Friday, April 8, 2011
HUI at an all time high
Gold and silver shares are moving strongly higher at noon EDT. Based on what I have been seeing this past week, it appears that the ratio spread trades which have kept so much pressure on this sector for the last two years are finally coming off.
I have long suggested that if the hedgies wish to play the spread trade game with the mining shares, use them as the long leg of their spread against a short against the broader market. That would have been a far more profitable trade than plying shorts against the mining shares when the primary trend in the precious metals is higher.
We'll see if they remain stubbornly wedded to this trade or continue further unwinding and attempt a new and more profitable strategy.
I have long suggested that if the hedgies wish to play the spread trade game with the mining shares, use them as the long leg of their spread against a short against the broader market. That would have been a far more profitable trade than plying shorts against the mining shares when the primary trend in the precious metals is higher.
We'll see if they remain stubbornly wedded to this trade or continue further unwinding and attempt a new and more profitable strategy.
Silver continuing to hold above $40 at noon EDT.
Silver punched through $40 overnight in Asian trade and held its gains going into London and into New York. That is quite remarkable given the fact that runs toward round numbers can engender profit taking as price targets are reached. If it holds its gains above $40, it could begin accelerating towards $50 relatively quickly. I will want to see how it fares as it nears the close of pit session trading.
Trader Dan predicts UConn to win the NCAA tournament
Yes, I know what you are thinking - how does he do it? What kind of uncanny abilities does he possess to predict after the fact such a victory? Along that same line, check out the following headline:
Please note - I have no problems with firms making FOREcasts. But that is the point - it is a FOREcast, not an AFTERcast. Anyone could tell you that the average price for the year is going to be higher, AFTER the fact.
Where were these firms a year ago when investors could have actually profited if they had made a FORECAST back then.
The article goes on to state that MS predicts an average price of $31.39 for 2011. Is that gutsy or what?
DJ MARKET TALK: Morgan Stanley Ups Silver 2011 Forecast By 20%
Fri Apr 08 11:31:58 2011 EDT
Please note - I have no problems with firms making FOREcasts. But that is the point - it is a FOREcast, not an AFTERcast. Anyone could tell you that the average price for the year is going to be higher, AFTER the fact.
Where were these firms a year ago when investors could have actually profited if they had made a FORECAST back then.
The article goes on to state that MS predicts an average price of $31.39 for 2011. Is that gutsy or what?
DJ MARKET TALK: Morgan Stanley Ups Silver 2011 Forecast By 20%
Fri Apr 08 11:31:58 2011 EDT
Article headline courtesy of Dow Jones Newswire.
Thursday, April 7, 2011
Gasoline sets yet another fresh 33 month high
The chart speaks for itself.
Consider that this reflects the cost of transportation for all goods and products to their final destination. Just imagine what Fed-Ex, UPS, DHL and the railroads and airlines are now dealing with....
The chart for heating oil (closest approximation to jet fuel) looks basically the same.
Don't worry though, the President just tells us to forget about all this and get rid of our vans and SUV's and drive one of those rubber-band driven, oversized go-karts.
Consider that this reflects the cost of transportation for all goods and products to their final destination. Just imagine what Fed-Ex, UPS, DHL and the railroads and airlines are now dealing with....
The chart for heating oil (closest approximation to jet fuel) looks basically the same.
Don't worry though, the President just tells us to forget about all this and get rid of our vans and SUV's and drive one of those rubber-band driven, oversized go-karts.
Subscribe to:
Posts (Atom)