Friday, May 6, 2011

Morning Corner 5.6.11

Gold/Silver Ratio (weekly info)
new low 32.638
trend=down
low= 32.638
rev= 36.083; mid= 34.361


I guess letting the ratio get almost below 30 was too much to handle. They are hiding silver in "Eligible" to avoid making deliveries and reducing their PM holdings to almost nothing. What, no "circuit breakers" in PMs? But Williams %R is close to overbought and this move might be short lived.



90 Day UST (weekly info)
-no change (below mid)
trend=down
low= 0.040
rev= 0.160; mid= 0.100


With the destruction of commodity longs this week the market is saying that the Fed will not raise rates. Hell the Fed can't lower them anymore either. The 90 day is down to 0.020 this week. Anyone buying this is parking cash and hoping the down move is resolved when the 90 days are up. Too bad the 90 days ends after QE2 ends.







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35 comments:

  1. BinTMay 6, 2011 at 7:58 AM

    http://money.cnn.com/2011/05/04/news/economy/connecticut_raises_taxes/index.htm

    Tax hikes on the way for Connecticut residents


    "Under the budget, the state sales tax will rise to 6.35% from 6%, while cigarette taxes climb to $3.40, from $3 in the new fiscal year, which starts July 1. Larger corporations will see a 20% income surcharge, replacing a current 10% surcharge.

    Residents earning more than $100,000 will pay higher income taxes due to a hike in marginal rates, while those buying pricey cars, boats, jewelry and clothing will pay a 7% luxury goods tax. The state will also extract a tax on estates and gifts greater than $2 million, as opposed to the current $3.5 million threshold."

    ...Lowell Weicker, when governor of Connecticut, managed to force an income tax on the state. Before that time, they had not had one. Ah, the good old days...

    Went to see Atlas Shrugged last night. Story of people working harder to feed the state, rather than themselves...

    ReplyDelete
  2. Andy TMay 6, 2011 at 9:14 AM

    nice looking bounces from the overnight lows....

    that should be the lows for at least today.

    ReplyDelete
  3. cvMay 6, 2011 at 9:17 AM

    Went to see Atlas Shrugged last night. Story of people working harder to feed the state, rather than themselves

    Now you can go see SOYLENT GREEN...

    Story of the state feeding the people, themselves...

    ReplyDelete
  4. AmenRaMay 6, 2011 at 9:23 AM

    Guess this means no QE3.

    ReplyDelete
  5. cvMay 6, 2011 at 9:25 AM

    NFP Ex McDonalds And Birth Death: +7k

    http://www.zerohedge.com/article/nfp-ex-mcdonalds-and-birth-death-7k

    Hamburgulars bitchez!

    ReplyDelete
  6. AmenRaMay 6, 2011 at 9:27 AM

    How is it that the labor force participation rate doesn't change for three months straight? Does that mean no one is looking for a job? Those who have given up said screw it? What about the recent college graduates? Are they staying in school until the job market improves?

    ReplyDelete
  7. cvMay 6, 2011 at 9:29 AM

    Obama seems to be living up to his promise in creating those "high paying" (SOYLENT) GREEN jobs...

    I may have to switch blogs to go pay proper homage to his greatness...

    ReplyDelete
  8. cvMay 6, 2011 at 9:30 AM

    How is it that the labor force participation rate doesn't change for three months straight? Does that mean no one is looking for a job?

    ---

    In a word... SNOW

    ask me 3 months from now & it'll be the HEATWAVE

    ReplyDelete
  9. AmenRaMay 6, 2011 at 9:32 AM

    BTW how do you seasonally adjust the number of people with jobs or unemployed?

    ReplyDelete
  10. cvMay 6, 2011 at 9:50 AM

    I found the video of Obama going in to get Bin Laden...

    http://www.youtube.com/watch?v=98W7zg2ByKY

    ReplyDelete
  11. cvMay 6, 2011 at 9:52 AM

    It's one thing going after a strawman... but when you start picking on poor little dogs...

    ReplyDelete
  12. cvMay 6, 2011 at 10:42 AM

    The propaganda in chief has conveniently put a "price tag" on the hunt for Bin Laden...

    http://news.yahoo.com/s/yblog_exclusive/20110506/pl_yblog_exclusive/the-cost-of-bin-laden-3-trillion-over-15-years

    How convenient! The exact amount that has been spent in budget defecit overruns...

    Economy ought to start sizzling now that he's been carefully wrapped in fine linen, scented with oils, and delicately eased into the Indian Ocean...

    ReplyDelete
  13. AmenRaMay 6, 2011 at 10:45 AM

    CV

    Did they use canopic jars in the burial?

    ReplyDelete
  14. Andy TMay 6, 2011 at 10:58 AM

    Erin Burnett and Mark Haines getting all choked up on CNBC....slobbering all over themselves.

    ReplyDelete
  15. AmenRaMay 6, 2011 at 11:03 AM

    Using the NSA numbers April had 152898k for the Civilian Labor Force. Since birth/death is based on NSA numbers then subtracting B/D (175k) would leave -22k. So we had net job losses.

    The CLF also loss 124k MoM in the NSA numbers.

    ReplyDelete
  16. AnonymousMay 6, 2011 at 11:04 AM

    Ham sandwich and a can-o-picles.

    ReplyDelete
  17. AmenRaMay 6, 2011 at 11:04 AM

    ...and the labor force participation rate went from 64.0 to 63.9 in the NSA numbers. Just sayin'

    ReplyDelete
  18. AmenRaMay 6, 2011 at 12:07 PM

    Andy T

    How long before the CNBC anchors actually READ the report and comment that the headline number is BS?

    i know. I know. It'll never happen.

    ReplyDelete
  19. AmenRaMay 6, 2011 at 12:10 PM

    RUH ROH...http://www.zerohedge.com/article/breaking-greece-threatens-leave-eurozone-reintroduce-own-currency

    So all of those European banks that have Greece debt on their books just got f----d.

    ReplyDelete
  20. Andy TMay 6, 2011 at 12:14 PM

    I've never seen this kind of trading in WTI in a long time....

    In fact, I've never seen this kind of behavior intraday....huge swings minute by minute.

    impossible to trade

    ReplyDelete
  21. AmenRaMay 6, 2011 at 12:14 PM

    Of course Juncker denies the Spiegel report...

    ReplyDelete
  22. AnonymousMay 6, 2011 at 12:16 PM

    Fish Sandwhich -fish caught in the Norh Arabian Sea.

    ReplyDelete
  23. AmenRaMay 6, 2011 at 12:22 PM

    Andy T

    This is when you wait for the end of the day/week to see where it is. Did it break support/resistance? Was there a reversal candle or 3LB reversal? Did it break through or headfake at a fibonacci level? Sometimes waiting to see where it settles is the best thing.

    ReplyDelete
  24. AmenRaMay 6, 2011 at 12:43 PM

    The article from Der Spiegel: http://www.spiegel.de/international/europe/0,1518,761201,00.html

    ReplyDelete
  25. AmenRaMay 6, 2011 at 1:21 PM

    Interesting how the administration tried to bookend this week with "good" news...

    ReplyDelete
  26. 72batMay 6, 2011 at 1:59 PM

    from ra's der spiegel link...
    Schäuble intends to seek to prevent Greece from leaving the euro zone if at all possible. He will take with him to the meeting in Luxembourg an internal paper prepared by the experts at his ministry warning of the possible dire consequences if Athens were to drop the euro
    "Should the country become insolvent," the paper reads...
    SHOULD it become... wtf?

    ReplyDelete
  27. Andy TMay 6, 2011 at 2:05 PM

    From Barry the "Ritz"

    "The misguided belief in austerity — that we can cut our way into growth — is also taking a toll in the US, as states and municipalities are slashing headcounts of teachers, cops and firemen. By the way, how has that been working out in Ireland and England? Not very well . . ."

    I'm sure he's still a top Libertarian blogger and will claim to be a Libertarian.

    C'mon man!

    ReplyDelete
  28. qqqqtraderMay 6, 2011 at 2:36 PM

    Weekly candle on silver looks naaasty!

    18's... 1350 resistance held, feeling next week may see more down, some of my indicators are STILL pointing to 1314ish.

    ReplyDelete
  29. qqqqtraderMay 6, 2011 at 2:45 PM

    @AR
    Looking at your gold/silver ratio chart above, the whole chart has somewhat little candles, except for the last one.. Since the last candle is so huge, will it affect the accuracy of your signals in weeks to come? Just wondering.

    ReplyDelete
  30. ben22May 6, 2011 at 3:00 PM

    @Ra,

    thanks for confirming what I thought I saw on the candles in SLV last night. Seems to me people are in denial about what is going on there. Markets enjoyable to observe today.

    think consumer credit is coming out now

    ReplyDelete
  31. AmenRaMay 6, 2011 at 3:01 PM

    qqqq

    It's a log chart so the candles are compared on a percentage basis. On a standard chart a candle may look large but on a log chart it's not really larger than any other candle.

    As for signals the 3LB uses price movements so if the price moves enough to reverse then so be it. I don't argue with it or try to contradict it. It is what it is.

    ReplyDelete
  32. AmenRaMay 6, 2011 at 3:03 PM

    Nonrevolving credit, like student and auto loans, increased 3%. Student loans accounted for all of the gains on the nonrevolving side.

    ReplyDelete
  33. 72batMay 6, 2011 at 3:30 PM

    student loans. more mal-investment? feh.

    ReplyDelete
  34. Wicked Witch of the WestMay 6, 2011 at 3:45 PM

    thanks for confirming what I thought I saw on the candles in SLV last night. Seems to me people are in denial about what is going on there

    yeah... PAPER is a pretty scary thing when you're a ROCK in a "paper, scissors, rock" duel...

    in the end... I doubt it means much...

    I'm guessing Bob Prechter has his bets on PAPER in the big fight...

    "How about a little fire... SCARECROW?"

    ReplyDelete
  35. ben22May 6, 2011 at 3:53 PM

    CV,

    You can keep describing intrinsic value all you want, I find the concept, especially with the metals, silly.

    and so you are aware, big players can take delivery from SLV any time they like, retail investors not so much.

    Also, the Prechter comments are a bit strange considering he was one of a handful of people screaming to buy silver at $5 and has never once told anyone to ever get rid of their physical metals, he's also mentioned numerous times he'd rather the dollar just go up in smoke, so I really don't "get" what you are trying to say there.

    ReplyDelete