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May 6, 2010 – Time to Play the Minor Asian Currencies

Featured Trades: (CYB), (AYT) 4) Time to Play the Minor Asian Currencies. Long time readers of this letter know too well that I have been yammering on for some time now about the need for China to revalue the Yuan (CYB) (click here for my opus on the 30 year trading history of the Chinese […]

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May 6, 2010 – Quote of the Day

'We ran into a crazy bull market when stocks didn't react enough to wipe out even the one point margins, and,of course, all the customers were bulls and pyramiding,' said Jesse Livermore, legendary stock speculator in the 1920's.

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May 5, 2010 – The Leverage Window Just Opened Wider

  Featured Trades: (UBR), (UPV), (UMX), (UXJ), (TMV) 1) The Leverage Window Just Opened Wider. Just as the public debate on risk control gets underway on Capitol Hill, a number of instruments have been launched that will allow unsophisticated retail investors to ramp up their leverage, big time. It’s like handing out free fireworks right […]

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May 5, 2010 – Shrinking Federal Deficits Bode Ill for Bond Shorts

Featured Trades: (TBF), (TBT), (TMV) 2) Shrinking Federal Deficits Bode Ill for Bond Shorts. I have written at length about the rapid repair in California's finances that sparked a bull market in its municipal bonds. Brace yourself; the same thing is happening at the federal level. Tax receipts from the healthy sectors of the economy […]

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May 5, 2010 – The New Cold War Between Two Forms of Capitalism

Featured Trades: (IAN BREMMER) 3) The New Cold War Between Two Forms of Capitalism. My friend, Ian Bremmer of the Eurasia Group, a global risk analyst who I regularly follow, will soon publish another book entitled The End of the Free Markets: Who Wins the War Between States and Corporations. I find this highly depressing, […]

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May 5, 2010 – Quote of the Day

'Everyone imagined that the passion for tulips would last forever, and that the wealthy from every part of the world would send to Holland and pay whatever prices were asked for them,' said Charles Mackay in his landmark work, Extraordinary Popular Delusions and the Madness of Crowds, published in 1841.

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May 4, 2010 – My Square Root Scenario is Happening

  Featured Trades: (Q1 GDP) 1) My Square Root Scenario is Happening. The ‘square root’ scenario that I have been forecasting for the US economy is coming to pass. On Friday, the Commerce Department’s Bureau of Economic Analysis confirmed that the US grew at a 3.2% annualized rate in Q1, compared to a 2009 Q3 […]

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May 4, 2010 – A Complete History of Bubbles

Featured Trades: (YOUTUBE) 2) A Complete History of Bubbles. I get sent the most bizarre things by my incredibly diverse band of readers, who now hale from all 50 states and 125 countries. Here is a link to a YouTube video compiled by ‘Rogue7135′ giving a remarkably compressive history of bubbles, set to rap music. […]

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May 4, 2010 – Investment Implications of the Gulf Oil Disaster

Featured Trades: (OIL SPILL), (BP), (RIG) 3) Investment Implications of the Gulf Oil Disaster. The massive oil spill in the Gulf of Mexico’s Macondo field could not have come at a worse time. Just as the Obama administration was finally opening up new offshore tracts for lease, this had to happen. All new licenses for […]

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May 4, 2010 – The “Black Swan” Solution to Our Energy Problems

Featured Trades: (LED BULBS), (GE) 4) The “Black Swan” Solution to Our Energy Problems. I firmly believe that simple solutions to our energy problems will come out of the blue, and are something no one is thinking about now. Here is one of them. General Electric (GE) is about to start mass production of their […]

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May 4, 2010 – Quote of the Day

'I am amazed at the publicity for the loss of a few birds,' said Fred Hartley, president of the Union Oil Company, in the wake of the 1969 Santa Barbara Oil spill.

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May 3, 2010 – The Aussie Crosses are On Fire

Featured Trades: (AUSSIE/EURO CROSS), (AUSSIE/YEN CROSS) 1) The Aussie Crosses are On Fire. In the last few days, two of the key foreign exchange cross trades that I have been recommending this year have exploded to new highs. They include the Aussie/yen cross at AUS$0.874 and the Aussie/euro cross at AUS$0.705 (click here for the […]

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May 3, 2010 – Baidu Goes Ballistic

Featured Trades: (BIDU), (BYDDF), (GOOG) 2) Baidu Goes Ballistic. Since I am in an ‘I told you so’ mood, take another look at Baidu (BIDU), which I said last week involved swimming at the deep end of the pool (click here for the call). Well, the pool just got a lot deeper. The Chinese search […]

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May 3, 2010 – Business is Booming at Freeport McMoRan (FCX)

Featured Trades: (COPPER), (FCX) 3) Business is Booming at Freeport McMoRan (FCX). Another company I track religiously for insights on the global economy is Freeport McMoRan (FCX), the world’s largest producer of copper, and also a major miner of gold and molybdenum. CEO Richard Adkerson says that revenues are up an amazing 67%; demand for […]

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May 3, 2010 – Rare Earths Are About to Become a Lot More Rare

Featured Trades: (RARE EARTHS), (AVARF.PK), (GWMGF.PK), (RAREF.PK), (LYSCF) 4) Rare Earths Are About to Become a Lot More Rare. Interest in Rare Earths is starting to heat up in a dramatic fashion, and it something you should keep on your radar. So named because they were hard to get in the 18th and 19th century, […]

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