| Has Gold Just Broken Out Of Its Trend Channel?
November 21, 2009 at 10:01 pm
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| Let me begin this week’s essay by quoting a part of last week’s update, in which I mentioned that the regular interpretation of the trend channel in gold might be misleading this time:
Still, there is a specific phenomenon in the technical analysis that I’ve noticed during my observations - when a pattern becomes “evident” so that everyone and their brother sees it and are able to act upon it, the price does exactly the opposite to what it is expected to do. There is a good reasoning for that … [visit site to read more] 
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| One Reason Why The US Dollar Might Rise
November 21, 2009 at 7:45 pm
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| Have you heard the story about the man who bought a U.S. Treasury Bill for $1000 knowing before hand that he’d only get back $995 at the Bill’s maturity. “What kind of idiot would do something like that?”, you ask. It’s irrational, it doesn’t make sense. Give someone $1000 knowing you’re going to get back - not more money in the form of interest but less money. You’re paying someone to take your money. Again, it makes no sense. I pondered how and under what circumstances something like … [visit site to read more]
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| Ron Paul Thinks That Fed "Oversight Is Laughable"
November 21, 2009 at 7:32 pm
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| Friday the House Finance Committee approved the Ron Paul and Jim DeMint amendment to audit the Federal Reserve. It’s a step in the right direction, but the amendment still has some way to go before it sees the light of day. To build momentum, Paul and DeMint have written their opinion in the Wall Street Journal that the “trillion-dollar interventions in the economy merit scrutiny by taxpayers and their representatives.” Since 1913, the Fed has been in place to defend the dollar while … [visit site to read more] 
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| S&P 500 Index Is Still Overvalued
November 21, 2009 at 7:07 pm
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| Stocks have been in the overvalued end of the normal P/E range since the early-1990s, and this condition shows no sign of abating. Below is an excerpt from our daily earnings summary that will offer readers a better perspective. I have outlined the 2009 Q4 results because that is the first quarter not distorted by the huge loss reported in 2008 Q4. While the results of the current quarter are not final, 90% of companies have reported, and I don’t think there will be any surprises from the … [visit site to read more] 
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| This Small Oil Exploration Company Is Ripe For A Takeover… Here's How To Profit
November 21, 2009 at 7:02 pm
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| Takeovers are big news in the market at the moment. In fact, did you know that takeovers have the biggest one-day gain in stocks for any asset? As my colleague - and takeover expert - Louis Basenese says, they’re “some of the safest companies you can own. According to FactSet Merger Stat LLC, the average one-day return for shareholders of the target company is 48%.” Furthermore, Louis says, “Industries naturally go through cycles of consolidation - waves of mergers, acquisition and … [visit site to read more] 
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| Obama Commits To Free Trade Agreement With South Korea, But Auto Trade Remains An Obstacle
November 21, 2009 at 7:01 pm
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| On the last leg of his four-nation tour in Asia, U.S. President Barack Obama revived the issue of a still-pending free-trade agreement signed in 2007 with South Korea (KORUS FTA), but an auto trade imbalance will continue to be a major obstacle to Congressional approval. At a news conference in Seoul, President Obama and Korean President Lee Myung-bak, both showed willingness to renegotiate elements of the deal and to have both countries ratify it as soon as possible. “I am a strong … [visit site to read more] 
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| Exponential Growth, Finite World
November 21, 2009 at 7:01 pm
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| I want to talk about the challenge of exponential growth in a finite world. This is a concept that while on its surface seems easy to get, most people don’t fully grasp it. Any growth rate that is positive will lead to a doubling in size eventually — the higher the growth rate, the quicker the doubling. A quick “back of the envelope” method of figuring it out is known as the rule of 70. If you divide a growth rate into 70, it will roughly give you the time for something to double. … [visit site to read more] 
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| Forex Wrap-up: A Massive Short-Covering Rally In The US Dollar May Just Be Starting
November 21, 2009 at 6:01 am
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| After reaching a 15-month low early in the week, the U.S. Dollar closed higher for the week against a trade-weighted basket of currencies. Technically, this closing price reversal, once confirmed, often leads to a 2 to 3-week retracement. The daily chart suggests that a move through 77.50 is necessary to turn the main trend to up.
The low for the week for the Dollar was posted shortly after Fed Chairman Bernanke mentioned his concern for the Dollar in a speech. Although he never said the … [visit site to read more]
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| Video: The Week Ahead
November 21, 2009 at 5:00 am
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| The stories,data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more] 
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| The Message Of The 2-Year US Treasury Note, Deflation And Japan
November 21, 2009 at 3:24 am
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| Most eyes are fixated on the rise in equities and commodities and, in turn, point to those markets as indicators of an incipient economic recovery. In doing so, we neglect the movements within the bond market, specifically the U.S. Treasury market, at our peril. What is the Treasury market saying? A lot. Let’s look and listen. The 2yr Treasury note specifically yields a paltry-like .71%. Why so little? I thought investors were more inclined to invest in risk-based assets? Why are they … [visit site to read more]
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