March 6, 2012

EMERGING MARKETS: TOO FAR TOO FAST

Emerging markets have staged a rip roaring rally in 2012. The rally has come too far too fast.

Nothing fundamental has changed, it is just that in 2011 emerging markets were beaten down more than what could be justified based on fundamentals. From a technical perspective, such sharp rallies are simply corrective of the oversold condition and are usually not sustained.

Probability is high for a pull back and consolidation.

Wen Jibao, Prime Minister of China, has just lowered GDP growth target to 7.5%. This is the first target that is less than 8% since 2004.This… Please click here or the title below to read more.

March 6, 2012

BIGGEST PROBLEM FOR GOLD AND SILVER: DOOMSDAY NEVER COMES

The number-one problem for gold and silver investors is that the world does not end very often.

You must understand that unlike stocks, bonds and forex markets, gold and silver markets are not very deep. In plain English, this means that typically at any one time there are not enough buyers and sellers ready to step in with a large size without a big change in price. This is typically not the case with large cap stocks, Treasury bonds and major currencies.

The price of gold and silver is moved by the marginal buyers and sellers at the fringe.

Traditional wisdom is that gold and silver are a hedge against global instability and inflation.… Please click here or the title below to read more.

March 6, 2012

TAKING PARTIAL PROFITS ON GOLD (GLD)

Consider taking partial profits on a 5% tranche right here at $162.24. This will leave 20% of full core position size as short.… Please click here or the title below to read more.

March 6, 2012