My cable modem bit the dust last evening and closed my little window on the World. I could scream all I wanted to, but the cable store wouldn't be open until 9AM this morning. And now for more in the continuing saga of the Dissipating Economy of the USA...
Amusing to say the least. The Dow falls 260 points on Friday and rises 280 on Monday. Pathetic. Oil comes tumbling down on Monday on "speculation" that a weakening economy will weaken demand for Oil. I hate to point this out, but the rest of the world uses Oil too. And the demand for it across the globe is unlikely to shrink much in sympathy to the poor and despondent USA. The World Economy revolves less around the USA as each day passes. And besides, if the economy was going to get so weak, why was the Dow up 280 points? Clown in Colorado predicts one less hurricane in 2007. Yeah guess it's okay to sell all my Oil contracts and go whistling past the graveyard.
The destitute US Dollar takes another peak at the cliff below 80 on the USD Index. Crawls back from the ledge and looks over it's shoulder.
The 10-year Treasury Note, suddenly a "safe-haven" for those seeking safety from the chaos and carnage in the stock indexes is about to start taking on water very soon. The price of the10-year note has reached the downtrend line established off it's Spring 2005 high. Resistance there at the downtrend line and at the 38% retracement of that same high combined with resistance at the old, and broken, uptrendline off the July 2006 low spell SHORT OPPORTUNITY. OR outright sell call for the 10-year note.
Recession is not far off. And with recession, those fleeing stocks AND Treasuries will begin flocking to Gold and Silver in ever increasing numbers as growing investment demand drives gold higher in this "second phase" of Gold's secular Bull Run.
The Fed is about to speak. A hush falls across the boob tubes talking heads... Oh my, from green to red in a hurry.. Tune in tomorrow.