Thoughts on Markets

Thursday, July 16, 2009

Trailing Stops Were Hit - See the Universe

Below is the 24 hour graph on gold. Notice the red trace. Every time the price got to 940, it was capped. I count eight or so times over night. This leads me to believe that the boyz have targeted 940 as the top for now. We will be watching this over time. Gold is now 934.60 off about 4.90.

My trailing stops were hit, so now I have a little profit from the sales, but importantly more cash to seek buying opportunities. DRD had the largest drop. It fell well below the lower trough line, and is in buying range at present. The last trade was 8.03 with a high of 8.46 and a low of 7.91 for the day.
Vista Gold fell even more percentage wise. The last trade was 1.79 with a high of 1.82 and a low of 1.75 on the day. The bid is 1.80 and the ask is 1.81. Not a bad buying range.
Silver managed to stay mostly above 13. It is now 13.27 up 0.02 on the day.
Hecla fared a bit better than the golds, but still took a big hit this morning early. The last was 2.90 with a high of 2.92 and a low of 2.78. The bid is 2.89 and the ask is 2.90. This is a bit high for my taste.

From Bloomberg.com:

Mobius Says Derivatives, Stimulus to Spark New Crisis


July 15 (Bloomberg) -- A new financial crisis will develop from the failure to effectively regulate derivatives and the extra global liquidity from stimulus spending, Templeton Asset Management Ltd.’s Mark Mobius said.

“Political pressure from investment banks and all the people that make money in derivatives” will prevent adequate regulation, said Mobius, who oversees $25 billion as executive chairman of Templeton in Singapore. “Definitely we’re going to have another crisis coming down,” he said in a phone interview from Istanbul on July 13.

Derivatives contributed to almost $1.5 trillion in writedowns and losses at the world’s biggest banks, brokers and insurers since the start of 2007, according to data compiled by Bloomberg. Global share markets lost almost half their value last year, shedding $28.7 trillion as investors became risk averse amid a global recession.Read it HERE.

Here comes another shoe that has been in the Internet news, but ignored by the broad media. More talk of regulation, but will it be rational regulation or just regulation for control of citizens and business to provide more centralized power to those in control?

From GATA yesterday:

John Rubino: A sudden worldwide currency revaluation is imminent

5:15p ET Wednesday, July 15, 2009

Dear Friend of GATA and Gold:

In his new essay, "A Tremendous Secret," financial writer John A. Rubino, co-author with GoldMoney's James Turk of "The Coming Collapse of the Dollar," foresees an imminent worldwide currency revaluation. This revaluation, Rubino thinks, will correct the biggest financial imbalance of all, the ratio between the value of the world gold supply and the supply of fiat money.

Such a prospect is not quite a secret to GATA supporters. They may remember that the British economist Peter Millar contemplated in great detail such a worldwide currency valuation relative to gold in the May 2006 edition of his Valu-Trac Investment Research newsletter, to which GATA has called attention from time to time: This May article may be found HERE. You may read the main article HERE.

Some day the saber rattling will be saber thrusts into the reserve status of the dollar. The question is WHEN? I believe that we will have an alternative reserve currency before long. It will take some time for a new currency to be received around the world. The Chinese are certainly putting their Renminbi into many countries with whom they do business. This is really spreading more rapidly than many thought.

On the Health Care from Truthout.com:

Some Choice Words for "The Select Few"

If you want to know what really matters in Washington, don't go to Capitol Hill for one of those hearings, or pay attention to those staged White House "town meetings." They're just for show. What really happens - the serious business of Washington - happens in the shadows, out of sight, off the record. Only occasionally - and usually only because someone high up stumbles - do we get a glimpse of just how pervasive the corruption has become.

Case in point: Katharine Weymouth, the publisher of The Washington Post - one of the most powerful people in DC - invited top officials from the White House, the Cabinet and Congress to her home for an intimate, off-the-record dinner to discuss health care reform with some of her reporters and editors covering the story.

But CEOs and lobbyists from the health care industry were invited, too, provided they forked over $25,000 a head - or up to a quarter of a million if they want to sponsor a whole series of these cozy get-togethers. And what is the inducement offered? Nothing less, the invitation read, than "an exclusive opportunity to participate in the health-care reform debate among the select few who will get it done." Read it HERE.

Talk about a "shadow government." That term was applied to the Nixon reign. Does it still exist? I believe it does. Health care is becoming a serious matter. With the government's record of failure in almost all programs, who wants their health care managed by the same officials? I certainly do not!

Take a break from the markets and view the Universe through the Hubble Telescope HERE.

What a Universe God created by His Word! That is absolutely amazing. But then He is an amazing God who works all creation and every circumstance for His glory and the eventual good of His people. That He chooses any of us in remarkable. But He does and sends His Holy Spirit to teach us about our sin and show us the only Savior Jesus Christ. That we may be enlightened and empowered to desire and follow His law. That is the message of the good news of the gospel.

Best to each, Doug





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