London Gold Market Report
from Adrian Ash, BullionVault
Thurs 30 May, 08:10 EST
Gold $1400 Key for Both Western Traders and Asian Buyers as Europe Shrugs Off 2nd Slump in Japanese Equities
SILVER and GOLD retreated from one-week highs Thursday morning in London, dropping back as European stock markets reversed earlier losses.
Tokyo’s Nikkei stock index had ended the day 5.5% lower, its second slump in 6 sessions after nearly doubling in six months to hit 5-year [...]
In the latest edition of The Gartman Letter, Dennis Gartman passes along this line from Charles Brady of the Fox Business Network:
Since August 3 (eight sessions) the Dow has traded as high as 13,223.01 and as low as 13,094.96 for a range of 128 points, or 0.98 percent. In percentage terms that is the narrowest 8-day trading range since at least 1950. I couldn’t check back any further than 1950, but I think the [...]
As the economy struggles to recover, state and federal budget deficits continue to be the subject of increased attention. Just last week, the congressional budget office said that President Obama’s budget will produce a $1.3 trillion deficit in 2012 if enacted. It would be the fourth straight year of $1 trillion-plus deficits.
Many states have not been faring much better in their attempts to balance the budget. The recent recession resulted [...]
The S&P 500 has had the best start to the year since 1997, and Gas Prices are accelerating rapidly. Two interesting analogs may be useful to think about the next moves in these markets and whether we see divergence.
S&P 500 2012 performance (green) compared to 2011 (orange) and 1997 (blue) signals perhaps a roll-over is due?
and while gas prices have risen rapidly, they are on the same pace (in percentage [...]
The divergence between credit markets and equities accelerated today in Europe (and the US) as Senior and Subordinated financial credit spreads have increased dramatically in the last week. While risk has risen over 25% in financials, European stocks have gone sideways since the NFP print. The Subordinated financials spread has risen the most (in percentage terms) over the last 4 days since Nov2010 – and of course the broad equity [...]
For anyone convinced that yesterday’s S&P two notch downgrade of Spain to A is the last one for a while, we have some bad news: in Q4 Spanish unemployment soared by the most since the Lehman collapse, hitting what new PM Mariano Rajoy called an “astronomical” 5.4 million. This compares to 4.978 million people unemployed at the end of Q3 2011. Since the official number is not yet public and [...]
January 12, 2012, at 12:32 pm
by Jim Sinclair in the category Alf Field
Jim Sinclair’s Commentary
If Alf is right concerning the accordion chop, the large downside risk of buying gold on reaction is over.
Gold Correction Is Over
By Alf Field
There is a strong probability that the correction in the price of gold has been completed. This article has four separate sections. They are:
1. The Elliott Wave (EW) justification for thinking that the correction in gold [...]
by 24/7 Wallst.com
Ten States That Cannot Pay Their Bills
Posted: January 11, 2012 at 6:59 am
Michael B. Sauter, Charles B. Stockdale, Ashley C. Allen
10. New Hampshire
> 2011 budget shortfall as a % of general fund: 27.2%
> 2011 budget shortfall: $365 million
> 2012 projected budget shortfall: 18.4% (8th largest)
> GDP change (2006 – 2010): +7.5% (11th smallest increase)
> Median home value change (2006 – 2010): -4% (12th largest decline)
New Hampshire is often considered [...]
From Hard Assets Investor:
It’s that time of the quarter when we dig deep into the demand numbers for gold provided by the World Gold Council. The headline for gold bugs is generally a good one. Even with the average price of gold more than $1,700 for the quarter, demand was up 6% year-over-year, with strong demand from anything related to investment.
Looked at on percentage terms, real growth of physical investment [...]
by Alexander Gloy of Lighthouse Capital Management
Fun With Inverse ETFs
I love Exchange Traded Funds (ETF). In theory. In practice they are being abused by issuers and traders alike (see Beware of systemic risk in ETF). But that’s another topic. Today let’s take a look what can happen with inverse ETF through the compounding effect.
I like inverse ETF (i.e. SH) on the stock market, because if I am wrong (market [...]