Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Silent who wrote (76287)	7/12/2011 10:34:37 AM
From: TobagoJack	Read Replies (2) \| Respond to of 217736

just in in-tray acting man updates: 1. Stocks and Precious Metals The US unemployment report published last Friday was an unmitigated disaster. As such, it further cements our conviction that the last credit boom has created enormous structural damage. Not even the temporary illusory recovery effect one usually gets from monetary pumping and deficit spending can be produced any longer. On the contrary, by significantly arresting the liquidation of malinvested capital, the Federal Reserve has ensured that the economic situation has become even worse. A sustainable recovery is as out of reach as ever. The stock market was comparatively unimpressed by the jobs disaster, but subsequently got waylaid by the euro-land crisis. Still, if our proposed wave count is correct, there should be one more leg up to retest the high (although there is of course no guarantee of that). Gold has behaved exactly as it should in such situations, by going up. Interestingly, in spite of the fact that gold is at a new all time high in euro terms and within spitting distance of a new all time high in USD terms, sentiment on gold is now at its most bearish level in several years. It doesn't matter which sentiment measure one looks at: positioning in futures and options, surveys, cash flows into precious metals funds, the HGNSI - all are at levels that haven't been seen in a very long time. acting-man.com 2. Buon Giorno, Ecatombe Italy has now become the European catastrophe du jour - its bond and stock markets are in free-fall. Bond yields have spiked to 10 year highs and the already extremely weak banking sector is getting smashed to bits day after day. While Rome burns, the eurocrats are fiddling. Unable to speak with one voice and seemingly unconcerned about the fact that contagion is now more pronounced than ever, the only reaction from the eurocrats consists of a few words of admonishment in Berlusconi's general direction and vapid assurances that everything is well in hand. Evidently, the markets no longer believe one word they say. Both Italy and Spain are simply too big to bail, and there is probably no longer the political will to even try. Peripheral bond markets continue to crash as well, with Portugal's and Ireland's yields in a mad-cap race to catch up with those of bankrupt Greece. As we have mentioned recently, the ECB's timing of rate hikes almost always stinks, and this time was no exception. Gory charts included. acting-man.com