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Intelligent money getting out - 2011 Starts With A Bang: $4.2 Billion In OUTFLOWS From Domestic Equity Funds

Posted by Aadil on January 12, 2011 at 10:30pm

"i sold the last stock i had today. i'm out until there's some sort of return to a legitimate market.  I got burned in the internet burst, savaged by the bank meltdown....now Bennie is trying to rape me.

Sorry dude. No go. Someone else can have the pleasure of praying for a greater fool to take their AAPL or AMZN stock.

been there, done that. not going back. buying gold. ....and silver.

and taking delivery....."

http://www.zerohedge.com/article/2011-starts-bang-42-billion-outflows-domestic-equity-funds

 

 

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The rally higher across the globe comes as the Baltic Dry Index has been plummeting since June 2010

Posted by Aadil on January 12, 2011 at 5:05pm
8118269894?profile=original. Here is the definition of the Baltic Dry Index according to Wikipedia: The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index tracks worldwide international shipping prices of various dry bulk cargoes. The index provides "an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a time-charter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain." How can the stock markets inflate around the world without the Baltic Dry Index rising? In June, the Baltic dry Index was trading around 4250.00. Yesterday, the Baltic Dry Index traded as low as 1480.00. Something is wrong with this picture, however, the stock markets continue to inflate. Enjoy the rally it while it lasts. It won't last forever.
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Inflate Until It Pops (NYSE:JJC) (NYSE:UGA) (NYSE:FCX)

Posted by Aadil on January 12, 2011 at 5:04pm
This morning the U.S. Dollar Index is trading sharply lower by 0.37 cents to $80.46. As we have all learned by now when the U.S. Dollar Index declines most commodities will inflate and trade higher. Over the past ten years a weaker U.S. Index has been the catalyst for multi year rallies. If you look at the 2003 – 2007 stock market rally it was the declining U.S. Dollar Index that helped to inflate the stock markets around the world at that time. The Federal Reserve Bank says that they are aiming for 2.0 percent inflation. Meanwhile, most leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is trading at a new 52 week high. The iPath Dow Jones UBS Copper Subindex Total Return ETN(NYSE:JJC) is trading just under its all time high that was made last week at $59.63. The United States Gasoline Fund (NYSE:UGA) is trading at a new 52 week high this morning. Coffee, cotton, and other soft commodities remain at 52 week highs. Leading growth countries such as China, Brazil, and India, are complaining about inflation by having to raise interest rates yet the Federal reserve does not see inflation. There were food riots taking place in Algeria, and various other countries around the world over high food prices last week yet the Federal Reserve says there is no inflation. When is the Fed going to look at the real world and not at the reports that exclude food and energy? Perhaps never. The major stock market indexes around the world have all rallied back sharply over the past 22 months when the stock market indexes made their March 2009 low. The rally higher across the globe comes as the Baltic Dry Index has been plummeting since June 2010. Here is the definition of the Baltic Dry Index according to Wikipedia: The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index tracks worldwide international shipping prices of various dry bulk cargoes. The index provides "an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a time-charter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain." How can the stock markets inflate around the world without the Baltic Dry Index rising? In June, the Baltic dry Index was trading around 4250.00. Yesterday, the Baltic Dry Index traded as low as 1480.00. Something is wrong with this picture, however, the stock markets continue to inflate. Enjoy the rally it while it lasts. It won't last forever. Nicholas Santiago www.InTheMoneyStocks.com The Leader In Market Technical Guidance
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Freshly Squeezed Part2:Gold,Silver and WTI US Crude Charts and Technical Outlooks.

Posted by Scrat on January 12, 2011 at 7:18am

Crude_Oil_Reaches_New_26-Month_High_on_Supply_Issues_Gold_Continues_to_Rebound_off_Technical_Support_body_01122011_GLD.pngCrude_Oil_Reaches_New_26-Month_High_on_Supply_Issues_Gold_Continues_to_Rebound_off_Technical_Support_body_01122011_SLV.pngCrude_Oil_Reaches_New_26-Month_High_on_Supply_Issues_Gold_Continues_to_Rebound_off_Technical_Support_body_01122011_OIL.pngGold Continues to Rebound off Technical Support

 

Commentary: Gold rose modestly for a second day, adding $5.85, or 0.43%, to settle at $1381.53. Like on Monday, the U.S. Dollar fell slightly, and that seemed to be the catalyst for the day’s trading. Prices have also gotten a boost from technical buying after support near $1361 held for multiple days. The themes we are following as they relate to gold price action are the following: 1) the prospect for interest rate hikes in developed economies and how they impact investor demand for gold and 2) investor demand for gold independent of an immediate tightening of monetary conditions (i.e. has investor demand for the metal reached a saturation point?)

Technical Outlook: Prices have mounted a shallow recovery from horizontal support at $1361.39, with the bulls targeting initial resistance at the $1400 figure. A break above this juncture exposes the triple top at $1424.60. Near-term support stands at a rising trend line set from late October, now at $1364.91.

 

Commentary: Silver settled at $29.52 on Monday after advancing $0.43, or 1.47%, an identical gain to that on Monday. ETF holdings continued to dip, however, declining by almost 1.2 million troy ounces to 480.5 million, over 7 million below the record level set in mid-December.

Silver:

The gold/silver ratio fell to 46.6, but remains above the four-year low near 46 set last month. (The gold/silver ratio measures the relative value/performance of the two precious metals. A higher ratio indicates gold outperformance, while a lower ratio indicates silver outperformance)

Technical Outlook: Prices are drifting higher having after bearish momentum stalled ahead of support at $28.05, the 23.6% Fibonacci retracement of the 8/24/10-1/3/11 rally. The bulls initially target support-turned-resistance at the bottom of a bearish Rising Wedge formation set from early November, now at $30.25, that was broken last week.The 23.6% level remains as near-term support.

Crude Oil Reaches New 26-Month High on Supply Issues

 

Commentary: Crude oil rallied strongly for a second day on Tuesday due to the same factors that influenced trading in the day before. WTI added $1.86, or 2.08%, to settle at $91.11, while Brent advanced $1.91, or 2%, to settle at $97.61, a new 26-month high. Production in Alaska still remains shut-in due to a pipeline leak, but the latest news is that flows may be soon restarted (at least temporarily) to prevent freezing in the line. In any event, this whole event will may lead to several million barrels of lost production, but will likely have no major, lasting impact. There is always the risk that production stays offline longer than expected though, so until the situation is completely resolved, oil may stay well-bid. Incidentally, there was a temporary outage at a Gulf of Mexico production platform operated by Chevron on Tuesday, but production there was quickly restored.

 

In the bigger picture, crude oil continues to benefit from robust growth in the global economy and uncertainty with regard to non-OPEC supply. As long as OPEC keeps production restrained as it has been doing, prices will be responsive to these supply disruptions. Nevertheless, at nearly $98, the price has already accounted for many of these bullish factors. The commodity may have difficulty moving into the triple digits until there is more clarity on the outlook for this year’s supply and demand balances.

 

Tomorrow will bring the DOE report on U.S. petroleum inventories. The API report which is released a day ahead was decidedly bearish, with the industry source reporting a 50K build in crude stocks, a 7 million barrel build in crude stocks, and a 1.6 million barrel build in distillate stocks.

Technical Outlook: Prices have rebounded above resistance at $89.63, the 23.6% Fibonacci retracement of the 11/17/10-1/3/11 rally. From here, the bulls target a retest of January’s swing top at $92.58, a level reinforced by support-turned-resistance at rising trend line set from the swing bottom in November. The 23.6% Fib has been recast as near-term support.

By Ilya Spivak, Currency Strategist  and  Sumit Roy,12 January 2011 04:51 GMT

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