this one over, as the rally faded by half into the close.

Cheerleading CNBC was flashing a "best two-day Dow rally since December" headline, which is somewhat sad in a journalistic sense, since the NASDAQ was down nearly 4% for the week and the Dow and S&P finished the week with losses in the 1.5% area.

Dow 11,858.52, +83.93 (0.71%)
NASDAQ 2,643.67, +7.62 (0.29%)
S&P 500 1,279.20, +5.48 (0.43%)
NYSE Composite 8,116.40, +51.54 (0.64%)

Advancing issues defeated decliners, 4575-1915. NASDAQ new highs: 49; new lows: 42. That snaps a six day winning streak for new lows. On the NYSE, new highs beat new lows, 49-17. That means new highs have been better than new lows 4 of the past 7 days. Volume was particularly high today, due in large part to options expiration.

NASDAQ Volume 2,652,983,000
NYSE Volume 5,778,696,000

Crude oil fell 35 cents on the NYMEX, to $101.07, now that the UN has offered to stop the indiscriminate killing of his own people by forces loyal to president and lunatic-in-chief, Khadaffi.

Gold got back on track, gaining $11.90, to $1,416.10. Silver caught a bid as well, up 80 cents, to $35.06.

Expect more volatility until the conditions on the ground at Japan's disabled nuclear facility is either better explained by Japanese authorities or the situation somehow settled. It is still a very dangerous overhang to all risk assets, which is why gold, silver and goods are still safe bets.

The Expected Snap-Back Rally Occurs Right on Time

As mentioned in this space yesterday,

A decline in US stock markets will only trigger more printing, more inflation and an even more unbalanced global economy, one that was already teetering on the brink of disaster, even before the Japan debacle. However, such an inordinate infusion of capital may cause a snapback rally at any time. If such occurs, it will be easy to spot, as it will be sharp and large. The other characteristic of such an event is that it will have a relatively short duration - an afternoon, a day, a session and part of another, at most.

Well, today was it. If there's one thing the self-appointed Masters of the Universe on Wall Street and in Washington absolutely cannot tolerate, it is human events spinning beyond their ability to control them, because their power declines under such circumstances, and their sole response is to turn up the algos on their stock-buying computers and send equity prices ever further into the stratosphere of the absurd.

Today's mammoth run-up was well conceived and not derailed by any further bad news coming out of Japan, though what to do about those rebellious peasants in the Middle East still remains a problem for our sweet, elite masters. For a microcosmic view of it all, note how stocks and oil advanced smartly, with gold lagging and silver falling even more.

The elitist snobs will tolerate gold, even hoard it in times of panic, but they hate silver, because if gold is the metal of kings and monarchs, silver is the coin of gentlemen and lower rabble. The great wazoos and muckety-mucks will have nothing to do with it, which is why it continues to be supressed at every opportunity, by now, an open secret.

We'll maintain that silver is still the best investment for the current condition, despite its wild swings. Eventually, as we saw in the latter half of 2010, it will stay with and surpass gold in percentage gain.

In the meantime, the Bank of Japan (BOJ) will meet with their effete counterparts in the G7 to receive approval for intervention in their rapidly-appreciating currency. In other words, with money inflows to Japan, the Yen is becoming stronger, making more capital available for eventual reconstruction efforts, while at the same time boosting the price of its exports, which is considered a negative for the globalist agenda. The Bank of Japan will seek to buy up Yen, squeezing some of the liquidity out of it and stabilizing it against other floating currencies.

It's a bit of a complex condition, causing money flow disruptions and imbalances. In the meantime, the US dollar continues to depreciate, falling to a 4-month low, dipping just below the 76 mark at 75.995 on the dollar index.

Dow 11,774.59, +161.29 (1.39%)
NASDAQ 2,636.05, +19.23 (0.73%)
S&P 500 1,273.72, +16.84 (1.34%)
NYSE Composite 8,064.86, +134.99 (1.70%)

Despite the big headline numbers, the internals were less convincing that today's rally was anything more than money-tossing, as advancing issues beat decliners, 4438-2072, though new lows retained their edge over new highs on the NASDAQ, 56-35, for the sixth consecutive session. On the NYSE, it was nearly a dead heat, with 30 new highs and 28 new lows. Over the past six session, the advantage has gone to either side an equal three times apiece.

Volume was once-again telling. Though it was slightly elevated, it by no means was in a range indicative of an all-in rally. As mentioned previously, these kinds of things are normally sharp and short, especially in the light of tomorrow's quadruple witching day for options. There was plenty of arbitrage to go around for the sharpies.

NASDAQ Volume 2,011,827,250.00
NYSE Volume 4,743,120,500

Renewed tensions in the Middle East (and, no doubt, the insatiable urge to screw motorists with high gas prices) caused a run-up in crude, which elevated $3.42, to $101.42, on the NYMEX.

Gold gathered some momentum, gaining $8.10, to $1,404.20, but silver shed 21 cents, to $34.26, a price still close to recent 31-year highs.

With all the focus on the nuclear crisis in Japan, some revealing economic figures were released over the past two days. The PPI was up a whopping 1.6% in February, with the CPI chiming in with a gain of 0.5%. Inflation, that thing Ben Bernanke says is under control, temporary and not a problem (well, maybe not for him), isn't on its way here, it has arrived.

New housing starts were at some horrible four-decade low, with building proceeding at an annualized rate of 479,000 units. Industrial production fell 0.1% in February and capacity utilization dropped to 76.3% These kinds of numbers really gives one confidence that the liars in Washington have once again dropped the ball on the economy, all along telling us that we're "recovering."

In the wild new world normal, "recovery" is tantamount to Charlie Sheen's "winning" - an innocuous word, significant of absolutely nothing.