Presenting the visual CFTC Commitment of Traders summary update for the prior week, courtesy of Libanman Futures and Horowitz and Company.
Commitment of Traders Report
Commitment of Traders Financials
CoT_09092010
Saturday, September 11, 2010
Is this the Right Time for the Fed to go Negative?
By WILLEM BUITER / wallstreetjournal,
Ben Bernanke, chairman of the Federal Reserve Bank, has a lot more tools for supporting U.S. economic activity through expansionary monetary policy than he discussed in his Jackson Hole speech, which alluded only to more quantitative easing and credit easing—increasing the size and changing the liquidity composition of the Fed's balance sheet.
Perhaps out of fear of resurrecting the moniker "Helicopter Ben," Mr. Bernanke did not refer to the combined fiscal-monetary stimulus that (almost) always works: a fiat money-financed increase in public spending or tax cut. Treasury Secretary Tim Geithner can always send a sufficiently large check to each U.S. resident to ensure that household spending rises. By borrowing the funds from the Fed, there is no addition to the interest-bearing, redeemable debt of the state. As long as households are confident that these transfers will not be reversed later, "helicopter money drops" will, if pushed far enough, always boost consumption. (more)
Rosenberg: Here Are 13 Signs That We're Actually In A Depression Right Now
David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called recovery is actually a depression.Gold Pullback Seen As Profit-Taking Within Continuing Uptrend
By Allen Sykora
Of Kitco News
http://www.kitco.com/
Of Kitco News
http://www.kitco.com/
(Kitco News) -- Gold prices were probably due for some type of profit-taking pullback, but the longer-trend uptrend remains intact, analyst say.
Around mid-week, gold was poised to break through to record highs.
On the Comex division of the New York Exchange, the December contract on Wednesday hit a peak of high of $1,264.70 an ounce. This brought it within striking distance of the $1,266.50 record for any most-active contract, which was hit by the August futures back on June 21. Spot gold also came close to its record listed by one price vendor at $1,265.30.
But December gold fell on Thursday and then dipped some more Friday to a low
of $1,237.90, before bouncing again. At 2:30 p.m. EDT (1830 GMT), the December futures were down $5 for the day at $1,246 an ounce.
“I think it is perhaps some profit-taking and technical selling,” said Carlos Sanchez, director of risk management with CPM Group.
Technically, some selling set in when the market was not able to forcibly break above $1,260, technicians said. Often, futures traders might exit some positions to capture short-term gains whenever they sense momentum might be abating around chart resistance. (more)
Treasuries Drop, U.S. Stocks, Oil Advance on Economic Optimism
Blommberg,
Treasuries fell, sending 10-year yield to a one-month high, while U.S. and Asian stocks rose as an increase in American wholesale inventories and growth in Japan’s economy bolstered optimism in the global recovery.
The 10-year yield climbed 3 basis points to 2.79 percent at 4 p.m. in New York. Two-year Treasury yields, which hit record lows in August on concern the economy may relapse into a recession, rose for a third day. The Standard & Poor’s 500 Index climbed 0.5 percent to 1,109.55, its highest close in a month. Oil rallied above $76 a barrel as a leaky pipeline slowed supplies to the U.S. Midwest. Corn surged to a 23-month high.
Today’s reports that U.S. wholesale inventories jumped by the most in two years and Japan’s growth slowed less than estimated helped bolster optimism in the global recovery after a decrease in American jobless claims yesterday. Banking shares weighed on European equity indexes after three people with knowledge of the talks said Deutsche Bank AG may seek to raise 9 billion euros ($11.5 billion) in a stock sale.
“What took us to record lows in yields were not what I’d refer to as positive for equities,” said Mark Freeman, a money manager at Westwood Management Corp., which oversees $10 billion. “To the extent some of that is abating, I’d view that as a positive for the broader equity market. It’s a lessening of fear in the markets.” (more)
Bloomberg Businessweek - September, 13 2010
* Inside Foxconn
Exclusive: Massive, secretive, and hit by a
rash of worker suicides, the Chinese manufacturer
of iPhones, PCs, and PlayStations opens up.
A look at the industrial powerhouse of the 21st century.
* Opening Remarks. The Case against Craigslist.
* Jobs. The fastest rising salaries.
* Etc. Bone-crunching all football edition.
read more here
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