Japan Intervenes Sends US $ higher and grains lower

Overnight, Japanese central banks intervened. Selling Yen. Buying Dollars. They are trying to impact the markets. Longer term intervention like this has not been typically successful. Eventually the market forces become more powerful. But for this morning, it has the US dollar higher, and therefore, our commodities prices lower.

ED F Mann has had its trading privileges suspended. This could cause some un-intended unforseen ripples this week. This has been well known in the trade for the past week. Competitor brokers are circling over head Mann picking off the best low hanging fruit of their client base who are now looking for a new home.The […]

Silver hits its first upside target. Take profits :)

Silver is currently trading at 35.110. The high so far has been 35.70. Please take profits on at least 1/2 of your long positions. The longs were put on between 31.50 and 30.50.

Also, it looks like we are going to have some profit taking going into a Friday. Remember next Monday is the last day of the month. Tuesday could see fresh money pouring into the market. Momentum players, as well as anyone who missed being long this month will be chasing this market.
Market timers who missed this month because they were afraid to be long in “OCTOBER”, just missed the biggest one […]

Europe Breaths Easier Dow is 1,766 points higher in the past 3 weeks

Yesterday the governments got the banks to take a 50% haircut on the Greek bonds, vs the 40% they had wanted. Also there were tacit assurances, that the governments, in effect, have the bank’s backs.
Not surprisingly, Dow futures are up 215 pts.

Between our July 22nd high at 12679, down to the double bottom at August 9th low at 10,338 and again with our October low at 10,328: That was a 2,351 point break.

As of 9:41 AM, our high is 12,094. That represents a 1,766 point rally from the October 4th low at 10,328 we’ve had a nice bounce back.. How nice? […]

Did you buy Silver last week?

On Wednesday October 19th, just a week ago I wrote the following:

“More interesting, our August high at $44.00 sucked a lot of bulls back into their longs, which precipitated the puke sell off down to the $26.00 level. $33.00 an ounce is resistance I’d look at now. I’d sell it at $35.00 as well. A rally back to $37.30 would be a gift to sell into.
So what to do?
I like being a small buyer here at 31.50 to 31.00. If 30.50 holds then we should bounce up to 35 or maybe 37.00 In any event, risk one unit to the down side […]

11,882 Monday and Today, followed by Sell Pressure

First the meeting in Europe is off, then its back off. Like I wrote and have been writing, for 3,000 years Europeans have been finding reasons NOT to like one another.
What is so different about 2011?
In the end, its more about politics and perception rather than reality. The reality is that there is a huge debt problem which needs to be addressed. 20 people in a room is one thing. When only 2 of the 20 people have what the other 18 want, that’s another.
The euro zone wants what France and Germany have. Working economies where people work and save and […]

Stock Futures Firm Up on Greece/Euro rumors

I am still short Dow Dec Futures around the 11,700 level The high so far has been 11,838.There is an old high at 11,900 back on August 4th. I’d be willing to take some heat here. As always, though, you have to manage your own trading account.

Sitting here, I am watching the Cable news stations touting the fact that “The Dow is on track for its best monthly performance since 1999?” Seriously? There is a whole week left to trade (one) and (two) what is so magical about this week that we won’t have some political blow up in Europe over the amount of […]

Triple Top for Dow Futures at 11700-Sell IT

11,700 has been a wall since August began. August 31st 11,700/ September 1 11,705/ Today’s high?? 11,715 so far.. its 11:20 AM here in Chicago.

Next chart target is 11,900. Sell some here and risk 100 to 200 ticks. Why you may ask?
Seriously, its the weekend. Anything could happen over the weekend. We could come in Monday morning and have stories of Greece defaulting, or the G20 changing its mind about some aspect.

Also, Flas back to October 4th…. We were down at 10,328…. We’ve rallied back to the top of our 1,300 point trading range..

We’ve rallied 1,300 points: Does that […]

A note about Silver

One of my old friends called me this past Spring full of bullishness for Silver.
Granted silver had a nice pop. In the last week of April, we almost got a $50.00 print.
Fast Forward to the end of September. Silver prints 26.150. That’s a loss of 1/2 of its “value” in 6 months.

What happened? Evil speculators? Evil someone? Corporate Greed? Or just plain old fashioned human nature.
I vote for the latter.

Since that $26.00 print, we had a $6.00 bounce, or a 20% return if you bought the low.

More interesting, our August high at $44.00 sucked a lot of bulls back […]

Gold? Still Precious after a $400.00 haircut?

Gold spiked to a high of 1925 an ounce on 9/9/11. On 9/30/11 it melted down to 1533 an ounce. What’s $400 dollar an ounce when the guys on the AM Radio are touting it? It’s not their $400.00 that evaporated.
What happened?
A lot of hedge funds were long stocks and long gold as a hedge against those stock longs. Surprise, Surprise, both markets melted lower and the “masters of the universe” lost money on both positions. Lost money on the longs in stocks and lost money on their longs in the precious gold. What “seemed logical and pertinent risk management hedge” turned into […]