Saturday, November 10, 2012

Huge Moves Coming In Gold, Silver, US Dollar & The Euro

from King World News
On the heels of a $15 move in gold and 50 cents in silver, today King World News spoke with Marc Chandler, global head of strategy for Brown Brothers Harriman, which does over $600 billion each month in currency transactions. KWN wanted to get his take on where the US dollar and euro are headed from current levels because this directly impacts the gold and silver markets. Important implications for gold and silver are included here.
Here is what Chandler had to say: “We are seeing general strength in the US dollar, despite the fact that the Fed is engaged in quantitative easing of an unlimited nature, and despite the fiscal cliff looming. Right now the euro is trading at two month lows against the dollar.
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Gold and Natural Gas Bucking Negative Commodity Asset Trend (SIA)

In this weeks edition of the SIA Equity Leaders Weekly we are going to take a look at two Commodities that have been bucking some of the negativity surrounding the Commodity Asset Class and as such are areas of interest for those seeking commodity trades within sensitive stocks or the commodity directly.
Gold Continuous Contract (GC.F)
The first chart we are going to look at is the Gold Bullion chart. Although gold has not advanced above its highs from September of 2011, it has managed to escape the downside that other metals have seen in the last year.
The chart shows us that Gold has consolidated since pulling back in October of 2011 and currently remains in the middle of a range between $1,523.55 on the bottom and $1,820.78 on the top. Should bullion find its way above resistance the next major test will be in the $2,000 range. To the downside a close below support sees room to the $1,400 range.


Neils Jensen: Investment Outlook (November 2012)

The Absolute Return Letter
November 2012
The Era of Kakistocracy
by Neils Jensen, Absolute Return Partners
Kakistocracy (noun): Government by the worst citizens. For reasons which can only be speculated upon, there is no word for government by the best citizens.1

We are now five years into a crisis that just doesn’t want to go away. Paraphrasing Charles Gave of GaveKal who wrote a supremely succinct paper on this topic only last week2, policy makers continue to tamper with interest rates, foreign exchange rates and asset prices in general. They continue to permit deposit-taking banks to operate like casinos. They issue new debt to pay for expenditures when we are already drowning in debt. They just don’t seem to get it. Albert Einstein once defined insanity as doing the same experiment over and over again, expecting a different result. QE1. QE2. QE3… Need I say more?

Meanwhile, more and more investors appear convinced that all this tinkering will end in inflation. Some even expect a lot of it. That is what this month’s Absolute Return Letter is about. Are bonds a safe investment at current levels? Could we possibly be in a bubble? In the tug-of-war between inflationary and deflationary forces, will inflation ultimately prevail? What could happen to bond prices if any of this comes to fruition?  (more)

David McAlvany – Wall St & DC Want Controlled Inflation & Financial Repression

Can the Stock Market Drop By 90%?: Martin Armstrong

Can the Stock Market Drop By 90%?: Martin Armstrong

click here to read

German Calls for Gold Repatriation Intensify As Fed Refuses to Allow Inspection

from Silver Doctors:
Calls for Germany to repatriate its 1,536 tons of gold reserves held at the NY Fed are intensifying as Der Spiegel reports the Federal Reserve has refused to allow German inspectors to even view the country’s massive gold reservesin the interest of security and of the control process“.
We have stated repeatedly that with repatriation and/or audit requests completed or in progress by Venezuela, Germany, Switzerland, and the Netherlands, The BOE and the Fed suddenly find themselves in a heap of trouble as the situation (and confidence that the Central banks actually still hold the tungsten gold reserves on deposit) is rapidly deteriorating. 
Read More @ Silver Doctors

The Eight Scariest Charts For Equity Bulls

It would appear Mark Twain's infamous quote that "history does not repeat, but it does rhyme" has never been so apt. The following eight charts suggest the rhythm is getting louder and louder. How is it possible? It's nonsense? Well at the heart of the markets, it is still us humans and our endearing greed, fear, and heuristic biases that drive the flows... trade accordingly.

The current price action in the S&P 500 is eerily similar to the movement leading up to the collapse in 1987... (via Bloomberg)

The Dow is also tracking this move almost perfectly over the last two years.  (more)