Dollar a Bit Higher and Metals Conversely Down
Folks, I apologize for being out of touch for last week, but am back again and trying to catch up with all the work.
First, let's look at the dollar. It is still on a down trend, but has gotten stronger during four of the last five days. As The Daily Pfennig points out, the dollar tends to drop on any glimmer of good news and rises on bad news. Go figure that out. At any rate our sick paper dollar is doomed to be pushed lower as time goes by. There is no way to repay our debt, if we ever do, except with dollar of less value; therefore, the Federal Reserve and the Federal Government will continue to spew forth dollars at alarming rates. Even now, we are seeing an increase the funding on the cash for junkers program. Remember, that gives the automobile industry a false boost which will expire as the program is abandoned in the near future. Just more of the smoke and mirrors. By the way, I wonder which manufacturers are benefiting most from the give away - foreign or domestic? Which vehicle did you buy under that program? The dollar does seem to be moving upward for the time being. However, the Euro remains at $1.41+ which is a recent high level in relation to the dollar. It may be a stronger currency than the counterfeit paper dollar today.
Here is Gold Trust Shares (GLD) which is a good proxy for bullion gold. Our political metal remains under pressure from the bullion banks as they manipulate the prices in the futures markets. This impacts upon spot gold to hold it well below the level at which it would achieve were the markets free. The graph reveals that GLD has fallen below the 50 day moving average, but remains above the 200 day.
Many are predicting gold at $1,000 by the end of the year. I don't know, but do know that the outlook for the dollar and the economy certainly allow for such an event. We will have to hang on until the fourth quarter when things look to be bleak. The year is very likely to end on a sour economic note. The trading range has widely varied between about 83 and 96. It is approaching the lower side of that trend at present.
Reports from Las Vegas show an unemployment at 11.5 %, building grinding down, and real estate still dropping in price. Of course, this is one of the areas where the prices escalated beyond belief as the balloon was pumped beyond endurance. The bursting was very loud in the area and the fall continues in spades. The casinos are virtually empty and the planes arriving and leaving are seldom packed as before. Many would say that "Sin City" deserves the punishment. Other places in our nation are still suffering and most manufacturing has ceased. It will be very difficult for our manufacturing to build back to any reasonable level. Just think of the inertia of rebuilding equipment, retraining people, and financing that is required. Such will take years even if the incentive returns. Most manufacturing was run out of the U.S. by environmental regulation, demands of unions, and excessive taxation. We shot ourselves in both feet.
Below is a a graph of Yamana Gold, a very sound company. The graph shows that the price has a steady upper trading level with a rising lower price level. The RSI (Upper Section) says that the price should be turning even farther downward which is confirmed by the MACD (Lower Section). When the dollar breaks lower, we will see an increase in the price of all mining stocks. The temporary strengthening of the dollar has been negative for most of the miners. Almost all were down today. We may be approaching another nice buying range.
My trailing stops on DROOY were hit last week, but the prices obtained provided profit and more cash in reserve to increase investment in more shares. That was the purpose of the trailing stops. However, it would be nice to simply have the stock move higher without dropping to hit the stops. Nevertheless, I am thankful for the extra cash and profit.
Economics are so dependent upon the political environment that it is important for us to stay informed. I suggest you look at this web site to find exciting information about a growing tendency among our states to push for the Federal Government to pay attention to the 10th Amendment to the Constitution and respect the rights of states and citizens. The monster which is the current Federal Government has over stepped by far its constitutional authority and we must pray that the states will constitutionally interposition themselves on behalf of their citizens peacefully. See the article by Bob Livingston HERE. This is extremely important, so all must read and pass it on to help in the effort.
Our God is in absolute control and His grace and providence was evident in the early founding of this nation. However, we, as a nation have turned our backs upon Him and turned to the Federal Government as a messiah. Most would like for this false messiah to care for them from the cradle to the grave. I would suggest to you that the cost of that action will continue to be the down fall of our nation. A national revival is absolutely essential for us to survive as These United States.
Best to each, Doug
First, let's look at the dollar. It is still on a down trend, but has gotten stronger during four of the last five days. As The Daily Pfennig points out, the dollar tends to drop on any glimmer of good news and rises on bad news. Go figure that out. At any rate our sick paper dollar is doomed to be pushed lower as time goes by. There is no way to repay our debt, if we ever do, except with dollar of less value; therefore, the Federal Reserve and the Federal Government will continue to spew forth dollars at alarming rates. Even now, we are seeing an increase the funding on the cash for junkers program. Remember, that gives the automobile industry a false boost which will expire as the program is abandoned in the near future. Just more of the smoke and mirrors. By the way, I wonder which manufacturers are benefiting most from the give away - foreign or domestic? Which vehicle did you buy under that program? The dollar does seem to be moving upward for the time being. However, the Euro remains at $1.41+ which is a recent high level in relation to the dollar. It may be a stronger currency than the counterfeit paper dollar today.
Here is Gold Trust Shares (GLD) which is a good proxy for bullion gold. Our political metal remains under pressure from the bullion banks as they manipulate the prices in the futures markets. This impacts upon spot gold to hold it well below the level at which it would achieve were the markets free. The graph reveals that GLD has fallen below the 50 day moving average, but remains above the 200 day.Many are predicting gold at $1,000 by the end of the year. I don't know, but do know that the outlook for the dollar and the economy certainly allow for such an event. We will have to hang on until the fourth quarter when things look to be bleak. The year is very likely to end on a sour economic note. The trading range has widely varied between about 83 and 96. It is approaching the lower side of that trend at present.
Reports from Las Vegas show an unemployment at 11.5 %, building grinding down, and real estate still dropping in price. Of course, this is one of the areas where the prices escalated beyond belief as the balloon was pumped beyond endurance. The bursting was very loud in the area and the fall continues in spades. The casinos are virtually empty and the planes arriving and leaving are seldom packed as before. Many would say that "Sin City" deserves the punishment. Other places in our nation are still suffering and most manufacturing has ceased. It will be very difficult for our manufacturing to build back to any reasonable level. Just think of the inertia of rebuilding equipment, retraining people, and financing that is required. Such will take years even if the incentive returns. Most manufacturing was run out of the U.S. by environmental regulation, demands of unions, and excessive taxation. We shot ourselves in both feet.
Below is a a graph of Yamana Gold, a very sound company. The graph shows that the price has a steady upper trading level with a rising lower price level. The RSI (Upper Section) says that the price should be turning even farther downward which is confirmed by the MACD (Lower Section). When the dollar breaks lower, we will see an increase in the price of all mining stocks. The temporary strengthening of the dollar has been negative for most of the miners. Almost all were down today. We may be approaching another nice buying range.
My trailing stops on DROOY were hit last week, but the prices obtained provided profit and more cash in reserve to increase investment in more shares. That was the purpose of the trailing stops. However, it would be nice to simply have the stock move higher without dropping to hit the stops. Nevertheless, I am thankful for the extra cash and profit.Economics are so dependent upon the political environment that it is important for us to stay informed. I suggest you look at this web site to find exciting information about a growing tendency among our states to push for the Federal Government to pay attention to the 10th Amendment to the Constitution and respect the rights of states and citizens. The monster which is the current Federal Government has over stepped by far its constitutional authority and we must pray that the states will constitutionally interposition themselves on behalf of their citizens peacefully. See the article by Bob Livingston HERE. This is extremely important, so all must read and pass it on to help in the effort.
Our God is in absolute control and His grace and providence was evident in the early founding of this nation. However, we, as a nation have turned our backs upon Him and turned to the Federal Government as a messiah. Most would like for this false messiah to care for them from the cradle to the grave. I would suggest to you that the cost of that action will continue to be the down fall of our nation. A national revival is absolutely essential for us to survive as These United States.
Best to each, Doug
posted by Doug @ 5:22 PM
0 Comments:
Post a Comment
<< Home