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A downgrade would be the straw that broke that camel’s back. Fiscal and monetary policies in the U.S. do not support the dollar and the only reason why the dollar has rallied at all is because of its safe haven status.
“It’s essential to own it, basically the West is so deep in debt across the western world that it can’t possibly grow at more than very modest rates. Central banks, to try to stimulate growth, are printing paper money into oblivion, and we’ve simply got to hedge that risk by owning gold.”
“If you adjust the old all-time high in gold...if you use the RPI, you come up with a figure near $8,500 as the genuine price for gold, the old all-time high adjusted for inflation. I think we have to own it. Obviously it won’t go there in a straight line, it gets a little overbought and has setbacks, but I think it will probably hit $1,750 on this run. Then it might well have a three month period going sideways before moving up again. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/27_Robin_Griffiths_-_We_Will_See_at_Least_$8,500_Gold.html
Bank of America Corporation (NYSE:BAC) has the chart and trading history to be a big mover on any deal. The daily chart shows a beautiful bullish consolidation pattern here at $9.80. The stock bottomed recently and ever since has been one of the strongest in the market. This retrace gives buyers a second chance to catch this lightning in a bottle.
The bank stocks have all been under pressure over the last six months. However, recently they have outperformed. This tells smart Wall Street players that the financial plays are the place to be when a debt ceiling extension is completed. Other great plays would also be Morgan Stanley (NYSE:MS), Goldman Sachs Group, Inc. (NYSE:GS) and Wells Fargo & Company (NYSE:WFC). Take the seven day free trial of the Research Center to get the exact entry and exits of the hedge funds. Learn all the keys that the average investor does not know. Join now.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
For those of you that may doubt the control the stock market has over the government, just remember in late 2008 when TARP was originally voted on by the politicians. It failed to pass and the markets collapsed. The politicians, feeling the heat from their massive blunder, voted again and passed TARP. This is the same thing that is going on now. The government is playing chicken with the markets and ultimately the stock market will win. A deal will be done.
The markets continue to trade lower, however, off their lows. Amazon.com, Inc. (NASDAQ:AMZN) reported great earnings last night but that good news was not nearly enough to keep the Nasdaq from falling close to 2% at the lows. Everything from Chevron Corporation (NYSE:CVX) to Apple Inc. (NASDAQ:AAPL) are getting pounded. The government will act soon. Just watch. Take the seven day free trial to the Research Centerand be in the elite hedge fund group. Get the trades as the institutions get them. Profit with the pros.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Traders are some of the smartest people around. For example, most good experienced traders can tell when the markets are setting up to rally or break down. It still amazes me how traders do not run the world, it would be a much better place. Right now, traders are looking for a debt deal to get done, if they were not these markets would be tanking lower. So we should expect a deal of some sort to get done very soon. The big question that we must ask is, will the debt deal be a sell the news event? This is very possible after a short term rally or bounce. How many times do we see a stock surge higher after an earnings report or positive news only to come back down to earth in the next few trading days. This happens very often when everyone is expecting the good news. Right now, there are so many traders and investors expecting a debt ceiling increase that the move could be short lived. Just think about it, how could raising the debt ceiling be good for the economy? When is debt accumulation no longer a positive for the stock market? These will be the next set of questions that will be asked by traders and investors after this debt deal is settled.
Traders should simply expect more volatility over the next few weeks. No one really knows how long a debt ceiling bounce will last. What we do know is, the more people that expect a massive rally to take place after the debt ceiling announcement the more crowded and short term that rally might be.
Traders should also take note of the weakness in many of the leading steel stocks today. Stocks such as U.S. Steel Corp.(NYSE:X), AK Steel Holdings Corp.(NYSE:AKS), and Nucor Corp.(NYSE:NUE) are getting crushed today. This is not a good sign for a strong economic outlook. These stocks are not holding up at all compared to the major stock indexes. Don't expect the debt ceiling deal rally to last too long.
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From RanSquawk: Market talk that a US debt ceiling agreement may have been reached; unconfirmed
From RanSquawk: Market talk that a US debt ceiling agreement may have been reached; unconfirmed
From RanSquawk: Market talk that a US debt ceiling agreement may have been reached; unconfirmed
From RanSquawk: Market talk that a US debt ceiling agreement may have been reached; unconfirmed
MARC FABER: The Debt Fight Is Meaningless, As Governments Continue Their March Toward Hyperinflation
Read more: http://www.businessinsider.com/marc-faber-debt-ceiling-hyperinflation-2011-7#ixzz1TIW9Rz21
Bookmaker Spreadex is in line to receive a share in a Bahraini palace part-owned by royal family member Sheikh Hamad Al Khalifa after he racked up a quarter of a million pounds in gambling debts.
Spreadex moved to take a share in the palace through a ‘charging order’ granted by UK and Bahraini courts to the bookmaker, which is claiming £240,272.26.