201104.30
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Weekly Chart Review

201104.24
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Weekly Economic and Market Review

Standard and Poor’s changed the outlook for the US credit rating to negative last week but stocks managed to shrug off the obvious and end the week in positive fashion. S&P doesn’t quite have the credibility it once had after blessing the mortgage dreck of Wall Street with AAA ratings during the housing boom, but…

201104.18
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Is There A Limit To Precious Metals Prices?

Gold and silver prices continue to skyrocket as we expected.  Most of the  recent price movements have been driven by supply and demand factors that are  yet to be fully understood by the broader public.  But as prices move ever  higher, the commentary in favor of some kind of precious metals bubble gets  louder.  So,…

201104.17
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Weekly Economic and Market Review

Last week’s economic data continued the recent pattern of the recovery. Manufacturing remains strong, inflation is rising, housing is weak and employment remains a major issue. The economy is continuing to slowly recover but there is no sign of an acceleration that is sorely needed to reduce the unemployment rate. I suspect the next few…

201104.16
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Weekly Chart Review

 

201104.15
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Analyzing the Most Pivotal Earnings Season of the Recovery

This has to be the most pivotal earnings season of the current “recovery.” The markets can sense the coming crossroads as investors anxiously await confirmation that rising commodities have either had little effect or that margins are beginning to erode like Nike’s (NKE) or FedEx’s (FDX). The backdrop to earnings is also uncertain, as we…

201104.12
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“Irrational Exuberance” Once More?

Say I told you that the US stock market’s price-to-earnings ratio is over 40% above its long-term historical average. At what point in the last 100 years would you think that this applied to? For sure in the late 20’s, right before the stock market crash and subsequent Great Depression. How about the mid-60’s, prior to the Dow Jones…

201104.11
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Silver Set for Next Round of Delivery Mess

As hard as it is to believe, we are already closing in on another delivery month for COMEX silver futures. After murmurs of shortage flickered out in December 2010, silver prices fell dramatically in the non-delivery month of January. But because there was so much focus on the tightness of physical silver throughout the entire…