Archive for April, 2007

My, how things have changed! What a difference a day makes. Are there any more clichés I can come up with to describe what happened Monday? What looked like a one-way street suddenly has southbound traffic, and indicators which had been throwing steady right uppercuts and jabs, just got clocked with a roundhouse left...
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The Fed topped off a day of massive pumping with a $3.5 billion overnight repo on top of an $18 billion 5 day forward, 3 day repo and the expiration of $6.5 billion in reverse repos issued Friday. The net result was a mind boggling add of $28 billion. Click here...
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Latest cycle conditions and projections for the US Dollar Index and 10 Year Treasury Yield. Click links to download report in pdf format. (WSE Pro subscribers only). Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full...
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Mortgage application activity continues to bounce around just above the lows of 2006. The housing inventory overhang continues to get worse. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I...
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The Pirate’s Bank of China raised bank reserve requirements 0.50% over the weekend. This does very little to stop the issuance of RMB (Yuan) in exchange for the flood of USD coming into the country. If $20-25 billion comes in per month, the RMB still gets printed, and then more fictitious Old Maid...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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I know how much people care about housing. But I would be quite hopeful that through 401(k) plans, pension plans, and elsewhere that the ...
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The market’s stall just shy of SPX 1500 continued. There’s good reason for it. Multiple channel lines converge in that area making it a zone of significant resistance. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time you...
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The latest twice-annual, Barron’s Big Money Poll is out today. The headline: “Buckle Up: Dow 14,000?” Note the question mark. The last Big Money Poll in October 2006 had the more decisive headline “Fueling Up: Dow 13,000″. And the one prior to that in May 2006 was even more bullish: “Headed for Dow...
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This week I ran a series of posts showing how large scale indiscriminate and price insensitive purchases of US securities by foreign central banks (FCB) creates overpriced financial assets. The economic term for this is “fictitious capital”. Today I add one more factor that contributes to fictitious capital and that’s the boom in US...
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The Sow has been up all but two days in April, not to mention 11 out of 12 days and 19 out of 21 days. April 2007 is now officially the “most bullish month in Sow Jones history” in terms of up days vis-a-vis down days. With a 6%+ gain for April (assuming Monday isn’t...
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We haven’t seen this in a while. After pumping $16.50 billion into the market on Wednesday, and setting up another $18 billion add on Monday with a 5 day forward repo, the Fed has now done reverse repos (RRPs) two days in a row. The Fed today did $6.5 billion in RRPs, with $5.25...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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Your blogger definitely has egg on his face. I feel I owe an apology to my readers for reporting as a newsworthy item the quote from the head apparatchek of China’s central bank about “not accumulating foreign reserves anymore”. What could I have been thinking? Indeed the latest release of foreign central bank custodial...
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Bears are convinced that this is the top to end all tops. Either that, or they’ve capitulated and left the game completely. Bulls are nervous and are expecting, even hoping, for a correction. But from this vantage point, there doesn’t appear to be much basis for one, and in fact, our stock screens are...
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Some veddy interesting action in the goldies today.The XAU “looks” like it’s breaking down. Yet it is only coming back to the mid-point of the range of the past 6+ months and right at the nexus of the 50day/200day MAs (138.23-139.46). Low today was 138.88. So nothing has really happened…….yet. The Levels of Destiny are well...
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The Fed continued its mysterious behavior on Thursday, pulling a reverse repo out of its hat for the first time in ages. The Fed did only $3 billion in 14 day repos, an unusually small number for the regular 14 day. Then they added a little icing to the cake with $5.25 billion in...
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Following on the theme of yesterday’s post comes this article from Bernard Ber on China’s serious currency situation. China’s pegging policy is creating a multi-fold fiasco: 1. They have no control over their money supply, and an inflation issue to boot. 2. They have a raging out of control speculative climate, including a...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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Thanks to an immense helping hand from Uncle Ben and the Fed, the market has once again broken through a key trend resistance level on its way to still higher intermediate price projections. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty...
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In actions that are unprecedented, at least since the days immediately following 9/11/01, the Fed added a net of $16.5 billion to the market, and scheduled another $18 billion to be injected on Monday. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for...
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The “dollar sucks” drumbeat is getting mighty loud out there. Here’s a cover of a leading Dutch biz mag from Apr 14: “The Dollar Era is Over: Why the Euro is a World Currency (and that is good for our economy)” This doesn’t mean the dollar can’t continue fall. In fact, it might have a mini-crash...
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There are lots of snippets out there that illustrate that the increases in revenue being witnessed is little more than pure unadulterated inflation. Tucked away in Japan’s latest import-export report was this reference to “value”, another polite code word (like “liquidity”) for price inflation. Note that actual volumes were down, which confirms what I...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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The market continued to tread water near the highs, lacking the impetus to break through resistance, but with enough liquidity around to keep prices from falling. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time you don’t find...
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For those who are “bullish” on liquidity, you have an opportunity to put your money where your mouth is on Kentucky Derby day on Saturday, May 5. One of the entrants is a horse named “Liquidity”. A son of 2000 Horse of the Year Tiznow, the only horse to win the Breeders’ Cup Classic twice (2000...
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The Fed withdrew a net of $4.5 billion from the market on Tuesday doing $4.5 billion in 9 day repos against expirations of $8.75 billion. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time you don’t find the...
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Irrepressible Dallas Fed Head Richard Fisher says “no worries” in USA Today interview this week: “Q: What are the positives that are helping the economy weather the housing downturn?” “Fisher: Americans will buy anything that looks good, feels good, smells good and tastes good. We’re great consumers. And consumption is over 70% of GDP.” Gotta hand it...
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One of the chief canards of the Ministry of Truth misinformation game is the National Association of Realtors (NAR). Releases from the NAR typically afford the cognoscenti another chance to game the housing sector. The NAR almost always pulls out a number from their hat that “pleases” the bulls. This morning however the NAR seemed...
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Today’s gold stock screens and data, along with cycle conditions and projections for gold and HUI index, and Chart of the Day picks for swing trades. Indispensable daily information for gold and precious metals stocks traders. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for...
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