Commentaries

We have seen some exciting moves in the market and with the market sentiment so bullish it should make for a sharp selloff in the coming weeks. Meaning everyone is overly bullish and owns a lot of stocks and commodities; therefore the market should top and leave them holding the bag while the smart money runs for the door.

Mr. Market has thrown traders a few curve balls lately as precious metals and crude oil have been selling off while the U.S. Dollar Index futures were consolidating.

Standard & Poors cut Japan’s debt rating while Moody’s warned that the USA’s triple-A rating was at risk. The IMF had harsh words for both nations. The report is from Canada.com: “In advanced economies where fiscal sustainability has not been a market concern, credible plans going well beyond 2011 need to be put in place … Continue reading

The steady climb in Fed assets continues, with the left side of Bernanke’s balance sheet swelling to just under $2.5 trillion, as US Treasury holdings hit $1.13 trillion, implying that the Fed’s DV01 continues to increase on a daily basis with every single POMO, as we have been pointing out since last summer, and which … Continue reading

Back to gold bullion, BCA Research argues that it is hard to make the case that gold is currently “a crowded trade”. Many institutional and retail investors agree with the gold bull case but….

Weekly Review

In a move that provides a glimpse of the future of US dollar and gold, China has allowed its currency to be traded for the first time in the United States. This is a bullish sign for gold investors.

January has been a tough month for gold. From its year-end 2010 price of $1,420 an ounce to its recent low just over $1,320, gold has lost some $100 – about seven percent.

…a steep federal budget deficit projection yesterday (Wednesday) showed the harsh reality of the U.S. government’s spending spree…

Gold hit 4-month lows today on heavy selling, which is something I’ve been expecting based on price action as a function of time. The violation of $1320 to the downside signifies a change in trend is upon us. Short-term moving averages are turning down. I am going to sit on my hands until we: 1) recapture … Continue reading