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Not Bad, I guess......
Sadly this day panned out just the way I thought it would. Gold was trading around $998, when one single trade posted at $1000. This was not a "real" trade but rather some eager beaver who posted the trade electronically so he could be the guy who said he was the first to trade gold at $1000. After the trade was done, gold went down a few bucks but then made a REAL assault on $1000, eventually hitting $1001 before backing off.
Now, the part that I thought would happen ,happened. After gold hit $1001, it immediately got taken down a few dollars, and before you knew it, gold was $8 off the highs, before closing around $995.
Oil at one point today crossed the $111 mark as once again the dollar was extremely weak. The dollar, right now, is basically in free fall. The Yen went below par for the first time in twelve years. The Euro hit an all time high. I would look for some intervention sooner than later.
Retail sales absolutely sucked and this, coupled along with a weak dollar and higher oil, had the stock market swooning. Then out of nowhere, the market staged a remarkable comeback and at one point swung some 300 points, from being down 200 to up 100. Now the reason, for this swing is two fold: First, S+P came out and said they said the write downs in housing coming to an end. Now saying they never saw the beginning or the middle of the problem how they can see the end is beyond me. Also, these are the same people who mis-rated trillions of dollars in bonds and mortgages. So trust them at your own risk.
Second, and this is the reason I believe caused the rally, Congressman Barney Frank, officially introduced legislation that would allow the banks to bail out bad loans and have the FHA pick up the crappy paper. Yet another bailout, however, the market will find this to be THE bailout. IMO, this is something the future generation(s) will paying for.
The gold stocks were strong all day, and what I really liked seeing was the fact that the junior stocks were running very nicely. Hopefully that portends more good things happening in the future. You know as well as I do, all roads.........
Now, the part that I thought would happen ,happened. After gold hit $1001, it immediately got taken down a few dollars, and before you knew it, gold was $8 off the highs, before closing around $995.
Oil at one point today crossed the $111 mark as once again the dollar was extremely weak. The dollar, right now, is basically in free fall. The Yen went below par for the first time in twelve years. The Euro hit an all time high. I would look for some intervention sooner than later.
Retail sales absolutely sucked and this, coupled along with a weak dollar and higher oil, had the stock market swooning. Then out of nowhere, the market staged a remarkable comeback and at one point swung some 300 points, from being down 200 to up 100. Now the reason, for this swing is two fold: First, S+P came out and said they said the write downs in housing coming to an end. Now saying they never saw the beginning or the middle of the problem how they can see the end is beyond me. Also, these are the same people who mis-rated trillions of dollars in bonds and mortgages. So trust them at your own risk.
Second, and this is the reason I believe caused the rally, Congressman Barney Frank, officially introduced legislation that would allow the banks to bail out bad loans and have the FHA pick up the crappy paper. Yet another bailout, however, the market will find this to be THE bailout. IMO, this is something the future generation(s) will paying for.
The gold stocks were strong all day, and what I really liked seeing was the fact that the junior stocks were running very nicely. Hopefully that portends more good things happening in the future. You know as well as I do, all roads.........
posted by Neal | 7:43 PM
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