Thoughts on Markets

Wednesday, November 19, 2008

Precious Metals are Showing Life - Will This Continue?

Both silver and gold have sprinted forward today in the early trading. Will these prices hold and more farther or will the Plunge Protection Team and the boyz go to work on the precious metals? I do not know, but it is nice to see both moving upward, since I have in place some trading shares in both DROOY and VGZ. ti may soon be time to put in the 5% trailing stops.
The mining stocks have yet to react realistically to the upward move in the precious metals. If metal prices hold steady and/or move upward the stocks are certain to follow. There may be an initial delay, but they will follow. We still need to be cautious about buying.

The general market as indicated by the DJI is off only about 20 to 8404.12 or so. Here is where the extra caution is required. Remember that yesterday the DJI rebounded about 300 points in the last one hour of trading. That is remarkable and clearly shows intervention. Be careful on any general market purchases. Sometimes it is best just to watch from the side lines.

Bernanke before Congress and confronted by Ron Paul. See it HERE on You Tube.

From Reuters:

Fed's Hoening: Fed has done "as much as it can"

Read the article HERE.

From Casey's Daily Resource Plus today:

Executive Order 12631--Working Group on Financial Markets

Source: The provisions of Executive Order 12631 of Mar. 18, 1988, appear at 53 FR 9421, 3 CFR, 1988 Comp., p. 559, unless otherwise noted.

By virtue of the authority vested in me as President by the Constitution and laws of the United States of America, and in order to establish a Working Group on Financial Markets, it is hereby ordered as follows:

Read the Executive Order HERE.

That should be very interesting to you who deny the fact that there is a Plunge Protection Team intervening in our markets. It seems that they are in action daily manipulating the general market and very likely active in precious metals, as well.

A thought, maybe speculation on the failing auto manufacturers here in America from the Daily Pfennig today:

"The thing to think about with these automakers is the fact that they have become such HUGE finance companies, which is where, I believe I read, they "really make the money"... Shutting them down because they haven't run their businesses correctly over the years isn't the issue... It's what to do with those financing companies... I could be totally wrong here, off base and picked off by a wily veteran lefty, but it's the way I see it..."

Could be and likely is true. They do a great amount of finance business. More on the business or lack of business news. Producer Prices suffered a 2.8% drop, the biggest in 50 years, but the greatest impact came from the 24.9% drop in gasoline prices. Without food and energy, prices were up 0.4% in October. Crude dropped $0.56 to $54.39/barrel.

Keep your focus on the God of Scripture: Jesus Christ. He is the answer for all of temporal and eternal life. He went to prepare a place in Heaven for His people. Are you one of His? If not, and what He says is true, can you afford not to check Him out in the Bible? The Bible is all about Him from Creation to the final judgment which is coming at some time in the future. We do not know when, but all shall appear before the Great White Throne of judgment. Each will answer for his life and only the people of God will have Jesus Christ as their advocate. Praise the Lord daily for this.

Best to each, Doug


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