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European debt woes send global markets diving
Global investors’ fears about a potential full-blown government debt crisis in Europe fueled a massive rush for safety on Thursday, driving stocks, commodities and other assets sharply lower.
Oil Tumbles the Most in Six Months as Dollar Gains, Stocks Drop
Feb. 4 (Bloomberg) -- Crude oil tumbled the most in six months as the dollar gained and a drop in stocks bolstered skepticism that the economic recovery will be sustained.
PRECIOUS METALS: Gold Futures Plunge As Risk Appetite Dries Up
NEW YORK (Dow Jones)--Gold futures fell more than $50 Thursday to their lowest level in three months as investors moved out of perceived riskier assets on concerns about euro-zone debt and weaker-than-expected U.S. weekly jobless figures.
WRAPUP 4-U.S. jobless claims rise, productivity stays high
WASHINGTON, Feb 4 (Reuters) - The number of U.S. workers filing for jobless benefits unexpectedly rose last week, but another big gain in productivity in the fourth quarter offered hope companies were getting close to adding to payrolls.
Can't you just feel the hope?
But my favorite headline for the day has to be...
Chinese Tightening Unlikely to Cause Copper Collapse
Worries about China's moves to rein in economic growth have sent copper futures reeling this year after prices more than doubled in 2009.
However, even as Chinese authorities take steps to tighten credit availability, demand from the world's largest consumer of the metal is forecast to remain strong and global copper supplies are likely to show only a small surplus. That means a dramatic selloff is unlikely for the metal, say market participants, some of whom see the current weakness as a buying opportunity.
We all know how unbiased "market participants" can be.
Here's my take.
If I am told a particular bridge is unlikely to collapse, then I tend to look for alternate routes to bypass it. Maybe that's just me. I'm just not much of a risk taker.
Friday: No Major Economic Releases
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[image: Mortgage Rates] Note: Mortgage rates are from MortgageNewsDaily.com
and are for top tier scenarios.
Friday:
• At 10:00 AM ET, *University of Michig...
5 hours ago
20 comments:
Stag,
I have good news! When the Dow was soaring towards 11,000, I invested heavily in "Dow 10,000" hats! CNBC was literally giving them away.
I've just raised Q1 revenue and profit guidance!
Verdant shoots abound.
Gold and silver on sale!
Purchase now at this new low rate or run the risk of being priced out FORRRRRRREVERRRRRRRR!!!
Mab can I get in on that hat deal?
When the BLS has a positive print tomorrow for jobs (maybe not? Sell off based on leaked news?) I wrote:
"Word is that CNBC has a whole truckload of baseball caps with the slogan:
"Jobs Were Created Today!!!!"
ready to pass out on Friday when the BLS releases the jobs number. Ok, I made that up."
We shall see.
Metals got pounded today. Just like the last scare about various things debt related. Had to chuckle at the bit above:
"Gold futures fell more than $50 Thursday to their lowest level in three months as investors moved out of perceived riskier assets on concerns about euro-zone debt and weaker-than-expected U.S. weekly jobless figures."
Less risky assets = US Dollar? LOL
I am waiting until the foreign exchange currency swaps are set up again (they just expired, imagine that!) through the FED to make sure they all have enough dollars to bail out the problem children.
mab & watchtower,
LOL!!!
GYSC,
Just a couple of observations and they are clearly just my opinions.
1. All things being equal, toilet paper and gold should be nearly equivalent long-term inflation hedges. All things are not equal though. Gold has roughly quadrupled in price over the last decade. That pace was much faster than even housing. Toilet paper has not even come close to quadrupling though. Toilet paper therefore seems the far safer store of value.
2. It used to be that the stock market and gold often went in different directions. Stocks were seen as risky. Gold was seen as the safe alternative. Now they are both moving in the same direction, be it up or down. To me, that means both are risky.
3. Gold bugs hang their hat on the oil to gold ratio. Oil is consumed. When it is gone, it is gone. Meanwhile, all the gold ever mined is still in existence. A ratio of prices between the two makes zero sense to me. I will say this though. Oil got pounded today and I believe it was fully justified. I have not been bullish on oil prices and have said so many times in the last few months. I felt $80 was the ceiling in oil prices. Gold got pounded too, in sympathy.
Gold still seems overpriced to me and I'm sticking to that story. I have no interest in buying it at these prices. No asset is good at any price.
No asset is good at any price sounds like my take on the stock market, lol!
Just like a marriage, relationships change over time.
GYSC,
Speaking of relationships that change over time...
http://stockcharts.com/charts/gallery.html?$XEU
So much for the euro's "sure thing" status.
You have to love the technical analysis at the bottom of the page.
The euro's fallen from $1.5144 to its current price of $1.3735. So what's the next price objective according to the tea leaves?
$1.92!
Good grief. I'll believe that when I see it.
$1.92? have i ever told you how much I hate Technical Analysis? TA is bad but TNA is good!
I meant the ETF, seriously!
GYSC,
Leverage up that hatred of technical analysis into something even bigger!
http://www.mindxpansion.com/options/free.html
Many interesting articles on option trading are also posted for you to help you increase your option trading profits while minimizing your risk.
More profits!
Less risk!
It's the ultimate free lunch.
All brought to you courtesy of the multi-trillion dollar derivatives markets!
I mean really, if it was good enough for two Nobel prize winning economists over at Long-Term Capital Management, then surely it's good enough for the rest of us!
It was good for them, right? I'm afraid to look. I wouldn't want to jinx my lucky streak.
Michael Panzner has a chart up that shows what he thinks is a breakdown of the Reuters/Jefferies CRB Commodity Index and the Baltic Dry Index.
"Finally, while many commentators have suggested that the latest bout of weakness in stocks and other financial assets stems from a sudden aversion to risk, I think it is more than coincidence that two economically-sensitive indicators, the Reuters/Jefferies CRB Commodity Index and the Baltic Dry Index, a gauge of shipping rates, are also breaking down."
http://tinyurl.com/1w56
Does this mean China is not buying copper by the geometric ton anymore?
I have a few thoughts on all this up tonight and would like any and all feedback if interested. Plus it is request thursday for friday night entertainment.
watchtower,
MaxedOutMama called it "the last gasp of the speculator flea" in her comments today. Cracks me up.
http://maxedoutmama.blogspot.com/2010/02/laughing-so-hard-i-can-barely-type.html
GYSC,
"Does this mean China is not buying copper by the geometric ton anymore?"
Geometric ton? Great phrase!
I'm picturing a Geo Metro being filled with $3 gasoline and then being parked in some Chinese driveway as status symbol, lol.
"The life of the flea is clearly fraught with peril."
Thanks for the link, entertaining and informative.
Those Geo Metros sucked! Watchtower would agree.
MaxedMama was on fire tonight, thanks for the tip!
Any pick for the big game?
When Chuck Norris thinks of a crappy car it's a Geo Metro.
Purell kills 99% of germs, Chuck Norris kills 100% of whatever the f%ck he wants!
Watch,
did you sell your metals?
Are you crazy!
If I did that I wouldn't be able to barter in the post nuke world!
Seriously though, I didn't sell nor do I plan to, I'm leaving it all to my daughter.
In fact I'm thinking of buying...against Mark's better judgement : )
Oh yeah, Chuck Norris knows what Willis is talking about!
GYSC & watchtower,
Enough talk of what ifs, idle speculations, and improbable outcomes. Let's stick to the facts instead.
Fact: One drop of Chuck Norris sweat could solve all of Greece's liquidity problems.
Fact: One drop of Chuck Norris blood could satisfy all of Wall Street's parasites for an entire century.
Fact: One drop of Chuck Norris urine could douse all of China's overheated economy.
There is simply no debating this.
(The idea of not being able to debate this was taken from the paid actor in the New York Times TV ad in reference to where all the best journalists in the world are located.)
(The idea of listing questionable ideas as facts was borrowed from the very amusing Sarah Silverman.)
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