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Metal$ are in the pits
Trader blows whistle on gold & silver price manipulation
By MICHAEL GRAY
Last Updated: 4:33 AM, April 11, 2010
EXCLUSIVE
There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.
Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.
APBrokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
AP
Brokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
Maguire -- in an exclusive interview with The Post -- explained JPMorgan's role in the metals pits in both London and here, and how they can generate a profit either way the market moves.
"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer," Maguire said.
In the gold pits, Maguire sees HSBC betting against the precious metal's price without having any skin in the game in the form of a naked short.
"HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size," Maguire added.
"No one at JPMorgan is familiar with Andrew Maguire," said Brian Marchiony, a company spokesman. HSBC declined to comment.
Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.
Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal.
The remaining requests would have to be settled for cash equivalent. "That is tantamount to a default on the trade," says Bill Murphy, chairman of the Gold Antitrust Action committee.
Maguire goes further and calls it a fraud: "If you sell something you do not own, then that is fraud."
Back in 2007, Morgan Stanley agreed to settle a $4.4-million lawsuit brought by precious-metal clients, who alleged that Morgan offered to buy gold and silver and store it for the investors, but never purchased any metal and still charged them storage fees.
Morgan Stanley denied the charges at the time, but "settled the case to avoid the cost and distractions of continued litigation," the firm said.
Despite gold's rise each of the last 10 years, Murphy believes the price of gold today would be closer to $2,300 an ounce if the price just moved with inflation.
Maguire believes the price should be even higher given the fear trade that would have sent prices spiking during the financial crisis in 2008-09.
Both precious metals have seen a recent spike since Maguire's e-mails became public. Gold has gained 6.5 percent to close at $1,161.55, while silver has spiked 10 percent to $18.38.
APBrokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
AP
Brokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
According to the e-mails Maguire sent to CFTC regulators, he was spot-on in his expectations of how the precious metals would trade on release of the January jobs report.
This message is to "confirm that the silver manipulation was a great success and played out exactly to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview," Maguire wrote to a staff investigator after the trading day.
CFTC commissioner Bart Chilton said, "I'm appreciative of the information Mr. Maguire provided and I'm glad it was introduced into the investigation."
High, low silver
The prices of gold and silver have been allegedly suppressed by JPMorgan Chase and HSBC, according to a London whistleblower.
Andrew Maguire, who laid out the banks’ plan in e-mails to the CFTC prior to trading on the Comex on Feb. 5.
1.) From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]
Sent: Wednesday, February 03, 2010 3:18 PM
Subject: Re: Silver today
Thought it may be helpful to your investigation if I gave you the heads up for a manipulative event signaled for Friday, 5th Feb. Scenario 1. The news is bad (employment is worse). This will have a bullish effect on gold and silver as the US dollar weakens and the precious metals draw bids, spiking them higher. This will be sold into within a very short time (1-5 mins) with thousands of new short contracts being added.
Scenario 2. The news is good (employment is better than expected). This will result in a massive short position being instigated almost immediately with no move up. This will not initially be liquidation of long positions but will result in stops being triggered, again targeting key support levels. Kind regards,
2.) From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]; GGensler [CFTC]
Sent: Friday, February 05, 2010 3:37 PM
Subject: Fw: Silver today A final e-mail to confirm that the silver manipulation was a great success and played out EXACTLY to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview? Kind regards,
3.) Andrew T. Maguire
From: Ramirez, Eliud
To: Andrew Maguire
Sent: Tuesday, February 09, 2010 1:29 PM
Subject: RE: Silver today Good afternoon, Mr. Maguire, I have received and reviewed your email communications. Thank you so very much for your observations.
Metal$ are in the pits
Trader blows whistle on gold & silver price manipulation
By MICHAEL GRAY
Last Updated: 4:33 AM, April 11, 2010
EXCLUSIVE
There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.
Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.
APBrokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
AP
Brokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
Maguire -- in an exclusive interview with The Post -- explained JPMorgan's role in the metals pits in both London and here, and how they can generate a profit either way the market moves.
"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer," Maguire said.
In the gold pits, Maguire sees HSBC betting against the precious metal's price without having any skin in the game in the form of a naked short.
"HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size," Maguire added.
"No one at JPMorgan is familiar with Andrew Maguire," said Brian Marchiony, a company spokesman. HSBC declined to comment.
Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.
Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal.
The remaining requests would have to be settled for cash equivalent. "That is tantamount to a default on the trade," says Bill Murphy, chairman of the Gold Antitrust Action committee.
Maguire goes further and calls it a fraud: "If you sell something you do not own, then that is fraud."
Back in 2007, Morgan Stanley agreed to settle a $4.4-million lawsuit brought by precious-metal clients, who alleged that Morgan offered to buy gold and silver and store it for the investors, but never purchased any metal and still charged them storage fees.
Morgan Stanley denied the charges at the time, but "settled the case to avoid the cost and distractions of continued litigation," the firm said.
Despite gold's rise each of the last 10 years, Murphy believes the price of gold today would be closer to $2,300 an ounce if the price just moved with inflation.
Maguire believes the price should be even higher given the fear trade that would have sent prices spiking during the financial crisis in 2008-09.
Both precious metals have seen a recent spike since Maguire's e-mails became public. Gold has gained 6.5 percent to close at $1,161.55, while silver has spiked 10 percent to $18.38.
APBrokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
AP
Brokers and traders transact gold futures on the Comex floor of The New York Mercantile Exchange, Thursday, April 6, 2006. Gold prices topped $600 an ounce in Comex trading Thursday. (AP Photo/John Marshall Mantel)
According to the e-mails Maguire sent to CFTC regulators, he was spot-on in his expectations of how the precious metals would trade on release of the January jobs report.
This message is to "confirm that the silver manipulation was a great success and played out exactly to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview," Maguire wrote to a staff investigator after the trading day.
CFTC commissioner Bart Chilton said, "I'm appreciative of the information Mr. Maguire provided and I'm glad it was introduced into the investigation."
High, low silver
The prices of gold and silver have been allegedly suppressed by JPMorgan Chase and HSBC, according to a London whistleblower.
Andrew Maguire, who laid out the banks’ plan in e-mails to the CFTC prior to trading on the Comex on Feb. 5.
1.) From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]
Sent: Wednesday, February 03, 2010 3:18 PM
Subject: Re: Silver today
Thought it may be helpful to your investigation if I gave you the heads up for a manipulative event signaled for Friday, 5th Feb. Scenario 1. The news is bad (employment is worse). This will have a bullish effect on gold and silver as the US dollar weakens and the precious metals draw bids, spiking them higher. This will be sold into within a very short time (1-5 mins) with thousands of new short contracts being added.
Scenario 2. The news is good (employment is better than expected). This will result in a massive short position being instigated almost immediately with no move up. This will not initially be liquidation of long positions but will result in stops being triggered, again targeting key support levels. Kind regards,
2.) From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]; GGensler [CFTC]
Sent: Friday, February 05, 2010 3:37 PM
Subject: Fw: Silver today A final e-mail to confirm that the silver manipulation was a great success and played out EXACTLY to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview? Kind regards,
3.) Andrew T. Maguire
From: Ramirez, Eliud
To: Andrew Maguire
Sent: Tuesday, February 09, 2010 1:29 PM
Subject: RE: Silver today Good afternoon, Mr. Maguire, I have received and reviewed your email communications. Thank you so very much for your observations.
I wonder why they chose that particular share structure
RCCH did put something on their website:
RCC Aggressively Seeks Damages
Wednesday, 17 February 2010
RCC has completed its review of potential legal candidates and has chosen a firm to aggressively investigate and seek damages for any and all improper actions against the company, including but not limited to defamation, improper interference with business relations and manipulation of its stock price. RCC will be seeking maximum penalties for the harm they have done.
**NEWS** CYPW
POMPANO BEACH, FL, Feb. 23, 2010. Cyclone Power Technologies Inc. (Pink Sheets: CYPW) and its licensee Phoenix Power Group LLC (PPG) announced today that Clean Burn Inc., the world leader in waste oil furnaces and boilers, has joined the team to help develop and market the first commercial electric generator system running on waste oil.
The Phoenix waste energy recovery system will be powered by Cyclone's heat-regenerative, external combustion engine. An initial system based on the Cyclone Mark V engine is expected to produce approximately 30-55kW of grid-tied electricity from the clean combustion of used oil, a renewable fuel source. The team anticipates bringing beta versions of these environmentally beneficial products to businesses like oil change shops, transport fleet operators, airports and railroad yards later this year.
Clean Burn will be providing engineering expertise to the project in the areas of waste oil delivery and filtration, combustion systems, UL testing and emissions standards. Additionally, through its extensive network of distributors in North America, Clean Burn will be the primary sales and marketing arm for the waste energy power units.
"Our initial discussions with our distributors and customers have been overwhelmingly positive," stated Clean Burn President, Morris Mantey. "There is a great need to dispose of waste oil in an environmentally sound manner, year-round, in all climates and areas of the country. With the Phoenix-Cyclone system, we can help our customers create a profit center from their waste oil."
Waste motor oil is a major source of contamination of waterways and can result in the toxic pollution of drinking water sources. According to the U.S. Environmental Protection Agency, waste oil from one oil change can contaminate 1 million gallons of fresh water, equivalent to a year's supply for 50 people. Additionally, the U.S. Department of Energy has estimated that the efficient recycling of wasted energy such as used oil over the next 20 years can help reduce our national dependence on petroleum imports, spark billions of dollars in private investments, and create up to one million jobs in the United States.
"We are thrilled to bring on board Clean Burn," stated PPG President Thomas V. Thillen. "Adding their unmatched knowledge in waste fuel combustion and their skilled sales force, we are confident in our team's ability to introduce, install and support our power generator system to customers nationwide."
Corporate Profile
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine - an eco-friendly external combustion engine with the power and versatility to run everything from portable electric generators and garden equipment to cars, trucks and locomotives. Invented by company founder and CEO Harry Schoell, the patented Cyclone Engine is a modern day steam engine, ingeniously designed to achieve high thermal efficiencies through a compact heat-regenerative process, and to run on virtually any fuel - including bio-diesels, syngas or solar - while emitting fewer greenhouse gases and irritating pollutants into the air. Currently in its late stages of development, the Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, and was presented with the Society of Automotive Engineers' AEI Tech Award in 2006 and 2008. Additionally, Cyclone was recently named Environmental Business of the Year by the Broward County Environmental Protection Department. For more information, visit www.cyclonepower.com.
Media Contact
will@wellonscommunications.com
Company Contact:
Frankie Fruge
954-943-8721
Frankie@cyclonepower.com
tom@phoenixpowergroup.com
www.phoenixpowergroup.com
Clean Burn Contact:
Morris Mantey, President
800-331-0183
www.cleanburn.com
Safe Harbor Statement
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
Regsho for Friday Feb 19th
http://regsho.finra.org/regsho-February.html
http://regsho.finra.org/FORFshvol20100219.txt
Date|Symbol|ShortVolume|TotalVolume|Market
20100219|RCCH|3680599|3680599|O
Does anyone have a Level II screen shot of this?
***NEWS*** CYPW
Raytheon Company Awards Work Order to Cyclone Power Technologies
2010-02-17 09:10 ET - News Release
POMPANO BEACH, Fla. -- (Business Wire)
Cyclone Power Technologies (Pink Sheets: CYPW) has received a new design work order for its heat-regenerative external combustion engine from Raytheon Integrated Defense Systems (IDS).
Pursuant to the work order, Cyclone will be developing preliminary designs, specifications and test parameters on a compact 10HP external combustion engine for use in various power applications. The proposed Cyclone engine would be designed to run on both traditional fuels and an environmentally friendly monopropellant called Moden Fuel, which can combust in the absence of oxygen.
“We see this new project a solid continuation of our working relationship, which we expect to culminate in a formal teaming agreement soon,” stated Harry Schoell, CEO of Cyclone. “We are pleased to be working with Raytheon on the development of some very important projects for the military, homeland security, undersea exploration and other similar industries.”
In October 2009, Cyclone completed its first-phase Independent Research and Development contract for Raytheon IDS, which involved performing certain load-based dynamometer tests on the Company’s Mark II Engine, and also running the engine on Moden Fuel. The results from these tests were reviewed and validated at the time by Raytheon IDS, a business of Raytheon Company.
CORPORATE PROFILE
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine – an eco-friendly external combustion engine with the power and versatility to run everything from portable electric generators and garden equipment to cars, trucks and locomotives. Invented by company founder and CEO Harry Schoell, the patented Cyclone Engine is a modern day steam engine, ingeniously designed to achieve high thermal efficiencies through a compact heat-regenerative process, and to run on virtually any fuel - including bio-diesels, syngas or solar - while emitting fewer greenhouse gases and irritating pollutants into the air. Currently in its late stages of development, the Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, and was presented with the Society of Automotive Engineers’ AEI Tech Award in 2006 and 2008. Additionally, Cyclone was recently named Environmental Business of the Year by the Broward County Environmental Protection Department. For more information, visit www.cyclonepower.com.
Safe Harbor Statement
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
Contacts:
Cyclone Power Technologies, Pompano Beach
Media Contact
Will Wellons, 407-462-2718
will@wellonscommunications.com
or
Company Contact:
Frankie Fruge, 954-943-8721
info@cyclonepower.com
Source: Cyclone Power Technologies
the way he has handled communication w/ shareholders is beyond pathetic!
If Gene Newton owns the entire float, then he really doesn't need to communicate to anyone else, does he?
my opinion of course
Also http://reachconstruction.com/en/index.html
same site
look at the bottom of this page:
http://www.rccchina.com/en/marketing.html
"Copyright Reach Construction Consulting Ltd 2007"
?
Is gold price set for crash below $1,000?
By David Lew
After the historic boom, is gold price climbing down to $1,000 per ounce, to confirm to the controversial prediction that noted economist Nouriel Roubini made some weeks back? It looks so as gold is going bearish, in the weight of economic nervousness coming from the two important countries that matter—United States and China.
Now, as gold sank to a three-week low on Friday across the global markets and commodity bourses, some bullion analysts warned that gold price could plunge below $1,000 per ounce if the talks on property bubbles from China and financial risk taking concerns in the US are going to intensify.
“Gold is on a bearish mood these days after the precious metal’s spectacular ascent to the record high of $1,227 per ounce in November last year. Gold price may not boom above $1,227 this year, if commodities get into a slump in 2010. A crash in gold price below $1,000 per ounce can not be ruled out,” said Mark Robinson, a bullion analyst based in Dubai.
According to Robinson, the main problem with gold is that “its price has been over-hyped by some bullion analysts and forecasters.” “It is funny to see so many gold predictions going around in the search engines on the Internet. Gold price is being predicted from $1,000 per ounce up to a whopping $5,000 and even $10,000 by analysts and investors ranging from Jim Rogers, Marc Faber and Nouriel Roubini to research assistants in small broking firms,” Robinson told Commodity Online.
While Robinson agrees that gold is the most valuable asset among commodities and the yellow metal is arguable the best investment asset class in the world, he points out: “But there is so much hype going on in the bullion market on gold price. The hype lacks basic fundamentals like gold mine supply, demand and possible emergence of other commodities like platinum, palladium and silver as equality challenging investments like gold.”
But, all said and done, what are the real reasons that are prompting investors and bullion traders to press the panic button on gold price?
There are three immediate reasons why gold price is plunging.
First, there is so much of paper gold traded in the world, without adequate physical supply to compensate for. According to Jim Sinclair, noted bullion investor and a great champion of physical gold, the emergence of paper gold is creating artificial demand and supply problems in the bullion markets and commodity exchanges.
“Because of paper gold, market games can be played. What cannot be done is for paper gold to produce bullion. The bullies can attack the paper gold market in unison, but they cannot create supply in real bullion with the ease of highly leveraged paper. The pros depend on the under-financed public to stampede under the pressure of fear of loss,” says Jim Sinclair.
Secondly, gold has been under pricing pressure this week as US President Barack Obama's plans to limit financial risk taking raised concerns about diminishing capital flows from banks, which have provided liquidity for gold and commodities investors.
Analysts said while falling prices could offer some good bargains, investors will likely wait to see how long the global stock market plunge continue and how much in speculative long positions is cleared by current selling before returning to buying gold and other precious metals in full force.
At current levels, spot gold has fallen about 3 per cent on the week, the largest weekly drop in six weeks.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, halted, with its holdings remaining unchanged at 1,111.922 tones as of January 21 from the previous business day.
Thirdly, gold price is falling prey to what is happening in China. Every investor worth the name has been proclaiming his fascinating investment love for China all these months, arguing that the dragon country is the best bet when it comes to investing in commodities, stocks and real estate.
But the news that is emanating out of China is that the country may be caught in a bubble with property prices as some analysts have warned that real estate investments have ballooned without any proper fundamentals and demand. Even ardent China investor and admirer Jim Rogers has now warned that China is showing symptoms of a property bubble, thanks to unwieldy growth of the country’s properties market. A property collapse in China hits commodities like copper, silver, steel etc hard, pulling down investments into commodities sector, thereby hitting gold price at its heart.
As gold price continues its downward plunge, the US dollar has been rising. Now the US dollar is at a five-month high against the Euro and concerns that the China growth story may get stuck, limiting the need for inflation-hedging assets like gold.
Let us wait and watch where gold market is going to head next week. Will gold price continue to plunge next week? Will the yellow metal pick up the pieces and once against ride on the booming road to price prosperity?
David Lew is a precious metals commentator with Commodity Online. You can contact him at info@commodityonline.com
http://www.commodityonline.com/news/Is-gold-price-set-for-crash-below-$1000-25030-3-1.html
Crash Stew: Signs Point to Global Stock Market Meltdown
by Mac Slavo
There’s a lot of buzz hitting the contrarian financial news circles around the web regarding recent market weakness and the possibility for the end of the rally which began in March of 2009.
Many contrarian investors have been waiting for the crash that is inevitably to follow the largest US market rally in modern history, and this may be it. We caution our readers, however, that over the last year there have been various false signals, and rather than seeing a crash in the Summer of 2009 or Fall of 2009, stock markets continued to push up, despite abysmal economic fundamentals.
Is it the real thing this time?
Bert Dohmen, publisher of the Wellington Letter, says “This is the time for the bears to make money. Sell short any rally attempts.”
Dohmen, who suggested in December 2009 that early January would see a continued rise in stocks, anticipated a down-turn in late January. In his most recent letter, dispatched to subscribers January 21, 2010, Dohmen says that we can forget about the theory that “hyperinflation is right around the corner,” and that deflation and debt implosion is the major problem:
“Market analysts expect 2010 to see a rise in corporate earnings and sales. They are probably correct. But that will be met by further market weakness. You see, that’s what the stock rise of the prior 10 months was all about. Stocks are already priced for the best news that could possibly develop this year. When all the fund managers are positioned for this “good news,” there is no further money to go in. And that’s when the selling gets serious.
The recent news out of China is just what we have been warning about: tighter lending and monetary policies! Economic growth in the last quarter was a blistering 10.7% (officially), which obviously creates worries about inflation. Tighter money dampens speculative fever. And all the sins of the speculative bubble of 2009 will surface.
As a result, the US dollar is now in demand and is soaring. That kills the most important reasons for buying commodities. The dollar rally will be a lot stronger than even the few dollar bulls imagine. There will be a massive rush to close out short positions.”
In our earlier post this morning, Chinese Fed Shuts Down Lending, Capital Flees to Dollar, we suggested that the pullback in Chinese bank lending and stimulus, may force capital speculating in Asian stocks back to safety in the US Dollar. Dohmen seems to agree with this assessment.
J Derek Blain, of Investopedia, also thinks the stock markets may be turning. His view is that not only will the dollar rebound, but we will see equities prices, commodities, and precious metals turn to the down-side in the near term, as more capital flows into the US Dollar. Blain is quite bearish on short-term precious metals prices, so if you haven’t stocked up on gold and silver, perhaps you’ll have yet another opportunity in the near future because Blain says The Big One Could Finally Be Here:
“But here’s the interesting thing – finally, after 5 weeks of watching gold top and begin its bear market decline, and the major stock indexes make new highs, we might have just witnessed the turning point in all “risk assets”.
And that is really one of the keys, and one thing we have been saying for several months now. Whenever the precious metals are treated as risk assets for the purposes of capital gains, they are not in a bull market but in a false rally. The psychology that drives this sort of rally is hope-based, completely mood-driven, and ultimately comes unwound like the thread in a poorly knit sweater.
What we are looking for, here at Investophoria, is despair. Until we see such a thing in the precious metals we cannot recommend buying them. If we did without it, we would be advising you to get in line and be “the sucker” who is willing to pay a higher price.”
—
“The next leg down in both gold and silver should be very fast and will take many more by surprise who have run to them seeking to make back the losses they sustained in stocks in the last bear-market leg.”
If the global stock markets start to pull back, gold and silver are going with them. While gold is a safe haven asset in times of distress, it is important to note that the broader picture for the time being is that gold has not decoupled from the stock market in general and remains closely tied to the inverse movement of the US Dollar, as was evidenced by gold’s reaction to the Dubai stock market collapse in November 2009.
For traders (not investors) looking to make short-term profits, precious metals are just as dangerous as the stock market right now. If you are a long-term precious metals investor, turn off the news and stop watching daily price movement in precious metals, you should be fine when gold does finally decouple from other assets and becomes a safety asset, not because of inflationary fears, but because of instability in the public (government) sector.
When this will happen is anybody’s guess, but there should be a floor for gold, because as the price collapses, it will become attractive for large buyers, especially central banks in China, India and Russia. So, there really is no need to run out and sell all your gold bullion to Cash4Gold at 60% less than it is worth. The longer trend for gold is still intact.
The dollar seems to be the beneficiary of recent market mini-panics, as evidenced by corrections in US markets last year, Dubai and now the shift in capital out of Chinese assets.
How can this be, you ask? Isn’t the dollar supposed to be on an unstoppable collapse to a value of exactly zero? Well, yes, it is on a collapse trajectory, but it is important to note that this will not happen in one fell swoop. There are gyrations in the markets, and since the US Dollar remains the world’s reserve currency, regardless of talk from Russia and China, this is where the money will go when everything else is collapsing. We strongly believe that this trend will eventually end and the ultimate safety asset class will become precious metals, but in a paper world, when the SHTF, capital flees to the safest paper around, which ironically, is the US Dollar.
Considering that the US Treasury needs to fund roughly $1.5 Trillion in new debt via Treasury sales in 2010, a global stock market collapse could be the US government’s saving grace, as Graham Summers recently pointed out:
“So how do you create interest? [In US Treasuries]
Simple, let the stock market collapse. The “flight to safety” that would follow would push billions if not hundreds of billions of dollars into Treasuries, soaking up the debt issuance and roll-over with little difficulty.”
It sounds mad scientist sinister, but quite realistic when you give it the consideration it deserves. The Fed, Treasury, Congress and the administrations have continually taken ridiculous, if not criminal, actions over the last several years. What’s to stop them now? It’s really a quite simple plan – pull back on stimulus in the US and China, have the big investment banks rip their profits out of equities and shift into US Treasuries, and leave panicked investors who thought the economic recovery was sustainable scrambling for the exits.
Theoretically, this all sounds quite feasible, but how are we looking from a technical perspective? Tyler Durden of Zero Hedge weighs in on the argument for the dollar:
“The DXY is about to break the 78.449 high last achieved on December 22: at 78.320 we are very close. Greece is helping. When that resistance is breached, look for Europe to start panicking and also all those who still have the dollar short trade on to start rushing through the exits.”
Though it may still be too early to tell, the technical signals suggest that the ingredients for a crash seem to be in place and conditions for a serious down-turn are now more likely than anytime in the last ten months.
January 23, 2010
Copyright © 2010 Mac Slavo
http://www.lewrockwell.com/orig11/slavo3.1.1.html
Nice bullish hammer on NVMI!
I flattered you asked. sure!
Great board skaka! All bull but no BS! love it
so many opportunities right now
HSII starting to look tasty
I couldn't resist
IMAX taking a beating right now, bounce time?
What do you think of JFR?
What is this "newsletter" you speak of?
bouncing now
Let's all hope so!!!
skaka, what do you think of NFJ, CNK and HOME?
thanks, you too!
What's your take on the recent trading of NVMI?
AQUI updated at pinksheets.com
Estimated Market Cap
$1,255,584 as of Jan 5, 2010
Outstanding Shares
965,833,928 as of Sep 30, 2009
Authorized Shares
1,000,000,000 as of Sep 30, 2009
Float(shares)
443,915,755 as of Sep 30, 2009
Yes, I think you just might.
IFSL news today, 3% of monthly profits will go into repurchase of common shares from the open market
Ideal Financial Solutions Announces Stock Buy Back Plan
0 minutes ago - Globenewswire
As of 3:57 PM ET 10/23/09
Ideal Financial Solutions, Inc. (Pink Sheets:IFSL), a leader in personal cash-flow management and debt elimination services, has announced its plan to repurchase and retire common shares from the open market as revenue and profits continue to increase.
"As revenues continue to increase, management has decided to take a minimum of 3% of our monthly profits to be used to repurchase common shares from the open market and to retire those shares to treasury for the next six months," stated Ideal Financial Solutions Chief Financial Officer Kent Brown. "We believe that this is the right move for us as we have worked hard to pay down our debt and to continue to use our cash resources to build market share. Now we want to commit some of our cash to the repurchase of our stock."
"We remain committed to this company's long-term growth strategy and its shareholders," Brown added.
America
going
going
gone..........
all the same family..... lol
ABC = All Barack Channel
NBC = New Barack Channel
CBS = Constant Barack Show
MSNBC = Morons Stupefied by the New Barack Channel
CNN - Crazy Ninnyhammer Network
No wonder he "departed" from the other financial network
A MSM reporter seeking the truth!? Do my eyes and ears deceive me? How can this be? Go Dylan Ratigan!
http://www.globalatlanta.com/article/22498/
Atlanta Mayor Honored at Environmental Trade Mission
David Beasley
Atlanta - 10.13.09
Atlanta Mayor Shirley Franklin with environmental award designed by sculptor Dwayne Bass
Atlanta Mayor Shirley Franklin, addressing members of an international environmental trade mission Oct. 7, said countries must reach beyond their own borders to protect the planet for future generations.
“We are really all in this together,” the mayor told representatives of 14 companies from Canada, Germany and Uganda at a World Trade Center luncheon.
The trade mission was sponsored by the Atlanta Development Authority, the Metro Atlanta Chamber, Quebec Government Office, Canadian Consulate General in Atlanta and other members of the Atlanta consular corps. It was designed to encourage trade between companies that sell products that help the environment.
During the luncheon, Reda Mansour, Israel’s consul general in Atlanta, presented Ms. Franklin the Visionary Award for International Environmental Stewardship from the World Chamber of Commerce for her environmental work during the last eight years.
Mr. Mansour mentioned the Beltline project as an example of Ms. Franklin's achievements. The project’s goal is to convert 22 miles of abandoned rail lines circling the city into parks, trails, transit and new development. “The Beltline is an amazing project,” Mr. Mansour said.
Accepting the award, which was designed by artist Dwayne Bass and made of recycled steel and leftover granite from a home remodeling project, Ms. Franklin said neither cities nor countries can solve environmental problems on their own. She illustrated her point by recognizing LaGrange Mayor Jeff Lukken, who attended the luncheon. LaGrange is near the Chattahoochee River downstream from Atlanta. Since 1993, Atlanta has spent more than $1 billion on wastewater and sewer improvements to improve Chattahoochee water quality.
“His town (LaGrange) is a direct beneficiary of the money we are spending and the improvements we are making,” said Ms. Franklin.
Likewise, expanding cooperation across international borders can help solve environmental problems, she said. “We have a responsibility to respect the earth and respect each other,” said Ms. Franklin.
This was the second environmental trade mission to Atlanta. The first, in 2008, attracted three companies.
“We started with three and now we are at 14,” said Louise Fortin, director of the Quebec government’s trade division in Atlanta. “We hope to double that next year.”
Last March, Ms. Fortin led a delegation of 12 Atlanta companies to the Americana 2009 environmental trade show in Montreal. The idea was to reverse the trade mission later in the year, bringing companies from Canada and other countries back to Atlanta to meet with Georgia companies and government officials.
Claude Hebert, president of Evolu-Tech Ltd. in Montreal was among the Canadian company representatives who traveled to Atlanta last week for the trade mission, which was managed by Greener Atlanta, an environmental consulting firm.
Mr. Hebert’s company has patented a process that uses magnets instead of chemicals to remove the limescale mineral deposits that form in the water pipes in commercial buildings.
“Scale is a big problem,” Mr. Hebert told GlobalAtlanta. “We’re talking energy loss, we’re talking pipes plugging up, breakdown of pumps.”
A high-rise building in Montreal was spending $35,000 a year in chemicals to clean its pipes, said Mr. Herbert. With his company’s system, chemical costs were eliminated, replaced by $1,500 per year for filters. The system cost about $51,000 to install.
“The payback is in about 18 months,” said Mr. Hebert.
Valentino Condina, president of Filterco Enterprises Inc. of Montreal, makes a system for restaurants that traps grease in filters that are biodegradable and can be thrown away in regular garbage. It saves money for restaurants by reducing the frequency that they have to have their grease traps cleaned. It can also help water quality by sending less grease into the sewer system.
Mr. Condina was in Atlanta hoping to generate interest in his system in a new part of the world.
“We’re looking for distributors,” he said.
thanks for the post 4kids
MARCY KAPTUR: "If you want a marker at the Federal level of how serious we are to get justice out of this financial crisis, look at the F.B.I. Look at the number of people who are really prosecuting and investigation mortgage fraud and securities fraud. It is so small
I've been one of the Members of Congress trying to increase by ten times the agents to get at the justice issues for the American people. For companies that have been hurt. For shareholders that have been hurt. Our government isn't doing it. That it's very easy to look at the budget of the F.B.I. in mortgage fraud and securities fraud and say, 'How serious is the government?' And until those numbers increase, we will not begin to get justice. "
I don't live far from that facility.... I would really like to see it.
I have reported on several occasions, when other's couldn't buy or sell with their brokers, how easy it was to trade certain stocks using Zecco. Zecco clears through Pension. FWIW
thanks for the post 4kids!