Archive - Jan 24, 2011 - Blog entry

Global Wheat, China's drought and Historical Famine's

Let's see what Ben says on this Wednesday.

Insider probe might impact some pension funds, but most are still pumping billions into hedge funds and that's one reason why risk assets are being bid up....

One of the oddest things about investment psychology is that people only want to load up on an asset class when it’s soaring. Rarely do they view a collapse as a good thing. In some cases, this mentality is beneficial (buying Tech stocks in 2001 when they began to collapse after soaring would have been a HORRENDOUS move). However, in the case of Gold and Silver today, a collapse right now would be absolutely FANTASTIC for investors.

Here's the latest edition of PSW's Stock World Weekly.

I, among many, was thinking the Euro would test the 125 level, but things have turned. Here is how the reversal of foturn came about and the outlook ahead.

The key driver for the markets continues to be the dollar, which is making more sense now as it saved the Dow and the S&P last week (50% of revenues come from overseas) but not the Russell (10% of revs from overseas) or the Nasdaq (30%).

How the heck is the SEC supposed to identify and prosecute financial wrongdoing when they don't even have the staff in-place to analyze all of that data?!?

Our veterans were an important part of the internal control mechanism that all unorganized groups develop as a matter of instinct and survival. Natural leaders emerge and are respected not just for their inherent authority, but because of their common sense approach and fairness even to those they oppose. Thus form and function develops out of chaos and the community coalesces.

A must have Wall Chart for Super Dole 2011...

We’re still not sure whether CNBC was making a joke or simply advertising its ignorance with a recent headline, “Accounting Tweak Could Save Fed from Losses,” This was a tweak about as subtle and ingenuous as Bernie Madoff’s balance sheet. What the central bank did was revise and advantage its own rules so that if some financial catastrophe were to inflict huge losses on the Federal Reserve System, the U.S. Treasury would take the hit, not the Fed itself.

Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.