Blog

August 10, 2009 – The Dow and other major stock market averages are rising because of the outlook for worsening inflation, and not improved economic conditions. The federal government is spending trillions of dollars to bail-out financial institutions and to meet the other spending aspirations of politicians. These dollars have to end up somewhere, andRead more

August 10, 2009 – On July 13th traders sold short the 10-year T-note. The yield on the T-note at the end that day was 3.38%. Stop out this T-note short-sale if its yield closes any week below 3.46%, or on any Monday-to-Thursday below 3.34%. T-note yields have climbed since my recommended short sale, and closedRead more

August 10, 2009 – We have been holding goldgrams as our Core Currency Position, since March 23, 2001. On May 4th traders sold the US dollar by shorting the Dollar Index at 83.97. Stop out this trade if the Dollar Index closes above 80.80. The Dollar Index broke below 78.40, the low it made inRead more

Gold re-tested support.

The gold/silver ratio is falling.

August 8, 2009 – Nothing has changed over the past few weeks.  The XAU Index is still testing overhead resistance around the 152-154 area, which is the same area of resistance discussed many times recently.   One of these days – probably by early or mid-September – the XAU will hurdle this resistance level.  InRead more

August 7, 2009 – In Economics 101 college professors teach that prices are determined by supply and demand. Not usually taught, however, is that the ‘price’ – i.e., the purchasing power – of money is also established by these same two economic determinants. Economists focus quite extensively on the supply of money, which in theRead more

July 27, 2009 – Over the past couple of months there have been several particularly bearish articles on MineWeb.com about gold mining in South Africa. One entitled “South African gold output in downward spiral” appeared on May 26th and notes that South Africa’s gold output “continues to fall as mines get older and grades decline.”Read more

July 27, 2009 – Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. On May 4th traders sold the US dollar by shorting the Dollar Index at 83.97. Stop out this trade if the Dollar Index closes above 81.10. It appears that the Dollar Index is beginning to accelerate toRead more

July 27, 2009 – On July 13th traders sold short the Sep’09 T-note at 118-21. The yield on the 10-year T-note that day was 3.38%. Stop out this T-note short-sale if its yield closes below 3.32%. For convenience, I am going to begin tracking interest rate trades on the basis of the T-note’s yield atRead more