Thoughts on Markets

Wednesday, September 08, 2010

Metals Higher - Selling Some DROOY- Bonds Down - Better Statistics

Greetings in the precious name of Jesus Christ, the only begotten Son of God. He has moved the metals higher, again.

From TownHall.com:

Walter E. Williams
Racial Stupidity and Malevolence
The white liberal's agenda, coupled with that of black race hustlers, has had and continues to have a devastating impact on ordinary black people. Perhaps the most debilitating aspect of this liberal malevolence is in the area of education.
Recently, I spoke with a Midwestern university engineering professor who was trying to help an inner-city black student who was admitted to the university's electrical engineering program. The student was sure that he was well prepared for an engineering curriculum; his high school had convinced him of that and the university recruiters supported that notion. His poor performance on the university's math placement exam required that he take remedial math courses. He's failed them and is now on academic probation after two semesters of earning less than a 2.0 grade point average. HERE.

From TownHall.com:

Thomas Sowell:
A Non-Prediction
When people learn that you are an economist, they often want you to predict which way the economy is going. There seem to be more than the usual number of calls for such predictions lately. But an economist should be more aware than others are of how hazardous such predictions can be.
One reason is that what happens in the economy is affected by what politicians do in Washington-- and who can predict what politicians will do?
However, let me go out on a limb, and try to predict what politicians will not do. HERE.


From  UPI.com:

Walker's World: The food crisis
Read and hear it HERE.

From Telegraph.co.uk:

China’s young officers and the 1930s syndrome

I try to remain optimistic that the US and China will work out a more or less amicable way to run the world for the next half century, a “Chimerica” of interwoven superpowers.
But it was slightly disturbing to hear the warnings of a distinguished China-watcher at a closed-door session of the annual Ambrosetti conference on Lake Como.
(This gathering of the global policy elites at Villa D’Este is a hardship assignment for Telegraph hacks. It fell to me again this year, but somebody has to do it.)
“China’s military spending is growing so fast that it has overtaken strategy,” said Professor Huang Jing from the Lee Kwan Yew School of Public Policy in Singapore. (He kindly let me quote his remarks.) This is important. HERE.

From GATA.org:

Jim Sinclair: Strapping in for the big move
For fearlessness, straightforwardness, and commitment, nobody in the gold world tops Jim Sinclair, the veteran trader and mining executive who runs JSMineSet.com as an financial education forum and, sometimes, as a hand holding service for gold bugs at risk of losing their nerve.  HERE.

From GATA.org:

Egon von Greyerz: Gold entering a virtuous circle
With his new commentary, "Gold Entering a Virtuous Circle," Egon von Greyerz, founder and managing partner of Matterhorn Asset Management in Zurich, updates the case for the precious metal and says he considers $6,000, $7,000, and $10,000 to be realistic price targets. Von Greyerz writes:
Read it HERE.

From Kitco.com:

A.M. Kitco Metals Roundup: Comex Gold Firmer Early, Closing in on All-Time High
 Comex gold futures prices are modestly higher in early trading Wednesday, with prices hitting a fresh 10-week high overnight and now within easy striking distance of the all-time high scored in June. December gold last traded up $2.00 an ounce at $1,261.30. Spot gold was last quoted up $4.40 at $1,260.00.
Fresh worries this week about the health of the banking system in the European Union have been supporting safe-haven buying interest in gold. Bond yields in Ireland are rising this week, which has also spooked investors a bit. The Wall Street Journal this week ran a story questioning the viability of the stress tests performed on EU financial institutions earlier this summer. HERE.







Below is the StockCharts.com Gold graph. This shows that gold has been up for the last six trading days. It is nearing new highs (Bumped above 1260 earlier and is now up 4.50 to 1259.70) and it is overbought. Remember this is in the face of the few bullion banks which are sitting with an amazing number of paper shorts on the precious metals. Thus, I would expect some intervention in the very near future to provide opportunity for short covering and, possibly, a buying opportunity for my portfolios. Currently, the bull market is very strong, but the bullion banks are a dark cloud hovering over the prices of precious metals.
































I have become very disappointed with DRD Gold (DROOY). I am planning to sell a good portion of my DROOY today at around 4.18. Below is the dismal the graph from StockCharts.com: 






























































Miners from Scottrade.com:












Currencies from Kitco.com:









Some Prices: FVITF 2.783; SILA 0.70; TLT 104.7691 (Bonds Down Some); BYDDF 6.20 (Inching up, but for how long?); DOW up 71 to 10411; SPX up 7.5 to 1099.35; Gold up 1.60 to 1256.80; silver up 0.18 to 19.98 (Pushing 20, but likely capped there).

The government employment report was not as bad as expected. However, we must remember that much of the increase is due to a report from the model used which includes a large number of new employment which "should have been there" whether it is or not. Such reports are not to be respected and viewed with a very critical eye. However, the impact upon the markets is based upon perception and not reality. I would much rather trust ShadowStats.com, as below:
Our Federal Government has a vested interest in the reports which Shadow Government does not have. This impacts upon reports and should be taken into consideration. 

Governments exist by the choosing and power of the Sovereign King Jesus. They must obey His Commandments or suffer the consequences. The Commandment which says that one must not bear false witness is applicable to every person AND GOVERNMENT. We prove that we love King Jesus by being obedient to His word. 

Best to each, Doug

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