Global Market Commentary, Analysis and Investments
The fireworks went off early yesterday in the currencies, folks… And they have not died down or had water thrown on them in the overnight and morning sessions…
WOW! You should have seen the currency screens lighting up yesterday… First it was the rise in Initial Jobless Claims, and then the hits just kept coming for the dollar, and economy. ISM Manufacturing Index slid further than forecast, which means manufacturing is slowing down. And Construction Spending was down in May…
[Read more...]Let's see…what's in the news today?
Stocks went down again yesterday. The Dow got trimmed by 96 points.
Gold, on the other hand, went up $3 to $1,245.
The first half of the year came to a close with the S&P 500 down 6%, global stocks down 10%, oil down 5%, Chinese stocks down 27%, the euro down 14%.
[Read more...]We closed the books on the second quarter yesterday. One that probably will end up showing some real rot on the US economy's vine. Yes, I do believe that rot is going to be exposed as we move along in July. So… We have that going for us!
The news from China, overnight, was not exceptionally good, and the fear mongers came out of the woodwork again, which wasn't a good thing for Aussie dollars (AUD)… In fact, all of the commodity currencies got whacked and sent to their rooms without TV! So, here's the news from China…
[Read more...]While a few mainstream outlets are coming around to at least acknowledging gold's stellar run, most remain skeptical or outright bearish. And the blasphemy they purport is that gold is in a bubble.
Let's settle it, right now, and shut these naysayers up.
Things heated up in the currencies this weekend… Yes, while everyone was wiping the milk from their mouths from their cereal they ate for breakfast on Saturday morning, the Chinese made a BIG announcement… Rather than tell you in my own words… Here is the official statement from the People's Bank of China (PBOC)…
[Read more...]We've had a day where the currencies gained versus the dollar, and then held their ground, for the most part… No profit taking, no debt crisis fears trading, just held their ground versus the dollar. Now, some would say… “That's a sign that they've hit resistance and can't overtake it, which is not good for a rising assetâ€?… But, me? Well, I would say, and will say… “I find this to be refreshing. The last thing you want to see is an asset, which in this case is a currency like the euro, run up too much, too fast, for that WILL give the markets reason to sell. I prefer the slow gradual, stealth-like moves in currencies, so that they don't gain any attention, until the rally is well established.â€?
[Read more...]Yesterday, I told you how the currency rally had the brakes applied by a return to the European debt crisis focus… Yesterday's trading was different, though. It was as if traders never heard that the US and the IMF were putting together a line of credit for Spain, for they began marking up the euro (EUR), and selling dollars, as if it was June of 2009! (You may recall that in June, last year, the dollar was on the slippery slope once again.)
[Read more...]They fought the correction; the correction won.
We refer to Bernanke, Summers, Obama, Geithner, Krugman – the whole lot of them. They added three trillion dollars to US debt in the last two years. In two more years the debt will be at 100% of GDP. Add in the debts they’ve guaranteed – from Fannie Mae, for example, and state and local debt implicitly backed by the feds – and you’re already at 150% of GDP. Worse than Greece, in other words.
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Aussie Job Creation Soars. Is a Rate Hike Imminent?
Yesterday I wrote… “Today, we'll see the latest labor report from Australia. In recent months, the jobs data has consistently surprised to the upside each month, so it's not like going out on a limb to say that I expect the job creation to be better than the +15,000 that's forecast.â€?
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