Is It Time to Buy Chinese Yuan?

November 22nd, 2010

On November 19, the People’s Bank of China ordered the country’s banks to increase their reserves by an additional 0.50%. It’s the second time in two week the Bank has boosted reserve requirements as it tries to keep the value of the yuan down.

But it won’t be enough. The yuan will continue surging despite these latest efforts, creating a tremendous opportunity for anyone who missed out the last time around — even if you’re not a global currency investor.

For one thing, China’s decision to increase reserve requirements it nothing new. Chinese policymakers have used this tool in the past to keep the supply of currency under control. But it hasn’t been very effective. Despite the regulations, the yuan is now 17% stronger against the U.S. dollar. And measures like this are becoming more difficult to implement as the Chinese economy continues to expand.

China’s gross domestic product jumped almost 10% in the third quarter of 2010 — matching the 30-year average. Although dipping slightly from previous years, the current pace of Chinese expansion is 4 times that of the United States.

And the trend is going to continue as long as China maintains its strong exporting relationships. Both the United States and Germany make up about a quarter China’s trade, with South Korea, Hong Kong and Japan comprising another 25%. These countries not only rely on China’s low-cost food processing and manufacturing, they also rely on China’s raw material excavation and energy production. China is ranked third in global energy production and first in wind power.

Domestic demand in China is also going to push the yuan higher. Roughly 200 million individuals are now considered the middle class in China. That figure is expected to more than triple in the next five years as wage growth increases the country’s standard of living.

As it is, consumption of food and electronics has already grown by an average of roughly 30% over the last five years. And the number of Chinese people using the Internet has more than doubled in the past seven. With more and more people joining China’s middle class every day, you can bet that their consumption will continue rising, too.

But you can’t have rapidly accelerating growth without having consumer price increases.

The People’s Bank of China knows this, so it keeps a close eye on the economy’s underlying inflation rate. As the economy keeps booming, China’s central bankers will keep monetary policy restrictive. Simply put, this means interest rates will keep going higher. And higher rates naturally support demand for the currency.

In fact, even though China’s one-year bank deposit rate (currently at 2.25%) doesn’t match the central bank’s national rate of 5.56%, it’s still a bigger draw than the  U.S. savings deposit rates of barely 0.50% The higher interest rate will continue to attract foreign investments and support further appreciation in the exchange rate — no matter how much China tries to control it.

But you don’t need to be a foreign currency trader to participate in the yuan’s unstoppable rise. You can just invest in the WisdomTree Dreyfus Chinese Yuan (CYB) ETF.

CYB aims for returns similar to money market investments available to foreign investors while tracking fluctuations in the Chinese yuan. For everyday investors, it’s a great conduit for slow, stable appreciation in China’s currency. At the same time, it helps diversify domestically focused portfolios without a lot of volatility.

The ETF should do quite well in the months ahead. China’s economy will continue to expand. Central bankers will keep raising interest rates and increasing reserve requirements on national banks. The yuan will continue to appreciate. Ultimately, it’s  an opportunity that’s almost impossible to pass up. And CYP offers a great way to play it.

Richard Lee
for The Daily Reckoning

Is It Time to Buy Chinese Yuan? originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Is It Time to Buy Chinese Yuan?




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

ETF, Uncategorized

Is It Time to Buy Chinese Yuan?

November 22nd, 2010

On November 19, the People’s Bank of China ordered the country’s banks to increase their reserves by an additional 0.50%. It’s the second time in two week the Bank has boosted reserve requirements as it tries to keep the value of the yuan down.

But it won’t be enough. The yuan will continue surging despite these latest efforts, creating a tremendous opportunity for anyone who missed out the last time around — even if you’re not a global currency investor.

For one thing, China’s decision to increase reserve requirements it nothing new. Chinese policymakers have used this tool in the past to keep the supply of currency under control. But it hasn’t been very effective. Despite the regulations, the yuan is now 17% stronger against the U.S. dollar. And measures like this are becoming more difficult to implement as the Chinese economy continues to expand.

China’s gross domestic product jumped almost 10% in the third quarter of 2010 — matching the 30-year average. Although dipping slightly from previous years, the current pace of Chinese expansion is 4 times that of the United States.

And the trend is going to continue as long as China maintains its strong exporting relationships. Both the United States and Germany make up about a quarter China’s trade, with South Korea, Hong Kong and Japan comprising another 25%. These countries not only rely on China’s low-cost food processing and manufacturing, they also rely on China’s raw material excavation and energy production. China is ranked third in global energy production and first in wind power.

Domestic demand in China is also going to push the yuan higher. Roughly 200 million individuals are now considered the middle class in China. That figure is expected to more than triple in the next five years as wage growth increases the country’s standard of living.

As it is, consumption of food and electronics has already grown by an average of roughly 30% over the last five years. And the number of Chinese people using the Internet has more than doubled in the past seven. With more and more people joining China’s middle class every day, you can bet that their consumption will continue rising, too.

But you can’t have rapidly accelerating growth without having consumer price increases.

The People’s Bank of China knows this, so it keeps a close eye on the economy’s underlying inflation rate. As the economy keeps booming, China’s central bankers will keep monetary policy restrictive. Simply put, this means interest rates will keep going higher. And higher rates naturally support demand for the currency.

In fact, even though China’s one-year bank deposit rate (currently at 2.25%) doesn’t match the central bank’s national rate of 5.56%, it’s still a bigger draw than the  U.S. savings deposit rates of barely 0.50% The higher interest rate will continue to attract foreign investments and support further appreciation in the exchange rate — no matter how much China tries to control it.

But you don’t need to be a foreign currency trader to participate in the yuan’s unstoppable rise. You can just invest in the WisdomTree Dreyfus Chinese Yuan (CYB) ETF.

CYB aims for returns similar to money market investments available to foreign investors while tracking fluctuations in the Chinese yuan. For everyday investors, it’s a great conduit for slow, stable appreciation in China’s currency. At the same time, it helps diversify domestically focused portfolios without a lot of volatility.

The ETF should do quite well in the months ahead. China’s economy will continue to expand. Central bankers will keep raising interest rates and increasing reserve requirements on national banks. The yuan will continue to appreciate. Ultimately, it’s  an opportunity that’s almost impossible to pass up. And CYP offers a great way to play it.

Richard Lee
for The Daily Reckoning

Is It Time to Buy Chinese Yuan? originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Is It Time to Buy Chinese Yuan?




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

ETF, Uncategorized

Take a Look Inside the Federal “Credit Card Machine”

November 22nd, 2010

A few days ago, CBS Evening News aired a special report on the $1.5 trillion federal budget deficit, which is currently the largest in US history. It features senior business correspondent Anthony Mason’s look inside the US Treasury’s Auction Room, where the nation’s delicately-balanced finances manage to stave off fiscal disaster just one day at a time.

According to Mason:

“’That room is essentially the American credit card machine. It’s basically selling treasury bills, basically IOUs that we use to pay off the money that we are borrowing,’ Mason says. ‘I found that room kind of spooky. If we can’t issue those IOU’s – which keeps the government running on a day-to-day basis – then we can’t run the country anymore. We don’t have the money.’”

You can watch the clip below from CBS Evening News on where the $14 trillion national debt goes for love, which came to our attention via The Daily Bail.

Take a Look Inside the Federal “Credit Card Machine” originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Take a Look Inside the Federal “Credit Card Machine”




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

Gold vs. The Fed: The Record Is Clear

November 22nd, 2010

There were no worldwide financial crises of major magnitude during the Bretton Woods era from 1947 to 1971. Lesson: Gold is a more efficient governor of monetary policy that the Federal Reserve.

When it last met, the Federal Open Market Committee (FOMC) signaled its desire to increase the rate of inflation by providing additional monetary stimulus. This policy is based on a false – and dangerous – premise: that manipulating the dollar’s buying power will lead to higher employment and economic growth. But the experience of the past 40 years points to the opposite conclusion: that guaranteeing a stable value for the dollar by restoring dollar-gold convertibility would be the surest way for the Federal Reserve to achieve its dual mandate of maximum employment and price stability.

From 1947 through 1967, the year before the US began to weasel out of its commitment to dollar-gold convertibility, unemployment averaged only 4.7% and never rose above 7%. Real growth averaged 4% a year. Low unemployment and high growth coincided with low inflation. During the 21 years ending in 1967, consumer-price inflation averaged just 1.9% a year. Interest rates, too, were low and stable – the yield on triple-A corporate bonds averaged less than 4% and never rose above 6%.

What’s happened since 1971, when President Nixon formally broke the link between the dollar and gold? Higher average unemployment, slower growth, greater instability and a decline in the economy’s resilience. For the period 1971 through 2009, unemployment averaged 6.2%, a full 1.5 percentage points above the 1947-67 average, and real growth rates averaged less than 3%. We have since experienced the three worst recessions since the end of World War II, with the unemployment rate averaging 8.5% in 1975, 9.7% in 1982, and above 9.5% for the past 14 months. During these 39 years in which the Fed was free to manipulate the value of the dollar, the consumer-price index rose, on average, 4.4% a year. That means that a dollar today buys only about one-sixth of the consumer goods it purchased in 1971.

Interest rates, too, have been high and highly volatile, with the yield on triple-A corporate bonds averaging more than 8% and, until 2003, never falling below 6%. High and highly volatile interest rates are symptomatic of the monetary uncertainty that has reduced the economy’s ability to recover from external shocks and led directly to one financial crisis after another. During these four decades of discretionary monetary policies, the world suffered no fewer than 10 major financial crises, beginning with the oil crisis of 1973 and culminating in the financial crisis of 2008-09, and now the sovereign debt crisis and potential currency war of 2010. There were no world-wide financial crises of similar magnitude between 1947 and 1971.

At the center of each of these crises were gyrating currency values – either on foreign-exchange markets or in terms of real goods and services. As the dollar’s value gyrates it produces windfall profits and losses, feeding speculation and poor judgment. The housing bubble was fed in part by 40 years of experience with a dollar that lost purchasing power every year. Today, individual investors are piling into gold and other commodities in hopes of finding a safe haven from the FOMC’s intention to decrease the buying power of the dollar and reduce the value of our savings.

And what of the seductive promise that a floating dollar would make American labor more competitive and improve the nation’s trade balance? In 1967, one dollar could buy the equivalent of approximately 2.4 euros (based on the pre-euro German mark) and 362 yen. Over the succeeding 42 years, the dollar has been devalued by 72% against the euro and 75% against the yen. Yet net exports have fallen from a modest surplus in 1967 to a $390 billion deficit equivalent to 2.7% of GDP today.

The members of the FOMC, like their predecessors, are trying to do the best they can, but they are not really sure what it is that needs to be done. They have kept the federal-funds rate near zero for almost two years, but small businesses find it difficult to get loans and savers suffer from the lost income brought by artificially low interest rates. Now they’re about to advocate higher inflation – i.e., less price stability – in hopes of spurring economic growth.

Economists and pundits may disagree on why the gold standard delivered such superior results compared to the recurrent crises, instability and overall inferior economic performance delivered by the current system. But the data are clear: A gold-based system delivers higher employment and more price stability. The time has come to begin the serious work of building a 21st-century gold standard for the benefit of American workers, investors and businesses.

Regards,

Charles W. Kadlek,
for The Daily Reckoning

Gold vs. The Fed: The Record Is Clear originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Gold vs. The Fed: The Record Is Clear




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Commodities, Uncategorized

Quantitative Easing and the Importance of Job Growth

November 22nd, 2010

As the US stock market gyrates, Ben Bernanke’s pet project, Quantitative Easing (QE), remains the topic of the day. Most of the creditors to the US scorn QE as a reckless dalliance with currency debasement. On the other side, most of the debtors in the US applaud QE as a miracle elixir that’s “good for what ails thee.”

Both sides have a point. When you debase a currency, creditors lose and debtors win. And last we checked, the US government owed a lot of money to a lot of people. Lucky for it, minting a dollar bill requires only about two cents worth of paper and ink. So a little bit of extracurricular money-printing really lightens the debt load.

Obviously, to the extent that creditors are amenable, printing the money with which to repay them is a terrific idea. The problem is; creditors don’t usually tolerate such shenanigans for very long.

Chairman Bernanke insists that his QE project has nothing to do with subtly defrauding creditors. He says he is merely pursuing the Fed’s dual mandate: stable inflation and maximum employment. But QE seems to be all about maximum inflation in the pursuit of stable unemployment. At a minimum, QE reduces the Fed’s dual mandate to a solo mandate: job growth. Chairman Bernanke admits as much.

In a speech last week Bernanke remarked, “On its current economic trajectory the United State’s runs the risk of seeing millions of workers unemployed or underemployed for years… As a society, we should find that outcome unacceptable.”

Bernanke is clearly favoring the employment mandate over the “stable inflation” one. As such, he insists his QE tactics can grease the gears of economic rejuvenation. Unfortunately, the evidence-to-date contradicts this assertion.

“Since November 25, 2008, when the Fed announced that it would begin purchasing debt and mortgage-backed securities by Fannie and Freddie,” observes Evan Lorenz of Grant’s Interest Rate Observer, “the rate for new, conforming 30-year mortgages has declined by 1.6 percentage points to 4.32%, according to Bankrate.com. Yet, new-home sales have fallen. They dropped 26%…[since] the start of the mortgage buying.

“Over the same span,” Lorenz continues, “sales of previously lived-in, or ‘existing,’ homes fell 9%…One might argue that the Fed, its pure motives notwithstanding, is making things worse by preventing the market from clearing.”

But the housing market is not the only portion of the economy that would provide damning evidence against quantitative easing. Even after two years of mega-billion-dollar meddling by the Federal Reserve, signs of economic recovery remain scant.

“The New York Fed’s Empire Index of manufacturing activity took a dive in the current reporting month,” observes David Rosenberg, The Daily Reckoning’s favorite economist, “swinging from +15.73 in October to -11.14 in November, the largest swing ever recorded in a single month and the worst showing since the depths of the recession in April 2009.”

Numbers like these are indisputably bad, but maybe they would have been worse if Bernanke hadn’t intervened. Maybe Ben’s intervention in the private sector prevented the arrival of the Great Depression II.

Maybe…but probably not.

“Some intriguing research in the contrary vein is worth considering,” writes James Grant, taking the baton from his colleague. “‘A Decade Lost and Found: Mexico and Chile in the 1980s,’ by Raphael Bergoeing, Patrick J. Kehoe et al., published in 2002, might serve as a parable for these interventionist times. The paper contrasts the response of Mexico and Chile to the seemingly intractable difficulties each faced in the 1980s.

“Despite a similar starting point, the authors write, ‘Chile returned to trend in about a decade and since then has grown even faster than trend. In contrast, output in Mexico has never fully recovered, and even two decades later is still 30% below trend.’

“The difference? Chile let companies fail and markets clear. Mexico, anticipating certain features of the contemporary United States, allowed its archaic bankruptcy system to perpetuate the lives of money-losing businesses and allocated credit by government directive.

“The sharp recession that Chile suffered in consequence of its seemingly harsh policies,” Grant continues, “merely proved the preface to a superb recovery. In comparative terms, Mexico stagnated. Washington, DC, please copy.”

Here’s an idea: offer Ben Bernanke a generous retirement package, dismantle the Fed, re-establish the dollar’s link to gold…and let the market’s sort it out.

Eric Fry
for The Daily Reckoning

Quantitative Easing and the Importance of Job Growth originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Quantitative Easing and the Importance of Job Growth




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

Holiday SPX Short Term Key Levels to Watch

November 22nd, 2010

With Monday’s decline taking some investors and traders by surprise, let’s pull the perspective back and take a look at the current Daily Chart and then Hourly Chart structure, levels to watch, and “IF/THEN” Logic setting up right now.

First, the Daily S&P 500:

Stripping the chart to its most basic simplicity, there are two key price levels to watch.

Immediately overhead, we have the 1,200 which held this morning as resistance – and this big failure (so far) here could be telling.  As such, keep a close eye on 1,200.

ANY resurgence in price above 1,200 triggers a “Popped Stops” play to 1,230 – simple expectation (especially now, since bears are rushing in and placing fresh stops above 1,200).

So that’s resistance, but what’s support?

Initially, we have the rising 50d EMA at 1,171 and then the lower Bollinger Band at 1,167.  Perhaps more importantly, price formed a short-term swing low last week at 1,174.

Take a look at my prior “Playing EMA Breaks” lesson post for how trends and EMAs work in terms of setting quick plays and targets.

That forms a triple confluence about the 1,170 area to watch.  And of course, IF price falls under 1,170, THEN expect lower prices – perhaps to 1,150 or lower.

Ok – so that may be as far as some you need to go in terms of setting up your expectations and potential trades for this holiday week.

Those that want a bit more information from the Hourly Chart, read on:

We see the initial resistance at the 1,195 level going into November and the massive 20 point “Popped Stops” play that was expected on a breakout above 1,200 – 1,228 was the likely upside target, being the 61.8% “Large Scale” Fibonacci area – which successfully held back the buyers.

Now that an initial downswing formed to test the 1,170 area, what’s the short-term levels to watch?

I drew a simple Fibonacci Retracement grid from the recent 1,228 high to the 1,174 low to arrive at the following levels to watch.  In fact, only one level comes into play in a major way.

It’s the 50% Retracement at exactly 1,200.  Not coincidence, but confluence – and so far the buyers have been unable to break the confluence.

Friday’s push up to the (now) “Double Top” (see lower timeframe charts) occurred on a clear negative momentum divergence that – at least from the chart odds – forecast better odds of a downward move than a breakthrough.

Today’s action is that downward fall from the 1,200 level.

The key short-term support level to watch again is the 1,174 level from the prior swing low – a price takedown here sets up even lower targets ahead.

And of course the alternate “IF/THEN” is in play, which is the “IF buyers can bust through all the resistance at 1,200, THEN the next play becomes a ‘Popped Stops’ move to 1,230.”

From the chart perspective, unless we get a solid break above 1,200 or under 1,170, we’re likely to see a ping-pong range move going into Thursday’s Thanksgiving Holiday.

Be safe and watch these levels objectively.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Read more here:
Holiday SPX Short Term Key Levels to Watch

Uncategorized

China: Bull Market or Bubble? The Story Continues…

November 22nd, 2010

The news last week followed the sun. It began with doubts about Ireland’s solvency…then moved to fears that California would default…and ended on Friday with doubts about China. Word on the street was that the Middle Kingdom wanted to dampen down inflation. They were going to raise rates and tighten credit.

The Chinese blame Ben Bernanke for increasing the supply of dollars and causing inflation in emerging markets and commodities. Bernanke points his finger at the Chinese. Replying to charges of reckless endangerment, “they made me do it,” he says. The Chinese wouldn’t raise the yuan…so he has to lower the dollar.

That’s what’s nice about paper currencies – you can manipulate them. Which is exactly what the US is doing…trying to manipulate its dollar downward…while simultaneously charging China with being a “currency manipulator.”

Which just goes to show how little honor there is among central bankers.

Maybe it was the China story. Maybe not. But for one reason or another there was no bullish follow-through on Friday. The Dow barely ended the day in positive territory. Gold stood stock still.

So, what is going on in China? We decided to get to the bottom of it.

Friday, we had a Chinese businessman in our office. He had come to see us about starting up a venture together in China.

“Nobody…nobody…knows for sure what it going on,” said he. “On the one hand, there are plenty of excesses and bad investments in China. There must be. We’ve been growing so fast. And there must be a lot of bad debt hidden in the banking system, for example.

“But on the other hand, China is booming. There have never, ever been so many people working so hard to make money. It’s a bit like the US probably was a hundred years ago. Only bigger. Faster. And with more government involvement.

“There might be plenty of problems…business failures…bankruptcies…and financial blow-ups. But I doubt that the China story will end any time soon.”

We don’t think the story will end. We think it will become more and more fascinating…and more exciting. You can’t grow at such a breakneck speed without breaking someone’s neck. And any time the government is heavily involved in planning an economy, you can be sure the plans will be bad ones. They will control too much…and then they will lose control.

Our friend Dylan Grice, analyst at Société Générale, has more on this story:

Is it possible they’ve…(sharp intake of breath) already lost control? And if so, who’s to say what will happen if the asset inflation goes into reverse? Maybe when the authorities engineer the slowdown they desire and tell investors it’s safe to buy again, those investors won’t want to buy. In which case a hard landing shouldn’t be beyond the realms of imagination.

Forget US de-leveraging, this represents the largest deflationary risk to the world economy

So long as China’s credit growth continues at its current pace, aided by the liquidity the Fed is flooding world markets with, and encouraged by artificially low interest rates, the primary risk Ems (Emerging Markets) face today remains that of a bubble.

This might sound a very bullish note on which to end. It isn’t. And let me be crystal clear about why: a bubble is not a bullish scenario. It’s not bullish for the EM economies themselves, their citizens or for the world as a whole. The fact is all bubbles end in tears.

Tears. Did you hear that, dear reader? Tears. Let’s be sure they’re not our own.

Bill Bonner
for The Daily Reckoning

China: Bull Market or Bubble? The Story Continues… originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
China: Bull Market or Bubble? The Story Continues…




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Commodities, Uncategorized

Ireland Becomes the 2nd Eurozone Country to Seek a Bailout

November 22nd, 2010

OK… The currencies and precious metals began healing on Friday too! The Sword of Damocles that hung over Ireland for the past two weeks was removed (for now, that is) and the focus shifted from a Eurozone problem back to the US. I know, you’re saying, these traders have very short attention spans… And you would be correct… But even more than the traders, I believe it has more with the focus and importance that the media puts on the “current problem”…

So… For now, the eyes of disgust have shifted to the US’s problems with debt, quantitative easing, and the question of how the bills will get paid. So… that means the Big Dog, euro (EUR) is back off of the porch, chasing the dollar down the street, and all the little dogs get to chase too! For those of you new to class, I use this to describe what’s going on with the currencies… The euro is the offset currency to the dollar, therefore it is called the “Big Dog”… All the other currencies are the “little dogs”… The little dogs can’t get off the porch to chase the dollar unless the Big Dog goes first… Once the Big Dog is off the porch, the little dogs, which can move faster, can outperform the Big Dog… But once again, they can’t get going unless the Big Dog goes first…

Sorry for the long explanation, but I thought to myself, “You haven’t explained all that in some time… And since I’m sitting here wondering what I’m going to write about this morning, I thought this would be a good time to do some explaining.

Ireland became the second Eurozone country to seek a rescue (Greece was the first)… A week ago, Ireland was saying that they didn’t need any aid… But what a difference a week makes, eh? But, the markets look at this and say, “Well, if they get the rescue package they need, then we’ll go back to the problems in the US”… Of course, over the past year, I’ve done my best to show you that the debt problems of the Eurozone states are very much like the problems of the US states… Unfortunately, for us, you take a state like California (the 8th largest economy in the world), and the problems are far greater here than there…

So… It’s what, as kids, we used to call an “ugly contest”… Or, as the Big Boss, Frank Trotter, shows in one of his old presentations… An auto salvage yard with nothing but Mercedes Benz cars… Then he would say, what you’re looking for here, is a car that will start every day and get you to work… It’ll be wrecked and ugly, but it does the job… And… isn’t that what we’re looking for? Something to offset the fall of the dollar’s value? To replace the lost purchasing power that the dollar has lost for years now?

That’s an interesting thing to talk about… Purchasing power… It is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing power in the 1950s… Or even better, you would have had more purchasing power just eight years ago, when the dollar began this long ride on the slippery slope to its intrinsic value.

Of course if you were with me eight years ago, and diversified your investment portfolio, and stuck with it during the dollar’s brief rallies of 2005, 2008, and the first six months of 2010, you would have retained most of that purchasing power that was lost by holding just dollars…

And, of course, a “unit of currency” doesn’t have to be folding money (like dollars or euros) it can also be a precious metal, like gold or silver… Gold is up $5 this morning, adding to Friday’s $5 gain… Sure, gold will need to string together quite a few $5 gain days to catch up with the losses it suffered last week… But, I certainly do believe that it will… Of course, that’s just my opinion; I could be wrong…

You know… Silver has actually outperformed gold this year, right? In fact, silver has surged 62% this year, while gold has surged 24%… WOW! I recently did a long interview with NewsMax that will be in print the month of January, where I answer the question, “Is silver the next gold?” I don’t want to steal the thunder from the magazine… But I’ll just point to the fact that silver has outperformed gold this year… And now the mints are talking about silver… Perth Mint in Western Australia says that “global demand for silver will increase”… The Royal Canadian mint said that they believe “Silver coin sales will jump more than 50% this year.”

OK… I see that Brazil’s strong economy has created 2.4 million jobs in the first 10 months of this year… The Brazilian government had set a target of job creation for 2010 at 2.5 million jobs, which certainly looks to be achieved… And to think… The government is so concerned that the real’s value is too strong… The government believes the strength of the real (BRL) is hampering their economy… But apparently not! See what I mean when I get all lathered up and talk about government’s leaving their economies to the market forces? These government’s all believe that “they have to stick their hands in there and act like they know what they’re doing” and that’s just plain wrong!

The ratings agencies would do us all some good if they just went away… The latest problem I have with them is S&P, which sent out a negative outlook for New Zealand… OK… We know, the markets all know, and investors know already that New Zealand’s external debt is not good… But it’s nowhere near the levels that would demand that S&P would give New Zealand’s outlook a negative rating… Needless to say, this announcement knocked the stuffing out of the kiwi (NZD)… I would have to say that this knee-jerk reaction to the announcement has probably given kiwi a nice level to look to buy…

Speaking of “stuffing”… Thanksgiving is this week! It will be a shortened week for yours truly, and for the markets in general… The data cupboard’s data will be all “stuffed” into mostly two days – tomorrow and Wednesday… The stock market closes early on Friday… I guess all the stock jockeys want to get in on the Black Friday action! HA!

So… The data talk can be held until tomorrow…

Canada will hold onto its data until tomorrow too, with both retail sales and inflation due to print on Tuesday… These reports from Canada have all been soft lately, so tomorrow is a big day for the loonie (CAD)… at this point, I would think that since all of the data lately has been soft, that it’s time for a reversal in the soft data trend… That’s my story and I’m sticking to it!

Last week, before Chris took the conn on the Pfennig, I had told you about the rise in Treasury yields, and wondered out loud, if this was the beginning of the end for the Treasury Bubble… I thought it would be quite difficult with the cartel buying $600 billion of Treasuries in the coming months… Well, The Economist was questioning the affects of the quantitative easing, and came to the conclusion that if the one of the important objectives of that quantitative easing was to drive down medium-term Treasury yields (that are tied to mortgage rates), then, well… That’s not what’s happening!

Think about this for a minute, folks… QE isn’t driving down yields, and neither is the Irish debt problem that in the past would have sent quite a few investors toward Treasuries in a flight to safety… So, has the bloom been taken from the Treasury’s rose? It sure looks that way to me…

The Wall Street Journal had a good story on QE… They pointed out something that I’ve pointed out to you several times now, that QE hasn’t helped Japan… It’s been almost 10 years since Japan introduced QE to their economy… And inflation hasn’t been seen! So… if that’s the FOMC’s/Cartel’s plan… Then it hasn’t worked in Japan…

But here’s the difference, folks… Here in the US, consumers are spenders… In Japan they are savers… I’ve been telling you this for some time now… That’s the big difference…

OK… Here’s a pattern I’ve seen over and over again for months now… I come in, and the overnight markets have pushed the euro higher (it was 1.3740 when I came in), and then watch as the NY traders arrive and take it back down (1.3685 now)… I guess it’s time to go to the Big Finish!

Then there was this… The Irish government will now open formal talks with the EU/IMF on details of the package, including its amount (Goldman Sachs says it will have to be 95 billion euros) and also the policies Ireland will be expected to implement in exchange for aid. Both the ECB and the finance ministers stressed that the bailout package would have “strong” policy conditions attached. Ireland’s PM Cowen said he expected an agreement “within the next few weeks.” Ireland has already implemented a series of austerity measures over the past two years and said last month it planned further cuts in spending and tax changes to cut 15 billion euros from the budget by 2014 (6 Billion euros in 2011).

I hope it all works for Ireland… Just five years ago it was the cat’s meow of countries with growth, and business creation…

To recap… It’s Thanksgiving week and the data will be “stuffed” into two days this week – tomorrow and Wednesday. The currencies and precious metals saw some healing on Friday that had carried over to this morning. It looks like Ireland will get a rescue package from the European Union and IMF, and that has given risk traders a bit of room around the neck this morning.

Chuck Butler

for The Daily Reckoning

Ireland Becomes the 2nd Eurozone Country to Seek a Bailout originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Ireland Becomes the 2nd Eurozone Country to Seek a Bailout




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

Higher Interest Rates Forecast Market Correction

November 22nd, 2010

Every precious metals investor should be concerned about China, one of the world’s fastest growing economies, raising its rates and rising yields. Changes in the rates affect stock prices. China is leading the world and we can see the fears are profound as sell-offs this week were much stronger than any of the relief rallies. If China’s market corrects then the commodity market, which was fueling the equity market, could experience a severe correction. It’s a domino effect.

Despite the Fed’s enthusiastic plan to monetize debt and artificially keep interest rates low through bond purchases, yields have risen aggressively for the last 13 weeks. The QE2 program was designed to lower interest rates to improve borrowing and liquidity. Instead the opposite occurred, QE2 is initiating higher borrowing costs. I don’t believe it is coincidence that Ireland’s debt problems surfaced following QE2.  China is now on the verge of raising rates to combat imported cheap dollars to bid up Chinese assets, which is putting pressure on markets globally. Rising rates kills equity and commodity markets, which are heavily built on margin borrowing.  The Long Term Treasury ETF (TLT) broke through the trend it had from May until the end of August. This previous trend was largely a result of a deflationary crisis where investors ran from risky assets like the euro to the dollar, and long-term Treasuries were pushing yields to ridiculously low levels. As fear in the markets decreased, due to a temporary stabilization in Europe and the US, investors ran to equities and commodities.

International reaction to QE2 has not been positive. There is an increased risk of emerging markets combating inflation, which may slow down the global recovery. Fears of China and emerging markets raising rates make investors unsure where to turn.

Asset classes have reacted negatively to China’s expected move. Distribution is apparent through many sectors and many international markets. Rising interest rates have a direct influence on corporate profits and prices of commodities and equities.

When studying interest rates it’s not the level that is important, it’s the rate of change. Interest rates have had a dramatic increase these past two months and we may see that affecting the fundamentals in the economy shortly.

The recent downgrade on US debt from China, who is our largest creditor, signals demand for US debt has been waning. I’ve been highlighting the decline in long-term Treasuries since the end of August. This rise in interest rates puts further pressure on the recovery as the cost of borrowing increases. Economic conditions are worsening in Europe and emerging markets in reaction to quantitative easing and imported inflation. Concerns of sovereign debt issues are weighing in Europe. As yields rise so do defaults and margin calls.

If the 200-day is unable to hold the bond decline and we continue to collapse, then rising interest rates could negatively affect the economic recovery. Borrowing costs to insure government debt are reaching record levels internationally. Ireland is expected to take a bailout. Greece, Spain, and Portugal are in danger as well.

Commodities have significantly moved higher along with the equity market for September and October as investors left Treasuries to return to risky assets due to the fear of debt monetization through QE2. Global equity markets have been rising. But the question is, how long? This makes investors reluctant to take on debt, which is the exact opposite of what the Fed’s goals were. Rising yields could lead to a liquidity trap and deflationary pressures.

Read more here:
Higher Interest Rates Forecast Market Correction

Commodities, ETF

VelocityShares Jumping in to VIX ETP Space with Leveraged and Inverse Products

November 22nd, 2010

Less than two weeks after I mapped out the various VIX exchange-traded products (ETNs + ETFs) in The Evolving VIX ETN Landscape, that landscape has has already changed dramatically. The first surprise was the launch of the C-Tracks ETN on CVOL (CVOL), a direct competitor to VXX, one week ago today.

The bigger change, however, is a suite of six new VIX-based ETNs on the way from VelocityShares (see filing) to be issued by Credit Suisse (hat tip to Adam Warner, who may be de-blogging for awhile, but is still tweeting his thoughts.) In the updated VIX ETP graphic below, I have coded the new VelocityShares products with a (V) suffix. In terms of covering the existing waterfront, the new VelocityShares products include VIIX and VIIZ to compete directly with VXX and VXZ, with the inverse XIV to compete against XXV.

The innovations come in the form of new leveraged ETNs as well as a new inverse ETN which targets VIX futures with a five month maturity. In the +2x space, these are TVIX (one month target maturity) and TVIZ (five month target maturity). In the inverse space, the new entry is ZIV, which has a five month target maturity.

For volatility traders, these are exciting developments. While I have no idea what the timeframe is for the launch of the new VelocityShares products, I can already envision dozens of exciting trades…which has me wondering why I am blogging about this instead of opening up a hedge fund…

Related posts:

Disclosure(s): short VXX at time of writing



Read more here:
VelocityShares Jumping in to VIX ETP Space with Leveraged and Inverse Products

ETF, OPTIONS, Uncategorized

FDIC: 903 banks in trouble. What to do …

November 22nd, 2010

Martin D. Weiss, Ph.D.

Martin here with an urgent update on the next phase of the banking crisis.

Just this past Friday, the government released new data showing that the FDIC’s list of “problem banks” now includes 903 institutions.

That’s ten times the number of bad banks on the FDIC’s list just two years ago.

The banks on the list have $419.6 billion in assets, or SIXTEEN times the amount of two years ago.

And yet, these bad banks are …

Just the Tip of the Iceberg!

How do we know?

Because the FDIC has consistently neglected to include the most endangered species on its list of problem institutions — the nation’s megabanks that are among the shakiest of all.

The FDIC doesn’t reveal the names of the banks on its list — just the number of institutions and the sum total of their assets.

Still, I can prove, without a shadow of doubt, that the FDIC’s list of problem banks is grossly understated and inadequate.

Consider what happened on September 25, 2008, for example.

That’s the day Washington Mutual filed for bankruptcy with total assets of $328 billion.

But just 30 days earlier, according to the FDIC’s own press release, the aggregate assets held by the 117 banks on its “problem list” were only $78 billion.

In other words …

Washington Mutual alone had over FOUR times the sum of ALL the assets of ALL the banks on the FDIC’s list of problem banks!

Obviously, Washington Mutual was not on the FDIC’s list.

Obviously, the FDIC missed it. Completely.

Also not on the FDIC’s list: Citicorp and Bank of America, saved from bankruptcy with $95 billion in bailout funds from Congress. Just these two banks alone had over FORTY-SEVEN times more assets than all of those the FDIC had identified as “problem banks.”

Some people in the banking industry seem to think the FDIC can be excused for missing the nation’s largest bank failures for the same reason that blind men groping in the dark can’t be blamed for missing an elephant in the room.

But the fact is that the FDIC even missed the failure of a relatively smaller bank: IndyMac Bank.

When IndyMac failed in July 2008, the 90 banks on FDIC’s “problem list” had aggregate assets of $26.3 billion. But IndyMac alone had $32 billion in assets. Evidently, even IndyMac was not on the FDIC’s radar screen.

This is …

Easily One of the Greatest
Financial Scandals of Our Time

The FDIC’s problem list is supposed to guide banking authorities in their efforts to protect the public from bank failures. If the FDIC is missing all the big failures, where does that leave you and me?

Heck — it’s bad enough that they refuse to disclose the names of endangered banks. What’s worse is that they’re hiding the truth from their own eyes.

And with so many misses so evident, you’d think they would have changed their ways by now.

Not so.

Even as I write these words to you this morning, banking authorities are AGAIN failing to recognize, analyze, scrutinize, or tell the public about the real impact of the most intractable disaster of this era:

Major U.S. Banks Still Extremely
Vulnerable to the Foreclosure Crisis

Here are the facts …

Fact #1. JPMorgan Chase, Wells Fargo Bank, and Bank of America each have more than $20 billion in single-family mortgages that are currently foreclosed or in the process of foreclosure.

Fact #2. Each bank has at least DOUBLE that amount in a pipeline of foreclosures in the making — $43 billion to $55 billion in delinquent mortgages (past due by 30 days or more).

Naturally, not all of the past-due loans will ultimately go into foreclosure. But these figures tell us that the biggest players are not only in deep, but could sink even deeper into the mortgage mayhem.

Fact #3. Combining the foreclosures and delinquent mortgages into a single category — “bad mortgages” — the sheer volume still on their books is staggering:

  • JPMorgan Chase (OH) has $65 billion in bad mortgages …
  • Wells Fargo Bank (SD) has $68.6 billion, and …
  • Bank of America (NC) has $74.9 billion.

Fact #4. The potential impact of these bad mortgages on the bank’s earnings, capital — AND SOLVENCY — is dramatic. Compared to their “Tier 1″ capital …

  • SunTrust (GA) has 57.6 percent in bad mortgages …
  • Bank of America has 66 percent in bad mortgages …
  • JPMorgan Chase has 66.8 percent, and …
  • Wells Fargo has 75.4 percent.

Tier 1 capital does not include their loan loss reserves. But even if you included them, the exposure is still huge.

Moreover, this data is based on the banks’ midyear reports. Since then, we believe the situation has gotten worse.

And these numbers reflect strictly bad home mortgages! It does not include bad commercial mortgages, credit cards, construction loans, business loans, and more.

Here’s the key: Based on their size alone, we KNOW that none of these giant institutions are on the FDIC’s list of “problem banks.”

Yet they are all definitely WEAK, according to our Weiss Ratings subsidiary, the source of this analysis on bad mortgages.

Moreover, “weak” means “VULNERABLE,” according to the analysis of the Weiss ratings provided by the U.S. Government Accountability Office.

To help make sure your money is safe, I have four recommendations:

Recommendation #1. Don’t keep 100 percent of your savings in banks. Also seriously consider Treasury bills — bought through a Treasury-only money market fund or directly from the Treasury Department.

Don’t be put off by their low yield. The primary goal of this portion of your portfolio should not be the return on your money. It’s the return OF your money.

Recommendation #2. The only real risk in holding U.S. Treasury bills is the likelihood of a falling U.S. dollar. But don’t let that alone prompt you to run away from safe investments and rush into high-risk investments. Instead, stick with safety and protect yourself from a dollar decline SEPARATELY, with hedges against inflation, such as gold.

Recommendation #3. For checking accounts, money market accounts, and CDs that you have in a bank, be sure to keep your principal and accrued interest under the FDIC’s insurance limit of $250,000.

Recommendation #4. Given the magnitude of the potential crisis … given the limited resources of the FDIC … and in light of the strong anti-bailout sentiment of the new Congressional leadership … I feel you must not count exclusively on the FDIC or any government entity to guarantee your savings.

Instead, make sure you do business strictly with financial institutions that have what it takes to withstand adverse conditions on their own, even without a penny of government support.

Do your best to avoid banks with a Weiss rating of D+ (weak) or lower and seek to do business with banks that we rate B+ (good) or higher. Stay safe.

Good luck and God bless!

Martin

Read more here:
FDIC: 903 banks in trouble. What to do …

Commodities, ETF, Mutual Fund, Uncategorized

Oppenheimer Considers Active ETF Space, Mutual Fund Conversion Possibility

November 22nd, 2010

As reported by InvestmentNews, OppenheimerFunds is contemplating entering the actively-managed ETF space by converting existing mutual funds into Active ETFs. William Glavin, President and CEO of Oppenheimer, spoke at the Money Management Institute’s conference in New York last week.

Glavin said that Oppenheimer has been considering the Active ETF space for a long time and if they do go down the conversion path, they wouldn’t just be launching clone versions of their existing 65 funds. The SEC has not yet approved any previous applications for mutual fund conversion into ETFs. The benefit of converting active mutual funds into Active ETFs is that the track record of the mutual fund can get carried over to the Active ETF, provided that the investment strategy remains largely similar. Also, the ETF would achieve instant scale if the legacy mutual fund already had a substantial asset base as those assets would get rolled over into the Active ETF. These two points could serve as big advantages for issuers who go down this route because one of the biggest issues holding investors from being comfortable with Active ETFs is the absence of a long performance history. The oldest actively-managed ETFs have only been around for about 2.5 years and many have also found it hard to achieve scale as investor assets have only trickled in. Mutual fund conversion could potentially side-step both those issues, thereby giving the issuers a strong advantage over competitors in the space.

The topic of mutual fund conversion into actively-managed ETFs has been raised only intermittently. It was first mentioned by Grail Advisors’ CEO, Bill Thomas, who discussed with us the benefits of conversion in an interview back in May. Then in June, Huntington Asset Advisors became the first company to file for the launch of actively-managed ETFs that two of its existing mutual funds would roll into. Randy Bateman, President of Huntington Asset Advisors, spoke with us as well on the subject, describing his firm’s plans in detail. Since then, Oppenheimer has been the first to discuss mutual fund conversion plans.

Glavin also said that it could address the transparency concerns raised from the holdings disclosure required in Active ETFs by launching products in broad markets such as large-cap growth equities, where managers can complete position changes within a day easily. “But in an emerging markets fund, it can take 30 days to unwind a trade, and if we have to disclose that trade on Day One, we can’t do it”, added Glavin.

ETF, Mutual Fund

Neuberger Berman Latest Entrant In Active ETF Arena

November 22nd, 2010

Neuberger Berman, an asset management firm based out of New York, has filed with the SEC to launch actively-managed ETFs. The firm’s filing contained generic details on what type of assets the funds may invest in and what investment strategies it may employ. Firms at this stage of the product development process try to keep their application for exemptive relief from the SEC generic and broad so that if granted, the managers have enough flexibility in the types of investment strategies they can bring market. In this case, Neuberger Berman specified that their funds may invest in equity or fixed-income securities in US or non-US markets, as well as in foreign currencies and possibly other funds and ETFs.

Providing detail on the initial fund planned, the application indicated that its expected investment objective is to seek long-term growth of capital by investing primarily in US and non-US equities that could be small, mid or large-cap stocks. As with all actively-managed ETFs in the US, the fund will provide market participants information regarding any change in portfolio composition on a T+1 basis. Neuberger Berman Management would serve as the advisor to these funds.

Neuberger Berman joins a long list of other major financial players who have shown interest in launching actively-managed ETFs. The SEC though has been slow to grant approval for the numerous filings that have been made from players like Eaton Vance, JP Morgan, Legg Mason, T. Rowe Price and AllianceBernstein. As a result, the approval process can take anywhere from 6 months at the earliest to 2 years as many providers have seen. The lack of clarity from the SEC on their stance on actively-managed ETFs has been a major hurdle for many product managers because their product development cycle becomes entirely dependent on receiving approval for their proposed Active ETFs.

ETF

Chart of the Week: European Stocks Holding Up Well

November 22nd, 2010

Six months ago the European sovereign debt crisis was flaring up and my chart of the week was the Flight-to-Safety Trade.

With the joint EU-IMF bailout of Ireland unfolding over the weekend and the future of Greece and Portugal in the euro zone also being called into question over the course of the past two weeks, this seems like a good time to compare the performance of Europe against some of the other continents.

While relative performance is almost always dependent upon the date one picks as a starting point, I still think many will be surprised to see in this week’s chart of the week below that at least over the course of the past six month,s Europe (VGK) has performed on par with Latin America (ILF) and has significantly outperformed Asia (VPL) and the United States. Should Europe be able to finish the year without giving up any ground to its counterpart regional ETFs, I think the continent should be allowed to exhale and declare victory, at least for 2010.

For more on related subjects, readers are encouraged to check out:

Disclosure(s): none
[source: ETFreplay.com]



Read more here:
Chart of the Week: European Stocks Holding Up Well

ETF, Uncategorized

The Gold & Silver Play Has Gone To Greed?

November 22nd, 2010

The past few months it seems the gold and silver play has been getting a little crowed with everyone wanting to own gold. While I am a firm believer that these precious metals are a great hedge/investment long term, I can’t help but notice the price action and volume for both metals which looks to me like they are getting exhausted.

Silver – Daily Chart
The silver chart below shows an extremely high volume reversal candle in early November which typically leads to lower prices and some times a major change in the trend. That being said silver remains in an uptrend with the possibility of a bullish pennant forming. On the other hand there is a possible head and shoulders pattern forming. I will be looking for light volume sideways chop keeping a close eye for a possible neckline breakdown or a momentum thrust to the upside for a possible trade.

Gold – Daily Chart
Gold is forming a bullish and bearish pattern also giving us a mixed signal. I am currently neutral on gold and not really looking to take part until we get some type of clear price action.

US Dollar – 60 Minute Chart
The dollar has shown some strength recently. The US dollar play has been to take the short side, and a couple weeks ago we saw the dollar breakdown from yet another consolidation. It seems like everyone shorted the dollar yet again. That could have been a key pivot low for the dollar. On the weekly chart that bounce was off a major support trend line helping add some fuel to the rally I would think.

The chart below shows the recent rally and breakout to the upside. Currently the dollar is pulling back to test the breakout level (support). It will be interesting to see how this week unfolds. If the dollar bounces then we just may see metals break below their necklines to make another heavy volume drop.

Weekly Precious Metals Update:
In short, I have mixed feelings for gold and silver. Yes I think they are good long term plays, but after the run they have had it is also very possible a much deeper correction is about to take place and we may not see new highs for another year. That is a long time to have money sitting in an investment when it can be put to work in other investments. I know the herd (general public) is all head over heals in love with gold and silver which is one of the reasons why I think we are nearing a top if we didn’t already see it a couple weeks ago.

Don’t get me wrong I’m not saying to sell of go short metals… not yet anyways. They are both still in an up trend but some interesting things are unfolding which could cause big action in the coming weeks.

Join my trading newsletter and get my ETF trading signals, daily analysis and educational material: www.TheGoldAndOilGuy.com

Chris Vermeulen

Read more here:
The Gold & Silver Play Has Gone To Greed?




Chris Vermeulen is a full time daytrader and swing trader specializing in trading (NYSE:GLD), (NYSE:GDX), XGD.TO, (NYSE:SLV) and (NYSE:USO). I provide my trading charts, market insight and trading signals to members of my newsletter service. If you have any questions feel free to send me an email: Chris@TheGoldAndOilGuy.com This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Commodities, ETF

Copyright 2009-2015 MarketDailyNews.COM

LOG