Saturday, August 20, 2011

20110819 Weekend

Dow 10,817.65 -172.93
Nasdaq 2,341.84 -38.59
SP500 1,123.53 -17.12
10-YrBond 2.07% -0.01

Dollar was sharply lower Friday morning, particularly against the Yen. Dollar recovered a little of the losses.

Thursday overnight and into Friday morning was bad news and world markets looking to pull USA markets lower. There was significant fear Thursday night. Friday USA stock indices held up.
Stock indices closed at daily lows. Monthly charts are breaking down.
This weekend closes monthly option expiration. Surprising there was not massive expiration-related volume to the downside today.

Trading volume should lighten up with more people on holiday the next couple weeks.

GLD 179.95 +2.23 (1.25%)
SLV 41.68 +2.02 (5.09%)
PTM 21.68 -0.29
XLE 63.24 -1.14
XLF 12.13 -0.25
VXX 42.55 +2.08

FTSE in London held price. May bounce on Monday.

Gold another all-time high made with steady, orderly moves higher. With continuing new highs, look for further futures margin hikes. Venezuela's Chavez is repatriating gold, which may be causing a scramble for physical gold (not paper exchange-traded gold) which may be putting the bid on physical gold. At some point, a major miner will buy a junior miner which will start to break the current trade of long physical and short miner stock.
On watch for additional gold futures margin increases.

Physical silver closed in 42s. Will begin next week on solid technical ground. Looks to test $44.

Oil 3.7% lower this week.

Euroland banks are breaking down and country bailouts are potentially breaking down. The country bailouts are actually bailouts to the banks, so these are one in the same.

0% Interest Rates Lock in Inflation
The decision by the Fed, last week, to keep a key interest rate at near zero percent for 2 years is historic because the Fed has never done this before.
...
This ... telegraphs a policy of inflation by the government.
...
Zero percent interest on a key Fed rate confirms my prediction right along with the rising inflation in just about everything except housing.

Rolling Stone magazine is becoming the premier financial investigative reporter. So long WSJ and Barron's.
Is the SEC Covering Up Wall Street Crimes?
A whistle-blower claims that over the past two decades, the agency has destroyed records of thousands of investigations, whitewashing the files of some of the nation's worst financial criminals.


AGQ 241.57 +22.32 (+10.18%). Long at 236.50 to be long silver over the weekend. 52 week range 56.70 - 382.08.

DGP 69.14 +1.53 (+2.26%). Sold at 69.17 for 4.18 per share gain to take profits after quick gold move higher. Moved funds into AGQ.
UPRO 45.92 -2.23 (-4.63%).

HPQ 23.60 -5.91 (-20.03%). Multi-year low.

AUY 15.51 +0.22.
MDW 2.26 +0.02.
TRE 5.29 +0.17.

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