Home  l  Broadcast  l  Market Monitor  l  Storm Watch  l  Sitemap  l  About Us

MONETARY DISORDER & US$ REJECTION

Anyone who cannot detect rumblings with more magnitude than early volcanic tremors is brain dead, plain and simple. For a full year, the USDollar enjoyed a sizeable counter-trend bounce. It relieved the long-term oversold condition. In usual times, in typical markets, such a period of time would offer the fundamentals an opportunity to catch up, for the remedy to work its medicine, for the condition to heal itself. In the case of the USDollar, the trade deficit worsened. The Jan2005 trade deficit was a grandiose $58.3 billion, pretty doggone rotten. By Jan2006, a full twelve months for the “fix” to take hold, to work through the system, the trade deficit had ballooned to a shocking, yawning $68.6 billion, as nothing but more metastasis flowed their the body economic. Our Pied Piper Sir Alan Greenspan, who skipped town before the upcoming crises, much like Robert Rubin skipped town in June2000, proclaimed the lame line that financed deficits were a sign of flexibility. Plenty of flexibility is manifested in a bank overdraft on a stretched credit line awaiting default also. The Maestro and GoldBugs should be aware, that a revolt, an insurrection, a mutiny is in progress. The greenback is being rejected, perhaps as much as the USGovt leadership is getting a global vote of “NO CONFIDENCE.” Polls internal to US shores show low confidence in our leadership trio, in parallel.

THE HEGEMON, NOT POKEY-MON

In recent months a new phenomenon is unmistakable, dangerous, ominous, and so real. The world is not only sensing the unfixable nature of all things USDollar-based, it has begun to create alliances to protect itself from the US hegemon. No longer does the United States rely upon innovation, investment, and work, but rather upon attempts at “full spectrum dominance,” deceptive coercion, and blatant inflation. Refer not to the pocket monster, aka pokey-mon. The hegemon is the dominant big guy who plays dirty, throws his weight around, ignores the law, and dares a reaction. No, he even retaliates in the face of warranted protective response. For those who do not understand this “hegemon” term, think of the nastiest evilest wretchedest bully who didn’t just steal school lunch money, but who would kidnap your daughter to ensure debt payment in shylock setting. Think of dark shadowy men who threaten and deploy the most sinister of weapons against a perceived enemy. From the other side of the chess board, recall Georgi Markov, a Bulgarian writer thought to inspire a dissident movement against the Soviets from London. He was assassinated by a KGB agent using an implanted ricin poison capsule by means of an umbrella on a city street sidewalk.

Think of installing tyrants in foreign lands, rich in resources, for the unexpressed unsanctioned purpose of securing contracts for commodity supply to fulfill the needs of the insatiable USEconomy. Think of criminal access granted to gold miners for leasing and selling the US national gold treasure, at nil interest rate for years on end, and zippo accountability before the people’s representative in Congress. Think of the IMF and pressured tactics to raise interest rates in Argentina, after putting that nation’s accumulated deficits on an installment loan, then warning aristocrats to vacate their bank accounts into New York City accounts before bank closures and confiscation of accounts. My sister-in-law was such a victim. Think of heavy pressure leaned upon the Bank of Japan, to comply and to supply the West with 0% money in return for no trade tariffs whatsoever as Tokyo accumulates over $600 billion in reserves in return for the favor of open market access to US retail centers and car showrooms. Note the cries of foul when China does the same trick without a central bank for the hegemon to control. Think of disinformation and distortion of intelligence for the purpose of motivating then waging a war in a land rich in crude oil and fresh water. Think of conducting naval exercises off the coast of nations which make public statements against the USTBond and the implied coercion to recycle Asian trade surplus into bloated USTreasury Bonds. These are tactics used by a hegemon. Foreigners are very familiar with these nasty weapons, while Americans are largely ignorant of them. Remaining in the dark might be a necessary ploy in order to maintain distrust of outsiders. We are all too familiar with the tactics of the underworld crime syndicates, with much more obvious devices like murder, extortion, bombings, fires, kidnaps, hijacks, loan sharks, and basic heists. The hegemon strives to walk the fine line balancing respectability, deniability, professionalism, and diplomatic leadership, a narrow walk indeed. This hegemon is slowly being disrespected, challenged, undermined, as opponents openly plan their alliances and devices of their own making. A revolt is in progress. A scheiss storm comes.

G7 ANNOUNCED PLAZA LITE ACCORD

A new phase is about to unfold in the currency wars. The G7 Finance Ministers decided the USDollar must endure a substantial reduction. The Second Plaza Accord has begun (first was 1985) an initial phase, whereby Asian central banks are on notice to permit their currencies to rise, and European bankers will cooperate on a coordinated USDollar decline. Martin Feldstein gives intellectual cover for a more competitive (lower) USDollar. At issue is the gargantuan chronic US current account deficit (trade gap & more), but more importantly the foreign central bank lost confidence in the USDollar as the reserve currency. The US and foreigners see the problem from different vantage points, but they do share the common objective of significant US$ devaluation. My view is that the US trade deficit is structurally based and unfixable without a deep recession, and surely not by means of a currency adjustment alone. That is, unless the US$ falls by 50% or more. Entire industries have gone extinct. Formal attempts to bring down the USDollar will result very ugly serious fallout, all sure to meet opposition, none of which to find political favor. US economists expect little if any price inflation impact, a fairy tale forecast.

World finance ministers have lost confidence in the USDollar. The G7 Meeting communiqué, announcements by Japanese leaders, statements from European bankers, warnings by out of Beijing, outcries from South Korea, criticisms from Russia, agreements in Asia, even statements by the IMF, they all add up to a global banker revolt. US imbalances are not being rectified. The Russian finance minister Kudrin openly questions the USDollar as worthy, given substantial and chronically dangerous deficits. Expect a rocky several months to contain turbulence, minor panics, and some derivative accidents (likely in bonds). Chinese leaders steadily make pronouncements about the hazard to the global banking system from its USDollar foundation, cite the high risk to financial markets of big selloffs, remind of their steady grand subsidies to US consumers, and defend their slow progress in relaxing currency controls. Basically, at spoken issue is the legitimate viability of the USDollar as world reserve. USTBonds, mortgage bonds, and corporate bonds are collectively held as ransom. Asians meet among themselves, for to coordinate mechanisms on a regional monetary unit, one useful in establishing financial stability. The parallel Asian currency is device to be used for certain purposes.

Even the IMF, an organization with a near perfect track record of destroying economies through currency devaluation and interest rate hikes, now calls for the USDollar to be devalued. They believe simple currency adjustment will lead to an orderly resolution. Wow! That is downright clueless. Give me some of that stuff they’re smokin’. The USEconomy has structural problems, much like a fat man missing a left leg trying to walk normally down the street. A currency fix would be akin to lengthening a leg which no longer exists. Orderly resolutions without vast consequences are next to impossible. The US banking leaders and USGovt leaders have taken us way too far astray to be called home without missing dinner. The bread crumb trail has been washed away by vast floods of liquidity from previous storm relief. It is no wonder that officials are calling for the equivalent of yet another mythical SOFT LANDING, this one for the crippled bloated USDollar. This is mythology spoken aloud, queer attempts to control markets teetering in disarray.

WEIMAR BEN AT THE CONTROLS

Chairman Bernanke denied any “managed depreciation” in the USDollar on one end. However, intellectual cover has come from former White House economist Martin Feldstein, as he called for a more competitive US$ exchange rate, but one with domestic strength. This is an important acknowledgement, one made clearly with USGovt sanction to herald a new currency phase shift in policy. He senses urgency, hopes to improve the trade balance deficit, and addresses the housing decline and consumption threat, sure to jeopardize economic growth. His historical reference to tame price inflation seems goofy. But his is just spin, from a drafted hired gun.

Unfortunately, an orderly decline for the USDollar will be a monumental challenge, with the entire world of forces aligned against it. Leveraged instruments, heavy US debts, currency traders, foreign control of USTBonds, and the halt of self-destructive official intervention can be powerful tailwinds to assist the USDollar downhill. The gas pedal has none other than the man who has written favorably about inflation for most of his career. When a central banker has a track record of extolling the virtue of operating a monetary printing with near zero cost, the inherent national currency is in grave danger. Weimar Ben was chosen precisely because he is mad as hell and fully willing to run the press day and night in order to avoid economic and financial seizures. However, the USDollar is the pressure valve. When monetization is the device to rescue and control, no floor can be claimed on the USDollar. Be prepared for an historic devaluation in the USDollar, horribly mismanaged ever since Greenspan was at the helm. Its performance might well turn out to be the quintessential meter stick for his legacy. Expect Little Ben to take much of Greenspan’s blame. One can properly hold Ben responsible for his own public endorsement of inflation, to be sure.

ASIAN RIVALS JOSTLE FOR CONTROL

Japan and China jockey for control and influence, as seen in the Hyderabad India meeting of the Asian Development Bank last month. The US delegate was rendered a neutered puppy, with shallow points made and dismissed. An Asian Currency Unit (ACU) has entered policy making arenas, one to regulate Asian currency exchange rates. The ACU is expected to be used as a fulcrum of exchange rate management. Ministers from China, Japan, and South Korea met with the 13-nation ASEAN in order to come to agreement on a basket peg useful for any Asian nation to manage and fix the value of its currency within a band. This in my view is a pan-Asian currency equivalent in function to the euro currency. Regard the ACU as a device which Asia utilizes in devaluing the USDollar in unison and out of our control, a crucial device in the event of a monetary crisis. What Japanese ministers hatched and promoted, now the Chinese have taken leadership with, even somewhat heavy handed control with.

DISORDER IS THE WATCH WORD

Numerous forces work in opposition to an orderly desired decline in the USDollar exchange rates. Market momentum, financial leveraged instruments, speculative investments, managed fund priorities, these are almost uniformly aligned to take advantage of and to exploit the falling USDollar. US debt engorgement is a massive orgy widely known worldwide. Currency traders nowadays are like sharks aided by leverage. Foreign central banks and their managing directors realize risks similar to conditions before the Asian Meltdown. Resistance and shedding is to follow. The notion is dawning on them that intervention to support the USDollar in quick descent might be like inviting a dozen gigantic obese cousins to dinner every single night, night in and night out. Enough is enough. No, no, this USDollar correction might turn into a rejection, then an outright revolt. Its decline will be orderly at times, but with sudden tumultuous down drafts. One must wonder to what extent international disapproval of the United States will be registered in votes against the USDollar, since votes against the US Military are dismissed.

ALLIANCES IN GLOBAL ENERGY WAR

Key nations are entering a dangerous new stage of worldwide energy war, with numerous fronts in conflict. Government leader behavior has begun to resemble underworld syndicates in their methods, tactics, even revealed strategies. Geopolitical forces and actions urge perceptions of the energy market to be the same as a global energy war, with governments alongside warlords controlling key regions, with military bases guarding important energy production zones (forts), with military bases constructed as toeholds in untapped energy deposit zones (new fronts), with product & pipelines used as weapons (reinforcement supply lines), with nuclear threats perceived and delivered, with counter offensives triggered in response, with high profile abductions and executions, with special operations and even mercenaries (behind enemy lines), with urgent calls for conscripted contract workers (draft), with new alliances forming against the United States axis.

The first action was the attack, occupation, and annexation of Iraq, an event which launched the global energy war. The second action was by Russian President Putin in securing by force Yukos for oil, Gazprom for natural gas, as weapons, then using them against Ukraine, Europe, and England. The nationalization of natural gas fields in Bolivia, and similar anti-investment actions in Ecuador and Venezuela emphatically confirm my viewpoint in military terms for this war. Bolivia is the largest natgas supplier in South America. Venezuela is the largest oil and energy product supplier in the region. The war has finally reached South America, home to vast copper and iron deposits, 25% of the known world copper supply. Will mines be next?

New oil exchanges are springing up like jonquils and daffodils, as they plan to sell oil not in the USDollar. Saddam did so with euros, its discontinued practice a prime motive for the Iraqi War. Sweden in euros, Iran in euros, Russia in rubles. Each nation has its own motives. Russia wants respect and control, even dominance. Iran wants a sphere of influence outside US control. Sweden wants to avoid loss from a corrosive foundation. Both Dubai and Qatar plan new oil exchanges, but presumably in USDollar transactions. The USGovt offers security to the Saudi royals and neighboring emirs (napoleons in white robes) who hog their national wealth and keep their nation impoverished. Such is a longstanding arrangement (security treaty, contract) for reliable US suppliers.

BANK OF JAPAN & MARKET ACTION

It is perplexing. The announced hesitation for Tokyo to begin a rate hike tightening cycle is given as the main reason why commodities and their stocks declined. Let’s step back a minute and think about that one. In refusing to hike rates, the Bank of Japan in essence admits that have decided to embrace very big inflation risk without a policy reaction. Instead of curtailing the yen carry trade, which is the largest financial engineering machine in modern history, they openly reassure its continuation. They admit they will continue with massive monetary inflation, not hike rates, and supply the Western financial markets with evermore money to borrow at nil interest rates. SINCE WHEN IS THEIR CONTINUED ZERO INTEREST RATE POLICY BAD FOR COMMODITIES??? SINCE WHEN IS CONTINUED QUANTITATIVE EASING A HINDRANCE TO COMMODITIES???

No, no, the continued role and associated behavior by Tokyo as the Far Eastern lackey office to the US Federal Reserve is hardly negative for commodity prices at all. Instead, Asia in general will remain a strong foundation of commodity demand, a locus for speculative investment, and of strong basic demand for energy, industrial metals, and gold.

The yen carry trade is responsible for generating much of the Western world financial wealth. The carry trade speculative flow will continue in all its cancerous glory. Any discontinuance of the yen carry trade might actually cause financial seizures from fast rising US long-term interest rates!!! Furthermore, news of Tokyo reluctance to hike at all is even more credence that USFed has some excuse to halt hikes on its own, to pause. The BOJ announcement is equivalent to Little Ben’s tease of a pause, yet it had the opposite market reaction. Straaaaannnge!!!

THE GOLD PRICE ACTION

Much of what we are witnessing in the past week is the annual spring selloff in commodity stocks. Also, an unstable situation developed. Gold rose from $600 to $700 in less than one month. With breaktaking leaps comes a need to catch one’s breath, even for a market. Look at the old trusty 3/8-ths retracement rule for guidance, a reliable tool in my kit. In a bigger sense, the breakout in gold in March from $570 to the May $730 high would see a 60-point pullback to $670. With more short-term eyes, the breakout extension in April from $635 to the May $730 would see a 30-point pullback to $685. So one might consider a healthy correction to send gold back to the (670-685) range, provided the gold bull still is alive and strong. Fundamentals scream that the bull has many years to live, run free, even stomp down both disbelievers and obstructive participants without mercy.

My personal view is that, given the monetary breakdown in the USDollar foundation and institutional insurrection against it, given the global energy war counter-attacks and govt warlord behavior to foment it, gold might be justified in a move somewhere between $900 and $1100 before it re-evaluates the crises in progress, the pathetic fixes in place, even the progress toward resolution. Through any reasonable person’s eyes, all movement is away from remedy and toward deeper crisis, widening the gulf between reason and lunacy. The shocking ingredient is that the USGovt seems to intentionally provoke greater conflict. Given the chief US exports continue to be debts, jobs, faulty banking systems, patents, obesity, and given the principal strength of the USEconomy is military investment, foreign beach head establishment, and leverage upon governments, it seems the United States Axis has actively chosen a path toward greater chaos to secure commodity supply in an environment whereby our military strength can be utilized.

BRIEF CONCLUSION

It is hard to say how far this correction in commodity stocks might go. Surely, the mainstream press enjoys what they proclaim as the end of the bull. However, they forget that only a global recession will interrupt this commodity bull market. They forget that energy stocks were the biggest single engine in the S&P500 index last calendar year. A case in point is the strong and growing global demand for gold bullion as the USTBond erodes in confidence. A case in point is the relentless twin deficits indicative of extreme hemorrhage and foreign capital dependence. A case in point is the 20% decline in official copper inventory at the exchange warehouses, the challenge to Indonesia copper supply, the socialist (and water) threat to Andean copper supply in Peru. Sorry, but these three factors remain very much alive, either without evidence in any way, or not even addressed.

Three requirements are necessary before the commodity bull is interrupted:

1. emerging developing economies must stall in growth altogether, like China, India, Southeast Asia, including the construction boom in the Middle East

2. the multi-year USDollar decline must come to an end, in a real sense from remedy to its crippled fundamentals in astronomical trade deficits and burgeoning federal budgets

3. the imbalances whereby global commodity demand overwhelms commodity supply must find equilibrium in the midst of historically low inventories and supplies at risk.

Sorry, but none of these requirements has been met, as all are still in force.

This hegemonistic policy will ultimately backfire, with blocked supply routes and supply chains, along with a mushroom of global alliances in opposition. Its policy will fail from an insurrection in the USDollar and rejection of the USTBond (its paper observe side). My forecast from early 2005 was for the world to separate into four trade zones: Europe, Asia, Middle East, and Americas. There is far more cohesion in the three non-American zones than in our zone. Iran is the rogue within the Middle East. Venezuela, Ecuador, Bolivia, and Cuba are the rogues within the Americas. Russia is the rogue within Europe. The four zones in time will produce their own single currency, as well as their own dominant commodity supply. As the months pass, shipment of commodities across zone boundaries will become increasingly problematic.

THIS PICTURE IS STILL VERY PROMISING FOR THE GOLD AND ENERGY BULLS !!!  IN FACT, WITH TEMPERING ENERGY PRICES AND DECLINING USDOLLAR AND RISING PRICE INFLATION, THE CLIMATE FOR MINING STOCKS IS IMPROVING. THEIR COST STRUCTURE HAS STABILIZED. LIQUIDITY IN MARKETS IS THE MAIN THREAT TO STOCKS.

NEWS TIDBITS

A big jump in energy costs pushed US consumer prices up sharply last month, while rising rents and passed along energy costs led to an unexpectedly steep gain in core prices, according to a government report that stirred inflation worries in financial markets. The Labor Department said the consumer price index rose 0.6% in April, while the core index, which strips out volatile food and energy prices, rose 0.3% for a second consecutive month. Such is the backside to the housing bubble, which for four years kept a ceiling on rents. Now the reverse situation will unfold to lift CPI. As the Asian currencies rise, yet another factor will lead to higher CPI in future months, from imported products. Again, a reverse situation will unfold to lift CPI. THIS IS GREAT NEWS FOR GOLD AND MINING STOCKS, BUT ONE WOULD HARDLY KNOW IT FROM PRICE ACTION AMONG THE MINERS. Look for this news report to be repeated several times this year, as consumer prices rise relentlessly this year. Plenty of inflation has circulated in the USEconomy. Its presence in the asset bubble is deemed wondrous. Its presence in the commercial world (like with energy and materials) is deemed harmful when costs are passed along. Its presence in rent prices is deemed a queer fly in the ointment, doing harm to the captivating key distortion signal, the Consumer Price Index. Let’s see if rents and consumer imports are pushed out of the core CPI in future adjustments to their cockeyed formula.

The Fed Funds futures on the June contract indicate an increase from 40% to 58% likelihood of a June FOMC rate hike of 25 basis points. The USFed will be forced to react to core price inflation, which is flashing alarms even after the 3% suppression. Just add 3% at least to anything they report, for a reflection of reality. The real CPI really is over 6%, in reality.

The Dow Jones industrial average was down 256 points at its worst. The Standard & Poor 500 Index was down 25 points at its worst. The Nasdaq Composite Index was down 35 points at its worst. The Nasdaq is now negative in 2006, while the Dow is still up 4.5% and the S&P 500 is up 2% for the new year.

The sharp sell-off in stocks was part of a broader market rout, with US Treasuries also tumbling amid signs of accelerating inflation. The benchmark 10-year US Treasury note fell as its yield jumped to 5.17% from 5.11% by day’s end. Gee, can't the USFed print more money and buy more SPDR baskets, then permit the Wall Street pundits to proclaim another strong intraday recovery?

Rising US debt levels are no cause for alarm because they are low in comparison with the rest of the world and past US history, according to Treasury Secretary John Snow. This is a typical lunatic comment emanating from the current USGovt Administration. Debt levels have risen astronomically in the past few years to levels never seen before in human history. Snow is a hack clown, and on the way out due to his general imbecilic nature. The USGovt officials continue to point to productivity gains, despite the clear evidence that benefits go to foreign workers where the fixed business investment has gone. This is more mythology amidst economic ignorance, a convenient device governed by political motivation. US business investment has grown by 8% or 9% in the last few years, as opposed to the normal 20% in previous recoveries.

California credit rating, once teetering near junk status, was raised today by Standard & Poor to its highest level since 2001, ending its three year stigma of having the lowest debt rating of all US states. The California rating war raised one notch to A+ from A after an improving economy funneled $7.5 billion in tax revenue into state coffers higher than projected. The ongoing annual budget deficit fell to $2.4 billion.

The EIA agency energy inventory data was released. Crude oil fell by 0.1 million barrels, gasoline rose by 1.3 million barrels, and distillates fell by 0.1 million barrels. Refinery capacity utilization fell by 0.4% also, to an 89.8% level. A separate report from the American Petroleum Institute on Wednesday showed after last month US gasoline demand fell 1.9% compared with April in 2005, with overall oil demand off 1.5% versus last year.

General Motors, under federal scrutiny for its accounting practices, said two top financial officers will leave and it will create a new position combining their jobs. Chief Accounting Officer Peter Bible will resign on June 1 after almost 10 years on the job. Controller Paul Schmidt will retire later this year after a successor can be found. The changes come as the US Securities & Exchange Commission and a federal grand jury investigate GM over precious metal transactions and credits from suppliers, in the wake of GM restatement of its 2000 to 2004 results on March 28 because of accounting errors. Call a spade a spade: GM has admitted fraud, the most common serial crime on Wall Street.

In the wake of the United Auto Worker union decision to strike against Delphi, GM announced 900 job cuts in England. The UAW gained some satisfaction, when GM executives agreed to share the job cut pain with European subsidiaries. Be sure to know that even a strike of a few weeks could potentially cause ripple effects of bankruptcy default, my worst fear, but my most probable outcome seen. The Delphi board of directors hope a negotiated deal can be reached between Delphi, GM and the United Auto Workers union. In three to five years, expect for no labor union to even exist.

Honda Motors announced it will build new plants in Japan, the United States, and Canada. President and Chief Executive Takeo Fukui said the new US plant would cost $400 million and would start operating in 2008. It would have a capacity of 200,000 units and a work force of more than 1,500 people. The location of the new plants were not disclosed.

The Japanese large-cap stock index Nikkei rose 149.25 points to 16,307 after falling more than 1100 points during the previous six sessions. Attribute the gains to the Bank of Japan announcing no rate hikes soon, an endorsement of monetary inflation, continued yen carry trade liquidity supply, and assured asset bubbles in Asia. Such is the consequence of being the USFed lackey, as they do not control their own back yard.

The euro currency exchange rate moved down after the CPI news came in. Currency traders anticipate additional USFed rate hikes as a result, and expect harm to European exporters. So resistance to higher Euro Central Bank rates will be very steady and loud in outcry. French finance minister Thierry Breton claims the euro must not be allowed to strengthen too much. The race to the bottom among currency managers, namely the central bankers, will be replete with reactions, bumps, and bruises. As the USDollar craters later this year, the central US exported item will be a higher currency which kills other nations’ exports. Case in point will be the powerful German economy. Regard the euro selloff as relieving an overbought condition, after the euro had risen from 122 to 129 without interruption over the last two weeks to create an unstable situation. The 129 mark was my target for the euro rally, stated several times since last summer. Thanku vermuch.

The Chile Mining Minister Karen Poniachik urged metals producers to take advantage of a rally in copper prices and increase exploration in the country. Chile, the world’s biggest producer of copper, is claimed to possess new deposits yet to be discovered. The country accounts for 35% of copper mined worldwide. Copper prices have climbed 76% this year, on increased demand by nations including the US and China, the two biggest consumers of the metal.

US precious metals gyrated in mixed territory in early morning, with gold pivoting around near $700 an ounce as traders trimming long positions jousted with long-term bulls buying on dips. Trading in metals was extremely choppy, dealers assert. Silver backtracked and gold came off on long liquidation, which was thought to be temporary because of so many long positions.

Iranian President Ahmadinejad rejected European Union calls to suspend uranium enrichment, saying Iran's previous halt in 2003 was not a worthwhile experience. The European Union may offer Iran a nuclear reactor in an incentive package to persuade the country to cease uranium enrichment, officials close to the International Atomic Energy Agency. The offer hinges on Iran suspending its uranium research and development program. “The people of Iran will accept no suspension and no stopping [of national nuclear activities]… We accepted suspension once with confidence in you, and unfortunately this was a bitter experience. We will not be bitten twice,” Ahamdinejad said in a speech. At least the guy did not threaten to annihilate Israel again.

TODAY’S MARKET

Today the Dow Jones Industrials wrapped up at 11,206 (-214), S&P at 1270 (-22), Nasdaq at 2196 (-33), TENS yield 5.153% (+4.8 bpt). The Treasury yield spread for 2-yr versus 10-yr is 4.96% and 5.15%. Currencies closed with Euro at 127.75 (-1.15), JYen at 90.54 (-1.00), Can$ at 89.95 (-0.41). Metals finished with spot gold at 686.20 (-18.50), spot silver at 13.11 (-0.68), copper at 367.15 (-17.05). Energy ended with crude oil at 68.69 (-0.84), natural gas at 612.9 (-12.3), unleaded at 197.51 (-5.10). Prices are at major futures contracts.

Jim Willie CB

Home  l  Broadcast  l  Market Monitor  l  Storm Watch  l  Sitemap  l  About Us  l  Contact Us