10:30AM: I'M CONFUSED!!! Some thing NEW, hahahaha, sigh, ANYWAY, the STOCK TRADER's ALMANAC says so goes the first week of January, so goes the MONTH of January, THEREFORE, there goes the entire stinking YEAR!!!! My question is, if we close under the OPEN of the year, did we go UP this WEEK????!!!! If we close the YEAR, LOWER, than where it opened up, would you say we were HIGHER on the YEAR????!!!
ANYWAY, it seems like a pretty stinking lousy fricking market if you ask me, when all the GAINS were in the first two hours of the YEAR!!!!!!!!!
By the way, in that same vein, I consider the market to be 1,284.60% OVER VALUED!!!!!!!!! How did I arrive at that unreal over valued metric?????? Welp, it, USED, to be, that, "INVESTORS", found value in markets when the P/E on the S and P 500 hit 10 and the dividend yield was also 10, as in 10%, HOWEVER, in this age of the NEW paradigm, as evidenced by the NEW "investor" class finding value when the P/E hit just over 180 at the March 09' quote, "BOTTOM", that with the current FORWARD P/E sitting around 13, in order to get to the "VALUE" area of a P/E of 180, the market is OBVIOUSLY 1,284.60% OVER VALUED!!! It's really simple when you think about it.
9:30AM: GEEZE, WHAT THE HELL ARE YOU PEOPLE DOING?????!!!! YOU JUST TRIED TO TAKE THE ENTIRE YEAR'S GAINS IN THE FINANCIAL SECTOR OUT THIS MORNING!!!!! GET YOUR FRICKING ACT TOGETHER PEOPLE, AND DO WHAT YOU ARE SUPPOSED TO DO, BUY THIS SHIT!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The run up in spot gold at the end of last year and the failure to reach the previous high of $1431 achieved on December 7th provided a warning that a corrective period was likely as we entered 2011. The performance of precious metals during 2010 was one of the stand out investment themes and I remain firm in my view that gold and silver are still in fundamentally bullish phases.
A correction back to the $1270 area on gold - as illustrated by the dotted trend line through the lows - would not be unsurprising, although as fears about incipient inflation in emerging markets, especially India and south east Asia, are mounting, the metal may continue to show resilience after a shake out of the late to the party momentum players has run its course.
The analysis provided yesterday of the critical importance of the $1.3075 area on EUR/USD turned out to be timely and once the level was broken trading the short side produced some relatively easy profits all the way down to the $1.30 level where a predictable bounce occurred.
In overnight trading the euro went exactly to test the $1.2970 level as anticipated here yesterday and currently is still in this vicinity. I have gone flat for the next few hours and will re-examine trading options based on price behavior after the NFP data is released.
Breaking below the $1.29 level would be a trap door to lower prices and the news flow regarding the EU’s proposed haircuts for senior bondholders - which means basically the large European banks - will continue to unsettle the sovereign bond markets within Europe. CDS spreads are blowing out for all of the usual suspects including Belgium which has effectively been without a government for several months. Spain and Portugal continue to deteriorate and the Irish CDS rates are suggesting that increasingly traders are discounting more than a haircut and more likely some form of re-structuring or default.
As discussed here previously the key territory to watch in coming weeks is Spain and if the situation there accelerates to the downside things will become ugly for the EZ.
Read More: http://tradewithform.blogspot.com/
