Tag: biiwii.com

Reviewing the Macro 'Play'

Posted on by The INO.com Team

There are signs in the recent jobs and ISM reports that the previously inflated economy is decelerating. Late last week, the clown running JP Morgan said stupid things about the smart [read: talented] people he has running his high risk trading operations. Europe is of course front and center as it continues to fall apart, with Gilts and Bunds rising on ‘safe haven’ buying and the bonds (debt) of Greece and other Euro basket cases declining toward their value, which is less than zero.

The precious metals appear to be watching for signs of outwardly promoted QE policy. But NFTRH has remained cautious on the timing of this pending a crack in the US stock market, so let’s review the big index. Continue reading "Reviewing the Macro 'Play'" →

WoW! Gold's Wall of Worry

Posted on by The INO.com Team

By Gary Tanashian

May 8, 2012

Excerpted from this week's newsletter, NFTRH186:

Gold is grinding out a wall of worry that began construction out of a natural unwinding of the momentum that came in during the acute phase of the Euro crisis. More bricks were added weekly by various luminaries calling bearish; the most recent being Buffett’s right hand man, Charlie Munger: “Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.”

The Munger quote was forwarded by a subscriber as was another piece by an analyst extrapolating George Lindsay’s work to forecast a coming “Thelma & Louise moment” (as in cliff dive) for gold. Add to the list an analyst calling ‘buy’ on US stocks and ‘sell’ on gold (after the Au-SPX ratio has made a long consolidation to support) and the first few minutes of this BNN interview with respected geologist Brent Cook http://watch.bnn.ca/ - clip671131 (“we’re going to see some real destruction across the board in the junior sector”) and we can see the makings of some nasty sentiment that is
opposite the over bullish condition we noted was so dangerous last summer. Continue reading "WoW! Gold's Wall of Worry" →

30 year / 2 year yield curve forecasting deflation event directly ahead?

Posted on by The INO.com Team

By Gary Tanashian

The 30 year / 2 year Treasury yield curve has been on a steady march higher since 2007.  This makes sense since that was the year things started falling apart in inflated, debt saturated developed global economies, led by the nation that showed 'em how it's done when it comes to economic management by inflation; the US.

When long term yields are rising faster than short term yields, it is a sign of stress building toward either a breakout in inflation expectations or, as has been the case thus far since 2007 (and really, since the age of Inflation onDemand began in 2001), impending reversal of the excesses.  Unfortunately, in an age where economies are managed by inflation (by monetization of Treasury/Sovereign debt in service to increasing money supplies) these reversals tend to be shall we say, violent. Continue reading "30 year / 2 year yield curve forecasting deflation event directly ahead?" →

Turds & Gladiators

Posted on by The INO.com Team

By way of NFTRH subscriber MetalAugmentor, a reputable and hard working mining stock fundamental research service to which I also subscribe, comes this thread talking about an entity called Turd Ferguson.

Turd is an offshoot of Zero Hedge, is apparently a really popular blogger among gold bugs and is cooking up plans to do battle with the 'cartel'.  'Silverax' also highlights Jim Sinclair and his own Golden Idea on how to break the cartel.  When I read something like "what we need is Maximus, the financial gladiator" I just cringe. Continue reading "Turds & Gladiators" →

Using Ratio Charts to Gain an Edge, Part 2

Posted on by The INO.com Team

Last July I invited Gary from Biiwii.com to help us understand how to use ratio charts...properly! His first post can be found here, but I believe there were some missing examples and lessons. SO I asked Gary to come back and fill in the holes that I felt were missing, and more importantly, what our users felt was missing. Please enjoy the article, visit Gary's blog, and let the COMMENTS FLY!

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In July of 2008 it was my pleasure to provide the INO Traders' Blog this look at ratio charts and the edge they can provide as they often tell a not readily apparent story regarding inter-market relationships.

Today, as we look at the market revival I have been calling Hope '09 and some ratios I consider of paramount importance, gold ratio charts are heavily in play.

The first chart I want to look at is the price of gold divided by units of the S&P 500.

Continue reading "Using Ratio Charts to Gain an Edge, Part 2" →