Why August 2 is critical for the stock market?

Got this from a website and it gives a clear information about the US debt issue.

Barack Obama and Republican leaders in the House of Representatives are deadlocked over how to raise the US debt ceiling.

As the deadline of August 2 fast approaches, the IMF has warned of a "severe shock" to the world economy if the US runs out of cash to pay its bills.

What is the debt ceiling?

The debt ceiling is the legal limit on the amount of money the US government can borrow to pay its bills, which includes the salaries of federal employees, federal programs such as Social Security and Medicare (a health insurance program for the elderly), and principal and interest payments to bondholders. The current limit is $14.3tn.

What has gone wrong this time?

The US constitution stipulates that only Congress can authorize the federal government to borrow money. Since 1962 Congress has raised the debt ceiling 72 separate times, including 10 times in the past decade alone.

A rule adopted in 1979 had allowed the House of Representatives to automatically raise the debt limit to whatever level the budget required. But in January 2011, the House voted to repeal this rule, requiring the House to hold a separate vote to increase the debt limit.

When Obama took office in January 2009 in the midst of the biggest economic turndown since the Great Depression, US public debt stood at $10.6tn. This May, two and a half years later, the current debt limit of $14.3tn was reached. The US Treasury can extend the August 2 deadline by exploiting various loopholes, such as postponing pension payments to federal employees.

Most analysts say that even after August 2, the Obama administration has some flexibility to continue meeting their payments at least for a few more days. Federal Reserve chairman Ben Bernanke has said that after August 2, the Treasury will prioritize payments on federal debt.

Republicans, who currently control the House of Representatives, want to reduce the national debt by cutting government spending. Some Democrats are calling for a mix of tax increases as well as spending cuts. The latest Democratic plan contains no tax increases, but Republicans argue that it does not cut spending enough.

Most (though not all) legislators agree that a deal needs to be reached to avert catastrophe. The question is how this deal will be structured.

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Holding pattern

: 24 6 pm February 8, 2011

While understanding value was very unimpressive at-3.28 billion, what I liked is that foreign and familiar was 330 million or net has changed almost 10% of the total volume is still on the market.  PSEi was 1.55points the mere and only two stock-SM and AC-index 11 points.  Perhaps, foreign funds are not as intent to sell in the current level of the index as they are at higher levels.  I think that if we rise above the level of 4000 next week, we put a large wave of unknown because many foreign funds still you are looking at these figures 3Q2010.  Reports revenue of hmtmhim in 2010 have yet to see.  I think the transfer market is better for a stay in holding prices until the disclosed earnings reports full year.  Good trailing spaces on a fair share numbers provide guidance for stronger analyst predictions for 2011.  So far, is the only index that BPI between heavies gave the full-year discovery.  While the initial sell was in BPI after report, demand a strong 2011 valuations appeared reasonable.

Nevertheless, I think ??????? some short-term trading ideas.  Mining sector, NIKL is looking at a neighbouring purpose of 24-eyes by analysts-very strong very applicable.  Nickel spot prices in London Metals Exchange soars in us $ per ton metric 28,350 already $ 27,000 soup this week.  NIKL has a very large stockpile of nickel low-grade which still commands prices.

For those who plan on mhcbi Ofrat will fly in the end, you have to hold your breath a bit more, but it may be worth the wait.  I hear another group of analysts and fund you can fly to Palawan over the week which would put the credibility loss on the stock.  Again, the ore is a very volatile stock that is not experienced heart especially if there is no real losses or stomach.

Copper prices have soared and it is also above the $10,100 why interest is a good look in PX after slipping from 16.20 high before 3 weeks to current levels around 14.70.  I believe that like how portfolios against inflation hedge, base metal prices should remain buoyant make mining stock with a high production such as PX to trade safety.  I suppose AT should be climbing well and should not be ignored for the SCC.  It takes a long time of coal prices stabilise and SCC trading round 10.5 X 2011 earnings still quite attractive.

Shares of miners that I think are worth looking at today is AGI Tel AGI because its revenue 3 years will continue to be strong and its core earnings Tel because grows slightly above GDP gross and stock yield is good.  Otherwise, I recommend to be counter-intuitive thinking because and we will be a range bound most of the stock.  Sell when it hovers, buying when the tanks.

February 8, 2011-posted by Gus Cosio | Financial markets are in Asia be first as this time.

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Times are hard!

7: 30 pm Tuesday 15 February 2011

Our method is the market is still weak.  Traffickers continue to appear on a market power between large investors jitters.  Even understanding on smaller value offers today the market will not remain bearish message that would embrace the market since the beginning of the year.  In fact, the global market hmirim is still looking for a solid trend.  Even if the money has already been moved back to the United States and Europe from the market wakes up, there were no strong signs of a conviction for these markets.  I'm warning everyone, therefore, not to see strong rises above the prices these days.  If at all, the price action in this direction has met with some sales.

For what its worth, I'd like to share some views on the stock based on my observation of their price over the last few days.  I call it this way.  Strong stocks that appear to continue to hold its own against all that is negative in the market are AP DMC, JGS, NIKL, PX. These look stock to sell little happens.  In fact, you can find the buyers are bmtavl.  Stock as AEV looks at selling more spaces taking off because of its recent price spike.  Between banks, would appear to be vmbt in stocks rebound, but sustained the bounce is another matter.

In my opinion, that they KEEP stock bottoming, MER, BPI, electric, URC, SLI, SECB CEB.  You can see from their covert base price action where buyers come out.  In my opinion they are slowly accumulate a stock.  FLI is one of the stock plans to double bottom bouncing, buy trade.

Between the stock that look very weak are ore, PNB.  While these stocks already oversold, casting continue.  Tell, however, particularly at this level is cheap but the discovery of mglobos cut dividend payment cash has cast over the dividend of Pál Tel.

I don't know when the negatives of the market at all.  There are two strategies – select stock that do they want and nibble slowly or find stocks that look as if they are ready to be a technical rebound and select it up short-term trading.  It's hard times ahead, so we have another toughen or we lose.

15 February 2011-posted by Gus Cosio | Financial markets are in Asia be first as this time.

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