Gold and Silver followed through today, and remain higher at this hour. The more time and price the metals now put above Sunday evenings gap in prices, without closing that gap, the more pressure the shorts will feel as prices challenge near term resistance. That being 17.02 for Silver and 886 for Gold. Thursday's ECB rate announcement should break the current stalemate between the Bulls and the bears.
Stocks lift even as oil prices soar near $123 a barrel
Wall Street lifts even as crude-oil prices surge near $123 a barrel, credit worries linger
NEW YORK (AP) -- Wall Street reversed early losses to close higher Tuesday, as investors monitored the movements of record high oil prices but still laid bets that the economy and companies are in recovery mode.
Crude oil climbed to a record near $123 a barrel on the New York Mercantile Exchange as traders, who have nearly doubled the price of oil over the past year, reacted to the weakening U.S. dollar, supply threats, and a note from Goldman Sachs & Co. predicting that oil could reach $200 a barrel. High oil prices threaten to crimp consumers' discretionary spending.
But oil price sticker-shock waned and as investors looked past wider-than-expected quarterly losses at Swiss bank UBS, government-sponsored mortgage company Fannie Mae, and homebuilder D.R. Horton Inc.
Huge quarterly losses from three major players in the financial and homebuilding industries initially sparked some stock selling Tuesday, but those dips were soon met by bargain-hunters betting that those sectors are a good buy right now given their low prices.
Fannie Mae reported a larger-than-expected first-quarter loss of $2.2 billion, and said it plans to lower its dividend and raise $6 billion in additional capital. But it also estimated its market share increased to about 50 percent of the new single-family mortgage related securities issued. Fannie Mae shares rebounded to rise $2.52, or 8.9 percent, to $30.81.
Homebuilder D.R. Horton reported a quarterly loss of $1.3 billion and halved its dividend to 7.5 cents a share. The homebuilder's shares rose 88 cents, or 5.1 percent, to $16.85.
UBS reported a loss of nearly $11 billion and said it is reducing its work force by about 7 percent. UBS shares dipped 54 cents to $33.77.
UBS reported a loss of nearly $11 billion and said it is reducing its work force by about 7 percent. UBS shares dipped 54 cents to $33.77.
Meanwhile, Wachovia Corp. said it is nearly doubling its previously reported loss for the first quarter to $708 million after reviewing its portfolio of bank-owned life insurance. Wachovia's stock rose 30 cents to $30.08.
Yeah, whatever. I had to read it twice myself. "Recovery mode"? With Oil prices at a RECORD $123 a barrel how any investor can even suggest a recovery is possible is beyond me. $123 Oil is the worst news our floundering economy needs. Huge quarterly losses from three major players in the financial and homebuilding industries and stocks closed higher?
"Toto, I have a feeling we aren't in Kansas anymore."
"The great and all powerful Oz commands that stocks will move higher no matter what."
I am as astonished as you are dear reader. Baloney, Bullsh*t, Fantasy...call it what you will. I call it "the Plunge Protection Team to the rescue". For more on that please read in its entirety the essay LINKED below by Deepcaster. This essay was posted on the Internet October 26, 2007. It is quite simply the most brazen explanation of the obvious market manipulations we have come to expect, despise, and loath. Free markets in America? Think again. This essay will shock and infuriate you. Its long. Please read it in it's entirety. Learning the "Rules Of The Game" could be very profitable to us all further on up the road.
MARKET INTERVENTION, DATA MANIPULATION - - CONSEQUENCES FOR GOLD, EQUITIES & CRUDE OIL,& THE CARTEL END GAME
by DeepCaster LLC
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