Thoughts on Markets

Tuesday, January 04, 2011

Rejoice always - Metals down - Possible Buying - FVITF - HL - OLVRF

Rejoice always; pray without ceasing; in everything give thanks; for this is God's will for you in Christ Jesus. (1 Th. 16-18) This is great advice for all. God directs us to have a life in close contact with Him for true lasting enjoyment. True enjoyment emanates from such an association. WE are also encouraged to have an attitude of continuous prayer before God. Thus, we should have a constant flow of "Thank you, Lord." We should express our gratitude for things with which we see as blessings, but we should also thank Him for the challenges, trials, and things we see as trouble in our lives. In His sovereignty, He brings these to us for our growth in faith, for the strengthening of our testimony to others, and for a variety of reasons for our good. Everything happens within His will, and particularly for His people, King Jesus brings us to repentance when we fail to follow His way. Praise Him daily.

From Mine Web:
Junior gold miners to flourish in Kondratieff winter
The Kondratieff Winter looks as though it will worsen in 2011. Longwave Group's Ian Gordon reckons carefully selected gold juniors may be the best way of riding the storm. Gold report interview. This seems likely to me, but also likely not today with gold starting the day down 20.90 and silver 0.42. HERE.

From Mine Web:U.S.
Mint reports strong silver bullion sales on 1st business day of 2011
As the U.S. Mint rolled out its first day of sales for the latest versions of its gold and silver bullion coins, American Eagle silver bullion coins sold like hotcakes. Demand for silver coins still strong. HERE.

On China from The Daily Pfennig (
"The biggest reversal has come from the Aussie dollar (A$), which yesterday morning was $1.02 and change, and this morning the A$ is trading less than $1.01. The selling in the risk assets led by A$'s began yesterday, when for some reason, the markets began to question China's economy again. What? Questioning China again? How many times does this make for these guys to throw China's economy under the bus, and cause a huge sell off in the Commodity Currencies, only to see that they were wrong, and all we have to deal with the weaker Commodity Currencies? Too many to count, that's the answer! Too many to count! And it's giving me a rash! Geez Louise! Give it up, will you?" I, too, believe that many are underestimating China and its economy.

From Bloomberg:
China Will Continue Buying Spanish Debt, Vice Premier Writes in Editorial
China will continue buying Spanish public debt even amid a surge in the European nation’s borrowing costs, Vice Premier Li Keqiang said before a visit to Madrid.
“We have confidence in the Spanish financial market, which has translated into the acquisition of public debt, an activity that we will continue in the future,” Li wrote in an editorial in El Pais newspaper today. He arrives in Madrid tomorrow for a three-day visit. As The Daily Pfennig folks suggest, do you think that China is moving to be the world's biggest creditor? Seems very likely. That would give them even a stronger international "leg up." HERE.

The big news is the downward move of the precious metals today. While the banks admit that manipulation of the markets is part of their job. This could cause the long delayed correction which will give us another buying opportunity. Here are the graphs:

Here are three miners which may move to the lower end of trading ranges or at least offer a brief buying range for me. All three are posting some mixed signals, but seem to me to be sound stocks with great potential as precious metals move upward.

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF 4.70; OLVRF 1.426; HHWW 1.74; SILA 0.32; TBT 37.58 (LT Treasuries off a bit); DOW up 5+ to 11675+; SPX off 3.6+ to 1268+; Gold off 30.20 to 1384.40; Silver off 0.78 to 29.89.

Best, Doug


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