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Getting Over Three-Mile Island 33 Years Later

February 10, 2012

A new nuclear power plant has just been approved for the first time since 1978. After the conclusion of the Nuclear Regulatory Commission’s (NRC) hearing on Southern Nuclear Operating Company’s (SNC) application for two Combined Licenses (COL) at the Vogtle site in Georgia, the NRC ruled that the staff’s review was adequate to make the necessary regulatory safety and environmental findings. This has cleared the way for the NRC’s Office of New Reactors to issue the COLs. SNC is owned by Southern Company (SO). According to a statement issued by the NRC, ‘œThe NRC’s Advisory Committee on Reactor Safeguards

GOLD AND SILVER INSANITY CONTINUES

February 9, 2012

As we have been describing, gold and silver lately have run up on good news and run down on bad news. This morning gold ran up on the good news that Greek agreement had been reached. When the news crossed the wires that Troika had concerns about the agreement, which is bad news, gold and silver promptly fell. Almost anyone who is a serious investor would have known that there would be a follow-up statement on newswires relating to Greek agreement especially from Germany. The point is there was no surprise in the morning news as Greek agreement was expected,

Rare Earth Stocks Set to Fall

February 9, 2012

The breaking news is that the Japanese Ministry of Economy is planning to cut dysprosium demand by over 30%. Dysprosium is a rare earth element. This is a negative for Rare Element Resources Ltd. (REE) as it reduces demand. Rare Element is a miner of rare earths. Rare earths is a misnomer as these minerals are plentiful in nature. Dysprosium is used in making hard disks, lasers, advanced lighting, nuclear reactor control rods, dosimeters, Terfenol-D, and transducers. Last year, rare earth stocks such as Rare Elements, Molycorp (MCP) and Avalon Rare Materials (AVL) had run up in an emotional frenzy.

ADDING TO GOLD (GLD) ON GREEK DEAL

February 9, 2012

Gold (GLD) is running up on the good news that Greek deal is done. Adding a 5% tranche to GLD at $170.05.

ANOTHER ADD TO GOLD (GLD)

February 7, 2012

Consider another add to GLD right here at $169.85. Those not in GLD may initiate a very small position here. Significantly more information is provided in Real Time to paying subscribers of The Arora Report.

ADDING TO GOLD (GLD) ON FED STATEMENT

February 7, 2012

Adding a 5% tranche to GLD at$168.92. Fed Chairman Ben Bernanke says Fed won’t seek higher inflation to boost jobs in the Senate hearing. This is consistent with last Fed statement after the FOMC meeting. Of course, this statement will not change the behavior of mom and pop momo crowd because they dismiss any and all data that does not conform to their view that the world is going to hell in a handbasket. Therefore caution is warranted by building the position slowly Significantly more information is provided in Real Time to paying subscribers of The Arora

JOBS DATA SHOWS MOMO CROWD RUNS GOLD

February 6, 2012

The U.S. Department of Labor just reported employment numbers for January. This number is known as ‘œmother of all numbers.’ January nonfarm private payrolls increased by 257,000 vs. 168,000 consensus. There are several components to this number, but our models focus on nonfarm private payrolls. The number was a blowout on the positive side. This means the U.S. economy is improving strongly, and makes it highly unlikely for QE3 to occur this quarter. By any rational school of thought and analysis, this is a negative development for gold and silver. So what do gold and silver do? They immediately jump

A POINTER FOR INTERNATIONAL SUBSCRIBERS REGARDING GOLD AND SILVER

February 3, 2012

We often trade gold ETF GLD and silver ETF SLV. These ETFs are not available in some international markets. However, different gold and silver ETFs are available in most markets. Please consider ETFs that trade in your market with the following two characteristics: the highest volume ETF and the smallest spread between bid and ask. Full size futures contracts are suitable only for large accounts. The reason behind this is our methodology to scale in and scale out. Some markets, including the United States have mini or micro futures contracts available. Usually these contracts exhibit wide bid ask spreads. However