August 10, 2012

WEEKLY MARKET DIGEST: STIMULUS ADDICTS WAKE UP AND SMELL MORE BAD DATA FROM CHINA

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)

STIMULUS ADDICTS WAKE UP AND SMELL MORE BAD DATA FROM CHINA

August 10, 2012

There is more bad data from China. Exports rose 1% in July, down from 11.3% in June.

Imports were up 4.7% in July dipping from June’s 6.3%.

Stimulus addicts have been running up markets on every piece of bad data from China contending that bad data increases the changes for stimulus.

Finally, it appears that some addicts are returning to soberness today, at some point bad data is bad data.… Please click here or the title below to read more.

August 10, 2012

EXTREMELY AGGRESSIVE BUYING SEEN IN GOLD

This post was just published on ZYX Buy Change Alert

As of this writing extremely aggressive buying is seen in gold. Dollar is weakening but not enough to justify the move in gold. The reason appears to be a rumor from Europe. If there is any credibility to the rumor, we will be back.

Gold futures have moved up to $1624. In addition to usual momo crowd, light buying is also seen by Smart Money.

As a reference to the table provided yesterday, Smart Money has been a net buyer of $2.78 million of GLD today as of this writing.… Please click here or the title below to read more.

August 10, 2012

IGNORE ‘FISCAL CLIFF’ AT YOUR OWN PERIL

The markets are in a party mode and have forgotten the approaching dark cloud of the “fiscal cliff.”

The fiscal cliff refers to the expiration of Bush tax cuts and simultaneous significant reduction in government spending in the United States at the end of the year.

The Congressional Budget Office (CBO) has estimated budget reductions in 2013 as shown in the chart.

Various estimates of the impact of the fiscal cliff on the GDP range from a reduction of 3% to 4.5% in 2013. The American economy is growing in the range of 1.5% to 2%. If the fiscal cliff were to materialize, the GDP may shrink by as much as 3%.… Please click here or the title below to read more.

August 10, 2012