Both Germany and the IMF have cut their growth forecasts for this year. Germany for Germany, and the IMF for global growth… But both are cutting their forecasts because of the same thing… Eurozone weakness, due to the debt problems, which are pushing austerity measures, which will cut growth for certain!
[Read more...]S&P’s Message Falls on Deaf Ears
January 17, 2012 By Leave a Comment
By all accounts, the stock market should be in free fall after a holiday weekend in which “the cosmic Brink’s truck of free money went over a cliff,” as Vancouver veteran James Howard Kunstler put it.
Alas, so much for the latest euro-driven meltdown.
After the close in Europe on Friday, Standard & Poor’s downgraded nine European countries, including heretofore AAA-rated France. Then on Monday, as a coup de grace, it downgraded the eurozone rescue fund.
[Read more...]Euro Reverses Slide in Short Squeeze
January 9, 2012 By Leave a Comment
The Jobs Jamboree on Friday proved to be a real boost for the economy and the dollar, which rallied on a “strong jobs number” for the first time in a month of Sundays. I highlight “strong jobs number” because, this is what this has come to… 200,000 jobs were created, so says the Bureau of Labor Statistics (BLS), in December, which is the strongest number of jobs created in another month of Sundays… The jobs reports have been so weak for so long now, that the media, and markets are all lathered up and calling this a “strong jobs number”… It’s stronger than previous ones, yes…
[Read more...]China’s Manufacturing Index Rebounds
January 3, 2012 By Leave a Comment
Good day… And a Tom Terrific Tuesday to you, and… HAPPY NEW YEAR! Here’s hoping that 2012 brings us a correction to the 1 in 5 Americans out of work, and that it is a healthy, prosperous, and peaceful year! Hey… Stranger things have happened, right? But, we have some HUGE hurdles to clear this year, folks… So, keep your fingers crossed!
[Read more...]Existing Home Sales: Up or Down?
December 22, 2011 By Leave a Comment
The markets will be getting thin today, and will be super light tomorrow as most of the traders take some time off for the holidays. These thin markets can be volatile, as any moves are exaggerated by the lack of volume in the markets. We have lots of data hitting the markets today, which could be the spark for some real action, so it may get interesting.
[Read more...]Gold Drops Through 200-day Moving Average
December 15, 2011 By Leave a Comment
First of all, the euro (EUR) fell through the 1.30 level yesterday, and although it attempts to recover the handle, it just doesn’t have the legs to sustain a rally… There’s been no news from the Eurozone as the week has gone on, and the ratings agencies have been quiet, so the old saying that no news is good news applies here, I think… The only news we had this week was the good auction in Spain (followed by the sloppy one in Italy)…
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Who’s Still OK With Deficit Spending Now?
I had to laugh yesterday when the New York traders came in and didn’t sell the currencies right away… I said to myself, “Self, maybe the ‘big boys’ read the Pfennig and now know that I’ve uncovered their ‘game,’ so they have to lay low for a while!” HA! Whatever the case, the currencies held their gains most of the day, and even added on in some cases.
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