China’s Rate Cut is a Game Changer

For the first time in three years, China (FXI) has cut its prime lending rate by 50 basis points. The timing caught many analysts by surprise, as such move was not expected until the lunar new year in early February. Perhaps recent data showing collapsing exports prompted the Mandarins in Beijing to hurriedly move up […]

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Watch out for the New “RISK ON” ETN (ONN)

Mark Fisher of MBF Asset Management and Dennis Gartman of the eponymous Gartman Letter joined forces today to launch a new exchange traded note, or ETN, that promises to capture the “RISK ON” trade. The instrument is designed as an improvement over the old Volatility Index ETF where traders attempted to capture short term market […]

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December 1, 2011 – Quote of the Day

“I wouldn’t want to see everyone get down to where Detroit is before we declare a bottom in residential housing,” said David Blitzer, chairman of the S&P 500 Index Committee.

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Trade Alert – (JEF) Nov. 30, 2011

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.

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September Case- Shiller Delivers Housing Blow

My worst fears about the deteriorating state of the US residential housing market were confirmed today with the release of the closely watched Case-Shiller Home Price Index. Nationwide, Q3 delivered a 3.9% decline in home prices, hot on the heels of a whopping 5.8% plunge in Q2. Most markets are at 8-10 year lows with […]

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Austerity Hits Wall Street

This year, your bonus is that you get to keep your job. That is the bad news that will be dished out to many disappointed staff during annual reviews at the major Wall Street firms this year. We all know that volumes have been trading at subterranean levels which have created a real drought of […]

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November 30, 2011 – Quote of the Day

“We’re spending billions in Iraq and Afghanistan. Let’s rebuild America first. If you build us a bridge or a school in West Virginia we won’t blow it up and we won’t burn it down,” said Senator Joe Manchin.

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Bear Trap Sprung

The coming bear trap that I warned about last week sprung this morning on the non-subscribing unwary, triggering panic buying by short sellers in all “RISK ON” assets. Oil (USO), gold (GLD), silver (SLV), copper (CU), and foreign currencies all moved in lockstep to the upside. The trigger was news that leaked out over the […]

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November 29, 2011 – Quote of the Day

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price” said Oracle of Omaha, Warren Buffett.

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The Case Against Treasury Bonds

If you want to delve into the case against the long term future of US Treasury bonds in all their darkness, take a look at Foreign Affairs, the establishment bimonthly journal read by academics, intelligence agencies, and politicians alike, which I am sure you all have sitting on your nightstands. In a well-researched and thought […]

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November 28, 2011 – Quote of the Day

“Better to have stop and go, than no go at all,” said hedge fund legend, George Soros, about the choppy prospects for the US economy.

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Time to Short the Garlic Eaters

The garlic eaters don’t want to repay their debts, and the beer drinkers don’t want to lend them any more money. That pretty much sums up the financial tensions that exist within Europe right now. The PIIGS countries of Portugal, Ireland, Italy, Greece’s, and Spain are lurching from one emergency financing to the next. European […]

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My Personal Leading Economic Indicator

I just flew over one of my favorite leading economic indicators yesterday. Honda (HMC) and Nissan (NSANY) import millions of cars each year through their Benicia, California facilities, where they are loaded on to hundreds of rail cars for shipment to points inland as far as Chicago. Three years ago, when the US car market […]

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Will Gold Coins Suffer the Fate of the $10,000 Bill?

The conspiracy theorists will love this one. Buried deep in the bowels of the 2,000 page health care bill was a new requirement for gold dealers to file Form 1099′s for all retail sales by individuals over $600. Specifically, the measure can be found in section 9006 of the Patient Protection and Affordability Act of […]

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The 12 Day Year

I have reported in the past on the value of the Friday-Monday effect, whereby the bulk of the year’s performance can be had through buying the Friday close in the stock market and then selling the Monday close. Well, I have discovered a further distillation of this phenomenon. During 2010, the S&P 500 rose by […]

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