Friday, May 31, 2013

New BoE Chief Carney Will Devalue Sterling, Pimco Warns

Mark Carney will try to devalue the pound by as much as 15pc after he takes over as Bank of England Governor in July in a last ditch attempt to cement the UK recovery, Pimco, the world’s largest bond house, has warned.
[Ed. Note: If you go back in time far enough, way way way back, a Pound Sterling was an actual troy pound of sterling silver, meaning 12 troy ounces of sterling silver. Since a troy ounce of sterling costs £12.52 today, that puts the price of a troy pound of sterling silver at over £150 Pound Sterling. When, exactly, do we decide that it doesn't require a genius-level IQ to conclude that the pound sterling will be further devalued? £200? £300? £500? At what point do we simply recognize that they're willing to devalue this thing? In other news, the sun will most likely rise tomorrow morning.]
by Philip Aldrick, Economics Editor

Growth in Britain is going to remain “challenged” for the next three to five years as the Government continues to shrink the public sector and cut the budget deficit.
As banks and households also grapple with their excessive debts, “that leaves one policy tool outstanding, which is basically the currency”, Pimco managing director and sterling bond head Mike Amey said.
George Osborne has pinned his hopes for the economy on Mr Carney, Canada’s central bank boss until the end of the week, living up to his reputation as a monetary “activist” to help ease the transition to an export-focused economy less dependant on consumer spending.
Although economists reckon there is little more central banks can do, Mr Carney has insisted policy is not “maxed out”.
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Updated Resistance Levels For AAPL

Apple has certainly stopped the bleeding, but it has a lot of work to do if it wants to regain its leader states. The truth is it may never as many leaders never to come close to former glory but I expect Apple to give it a go. And the first step in that is finding a bottom and then overcoming the many points of resistance that lay in it’s path.
$480 is the first real test with the $500 level being a big level.
As far as the general markets go I felt going into this week could be an opportunity to buy on weakness, but with a gap up as severe as we’ve seen it really has me concerned that we’re not going to form some sort of short term top. I’m not chasing stocks here and will either wait for a pullback or more strength and then a pullback. We would need to see new highs on the Nasdaq and Dow to give me some confidence that this move is going to continue. Where we’re at now reeks of a tired market that needs more time to consolidate.Please share this article

GDX Gold Miners Chart & 6 Shots of Must-Know News

The gold miners, as tracked by the Market Vectors Gold Mines ETF (GDX: 28.50 +1.28 +4.70%), are down again today. BOOOOOO!  Ah, it’s a process, which is what people say when it’s hard to predict where things will go next. Here’s a chart and some news for this trading Tuesday …
gdx bearish

(Updated chart)
And here’s some news that may help gold miners move one way or another …
  1. Commercial participants in the gold market, also known as “smart money”, are the most bullish on gold in nearly five years. READ.
  2. Gold ETF selling in 2013 so far is at about 450 metric tons, equal to mine output from all of Africa & South America. READ.
  3. Gold exploration has dropped close to 55% year over year. READ. Now THAT’S going to crimp future supply, eh?
  4. Giant, low-grade gold projects –  huge, undeveloped ore-bodies, which contain a significant proportion of the world’s unmined gold — are falling out of favor in a hurry.  READ. That’s news for companies including (ABX: 19.82 +0.87 +4.59%), (XRA: 0.729 +0.014 +1.96%), (NG: 2.39 +0.10 +4.37%) and (PVG: 8.22 +0.56 +7.31%), and not in a good way.
  5. Gold short positions have hit a new record. Short sellers in the futures market extended their position for the sixth consecutive week last week pushing the overall short position to a record 14.6 million oz. READ.
  6. Hecla’s CEO is forecasting a further decline in silver prices in the second quarter. Spot silver prices have fallen about 16 percent to $23.65 since March 28. Sorry, dudes.  READ.
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Autodesk, Inc. (NASDAQ: ADSK)

Autodesk, Inc. operates as a design software and services company worldwide. Its Platform Solutions and Emerging Business segment offers AutoCAD software, a computer-aided design (CAD) application for professional design, drafting, detailing, and visualization in construction, manufacturing, civil engineering, and process plant design fields; and AutoCAD LT, a professional drafting and detailing software. The company's Architecture, Engineering and Construction segment offers Autodesk Revit products, which provide model-based design and documentation systems; AutoCAD Civil 3D products that offer a surveying, design, analysis, and documentation solution. Its Manufacturing segment provides AutoCAD Mechanical software to accelerate the mechanical design process; Autodesk Inventor, which offers a set of tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; and Autodesk Moldflow that facilitates manufacturers to design plastic parts and injection molds, and study the injection molding process. The company's Media and Entertainment segment offers animation products that provide tools for digital sculpting, modeling, animation, effects, rendering, and compositing; and creative finishing products, which offer editing, finishing, and visual effects design and color grading solutions.
Autodesk's stock is forming a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of ADSK (Autodesk, Inc) below with my added notations:
1-year chart of ADSK (Autodesk, Inc) Over the last (5) months ADSK has created a very important support level at $36 (red), which was a key level of resistance prior (navy). The $36 support is also the “neckline” for ADSK's H&S pattern. Above the neckline you will notice the H&S pattern itself (blue). Confirmation of the H&S would occur if the stock were to break below its $36 support. If ADSK does break that level, the stock should move lower from there.
The Tale of the Tape: ADSK seems to have formed a head & shoulders pattern. Although a trader could go long at $36 expecting a bounce, the stock's pattern implies an eventual breakdown. If that happens, a short trade should be entered on a break of the $36 level.
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Housing 101: Renting vs. Buying a home

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Why This Summer May See Huge Upside For Gold & Silver

from King World News
Today a legend in the business spoke with King World News about the continued massive demand for physical gold and silver, and why this may be a huge summer for both gold and silver. Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke about what is causing this rally in the metals and what he expects going forward. Below is what Barron had to say in this tremendous interview.
Barron: “The two-day plunge in the US dollar has been the catalyst for the move higher in both gold and silver. The gold market and the silver market have been very oversold in the last month or so. Over time the US dollar will just continue to lose purchasing power.
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Why Is The Smart Money Suddenly Getting Out Of Stocks And Real Estate? / By Michael / May 30th, 2013
If wonderful times are ahead for U.S. financial markets, then why is so much of the smart money heading for the exits?  Does it make sense for insiders to be getting out of stocks and real estate if prices are just going to continue to go up?  The Dow is up about 17 percent so far this year, and it just keeps setting new record high after new record high.  U.S. home prices have risen about 11 percent from a year ago, and some analysts are projecting that we are on the verge of a brand new housing boom.  Why would the smart money want to leave the party when it is just getting started?  Well, of course the truth is that the “smart money” is regarded as being smart because they usually make better decisions than other people do.  And right now the smart money is screaming that it is time to get out of the markets.  For example, the SentimenTrader Smart/Dumb Money Index is now the lowest that it has been in more than two years.  The smart money is busy selling even as the dumb money is busy buying.  So precisely what does the smart money expect to happen?  Are they anticipating a market “correction” or something bigger than that?
Those are very good questions.  Unfortunately, the smart money rarely divulges their secrets, so we can only watch what they do.  And right now a lot of insiders are making some very interesting moves.
For example, George Soros has been dumping almost all of his financial stocks.  The following is from a recent article by Becket Adams
Everyone’s favorite billionaire investor is back in the spotlight, and this time he has a few people wondering what he’s up to.
George Soros has dumped his position with several major banks including JPMorgan Chase, Capitol One, SunTrust, and Morgan Stanley. He has reduced his exposure to Citigroup and decreased his stake in AIG by two-thirds.
In fact, Soros’ financial stock holdings are down by roughly 80 percent, a massive drop from his position just three months ago, according to SNL Financial.
So exactly what is going on?
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