Friday, October 26, 2012

James Turk – The Entire German Gold Hoard Is Gone

from KingWorldNews:

Today James Turk shocked King World News when he stated, “The entire German gold hoard was gone because it had been leased into the marketplace. Meaning, the vaults holding German gold were emptied by 2001 because of the Bundesbank leasing activities.”
Turk added, “Half of the gold they (the Germans) leased themselves. The other half of Germany’s gold hoard was eventually leased into the market as well through complicated swaps with the US. But the reality is that as of 2001, all of that German gold was gone. Meaning all German gold worldwide, which was supposed to be stored in vaults, the vaults were emptied of German gold and the gold was leased into the market.”
Turk went on to say, “It’s uncertain if any that leased gold has ever been returned to those vaults. Meaning, the vaults which are supposed to be storing the German gold hoard may still be empty.”
James Turk continues @

If You Are Holding This Investment, It's Time to Go to Cash

Relative strength (RS) is a useful indicator, but it can be difficult to apply to the broad stock market averages. Although there are minor differences in their short-term moves, the S&P 500, Dow Jones Industrial Average and other indexes tend to move in the same direction over weeks and months. Because RS calculations usually use 3-12 months worth of data, the small differences in the daily price moves are missed and the RS of any index tends to move erratically.

One way that I address this problem is to compare ETFs like the SPDR S&P 500 ETF (NYSE: SPY) to a list of more than 27,000 stocks that trade around the world. This technique shows when SPY is among the best investments in the world, or, at times like this, when it is actually among the worst performers.
SPY Chart
With a RS rank of 23 we can see that 77% of the stocks traded around the world are outperforming SPY. At the bottom of the chart is the 26-week rate of change (ROC) of SPY, along with a 39-week moving average of the ROC. This indicator is bearish with ROC below the moving average. (more)

The Road to Bullion Default: Part I

Momentous events have taken place in global markets. With both the U.S. and EU announcing “open-ended”/”unlimited” money-printing (respectively); the exponentially increasing money-printing taking place in bankrupt Western economies has escalated to simply infinite money-printing.
This is nothing less than a death-knell for all Western fiat currencies, and our final warning that hyperinflation is now an inevitable fate. All that remains is for the (currently) clueless masses to realize that the paper they are carrying in their wallets is (in fact) nothing but paper – and then our own, modern Tulipmania will come to an ignominious end.
Gold and silver prices naturally reacted to this monetary insanity by jumping higher, reflecting the explosion which must take place in most asset prices; as our paper currencies plunge to their real value: zero. However, the rally was halted by a desperate counter-attack on bullion markets – with the result being that bullion prices have now trended sideways to lower for the past several weeks.
It’s important for readers to understand that there is no way the newly-announced money-printing has been (or could ever be) “priced into” metals markets. As the simplest of tautologies, you can never “price in” infinity into any market. Open-ended/unlimited money-printing means nothing less than an endless spiral higher in asset prices – until all this banker-paper meets the same fate as all previous fiat currencies: utter worthlessness.  (more)

Canada Finance Minister Flaherty eyes privatization of CMHC

When Finance Minister Jim Flaherty took steps to cool the housing market over the past four years, he largely did so via the Canada Mortgage and Housing Corp., the Crown corporation that dominates the mortgage insurance market.

Now he says his interventions in the housing market are at an end – and he would like to see the CMHC privatized in the next five to 10 years.

“We’ve taken four steps over the last four years to reduce the exposure there for taxpayers, so I don’t think there’s a lot more to do with CMHC or mortgage insurance, certainly not in the foreseeable future,” Mr. Flaherty said in an interview.

Mr. Flaherty’s goal has been to steer the market away from the extremes that rocked the U.S. economy, and to keep mortgage debt loads under control despite the lure of low interest rates.

But the Finance Minister has also been aiming to cut the amount of exposure that taxpayers have to the housing market by way of mortgage insurance and CMHC.  (more)

US 30YR Bond Futures Could Head to 142

US equity markets have experienced an overnight bounce and the SP 500 futures are currently trading slightly positive at +.32%. We speculate that there are many bullish fund managers out there that are finding these levels very attractive to buy. We also see the 1380 level as the next key support for this market. However, we will be very surprised at this point if the market holds beneath that level for long. US economic data is coming out neutral to positive, and yesterday’s earnings for larger companies were stronger than the recent earnings season trends. Of course the pending election may still be keeping money on the “sidelines” waiting for econo-political clarity. We may be in for a very interesting close to 2012. Santa Claus rally anyone? We shall wait and see.
We really would like you to focus on the US 30 year bond market today, and look at our chart analysis. We notice a key resistance level of 150 which has held nicely since September. The 30 YR made another push to 150 this month but could not hold above that key level.  We also notice a downtrend channel starting in August, which we have indicated by drawing the resistance trend line. You will see an 8 point down-move in September highlighted. If we see another 8 point down-move from October highs of 150, the 30YR bond futures (DEC 12) will get to the 142 area. This is our first target for a bearish move from these levels.
Our downside pivot is 145’16. If the market breaks this level, we look for 142 to be hit. With US economic activity picking up, and the US stock market near yearly highs, we see a Bond down-move as a distinct possibility.
30 YR Treasury Bond chart

KWN Update – Here Is A Huge Key To The Markets

from King World News
With tremendous volatility in global markets, investors and professionals are wondering where the markets are headed from here. This piece will provide a huge clue for investors. Today King World News wanted share with its readers key portions from the latest Investors Intelligence report.
This is an extremely important piece because it shows a significant change in the bullish readings into this recent market decline. Here is the latest Investors Intelligence report: “Index and indicator charts achieved highs on 14-Sep and the overall trading for the last two months shows large tops forming. Recent weeks have included the start of breakdowns from the peaks with down and up trading, including lower highs and lower lows.”
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Dow Jones/UBS Commodities Index Change to Benefit the Precious Metals

by Dan Norcini
Trader Dan Norcini

Every year, the various commodity indices, that are used by hedge funds and index funds to benchmark against, have a reweighting of the various commodity inputs that are used to comprise each particular index. During this reweighting process, the percentage of some commodities are increased while the percentage of others are decreased. As a result, those funds benchmarking against the index, are forced to recalibrate their particular portfolios, selling some commodity positions while buying some new commodity positions in order to come into alignment with the new weightings.
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