Thoughts on Markets

Tuesday, August 31, 2010

Consumer Increasing Debt - Strong Swiss Franc - Exciting jump in the metals

 Today's moves in our precious metals are something to see. Perhaps, the boyz are active again and getting ready to cap the moves, but it is nice so far. One of these days, we are likely to see even greater moves as the gold rush begins. The question is not if, but when? With moves like the ones today, one must wonder how much longer the boyz can keep up their intervention without being burned by the high number of paper shorts in the hands of so few bullion banks.

From The Daily Pfennig at "Personal Spending rose .4% in July, Personal Income rose .2%, and the savings rate dropped to 5.9%... And if you adjust the Personal Income data for inflation, and taxes, incomes dropped .1%... Those aren't good numbers folks... And once again, the "bad data for the U.S." is a call to the markets to sell risk assets... I'll never agree with this trading pattern thought up by the mental giants of the markets... I think too logically for that to happen!" Though this is not a big jump in spending, it is above the increase in earnings. Thus, consumers are headed for a little more debt rather than increasing savings. This is not economically sound. However, it does for Keynesian Economic theory which most have been taught in schools.


Silver's fundamentals - Michael DiRienzo: executive director, The Silver Institute
A look at some of the factors influencing the strong performance shown by silver
Hear the short Podcast HERE.


Gold demand trends - Jason Toussaint: MD Investment, World Gold Council
The World Gold Council released its Gold Demand Trends publication for the second quarter of 2010 and highlighted the massive growth in investment demand, including a 414% jump in gold ETFs
Another short, but good podcast HERE.

From the  

US homeowners flock to Florida event in desperate bid to save properties
More than 20,000 American borrowers to hit Palm Beach as Naca's five-day mortgage modification marathon gets under way. Interesting for real estate enthusiasts. HERE.


Vodafone joins queue of firms to leave China 
Telecoms company is planning to sell its £4bn stake in China Mobile. Is this the start of a trend? It will be interesting to see if others will follow. HERE.


Swiss Franc Explodes As Asia Opens, SNB Intervention Bells Ringing Loud
EURCHF has just taken out all stops as it plunged by almost 60 pips in the span of a few minutes as Japan opens.... Which opened about 2% down... Which goes to show just the idiocy levels of our markets - there was nothing incremental from last night's BoJ decision, so the Nikkei should have been dropping then. But instead it decided to trade way higher and only plunge once Made In New York Atari algos told it it was safe to plunge. Either way, set your alarm clocks to around 5 am, which is when the SNB tends to intervene most often, and have those upside EURCHF stops ready
Swiss Franc has been doing well of late and this may be why. HERE.


IMF Eliminates Borrowing Cap On Rescue Facility In Anticipation Of Europe Crisis 2.0; US Prepares To Print Fresh Trillions In "Rescue" Linen The flood gates are to open extremely widely very soon. Does that smell like inflation? It does to me. Get out of debt, reduce spending, and batten down the hatches with gold and silver, if you agree. Read the interesting and important article HERE.

Miners from

Currencies from
Some Prices: FVITF 2.4974; SILA 0.80; GBG 2.17; TLT 107.88; DOW up only 73 to 10052.52 (Still holding above 10000, but up very slightly compared to the terrible down day); Gold up 10.90 to 1247.30; Silver up 0.24 to 19.28; SPX up 4.09 to 1053.

Let's continue to look to the Lord for guidance and strength. King Jesus is the only way to salvation and success in all of life and death. There is no other Messiah with grace to save. Think about it!

Best to each, Doug


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