Tuesday, April 27, 2010

TUESDAY NOISE DAY update I

Should be some nice theater today as Lloyd testifies for show today. The Senators can beat him up (professionally mind you) then tell the public that they are going to create transparency in a system that has never seen transparency. After all how do you think we were able to dump our toxic financial waste on all the foreign entities. It bought us the delusion (at least for a few years) that we were able to afford to fight two overseas wars, buy an escalade for every driveway, a Mc mansion with a three car garage for the driveway, shop at Sac's for jeans, on 90K a year with NO tax increases while the deficits and debt ran through the ceiling. NEXT....

TOKYO, April 27 (Reuters) - Gold edged up on Tuesday, nearing
a one-week high marked the previous day as a halt in the euro's
decline provided support, while focus is on the Federal Reserve's
two-day policy meeting starting later in the day. FUNDAMENTALS * Spot gold XAU= inched up to $1,155.35 per ounce as of
2355 GMT, compared to $1,153.38 per ounce in New York. * It hit an intraday high of $1,159.73 on Monday, its highest
since April 15, but came under pressure as the euro fell on
uncertainties about an aid deal for debt-ridden Greece. * On Monday, euro-priced XAUEUR=R gold hit a record high of
868.57 euros, bolstered by the combination of risk-averse buying
and euro weakness. Gold in euro terms stood at 862.43 euros an
ounce on Tuesday. * U.S. gold futures for June delivery GCM0 were up 0.2
percent at $1,155.80 per ounce, compared to the settlement of
$1,154 on the COMEX division of the NYMEX. * The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD), said its holdings rose to a record of
1,146.216 tonnes as of April 26, up 6.088 tonnes from the
previous business day. [GOL/SPDR] * The International Monetary Fund sold 5.6 tonnes of gold in
February under the second phase of its gold sales programme, the
World Gold Council said in a report on Monday. [ID:nLDE63P2C3] MARKET NEWS * Investor confusion on the timing and amount of emergency
aid for Greece prompted euro selling on Monday as markets worried
whether the euro zone country can avert a debt default. [USD/] * Germany said on Monday it could offer aid for Greece within
days if it agreed to painful new austerity measures.

http://news.goldseek.com/ClifDroke/1272264540.php

update I....and then there wuzz FEAR

(Reuters) - Gold hit two-week highs on Tuesday and record peaks in euros and Swiss francs, as ratings downgrades of Portugal and Greece fanned sovereign risk fears in the euro zone, helping the metal shrug off weakness in the euro.

Spot gold hit a peak of $1,163.75 and was bid at $1,161.95 at 1525 GMT, against $1,153.38 late in New York on Monday. It hit record highs in euros at 874.70 euros an ounce and in Swiss francs at 1,254.87 francs.

Standard & Poor's downgraded Portugal's ratings on concerns about its ability to deal with high debt levels. Portuguese bond spreads hit euro lifetime highs as investors feared the country was the next weak link in the euro zone after Greece.

"Gold prices are rising on the back of presumably higher sovereign risks in the euro zone after the latest downgrade of Portugal ratings by S&P," said Commerzbank analyst Eugen Weinberg.

"Gold seems to be defying the traditional pattern - stronger dollar, lower gold prices - over the last weeks, pointing to stronger perception of gold as an alternative currency."

"As the sovereign risks persist, gold prices may well mark new highs for the year." Gold's current 2010 peak is $1,168.70 an ounce.

U.S. gold futures for June delivery on the COMEX division of the New York Mercantile Exchange rose $6.90 to $1,160.90 an ounce.

Concern over sovereign risk in the euro zone, chiefly debt-laden Greece, has helped gold rise nearly 6 percent this year, despite a 7 percent fall in the euro versus the dollar, which would normally weigh on gold.

56 comments:

  1. In play penny stock that has a real pipeline that you should look at is NEXM...risk/reward makes it interesting...I love its pipeline but like all of these biotechs its a gamble stock

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  2. NEXM is a biotech that has a real pipeline. Its in play so be careful here.....longer term its phase III trials actually are interesting to me...so be aware.

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  3. CAEI in play.....anyone still own? up 10%...

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  4. kli speaking penny stocks would dsco be dead or still a chance for a run

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  5. DSCO......still alive but on life support...

    On a brighter note......GOLD is breaking out.

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  6. http://www.reuters.com/article/idCNLDE63Q11620100427?rpc=44

    Dutch fund axes Goldman....let "da party" begin! GS should be very very careful what they write in their emails...guess the greedy bastards never thought anyone would catch on to their dirty dealings...GS guys in the hearing this morning are sweating big time...amazing what Congress has on them...TexasBlonde...

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  7. Watching the GS hearings...I wonder how much those exhibit books weigh? Heeee he...TXB

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  8. Hey KLI, Dumped my GS and moved over to some AIG puts today. Did this all using level 2's and playing the news. Starting to get my mojo back...

    If I were smart, I'd just go long on miners like you and Joe...But I'm too much of a gambler.

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  9. One more thought...I wonder which of the GS punks will turn on the others first? There is only one ladder out of that deep hole they are digging, so...who is going rat and tell all, go to a Fed pen for a few months, write a book, get even richer, and retire later to a private island...? That would be my plan...LOL...TXB

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  10. Man, I am cleaning up today. My AIG puts are skyrocketing. up 50% for the day and it's just mid day.

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  11. Remember this GS hearing has all been predetermined and is for show only. Any "fallout" is already calculated and accepted by GS. Any of these fall guys will accept their fate....after all, as soldiers...they will receive ample reward.....in fact the only real punishment like any rico situation is if you "talk".....notice none of them are talking. This is as usual all controlled. These senators are only part of the show.

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  12. Also pay attention to the market....gold is breaking out as predicted...lets see what happens to the miners if they take this baby down....how weak are they going to be in relation to the market...I want to see fear in the market...maybe tomorrow.

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  13. Dave,

    Are you playing DTO? yummmmmy!

    Joe

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  14. Hearings are a dog and pony show so the politicians look like they give a crap. Same with Obamas speech though I know Kli disagrees, I still say outside chance he is sooooooo green, he might believe what he says not realizing why he was given the people around him to help. Ben, Timmy and Larry especially.

    By the way, people at the EASL (Liver meeting) were impressed with the BSM data (small pool though it may be). No one mentioned the data might be bogus (some arms canceled for AEs, etc). So it appears there is some competition for ANDS though BSM I believe is further behind time-wise.

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  15. KLI: I'm now up 67% on my AIG puts. The best day trade I've ever made by far.

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  16. Jay you know what happens to pigs.......hehehe

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  17. Homer not sure what you meant by O...but he is pure and simple a pawn....well spoke pawn...but a pawn that is under complete control by the PTB...at one time I had hoped that he would provide meaningful hope, obviously his entire intervention is a fraud. Now the argument might still exist that the country might be better off being lead by the brightest kid in the room (O) vs the dimwitted kid mommy and daddy made pres....GW......but I am almost to the point that I believe that isn't even that critical. I would have to say categorically things are pretty much at point of no return....Joe will say we will get cleaned out and the new growth will be positive.....guess I am from the show me state.

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  18. "Joe will say we will get cleaned out and the new growth will be positive.....guess I am from the show me state."

    No doubt about the system will get cleaned out since law of nature will do it, that period would be very very painful for most but it's not armagaddon , it will take 3 to 5 yrs and after that it will be slowly but positively forward.

    Joe

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  19. kli,

    I also agree with what churchil said about us, " Americans will take the right PATH after they EXHAUST all other options".

    Joe

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  20. Well KLI. I sold my AIG put options 5 minutes before the close. I sold at market prices because I was so nervous. Didn't want to chance typing in the wrong number on a limit.

    Total haul for the day = 148% profit.

    Not even in my SKF/FAZ days did I come remotely close to trade like this.

    wheeeeeeeeeewwwwwwwwwww.

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  21. You are my hero today Jay big GRATS.......

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  22. World markets down huge today and GS is up? Were they buying their own stock...or what? Go figure...what a rigged game! TXB

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  23. "Homer not sure what you meant by O...but he is pure and simple a pawn"

    In the past I had mentioned that I believe O actually believes what he says in regards to finance reform even though its laughable at times. Especially when you look at the folks he's surrounded himself with to advise and act in the finance arena. This is in contrast to the folks on the hill who say the same things as O, but can't accept the finance lobby's money quick enough, harrumph. I kind of gave him the benefit of the doubt that even though he's surrounded himself with failed followers of the GS alum. I thought you disagreed with that and took the position that he knows he's full of it as well. That's all.

    Congrats Jay

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  24. TXB: I think GS was shorting AIG. I've seen them do it in the past. They've got all the inside info on Greece. I was watching level 2's for almost the entire day, sell orders were 2-1 over buy orders for the entire trading session. Someone had some inside info and was dumping huge.

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  25. Jay...I have the GS 150/145 puts..120's too..I was unable to get the 150's out of the gate this morning...I thought for sure I'd get them today...GRRRRRRRRRR I'd be better off taking my money and betting in Vegas..At least I made a little shorting C...did not even think about AIG...Oh and CONGRATS on your trade today!!!! Nice!...Holding FAZ, TYP, TZA, SMN, and ZSL overnight again, may get another down day...we'll see. TXB

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  26. Homer .... gotcha. I "think" its possible O was well intentioned when he made his bed with the Fed JPM and GS over a year ago. He may have believed that the smartest boyz in the room were his best bet to keep him from being a one term prez. Volker was in that room early on taking the "other side" so I know he had another voice. Its clear he now knows he was snookered. But as Joe says he listened to the Devil because the Devil sounds sooo good. So in his world maybe he thought he was making the right moral choice. Joe is throwing eggs now....We will know in retrospect but as Joe has said essentially we only kicked the can down the road and now weve made a few years depression a ten year depression...at least.

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  28. "March to new highs? Yawn. Wouldn't be a surprise to most if that happened. It would be a surprise if it didn't happen though." Daneric

    Will take a look at S&P 1168 but I am neither to convinced with physical gold and Goldman Sachs both green on a big red day.

    Congrats to Jay on quickly shorting AIG, along with FNM and FRE are always fun trading fodder, worthless companies trading on pure speculation and momentum.

    Looks like a concerted global effort to take some air out of equities before the end game commodity spike. Looking for a 6-12 month dome top minimum as they play bubble management.

    The PIIGS will just be an excuse for the Eurozone to continue to aggressively play the competitive devaluation game. So precious metals, base metals and Alpo will still get strong bid going forward.

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  29. The competitive devaluation game is going to move the the USD court soon so prepare for more drive on PM's....the current bullish trend for PM's just might have more gas com'n soon.

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  30. Great question just now to Lloyd ....Why did Goldman decide to release the private E-mails of Mr. Tourre JUST NOW....Lloyd is stuttering in his answer .....WOW...great question ...

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  31. KLI: Another Obama scenario... He knew the ONLY way to get health care passed was if the stock market looked pretty. There isn't a chance in hell it would have passed with DOW 7000.

    Now that he used the devils for what they were worth, it's time to throw them to the wolves.

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  32. Jay...the "health care package" is nothing but a gift to the bankers. Had they truly reformed health care then I might agree with your scenario..."the devils" used Obama for healthcare....what they passed is just an open season on the middle class...it takes the current system...continues it with a few minor tweeks that "might" help some marginal working uninsured....but it essentially continues the insurance's license to steal with taxpayers backstopping the INSURERS......Jay its the "game"...you must not let noise distort the process.

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  33. I love folks calling him socialist. The health care package had several industries drooling.

    I think Jay has a point though, no way that passes without the re-inflation of the market (IMHO).

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  34. THAT bill would not have passed without a market pump...since it is nothing but a budget sucking give away to health insurance rapists....BUT don't lose sight of the REAL reason this "reinflation pump" is occurring...getting sidetracked by "health care reform" as a "socialist" agenda is missing the forest for the trees. EVERYTHING being done is an attempt to get the "juices" flowing again. It may be complete insanity, but it is the "game". If you let bias enter into it by confusing Obama as a "socialist" is the same mistake you made with Clinton.....THEY GW too....are ALL corporatists...that is a big difference...you will get your head handed to you in this market if you don't distinguish. THEY ARE ONE>

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  35. I've been trying to figure how this is going to work as a major correction comes in. Will it be a small crawl down again where everyone who already forgets their 201K jokes just lets it happen all over again? Or will they be a little smarter and exit the casino in a less than orderly fashion making for one heck of a correction.

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  36. All I can say is don't just blame the health insurers. It is everyone in the system. Doctors and lawyers included. For example, my mother went to a urgent care unit in Florida for an allergic reaction to some pain meds due to rotator cuff surgery and she has an HSA with $3000 ded and no copay. The bill for 4 hrs of care was $2600 for the urgent care and $500 for the Doc. She ran it through the Ins Co and they negotiated it down to $1800. Then my Dad went to the urgent care and negotiated it down to $1100 all I can say IS WTF is going on. THAT is NOT the insurance co. That is the health care providers. I do agree the insurer are part of the problem but there is plenty of blame to go around just don't point the finger at the insurers. The Gov can be blamed as well because of Medicare. Just my 2 cents.
    Jeff


    Jeff

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  37. Yes Jeff, if 1 in 10 people get sick, the insurance company is there to make sure all 10 of them pay as much as the "market can bear" for that 1 guy. The providers and pharmas of course price according to how much the insurance company can afford to cough up.

    Perversely if more people got sick there would be less money in the pool for each treatment and prices might fall as a result (more likely premiums would rise, depending on who blinks first).

    Less demand for care = higher prices, more demand = higher premiums? Doesn't sound like capitalism, but non-catastrophic insurance more or less rules out any kind of sane market dynamic.. Which is why the health bill will never work, it just makes said corps bigger and stronger as well as giving them an excuse to raise premiums WAY ahead of time. They must be loving this.

    Anyway about Obama, I think he really meant (naively) most of what he said during the campaign.. By now though I'm sure he's smart enough to see that he's in no position to help anyone but the people who put him (and his congress) in place. Another fairy loses its wings, and I'm in no mood for clapping.

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  38. Morla,

    You missed my point. The real reason why they want to charge that much is becuase of Medicare. Maybe I didn't explain myself. It was in Florida, large retiree population, therefore they need to charge private individuals that much due to the lack of funds coming from Medicare. Here is something to chew on, get rid of Medicare and prices could go down. I realize that raises an issue with retirees, thats just one piece of the puzzle and this puzzle in complex and has millions of VERY small pieces. Tough subject health care. I just am tired of hearing O talk about health care reform when its not health care reform it is health care mandates put on companies. Disclosure I employ 13 people and we have an HSA style plan with a 3000/6000 ded no copay and the ded is the max out of pocket. All office visits count towards ded and prescrition drugs do to. My employee pays 15% and I cover 85% whether single or family. I also put in $600 single and $1200 family in per year into their HSA account. Not super like the unions but I am a small business and can't afford more. Also, I don't pay myself a huge salary so I can say that with all honesty. If I worked for a big company I would make more due to my experience and degree in engineering. But enjoy the personal freedoms of being self employed.
    Jeff

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  39. Its fun trying to cure the worlds and the US's problems. But, it really doesn't matter we are as a country SCREWED, due to 80 years of idiots in congress and the white house. Not just Dems but Repubs too. They are one and the same as far as I am concerned. Vote them all out and start fresh. Judges too!
    Jeff

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  40. On another not how about Gold looking good. Have been buying AUY and GFI lately. Loved seeing them up to flat on a big down day. Kli, on another note what are your reasons for liking SLW over SLV? From what I have read about SLW, they are not a miner only a broker for all intensive purposes. Just curious on reasons. I have owned SLW in the past, but not recently. Could be interesting day tomorrow. If the dollar correct gold could get very interesting.
    Jeff

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  41. Less demand for care = higher prices, more demand = higher premiums? Yes because not enough General Practioners. Too many specialists. Therefore the Docs charge more and the insurance company has to charge more. I am not saying it is right or wrong on what they charge but that question is too simplistic to a complex issue. Where I live insurance in cheaper than my surrounding states. Mandates. Number of Approved providers. Cost of living. Is why it is cheaper. Its just too complex. Especially for out government and even our great savior "O". Sorry about the long posts about this I just know what this bill is going to do to me and my business and it SUCKS really really bad.

    Jeff

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  42. Well I'm a tad crazy, I believe that the very existence of non-catastrophic insurance is the reason health care is this expensive to begin with.

    In my mind "spreading the cost" via systemic insurance also increases ability to bear cost of the public in general. The healthy/lucky might only be paying for peace of mind, but their dollars are very much a part of price discovery for medical treatment and medication.

    Of course the other gorilla in the room is the fact that Americans in general are subsidizing the entire planet's drug costs (R&D ostensibly). The fact that this isn't a secret and we still trust any of these people baffles me, but like I said I'm missing some marbles.

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  43. [/rant+rave]

    Not a trader, generally I buy something I believe in and wait patiently until a smile appears on my face. AUY has been good about that, GORO too. Kli has called AUY a laggard but I'm patient and disinterested so I like it.

    I concur with kli that everyone should hold a core of miners before trying to trade "the game". Laggards or no something tied to either physical gold or the physical obtaining of gold (mining!), provided the miner isn't hedging itself into oblivion, can be counted on if you're up for some transient flexibility in time horizon.

    Be advised, I don't believe in stop orders. Not sure how trading would work with them happening, honestly. If you're sure it's a matter of time, not a matter of day-to-day or week-to-week prices right?

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  44. Morla - "HOME RUN" "Well I'm a tad crazy, I believe that the very existence of non-catastrophic insurance is the reason health care is this expensive to begin with." Hardly Crazy, It is the main reason for Insane Preimums!! We need a Nation Insurance System for Catastrophic Healthcare (Fee for Service Based) and set up reasonable deductables for single & family Catastrophic Coverage and that's that. Let the Insurance Co's fight it out for customers in the secondary market across state lines with no mandates and sell policies ala cart! Throw in a little tort reform as well, it will cut down on defensive medicine! Just my thoughts on the subject. As for Jeff's comments that everyone has a stake in this mess, just a reminder it was the Doctor's that killed the Golden Goose.... JMHO, btw most folks are selling Pres BO short he knows just what he is doing and is getting the desired results.....

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  45. I want to know.. for purely scientific reasons.. if anyone watches Fox. Be advised Fox Watchers. I believe your republican party was once righteous yet co-opted.. probably by Fox.. Some ideas are still present but the fire has gone out..

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  46. Morla - Just curious but are you implying anything?

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  47. You don't need Fox, just be strong. Dr. House knows

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  48. I imply human stupidity, but that's normal to us all. The overall result of our endeavors, we don't deny it as individuals. Everyone is a fool, if you don't believe it that only cements the fact

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  49. So yeah Tom knows what he's saying but all money is blood money past a certain point, no?

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  50. Actually let me expand on your point re: Fox News - Who needs any of the Cable News Network's Period.... Only Talking Points & Opinion's from the Left or Right designed to pull us apart and deflect attention from the real issues confronting us!

    Have to agree with you on Human Stupidity it does surround us all....

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  51. Not only are we being turned against each other, we will continue to be such. Statistically you're knowing of OKness somehow works out as a positive for TPTB.. Doesn't matter how, y'know?

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  52. OKness? pardon my "Stupidity" hehehe :) but not sure what you meant by that cause there's nothing going on right now that remotley resembles OKness. Makes me sad to see how we are all being played for fool's. Anyway gotta go will check back later but for some strange reason I feel you think I'm a Fox junkey........

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  53. Yeah I'm not sure what I was talking about at the end there either.. That wine can be a killer.

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