2011 May

Weekly Economic and Market Review

Why haven’t stock prices fallen more? I’ve been asking myself that question every day for weeks and I don’t have a good answer. The US economic data continues to weaken. Europe is still grappling with its debt problems and a Greek default – at a minimum – seems more likely by the day. It seems .. read more

Weekly Chart Review

On May 29th, 2011, posted in: Markets by 1 Comment

Comex Silver Will Make It Through May, but Barely

The delivery month of May is nearly over and there are still 870,000 ounces to be delivered. It is a pretty small amount, but for the second straight delivery month a small amount is enough to cause chaos. At the first notice date, back at the end of April, investors stood for delivery of 2,166 .. read more

On May 26th, 2011, posted in: Markets by

Retailer Earnings Show Expanding Consumer Exhaustion

Having completed what we called the most pivotal earnings season of the recovery, we see that the main theme going into it has carried through to the end. The primary worry for the economy was consumer exhaustion and that was evident in numerous company results. For retailers, in particular, the results were not inspiring. Going .. read more

On May 24th, 2011, posted in: Markets by

Low Treasury Yields Don’t Necessarily Signal Inflation Calm

The entire treasury curve has been flattening steadily since early April, especially the long end of the yield curve. The five-year U.S. Treasury yield peaked on April 5 at 2.33% and then began a steady decline starting April 11. The ten and thirty-year bond yields both topped on April 11 at 3.57% and 4.634%, respectively. .. read more

On May 24th, 2011, posted in: Markets by

Weekly Economic and Market Review

Anticipation of the rapture must have gripped Wall Street traders last week. That’s the only explanation I can come up with for the first day trading of LinkedIn. If the world had ended Saturday as expected, surely it wouldn’t matter that Thursday you paid 35 times sales for a company that expects to post a .. read more

Thoughts On The GC-IOER Collapse

The GC-IOER collapse is far more significant than many people realize.  The dynamics of the repo market are not always easy to understand, but somehow I don’t think that is the reason it has received zero attention outside of ZeroHedge. ZeroHedge’s coverage has rightly focused on the liquidity implications for Wall Street institutions and the .. read more

On May 19th, 2011, posted in: Markets by