Recently Federal Reserve Chairman Ben Bernanke showed optimism predicting the end of the recession by the end of 2009. We all from Wall Street to Main Street hope he is correct. We need to be able to generate jobs and keep people in their homes. Mr. Bernanke’s statement temporarily stopped the Stock Market avalanche slide […]
Archive | February, 2009
Horrible Data and Technical Support May Trigger Rally
Bonds and notes spent the day paring early morning losses. The Federal Reserve issued $22 billion in 7-year notes for the first time since 1993 and found a decent amount of demand for the security. Additional price support was found as rumors that Chinese officials seemed to imply that buying fixed income assets would still […]
Choppy Trade as Shorts Cover on Dips
Ben Bernanke seemed to have revived the financial markets, at least temporarily, for the second consecutive day. At one point the S&P was trading nearly 20 points into negative territory; however, details provided for “stress tests” and the granting of immediate access to further government support from the $700 billion bailout fund managed to turn […]
Bears Retaining Technical Advantage in Soybeans
May soybean futures at the Chicago Board of Trade late last week dropped to a fresh two-month low of $8.54 1/4 a bushel. Price action this week has seen some tepid short covering in a bear market, but the bears continue to hold the near-term technical advantage. May beans continue to trade below a six-week-old […]
Does the Gov’t intend on giving everyone fishing poles?
In his infinite wisdom I quote one of Rick Santelli’s comments from last week, “Instead of giving away fish we must teach the public how to fish.” Although I think he tweaked the original, this version is more suitable in its current context. The way I view it is that with more government involvement, their […]
Can China continue to buy Treasuries at this pace?
The Treasury market is struggling to find a reason for yields to fall. Not only is the Fed issuing massive amounts of debt but the bulk of the Treasury buying has been China and many are questioning whether this is sustainable. As you have likely heard, the Chinese have dedicated themselves to purchasing U.S. assets […]
Gold Bulls Eye Key $1,000.00 an Ounce Mark
April gold futures on Wednesday notched a fresh seven-month high of $988.70 an ounce, on safe-haven buying interest amid heightened worldwide economic and financial market uncertainty. Gold prices are in a four-month-old uptrend from the October low of $689.70 an ounce. The next upside technical target for the powerful gold market bulls is the major […]
Golden Choice
The U.S economy is banking very heavily on President Obama’s recent signing of the economic stimulus plan. The U.S. as well as world economies have certainly had plenty of poor economic numbers in the past 18 months such as record unemployment, record foreclosures, long time Financial Institutions needing bail-outs just to name a few. I […]
A Shortened Trading Week May Deliver Short Opportunities
It was evident very little could be done at the G-7 meeting to help the global slowdown. The G-20 summit in April could be more of a pivotal event. More than comments from the G-7, we would look for the passing of Stimulus Deux, the bank rescue and moratorium on mortgages, to be the big […]
Hocking our Children’s Futures
Who is going to buy our debt? Why would another country buy our debt with money other than that from the trade imbalance the US has with their country? That means when we buy goods from another country, we pay for those goods and services in US Dollars. The recipient of those dollars can either […]