Thursday, November 8, 2012

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. “Everything that needs to be said has already been said. But since no one was listening, everything must be said again.” — AndrĂ© Gide

It's Not So Rosie: What Keeps A Gloomy Realist Up At Night

Yesterday, we were offered 'hopes and prayers' by Gluskin Sheff's David Rosenberg. However, as he warned then, there are some things to be worried about. From the wide gaps in voting patterns across socio-economic lines and the expectations that populist policies will be the hallmark of Obama's second term to the mixed-to-negative data across employment data, consumer spending indications, housing, and Europe; it appears the market is starting to price in some positive probability of a fiscal cliff and these macro data do nothing to subsidize that reality. While the President does not face the Great Recession of four years ago, he does confront the "Not So Great Recovery" nonetheless.

Spot The Odd Market Out Since The Election

UPDATE: GRPN discounted by 13% after-hours on sales-staff and outlook cut
Market watchers are stunned, stunned we tell you, that we didn't bounce today after yesterday's 1-year record plunge in stocks. Whether AAPL led the market or the market led AAPL is irrelevant, there is one clear fact, everyone and their pet rabbit Clive is looking to reduce exposure to that anchor-like alpha-destroyer. Gold once again outperformed every other asset class today as it has seemingly reaffirmed since the election that "buying gold is just buying a put against the idiocy of the political cycle." S&P 500 futures plunged into the close to end on their lows (-60 points from yesterday's highs); AAPL closed at its lows (-3.7% on the day - through its 55-week average); financials dropped further; Treasury yields plunged (30Y -16bps on the week); while the USD generally tracked sideways to higher; high-yield credit closed at its lowest price in over two months (don't tell Tom Lee). VIX compressed modestly (and steepened) as we suspect election hedges are lifted (and also AAPL overlays discarded).

Gasoline Rationing Comes To New York

  From the mayor who made owning an 18oz+ container of coke a summary offense, comes this:

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FX Trading Volume Plunges In Disgust Over HFT Dominance

A week ago we explained how, after completely destroying the equity and commodity space, and make serious inroads into bond trading (and soon very likely into OTC interest rate derivatives, where a flash crash will literally be the end), HFT algos had taken over FX trading to the point where they have now been caught manipulating the market using Reuters' FX trading platform. Now we get prima facie evidence of just how this destruction is manifesting itself. According to Reuters, which has compiled the data on its own FX dealing platforms, "daily spot foreign exchange trading volumes... fell by 23 percent in October from a year earlier. The average daily volume traded in October was $120 billion, down from $155 billion in October 2011 and a decrease from the $133 billion recorded in September." As to the reasons: they should be quite obvious. On one hand, we have the old tried and true vacuum tubes, and Reuters reports that the decline was to a major extent driven by "frustration with high-speed computer algorithms operating on the major dealing platforms." In other words, as more and more FX trading is merely robots competing with other robots to outarb each other on press releases, in the process completely crushing retail traders, and generating outsized kneejerk reactions to the tiniest of signals, any humans left are quietly shutting down their terminals and turning off the lights.

A Fond Farewell to a Patriot

Trader Dan at Trader Dan's Market Views - 19 minutes ago
Congressman Ron Paul retires from Congress this year choosing not to run for re-election. He will be stepping down from Congress after serving faithfully for many long years. He was one of the few leaders who dared to speak the truth and while you may or may not have agreed with him, no one can deny that he loves the precious Constitution and has tried to be faithful to that founding document in spite of pressure from his own political party. Read these words of his exercpted from his TV interview on Bloomberg today. One final word - Governor Romney opposed the bailout of GM and wr... more » 

Gold Chart and Comments

Trader Dan at Trader Dan's Market Views - 52 minutes ago
Gold continues to stage an impressive recovery off of the spike low which looks more and more like it was a bear trap. Trying to read these markets, both in front of and now coming off of a major election, has been difficult due to the severity of the price movements but it does appear that the buying down below $1700 was of sufficient size and scope that it has forced many a bearish trader to reconsider their bet. Reports continue to come in of strong physical market offtake which limits downside price action and results in enough valued-based buying to absorb speculative selling fr... more » 

Highly Recommended Read

Trader Dan at Trader Dan's Market Views - 2 hours ago
Hello to all the readers; On the heels of my commentary on the state of the nation yesterday, I highly recommend the following article written by my erudite friend Nelson Hultberg. Nelson brings a rich historical background to his writings and as such, he provides a perspective that is often lacking in much of what we read today. Understanding the historical origins of political theory is a key ingredient in grasping the underlying aims of modern political movements. Our nation is in serious danger of losing its fundamental moorings if it has not already done so. When you read Nels... more » 

Californians approve massive tax hike on the wealthy

Eric De Groot at Eric De Groot - 2 hours ago
Idaho suddenly looks a lot better to many wealthy Californians. When the size of the wealthiest 1% of Californians shrinks, will the definition of rich be redefined to include less wealthy individuals? Lessons from history say yes. Increasing taxes on the wealthy to close a massive budget deficit is similar to using a band aid to stop the bleeding of the femoral artery; Its not going... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

The December 21 'Triple Witch' Zero Barrier

Yesterday’s price action offered a messy preview of what lies around the corner, for the U.S. economy confronts its own Biblical demise, otherwise known as the fiscal cliff, when it slips past its own (Asteroid-less Armageddon-like) zero barrier which we estimate as the December 21 triple witch expiration. To be sure, I do not equate a near guaranteed recession and significant pullback in equities as calamitous as what Mr. Willis et al faced; but in short, the two sides are as far apart as ever as the Democrats will be emboldened by the Election while the GOP will point to roughly 50% of the country, exemplified by the popular vote, who agree with its views. Politicians fail to understand that the markets project forward such that as each faction drags its feet, the damage done to stocks could be substantial. The 12.5% expected earnings estimates for the S&P 500 for the next 12 months remain highly optimistic such that an inevitable reduction would weigh on shares.

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Obama Victory: Increased Gold and Silver Storage in Zurich and Asian Capitals

by Mark O’Byrne, Financial Sense:
Today’s AM fix was USD 1,715.00, EUR 1,347.42, and 1,075.84 GBP per ounce. Yesterday’s AM fix was USD 1,730.50, EUR 1,345.86, and GBP 1,080.75 per ounce. Gold rose $2.10 or 0.12% in New York yesterday and closed at $1,718.30. Silver hit a low of $31.209 then recovered in late trade but still finished with a loss of 0.56%.
Gold rose for a third day yesterday after confirmation that President Barack Obama won re- election, while stock markets fell sharply and treasuries headed for the biggest advance in 11 weeks.
Robust investment demand continues and may intensify after the election and exchange traded products backed by gold attracted $2.5 billion of inflows in October alone.
Total inflows in commodities ETPs were $3.1 billion last month, taking assets under management to $201.6 billion for Blackrock Inc alone according to Bloomberg.
Read More @

Markets Hate Obama: DOW, S&P and NASDAQ Down [Precious Metals UP]

from StockMarketFunding:

Massive 2 Day Obama Sell Down S&P 500 200 Day MA Support (VIDEO). In this stock index video we’ll cover the current S&P 500 200 day moving average support level of 1,380.76. It slightly undercut down to 1380.68 and bounced 1 point. We’ll cover the lower “S&P 500 support levels” at 1,360, 1,340 and finally 1,308.

Why US Infrastructure Spending Won’t Help the Economy

by Bill Bonner, Daily
Finally, the voters have spoken…the bastards!
But wait…what’s Bonner doing in Vermont?
Answer: his youngest son is a student at the University of Vermont. He is the youngest of six children. His older brothers threaten to go to business school or to law school, but for the moment, Edward is the only one still in school.
Today is his birthday. So his brother Jules and your editor have driven up from Maryland. Which has given us an occasion to check out America’s decaying (this word seems permanently attached) infrastructure… and to listen to non-stop election day blah-blah on the radio.
One after another, the commentators urged Americans to participate in the Great Fraud. ‘Go out and vote,’ they told listeners. ‘We are so fortunate to have the privilege of voting… we have to use it. That way, we control the politics of this great country.’
Read More @

Hope, Change & Gold

by Adrian Ash, Gold Seek:
Ten years after the American century ended, should an optimist choose to buy gold…?
GOLD doesn’t mind a bit of hope or change. It doesn’t care about anything much, what with being just an inert metal and all.
But those people who buy gold tend to fear for the future, and they fear the change it might bring. At the very least they are anxious. Gold offers insurance, whether to Western savers trying to second-guess interest rates or the stock market, or to Asian households suddenly able to make discretionary savings each month from their small, but growing income.
So what kind of future might see the gold price jump 1.7% p – as it did in 1 hour on Tuesday – only to hold that rally as Barack Obama claimed a second term in the White House, before easing off as the rest of the financial markets sank two, three and more per cent on Wednesday?
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This Is How Gold & Silver Will Fare If Stocks Are Crushed

from KingWorldNews:
Today Tom Fitzpatrick spoke with King World News about what to expect going forward from gold, silver, the US dollar, the euro, bonds and stocks. Fitzpatrick has been astonishingly accurate in forecasting the movements of both gold and silver. Now Fitzpzatrick lets KWN readers know what to expect from stocks, bonds and the currencies, as well as the metals.
Here is what top Citi analyst Fitzpatrick had to say, along with some powerful charts: “We still have the overall view that this up-move we saw on the Dow, which was just short of 13,700, is very similar to the up-move we saw after the fall in 1973/74.
Also, we have two very important support levels on the VIX, which when we’ve looked back over the past five years, has been a good indication that we will see a strong up-move in the VIX, and by definition a strong down-move in the equity markets. We may have seen the start of that today (see chart below).
Tom Fitzpatrick continues @

Four More Years

by Judge, Andrew P. Napolitano, Lew Rockwell:
Only in America can a president who inherits a deep recession and whose policies have actually made the effects of that recession worse get re-elected. Only in America can a president who wants the bureaucrats who can’t run the Post Office to micromanage the administration of every American’s health care get re-elected. Only in America can a president who kills Americans overseas who have never been charged or convicted of a crime get re-elected. And only in America can a president who borrowed and spent more than $5 trillion in fewer than four years, plans to repay none of it and promises to borrow another $5 trillion in his second term get re-elected.
What’s going on here?
What is going on is the present-day proof of the truism observed by Thomas Jefferson and Alexander Hamilton, who rarely agreed on anything in public: When the voters recognize that the public treasury has become a public trough, they will send to Washington not persons who will promote self-reliance and foster an atmosphere of prosperity, but rather those who will give away the most cash and thereby create dependency. This is an attitude that, though present in some localities in the colonial era, was created at the federal level by Woodrow Wilson and Theodore Roosevelt, magnified by FDR, enhanced by LBJ, and eventually joined in by all modern-day Democrats and most contemporary Republicans.
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Obama re-election means ‘Perfect Storm’ for gold – Nichols

While Marc Faber feels that President Obama’s re-election is a disaster for business, U.S. gold analyst Jeff Nichols reckons it sets the scene for a big kick up in the gold price.
by Lawrence Williams,
The gold price reacted sharply upwards to President Obama’s re-election, with the U.S. dollar initially falling, but then the dollar recovered as Europe’s woes continue to depress alternative currencies and gold has drifted back – but remains, at the time of writing, comfortably back up above the $1715 level – at least for now.
The Obama factor has certainly had a positive effect on the gold price whereas a Romney victory might have driven it lower, and the gold bulls certainly feel that this could be the trigger gold really needs to take off to new heights – although their predictions for the U.S. economy in general are dire suggesting that any signs of recovery will be shortlived.
Read More @

Obama decision puts America on trajectory toward financial mega-disaster

by Mike Adams, Natural News:
The re-election of Obama was more than the mere selection of one man over another; it was an endorsement of a set of economic policies that are now launching America into a trajectory that can only end in economic disaster.
With the election now etched in the history books, America has endorsed an endless government spending spree that can no longer be held in check. There is only one outcome now for the United States of America: A grand finale blowout of money creation, hyperinflation, collapse and tyranny.
This point is not a debate; it is mathematical fact. Just as 2 + 2 = 4, the economic policies pursued by President Obama and the Federal Reserve can only equal the utter financial demise of the U.S. dollar. This is explained in more detail, below.
Read More @

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