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Chart is oversold. Internet shorts and dumpers are loading up, imo. I expect a big bounce soon, eom.
Weak hands folding, imo.
In a recent report, J.P. Morgan expects positive results for BioMimetic Therapeutics ((NASDAQ: BMTI)) at May 12 FDA Panel and has raised the price target on BioMimetic Therapeutics from $16.00 to $17.00.
At the FDA Panel on May 12, BMTI is seeking the approval of their Augment bone graft. In the report, J.P. Morgan said, "BioMimetic appears well-prepared for the meeting with a solid clinical data package. The co has been conducting mock training sessions to prepare for its May 12th date, and communications with the agency thus far have yielded no surprises. BMTI and FDA have been in consistent contact heading into the panel, and the co feels comfortable with the nature of requests."
Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/05/1052275/j-p-morgan-expects-positive-fda-panel-for-bmti-and-is-ra#ixzz1MF3tZXIu
This is great news! Go BMTI!
GNPR
Low fees in works at new exchange
Hong Kong Mercantile Exchange aims to attract independent traders with less demanding requirements and fees, said chairman Barry Cheung Chun-yuen.
To take advantage of Hong Kong's being an offshore yuan center, the commodity exchange will also launch more yuan-linked and yuan-denominated futures contracts, Cheung said.
"We are charging a trading fee of 50 US cents [HK$3.90], with a clearing fee of 25 US cents," he said, referring to charges for a gold futures contract.
Retail investors can also start trading gold futures with less than HK$20,000.
For example, gold futures cost US$48,000 (HK$374,400) per contract on average. If only 3.3 percent is required as a deposit, only HK$12,355.20 is required to start trading, Cheung said.
But he noted that HKMEx's major clients are likely to be institutional investors. Unlike the New York and Chicago Mercantile exchanges, products on HKMEx are specifically designed for Asian clients.
"Our new platform will offer Asia a bigger say in setting global commodity prices," Cheung said.
HKMEx also plans to launch gold futures priced in yuan, but settled in US dollars.
"Hopefully the gold contracts denominated in yuan will be launched by the end of this year," Cheung said, adding that the exchange aims to offer silver futures priced in US dollar and yuan, as well as futures of commodity-linked indexes.
Trading is set to start on HKMEx on May 18. There will be a 15-hour trading period between 8am and 11pm, overlapping with London and New York.
About HK$500 million was invested to develop the bourse's trading platform, with 100 people hired.
Cheung is the biggest shareholder, while others include ICBC (Asia), COSCO Group, Rusal (0486), and a local businessman in the shipping sector.
The exchange so far has 16 members, including Morgan Stanley, BOCI Securities and MF Global.
Source: http://www.thestandard.com.hk/news_detail.asp?we_cat=2&art_id=110842&sid=32297386&con_type=1&d_str=20110509&fc=10
Looks like Silver is setting up for a possible Cup and Handle formation. Might trend higher, imo.
http://www.investopedia.com/terms/c/cupandhandle.asp
We know what happened when the CME took several consecutive steps to hike margin requirements for silver market speculative participation. Now comes word that the Shanghai Gold Exchange will raise its margin requirements for silver futures as part of risk-control measures. This hike would be its third round of increases in less than a month. Players will now need to pony up 19% of a contract's value in order to be allowed to the card table, while, at the same time, the daily price limit for the one kilogram silver forward contract will rise to 13% from 10% above or below the previous session's close.
Source: http://community.nasdaq.com/News/2011-05/gold-and-silver-report-gone-with-the-winds.aspx?storyid=75609
GNPR
Silver is headed lower this morning. I expect the trend to continue, imo.
http://www.stockta.com/cgi-bin/analysis.pl?symb=SLV&num1=5&cobrand=&mode=stock
YUPPPPPPPPPPPPPPPPPP! ;oD
Gold @ $1500, if it breaks, will be strong resistance, imo.
GNPR
Buying silver hand and fist if it goes < 30, imo.
Gold and the Dead Cat U.S. Dollar Bounce
This is a classic dead cat bounce by the US Dollar as it appears to fight desperately to avoid dropping below the much watched ‘72' level. We say fight, but the real situation is not a fight at all, its a managed decline by the United States to lower the value of their currency and ultimately inflate away the mountain of debt that it realizes is impossible to ever re-pay.
The difficulty in getting the value down is that just about all of the other major currencies are in the same race and are also hoping to inflate away their debts. The penetration of ‘72' lies just ahead of us and once a meaningful break through has been achieved, then the fall will be calamitous to say the least, as those who are holding dollars will battle to get through the exit with great haste. However, the ‘managed’ downward trend will resume shortly. Also of note on the chart above is that after only two days of trading, the dollar rose from an oversold position, where the RSI was sitting at sub ‘30' just days ago, to stand at 52.18 today. In our humble opinion those who are calling for a dollar bounce of some significance and going to be rather disappointed. The political will to do the hard yards is just nowhere in sight as the pressure mounts to raise the debt ceiling a tad in order to keep things sweet.
It is said that nothing goes down in a straight line and as we can see with the bounce by the USD it is also capable of generating small rallies from time to time, which is quite normal. We can also observe this behavior in the way that silver prices rose dramatically and then corrected severely. Again this correction is normal and short term corrections are par for the course in a bull market.
The main beneficiaries of weaker currencies are both gold and silver, both of which cannot be printed and therefore the supply is limited by the skills of the mining sector to find and mine these precious metals. Now, as a form of exposure to precious metals the mining sector offers the possibility of leverage to the underlying product. So let us take a quick look at the gold bugs index, the HUI, which consists of 14 major gold mining companies which mostly do not forward sell their product and as such offer exposure to metal prices.
Note that stock prices have returned to take tea with the 200dma, a correction that we have seen many times before. This recent pull back in the mining sector has taken around 80 points off the HUI or about 8.5% of its value, which is pretty good haircut. The technical indicators are still oversold, however, they are on the turn, suggesting higher prices ahead. With gold at $1500/oz and silver at $35/oz, the quality miners are in clover, as evidenced by the results which are headlining with record production, record profits, etc. They are operating in the right sector at the right time and as new all time highs are made by both gold and silver we should see this index take off in spectacular fashion. Why it hasn’t done so already remains a bit of a puzzle, however, there are other distractions for the investment dollar such as the metal itself, the ETFs, futures trading and options trading. And so the tug of war continues.
One day a government with its head screwed on will turn their backs on the fiat currency system and convert to an asset backed currency whereby its paper is exchangeable for some sort of hard asset. It could be a mixture of gold, silver, oil, uranium, etc, the details are anyone’s guess. However, if the currency is big enough, the Chinese Yuan for example, then the rush would be on for one and all, to trade in that currency. Implausible! Well cast your mind back to the start of the banking crisis, just when all the European banks were trying to hold the line, Ireland stepped up and guaranteed bank deposits. This action saw billions of Euros emigrate to Irish banks in a matter of hours, forcing the rest of the banks to also guarantee their deposits. A case of the tail wagging the dog and China is longer a small time player, it is getting bigger and stronger by the day and they are capable of going it alone. However, as they hold the thick end of three trillion dollars in their reserves, they will no doubt do everything they can to transfer out of dollars and into the hard assets before contemplating such a move.
For now we can only conclude that we will stick with gold, silver, a few quality producers and some well thought out options trades. We will try hard to avoid the blather and the white noise that accompanies every event regardless of its importance or magnitude.
The year will end with much higher gold and silver prices, so will the year after and the year after that, so get into position and hold on tight it will be a white knuckle ride.
Source: http://www.marketoracle.co.uk/Article28066.html
GNPR
The Hong Kong Mercantile Exchange (HKMEx) has received authorisation from the Securities and Futures Commission and will make its trading debut on May 18, 2011 with the 1-kilo gold futures contract offered in US dollars with physical delivery in Hong Kong.
The ATS authorisation grants HKMEx the right to offer market participants, through its member firms, the use of its state-of-the-art electronic platform to trade commodities. The Exchange will begin trading with at least 16 members including some of the world’s largest financial institutions as well as several well-established brokerages in Hong Kong.
“We are very excited about this historic day. It allows us to establish a liquid and vibrant international commodities exchange based in Hong Kong, linking China with the rest of Asia and the world,” said Barry Cheung, chairman of HKMEx. “Global demand for core commodities has in recent years been driven by Asia, especially China and India. However, market participants in the region have had to rely on Western exchanges for price discovery, bearing the basis risk exposure in the process. Our new platform will offer Asia a bigger say in setting global commodity prices. It will also enable market participants to more actively manage their risk exposures, using products tailored to Asian market needs.”
HKMEx’s broking members at launch include BOCI Securities Ltd, Celestial Commodities Ltd, CES Capital International Co. Ltd, Chief Commodities Ltd, ICBC International Futures Ltd, Interactive Brokers LLC, KGI Futures (Hong Kong) Ltd, MF Global Hong Kong Ltd, Morgan Stanley Hong Kong Securities Ltd, OSK Futures Hong Kong Ltd, Phillip Commodities (HK) Ltd, Tanrich Futures Ltd and TG Securities Ltd. Its three clearing members are Interactive Brokers (UK) Ltd, MF Global UK Ltd and Morgan Stanley & Co International Plc.
And while the Chinese market is far more bubbly when it comes to gold and silver purchases, it remains to be seen just how happy a gambling addicted Chinese population will take to spurious and conveniently timed margin hikes that take the air out of the next parabolic move up in gold and silver (our guess is not very).
Far more importantly, the Comex monopoly appears to be over, and going forward the exchange will have to be far more sensitive about angering broad swaths of the population using 5 consecutive margin hikes in 9 days. The new exchange will also make the now traditional “banging the close” operation (or “banging the whatever” as the May 1 15% drop from $49 to $42 in minutes demonstrated) obsolete, as traders will have options of where to route orders from the hours of 0800 HKT to 2300 HKT.
Bottom line: if Chinese demand for gold and silver is as strong as it was a week ago, and it is, the recent Comex-directed plunge in precious metals is about to the BTFDed.
From the HKMex:
HKMEx is introducing a 32 troy ounce gold futures contract useable by a wide range of market participants to execute hedging, arbitrage and other investing strategies. Moreover, the HKMEx gold futures contract has the following important characteristics designed to meet the needs of a marketplace which lacks an international price-setting mechanism in the Asian time zone:
* Secure physical delivery in Hong Kong meeting international standards
* Trading execution on an advanced and robust electronic platform
* World-class clearing functionality
* Extended Asian day trading hours to tap into global market liquidity
* Contract specifications tailored to market participants in Asia
Gold is one of the world’s most important and actively traded commodities. Demand for the metal is driven by three main factors: the jewellery market, industrial manufacturing and financial investment. In addition, gold is relatively unique in that it is used as both a commodity and a monetary asset.
Although gold has a long trading history in Asia, the majority of price formation for gold is today concentrated in the North American and European markets. In recent years, the introduction of gold futures trading in Asia has tapped into latent trading demand that is primarily driven by strong economic development in China and India.
Hong Kong is historically one of the world’s leading gold centres and has a natural geographical advantage in Asia. Hong Kong’s vibrant financial infrastructure ensures access to leading market participants and deep regional and international pools of liquidity.
Trading hours for the HKMEx gold contract will extend from 0800 HKT to 2300 HKT, opening with TOCOM in Japan and encompassing the London Bullion Market Association AM Fixing, the opening of COMEX, and the LBMA PM Fixing. The HKMEx opening auction will run from 0730 to 0800.
While gold futures trading on Asian exchanges has demonstrated significant growth, there is currently no contract that is or will likely become a regional benchmark contract for gold pricing. Without a regional benchmark, true price discovery for gold is either confined to the local in-country market or must depend on the European or North American markets. In-country markets generally restrict foreign participation and often subject it to adverse currency restrictions or tax treatment. Meanwhile, global benchmark pricing from the western hemisphere provides imperfect hedging for Asia’s trading community.
HKMEx is well positioned to address the demand of Asia’s trading community for the establishment of a gold futures contract as the regional benchmark.
Source: http://investmentwatchblog.com/on-may-18-the-hong-kong-mercantile-exchange-will-finally-offer-an-alternative-to-the-comex-and-its-alleged-attempts-at-perpetual-precious-metals-manipulation/
GNPR
This is a great opportunity to average down, SLV headed to 45 soon, imo.
GNPR
I had a feeling SSOL would trend lower several months ago. Waiting for .000's, imo. glta
I have the feeling the recent decline in silver will eventually result another leg up, to new highs as a result of short covering, imo.
The term "Racket" is only credible in a tennis magazine, imo. I do feel Silver has been suppressed for some time and is headed higher though. Thanks for sharing!
GNPR
Note To self: Possible inflation offsets profits for the miners??? (increased fuel, machinery, plant expenses etc. During the California gold rush of way back, it the suppliers / general store merchants etc that made money, not the miners, imo.
GNPR
Once Silver breaks psychological resistance of $50, Silver will skyrocket, imo.
Tomorrow should be interesting to say the least!
Wait for a few more R/S's to go long ZSL, imo.
GNPR
Silver is breaking out!
Oh %$%^ DUDE, Come On!!!!!!!