Metal Review For The Week Of September 19, 2011

Precious metals saw a decline in prices last week. The gold market dropped below $1,800 before giving back some gains as the Euro/USD sank to new lows this year below 1.36. Silver fell from $42 to $39 as this market followed gold as well. I will look for a rebound this week as the equity market continues to drag leading to a possible rally in the metals.

Copper going south as the market heads towards huge support of 3.85. If this is broken I believe big liquidation will happen as this is a crucial triple bottom in the market.


**Chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.

Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.

Financial Market Review For The Week Of August 29, 2011

The East Coast did take a wallop this weekend but the exchanges are expected to run on regular schedule. Dick Grasso was on CNBC this weekend and mentioned that the electronic portions of the exchanges are working. He said commuters might have issues but the markets should have no issues opening. Estimates on Irene's path of destruction could be close to $2 billion. I have to say, I disagree and think the estimates are too low.

Consumer spending rose 0.8% in July which is the biggest increase in over 5 months. This could give the market a bullish lift as fears of a recession start to ease. Over 70% of spending is done from the consumer which spawns economic activity. The increase was due to purchases of durable goods such as automobiles and appliances.

What is the market hoping for? The market wants to see more bond buy backs from the Fed or as the financial world knows it, quantitative easing. Ok, yes this would artificially help the economy but, will it help get rid of the other issues? No, debt is still an issue overseas, housing still stinks, and job are not being created. This could be a short lived rally.

Could the dollar go up if gold keeps selling off? It is a possibility and something that should be watched. Some economists think the $1,600 mark on gold is the area where US dollar buying might take place.


**chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.

Financials Review For The Week Of August 15, 2011

By Frank LaMantia

New York manufacturing data has fallen for the third straight month. The premarket was barely affected by this but the data should not be overlooked. Volatility is the game that traders seem to be playing and it could stay like this for the near future. The government keeps low rates dangling in front of consumers but this may not be enough to invoke confidence. The questions one should be asking are, will Germany be a driving force in helping the European nations? If Germany helps Italy do they have enough to help others?

Motorola Mobility Holdings Inc. is being bought by Google for $12.5 billion in cash and could be Google's biggest purchase. The price would be $40 per share, which is 63% premium to the closing price on Friday. Motorola has struggled because it has competed with Apple's smartphone. Motorola as many already know has products based off of the Android model. Lowes reported weaker sales for the second quarter due to consumers spending less money on renovations. Warren Buffet thinks that billionaires should be taxed more. He believes that lawmakers coddle the superrich and that they have enough money. Buffett paid 17.4 in taxes and that typical tax burden ranges from 33%-41%. Sure, what does he care! He is 80 years old and may only be taxed for another decade or so. Taxing billionaires may not solve the world's problems.


*chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.

Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.

Financials Review For The Week Of August 8, 2011

By Frank LaMantia

In the past, countries that have been downgraded typically show a sell-off in their stock market. As most aware the U.S. rating has fallen from AAA to AA- and for those that do not know this AAA rating has been around since its inception in 1917. Wealthy investors, institutional investors, and those who work on the street in business were likely ahead of change rather than behind. Meaning, they could have been more likely to have sold positions over the past few weeks. Mom and pop accounts may just be waking up now to sell the market. One might think the worst in this type of environment but remember this is also when those on top of the food chain could be looking to buy in. They could be looking for bargains and opportunities. The issues go further than just the United States. Do not forget the debt issues are a global problem and seem to be getting worse. Also, it wise to not forget that the derivative market has still not hit with its losses. The issue is that the brightest minds still do not know how badly leverage those vehicles were stretched.

PIMCO, Warren Buffet, and Geithner agree that countries like China may seek sovereign debt from other countries. China might not take all of their money out but they could spread it around to other countries. This means less money being placed in the United States system. Hedge funds seem to be putting money in cash which one may assume that wealthy investors could be doing the same thing. People do not want to relive the 2008 sell-off hoping for a comeback.


***chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results

Financials Review For The Week Of July 18, 2011

A deal has been reached in Washington and it looks like a $2.1 trillion increase in the debt ceiling has been implemented. Also, a 10 year 1 trillion deficit reduction between defense and non-defense spending will help lower the overall deficit.

In December another vote about $1.5 trillion in cuts could occur. Typically, this causes downward pressure on interest rates which in turn could push bonds down as investors look for risk in the market.

HSBC will be cutting 30,000 jobs worldwide by 2013 and could sell up to 50% of its retail bank branches. The company has over 296,000 people worldwide but is still hiring in Brazil and Mexico because of their growth rate.

The big question is the debt ceiling a small fix or is it just a Band-Aid? This trader does not think the government can stop spending. The United States is known for its efforts in which they spend money to help other countries in need. Are they going to just say no when a dictator loses their mind? Are they going to say no when another tsunami or earthquake hits? The country might have to have cuts on every level of government and not just cherry pick the places where it might not hurt the most. Raising taxes on those that spend could just make things worse. The United States' rating can be cut even though a path has been built. Is the country's reputation tarnished?

Peabody and ArcelorMittal came with a hostile takeover bid of $4.7 billion for Macarthur Coal. Macarthur is taking the offer to shareholders and thinks it is an attractive offer. Do not overlook the U.S. Dollar Index which could make a comeback to the 76 level. Currently, it is up 0.03 to 73.77 and its 52 week high was 83.56 and reached its low on May 4 at 72.70.


***Chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.

Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.