Financial Sense

Market Observation: Dow Theory Update

Fri, 06 Nov 2009

by Tim Wood. "For some reason I have received numerous questions from readers about the big advance seen on November 3rd by the Transports. The basic question that I’m being asked is whether or not that single 5% advance, as compared to the Industrials, had any predictive value from a Dow theory perspective."

Finance’s Euphoria: The Epilogue

Fri, 06 Nov 2009

by Elliott Wave International. "When Wall Street’s total value of assets rose to a “mind-boggling 36.6 percent of GDP” in late 2006, The Elliott Wave Financial Forecast published a chart of U.S. financial assets literally rising off the page."

We now have the highest jobless rate since 1983.

Fri, 06 Nov 2009

by Tony Cherniawski. "The unemployment rate in the U.S. soared to a 26-year high of 10.2 percent in October and employers cut more jobs than forecast, underscoring why Federal Reserve policy makers say interest rates will remain near zero."

Market Is Strong, But Correction Should Continue

Fri, 06 Nov 2009

by Carl Swenlin. "Looking at the S&P 500 chart below, the breakdown from the ascending wedge pattern is clear enough, and expectation of the breakdown has been fulfilled. The rising trend line violation brings with it the expectation of a continued decline, but I do not have a price target at this time."

How Important Was the October Jobs Report?

Fri, 06 Nov 2009

by Sy Harding. "The Labor Department reported on Friday that 190,000 more jobs were lost in October, only slightly worse than the consensus forecast of 175,000 lost jobs, and job losses for August and September were revised to fewer losses than previously reported."

Lousy Jobs, In Such Small Portions

Fri, 06 Nov 2009

by Peter Schiff. "Two dissatisfied customers comment about a restaurant. One says, "The food here is terrible." The other replies, "I know, and such small portions!" In many ways, they could be describing our current employment picture."

Profit Opportunity Thresholds Today

Fri, 06 Nov 2009

by Deepcaster. "One of the great current myths that is being propounded by those in charge is that they are going to magically withdraw, at the appropriate time, the stimulus which is currently preventing the world economy from imploding."

Highest Unemployment In 26 Years

Fri, 06 Nov 2009

by Chris Ciovacco. "Investors Are Wise To Remain Flexible: The bearish spin on unemployment is obvious. The bullish spin is weak employment means low interest rates which is good for asset prices. "

Gold: New Global High vs. Top 10 Currencies

Fri, 06 Nov 2009

by Adrian Ash. "The official bid for gold, let alone private-sector demand, looks likely to hold strong... GOLD didn't only break new Dollar highs this week."

Battle of the Titans

Fri, 06 Nov 2009

by Andrew McKillop. "The debate is now open. Commodities, like equities have enjoyed fantastic and fantastically volatile price growth since around March 2009, growing about 60%, like equities, to date."

Gold at both ends of the economic K Wave

Fri, 06 Nov 2009

by Clif Droke. "Now that the 10-year cycle has peaked, fear will become the dominant emotion in the financial marketplace in the years ahead. Risk aversion is on the rise since the credit crisis and investors must look to those assets which tend to benefit from fear."

The Past Decade

Fri, 06 Nov 2009

by David Morgan. "On the silver and gold ETFs, I’m neutral to positive on them. I mean, certainly there is more validity to an EFT investment, in the realm of the institutional investor, the hedge fund manager or very, very wealthy retail investors. "

Will Russia really sell gold in the ‘open market’ or will it keep buying?

Fri, 06 Nov 2009

by Julian Phillips. "Russia’s central bank has bought 180 tonnes since June 2006 and another Russian Agency holds off selling 50 tonnes. What’s going on? It takes a long time to buy useful quantities of gold in the ‘open’ market. It has taken Russia over 3 years to buy 180 tonnes there. "

Thucydides in the Underworld

Fri, 06 Nov 2009

by J. R. Nyquist. "The shade of Thucydides, formerly an Athenian general and historian, languished in Hades for 24 centuries; and having intercourse with other spirits, was perturbed by an influx into the underworld of self-described historians professing to admire his History of the Peloponnesian War."

Economy: No worries mate

Fri, 06 Nov 2009

by Brian Bloom. "The only way that this analyst can reconcile the (apparently optimistic) behavior of US investors with the (neutral to negative) underlying facts is that investors are emotionally “comfortable” with what the Bernanke/Geithner team is doing."

U.S. Jobs Report Sets The Tone For The day

Fri, 06 Nov 2009

by Brewer Futures. "The U.S. Dollar is trading lower ahead of this morning’s U.S. jobs data report. Today’s Non-Farm Payrolls Report is expected to show losses in October of about 175,000 jobs. The key will be how investors react if the unemployment rate reaches or exceeds 10%. "

The Long Bond

Fri, 06 Nov 2009

by Gary Tanashian. "Against the backdrop of the long bond's uninterrupted rise from the 1980's, Alan Greenspan was able to portray himself as the great Maestro, always at the ready with inflationary policy when the market and economy needed it most."

Ultimate Conditions For Recovery

Fri, 06 Nov 2009

by Jim Willie. "With the steady stream of claims toward an economic recovery, one must do a reality check from time to time. The Gross Domestic Product for 3Q2009 reflected a solid temporary push from the absurdly inefficient and costly Clunker Car Program, and an inventory drawdown that finally arrived."