Tuesday, March 13, 2007

Economic Data Jamboree Begins Today

Looking at the balance of this weeks economic reports and one senses we may see some explosive volatilty in The US Dollar around every corner and over every hill as we move through the week. Our rancid currency could be wearing cement shoes by the close of trading Friday. Beware The Plunge Protection Team.

Today, Tuesday, we get the Dollar rattled with the Retail Sales numbers for February. The market expects +0.3%. I'm certain the weather will get mentioned along with this report.

Wednesday, we get the often over looked Current Account numbers. To learn more about the Current Account go here: http://en.wikipedia.org/wiki/Current_account .
The market expects -$203.5B...I expect it to be much worse. We also get Crude Inventories Wed.

Thursday we get PPI numbers for February. The market expects +0.5% headline, and +0.2% core PPI. A core number above 0.2% will not put a smile on George Washington's face. Also on Thursday we get the Net Foreign Purchases number. This is often refered to as the TIC Report. To learn more about this report go here: http://www.fxwords.com/n/net-foreign-security-purchases-tic-united-states.html . The market expects $60B...LOOOOOOOOOOL, it did last month too, and it came in at 15.8B Another rotten number like that and the US Dollar could be primed for a death spiral.

Friday we get the CPI numbers for February. The market expects +0.3% headline, and +0.2% core. Anything over that and the currency traders begin to chatter about Bernanke raising interest rates to fight inflation...currency traders seem to believe that inflation is good for our smelly dollar. Rising interest rates are very bad for the economy...and very good for gold. Despite what you may read or hear to the contrary.

Our plates will be full each day for the rest of the week...better to be long the metals than short here imo.

Silver Resistance: 13.10 / 13.23 / 13.35

Silver Support: 12.80 / 12.68 / 12.49

Gold Resistance: 657 / 663 / 672

Gold Support: 645 / 634 / 624

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