Monday, March 29, 2010
Yes very possibly, and we may see more than that. Let me explain. Since roughly fall 2007, the US Fed has been creating liquidity and even buying markets directly (home mortgage bonds for example) then when the US decides to roll that back, there is USD strengthening as institutions who borrowed Fed money with bad collateral have to repo the stuff and get dollars to buy the stuff back (repossess them).
Then, on top of repo activity starting after the end of March 2010, the Fed stated they intend to roll back QE (actual Fed buying markets themselves) and this would be market negative, since half of Fed liquidity infusions in 2009 was invested directly in markets by banks, instead of lent out. The same goes for all of China’s stimulus, much of their own stimulus money and huge bank lending in 2009 went into their property and real estate bubbles. (more)
Last Wednesday’s report I showed how the current price of the index was almost identical to the January peak from where prices dropped nearly 10%. The report was called “28 Day Sector Rotation, Commodity & Index”. We did get the first sign of topy market last Friday with the sharp one day sell off as I expected.
Today, one week later we are now that much closer to a 3-8% drop which is shown in the charts below. It’s important to remember that bottoms tend to happen quickly while a market toping is more of a process which is why so many people take big losses trying tip a top. (more)
Not so long ago, the price of gold was soaring, and analysts predicted $2,000 an ounce was imminent. What stopped gold's rise? Will it take off again?
Throughout all the tumult of the past 10 years -- the bubbles, the recessions, the wars, the bank failures and the bailouts -- one asset class has outshone all others: (more)
Titanium Metals Corporation (NYSE:TIE) is a Dallas-based titanium producer with facilities in the US and Europe. Recent reports have shown its shares being widely accumulated on heavy volume.
What’s motivating the activity? For the inside scoop, we check in for analysis from Chris Mayer, editor of Agora Financial’s Capital & Crisis newsletter:
“Titanium Metals (NYSE:TIE) has been on fire. The stock was up about 15% this week, and is now up about 90% since last August, a time when it was down and out. Our thesis was that the long-term demand for titanium for the next generation of aircraft was inevitably going to rise. (more)
Dear Friend of GATA and Gold:
London metals trader Andrew Maguire, who warned an investigator for the U.S. Commodity Futures Trading Commission in advance about a gold and silver market manipulation to be undertaken by traders for JPMorgan Chase in February and whose whistleblowing was publicized by GATA at Thursday's CFTC hearing on metals futures trading --
-- was injured along with his wife the next day when their car was struck by a hit-and-run driver in the London area. (more)