The Volume Leaders On The TSX
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Friday, October 9, 2009
Thursday, October 8, 2009
INO Says...
CURRENCIES
The December Dollar posted a new low for the year on Thursday as it extends this year's decline. A short covering rally tempered early session losses and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If December renews September's decline, monthly support crossing at 73.39 is the next downside target. Closes above the reaction high crossing at 77.73 would confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 76.81. Second resistance is the 10-day moving average crossing at 76.93. First support is today's low crossing at 75.68. Second resistance is monthly support crossing at 73.39.
The December Euro closed higher on Thursday as it extends this week's rally. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, September's high crossing at 148.440 is the next upside target. Closes below last Friday's low crossing at 144.790 are needed to confirm that a top has been posted. First resistance is today's high crossing at 148.160. Second resistance is September's high crossing at 148.220. First support is the 10-day moving average crossing at 146.412. Second support is last Friday's low crossing at 144.790.
The December British Pound close higher on Thursday and above broken support marked by the lower boundary of this summer's trading range crossing at 1.6022. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 1.6171 would temper the near-term bearish outlook in the market. If December renews the decline off September's high, the 50% retracement level of this year's rally crossing at 1.5394 is the next downside target. First resistance is today's high crossing at 1.6117. Second resistance is the 20-day moving average crossing at 1.6171. First support is last Monday's low crossing at 1.5766. Second support is the 50% retracement level crossing at 1.5394.
The December Swiss Franc closed higher on Thursday as it extends the rally off last week's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, September's high crossing at .9920 is the next upside target. Closes below the reaction low crossing at .9522 would confirm that a short-term top has been posted. First resistance is today's high crossing at .9785. Second resistance is September's high crossing at .9920. First support is last Monday's low crossing at .9522. Second support is September's low crossing at .9348.
The December Canadian Dollar closed higher on Thursday and above September's high crossing at 94.44 as it extends this week's rally. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, the 87% retracement level of the 2008-decline crossing at 96.84 is the next upside target. Closes below the 20-day moving average crossing at 93.10 would confirm that a short-term top has been posted. First resistance is today's high crossing at 95.15. Second resistance is the 87% retracement level of the 2008-decline crossing at 96.84. First support is the 20-day moving average crossing at 93.10. Second support is the reaction low crossing at 91.24.
The December Japanese Yen closed higher on Thursday and above the 87% retracement level of the 2008-2009-decline crossing at .11269. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off August's low, the 2008 high crossing at .11472 is the next upside target. Closes below the 20-day moving average crossing at .11080 are needed to confirm that a short-term top has been posted. First resistance is Wednesday's high crossing at .11368. Second resistance is the 2008 high crossing at .11472. First support is the 10-day moving average crossing at .11188. Second support is the 20-day moving average crossing at .11080.
ENERGY MARKETS http://quotes.ino.com/exchanges/?c=energy
November crude oil closed sharply higher on Thursday as it extends this week's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. The high-range close sets the stage for a steady to higher opening on Friday. If November extends this week's rally, September's high crossing at 73.58 is the next upside target. Closes below Monday's low crossing at 68.05 would temper the near-term friendly outlook in the market. First resistance is today's high crossing at 72.55. Second resistance is September's high crossing at 73.58. First support is Monday's low crossing at 68.05. Second support is September's low crossing at 65.05.
November heating oil closed higher on Thursday as it extended the rally off September's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below Monday's low crossing at 173.77 would temper the friendly outlook. If November renews the rally off September's low, September's high crossing at 188.78 is the next upside target. First resistance is today's high crossing at 186.15. Second resistance is September's high crossing at 188.78. First support is Monday's low crossing at 173.77. Second support is September's low crossing at 168.66.
November unleaded gas closed higher on Thursday as it extends the rally off September's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If November extends the current rally, September's high crossing at 187.36 is the next upside target. Closes below Monday's low crossing at 168.85 would temper the near-term friendly outlook. First resistance is today's high crossing at 180.86. Second resistance is September's high crossing at 187.36. First support is Monday's low crossing at 168.85. Second support is the 38% retracement level of this year's rally crossing at 162.10.
November Henry natural gas closed higher on Thursday as it consolidates above the 10-day moving average crossing at 4.840. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are diverging but are turning neutral to bullish signaling that sideways to higher prices are possible near-term. If November extends the rally off September's low, August's high crossing at 5.133 is the next upside target. Closes below the 20-day moving average crossing at 4.672 are needed to confirm that a short-term top has been posted. First resistance is Tuesday's high crossing at 5.120. Second resistance the August's high crossing at 5.133. First support is the 10-day moving average crossing at 4.840. Second support is the 20-day moving average crossing at 4.673.
FOOD & FIBER http://quotes.ino.com/exchanges/?c=food
December coffee closed higher on Thursday and spiked above September's high as it extends the rally off last week's low. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, August's high crossing at 14.17 is the next upside target. Closes below the 10-day moving average crossing at 12.99 would temper the near-term friendly outlook in the market.
December cocoa closed higher on Thursday as it extends this week's rally. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off August's low, weekly resistance crossing at 32.90 is the next upside target. Closes below Monday's low crossing at 29.67 would confirm that a short-term top has been posted.
March sugar closed lower on Thursday as it extends yesterday's breakout below the 20-day moving average crossing at 23.68. A short covering rally tempered early session gains and the mid-range close set the stage for a steady opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes below September's low crossing at 21.95 would confirm this summer's head and shoulders top while opening the door for a larger-degree decline this fall.
December cotton closed higher on Thursday as it extends this week's rally. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. From a broad perspective, December needs to close above the reaction high crossing at 65.47 or below the reaction low crossing at 54.77 to confirm a breakout of this year's trading range and point the direction of the next trending move.
GRAINS http://quotes.ino.com/exchanges/?c=grains
December wheat closed up 10 3/4-cents at 4.74.
September wheat gapped up and closed higher on Thursday as it extended this week's above the 20-day moving average. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 4.80 are needed to confirm that a short-term low has been posted. If December renews this summer's decline, weekly support crossing at 4.33 is the next downside target. First resistance is the reaction high crossing at 4.80. Second resistance is today's high crossing at 4.81 1/2. First support is Tuesday's gap crossing at 4.51 1/4. Second support is last Wednesday's low crossing at 4.39 1/2.
December Kansas City Wheat closed up 9 1/2-cents at 4.89 3/4.
December Kansas City Wheat gapped up and closed higher on Thursday as it extended this week's breakout above the 20-day moving average. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 4.93 are needed to confirm that a short-term low has been posted. If December renews this summer's decline, monthly support crossing at 4.50 then 4.33 are the next downside targets. First resistance is the reaction high crossing at 4.93. Second resistance is today's high crossing at 4.99. First support is the 10-day moving average crossing at 4.72 1/2.Second support is last Friday's low crossing at 4.58 3/4.
December Minneapolis wheat closed up 10 3/4-cents at 5.06 1/4.
December Minneapolis wheat closed higher on Thursday as it extends this week's rally but remains locked in September's narrow trading range. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 5.12 3/4 are needed to confirm that a short-term low has been posted. If December renews this summer's decline, weekly support crossing at 4.64 is the next downside target. First resistance is the reaction high crossing at 5.12 3/4. Second resistance is today's high crossing at 5.13. First support is the 10-day moving average crossing at 4.89 1/2. Second support is last Wednesday's low crossing at 4.77.
SOYBEAN COMPLEX
November soybeans closed up 24-cents at 9.36.
November soybeans gapped up and closed above the reaction high crossing at 9.31 1/2 on Thursday confirming that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. If November extends this week's rally, the reaction high crossing at 9.58 is the next upside target. Closes below the 10-day moving average crossing at 9.13 1/2 would confirm that a short-term top has been posted. First resistance is today's high crossing at 9.42. Second resistance is the reaction high crossing at 9.58. First support is the 10-day moving average crossing at 9.13 1/2. Second support is Tuesday's gap crossing at 8.97.
December soybean meal closed up $8.70 at $289.40.
December soybean meal gapped up and closed above the 20-day moving average crossing at 282.20 on Thursday confirming that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, the reaction high crossing at 298.80 is the next upside target. Closes below the 10-day moving average crossing at 280.60 would confirm that a short-term top has been posted. First resistance is today's high crossing at 298.80. Second resistance is the reaction high crossing at 298.80. First support is today's gap crossing at 281.50. Second support is Tuesday's gap crossing at 273.20.
December soybean oil closed up 53 pts. at 34.57.
December soybean oil closed higher on Thursday as it extends this week's trading range. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If December renews the decline off August's high, the reaction low crossing at 33.75 is the next downside target. Closes above the reaction high crossing at 35.65 are needed to confirm that a short-term low has been posted. First resistance is last Thursday's high crossing at 34.83. Second resistance is the reaction high crossing at 35.65. First support is last Tuesday's low crossing at 33.29. Second support is July's low crossing at 32.82.
The STOCK INDEXES http://quotes.ino.com/exchanges/?c=indexes
The December NASDAQ 100 Closed higher on Thursday as it extends this week's rally. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above last Monday's high crossing at 1732.50 are needed to confirm that a low has been posted. If December renews the decline off September's high, the 25% retracement level of this year's rally crossing at 1578.56 is the next downside target. First resistance is today's high crossing at 1730.75. Second resistance is last Monday's high crossing at 1732.50. First support is the 10-day moving average crossing at 1698.95. Second support is last Friday's low crossing at 1649.75.
The December S&P 500 index closed higher on Tuesday as it extends the rally off last week's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above last Tuesday's high crossing at 1065.50 are needed to confirm that a low has been posted. If December renews the decline off September's high, September's low crossing at 987.00 is the next downside target. First resistance is last Tuesday's high crossing at 1065.50. Second resistance is today's high crossing at 1067.20. First support is the 10-day moving average crossing at 1045.93. Second support is last Friday's low crossing at 1012.10.
The Dow closed higher on Thursday as it extends the rally off last week's low. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above last Tuesday's high crossing at 9834 are needed to confirm that a short-term low has been posted. If the Dow renews the decline off September's high, September's low crossing at 9252 is the next downside target. First resistance is last Tuesday's high crossing at 9834. Second resistance is Thursday's high crossing at 9836. First support is the 10-day moving average crossing at 9676. Second support is last Friday's low crossing at 9430.
INTEREST RATES http://quotes.ino.com/exchanges/?c=interest
December T-bonds closed down 1-05/32's at 121-23.
December T-bonds closed lower on Thursday as it consolidated some of Wednesday's rally. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are neutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 120-25 are needed to confirm that a short-term top has been posted. If December renews the rally off June's low, the 50% retracement level of the 2008-2009-decline crossing at 124-17 is the next upside target. First resistance is last Friday's high crossing at 123-25. Second resistance is the 50% retracement level of the 2008-2009-decline crossing at 124-17. First support is today's low crossing at 121-22. Second support is the 20-day moving average crossing at 120-24.
LIVESTOCK http://quotes.ino.com/exchanges/?c=livestock
December hogs closed up $1.77 at $53.53.
December hogs closed higher on Thursday and above September's high crossing at 53.05 thereby renewing the rally off August's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, the 25% retracement level of the 2008-2009-decline crossing at 55.69 is the next upside target. Today's close below Monday's low crossing at 47.50 would confirm that a short-term top has been posted. First resistance is today's high crossing at 53.95. Second resistance is the 25% retracement level of the 2008-2009-decline crossing at 55.69. First support is the 10-day moving average crossing at 49.77. Second support is Monday's low crossing at 47.50.
February bellies closed up $2.38 at $82.77.
February bellies closed higher on Thursday and above the 20-day moving average crossing at 83.05 confirming that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If February extends this week's rally, September's high crossing at 89.40 is the next upside target. Closes below Wednesday's gap crossing at 80.70 would confirm that a short-term top has been posted. First resistance is today's high crossing at 84.80. Second resistance is September's high crossing at 89.40. First support is the 10-day moving average crossing at 81.60. Second support is Wednesday's gap crossing at 80.70.
December cattle closed up $0.25 at 84.32.
December cattle closed higher on Thursday as it consolidated some of this week's decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off May's high, psychological support crossing at 80.00 is the next downside target. Closes above the 20-day moving average crossing at 85.25 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 84.77. Second resistance is the 20-day moving average crossing at 85.25. First support is Tuesday's low crossing at 83.50. Second support is psychological support crossing at 80.00.
November feeder cattle closed up $0.62 at $93.80.
November Feeder cattle closed higher due to short covering on Thursday as it consolidates some of this year's decline. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are oversold and are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 96.34 are needed to confirm that a short-term low has been posted. If November extends this year's decline, the 87% retracement level of the 2008-2009-rally crossing at 91.11 is the next downside target.
PRECIOUS METALS http://quotes.ino.com/exchanges/?c=metals
December gold posted a new all-time high on Thursday in a flight to quality move on the part of investors due to continued weakness in the Dollar. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally into uncharted territory, upside targets will be hard to project. Closes below the 20-day moving average crossing at 1012.10 would confirm that a short-term top has been posted. First resistance is today's high crossing at 1062.70. First support is the 10-day moving average crossing at 1015.10. Second support is the 20-day moving average crossing at 1012.10.
December silver closed higher on Thursday and above September's high crossing at 17.690 thereby renewing the rally off July's low. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, the 75% retracement level of 2008's decline crossing at 18.180 is the next upside target. Closes below the 10-day moving average crossing at 16.685 would confirm that a short-term top has been posted. First resistance is today's high crossing at 17.955. Second resistance is the 75% retracement level of 2008's decline crossing at 18.180. First support is the 20-day moving average crossing at 16.806. Second support is the 10-day moving average crossing at 16.685.
December copper closed sharply higher on Thursday and the 20-day moving average crossing at 279.53 signaling that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, the reaction high crossing at 295.50 is the next upside target. Closes below the 10-day moving average crossing at 276.05 would temper the near-term friendly outlook in the market. First resistance is today's high crossing at 290.10. Second resistance is the reaction high crossing at 295.50. First support is the 10-day moving average crossing at 276.05. Second support is last Friday's low crossing at 264.00.
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New Gold Is Running Up Fast! Buy At $4.58 sell $5.00
2009-09-23 19:44 ET - In the News
Brien Lundin, in the September, 2009, edition of the Gold Newsletter, says buy New Gold Inc., recently $3.36 (all figures U.S.). This is the first time Mr. Lundin has recommended the gold company. The newsletter editor says that 33 days after completing a $1.2-billion (Canadian) business combination with Western Goldfields Inc., New Gold had to eat a $190-million goodwill impairment charge on the deal in its second quarter financials.
Add to that foreign exchange losses of $31-million and the company ended up with a net loss of $203-million or 79 cents per share. Still, notes the goldbug, it was better than expected. The acquisition will add 140,000 to 150,000 ounces of gold production this year.
Mr. Lundin says the company expects operational improvements to continue for the rest of the year, forecasting a 2009 gold production of 330,000 to 360,000 ounces at a net cash cost of $490 to $510 per ounce.
New Gold is also developing its New Afton project which it hopes will be in production by the second half of 2012. It expects New Afton to produce 85,000 ounces of gold and 75 million pounds of copper over a 12-year mine life. The newsletter editor tells his readers to buy on weakness.
Don't Tell This Fellow $1,000 Gold is Expensive...
October 8, 2009
In Today's Issue: Don't Tell This Fellow $1,000 Gold is Expensive...
This Stock's Going Up Because It's Going Up... The Scoop on the
Retail Sector... What to Expect Next Earnings Reporting Season
** Don't Tell This Fellow $1,000 Gold is Expensive
-- by Michael Lombardi, CFP, MBA
The rally in gold bullion prices is really getting amusing for two
reasons.
First, we have far many more analysts saying that the run-up in gold
bullion will be short-lived than those saying that gold will continue
to rise in price. The naysayers never learn. I read about analysts
saying that gold prices were topping out when the metal was at
$500.00 an ounce, then $700.00, then again at $900.00. These
analysts should take a technical analysis course entitled, "The Trend
Is Your Friend."
Our phones here at Lombardi Publishing still are not ringing with
customers asking to buy gold investment newsletters. In fact, we are
having a hard time selling them. As a contrarian, this tells me that
the general investing public has no clue what is going on in the gold
pits, or they simply do not believe that the rally in gold prices is for
real.
The gold bull market is for real, alright. In fact, it has been a bull
market for gold since 2002/2003. I started recommending gold-
related investments to my readers back then, when gold was trading
at $300.00 an ounce. We've been in a bull market in gold for six
years and I'm convinced that the yellow metal will continue to rise.
Nothing has really changed about my opinion on why gold bullion
prices would rise, it's only been confirmed. The ever-increasing debt
of the United States has been a concern of mine for years. The credit
crisis of 2008 only exasperated that concern, as the government
spent trillions on bailing out the economy.
Throughout history, countries that experience high debt levels have
eventually seen the value of their currency erode. The United States
went from being a creditor nation to a debtor nation. And that was
really the turning point for America's economic future -- a slow
process, but a reality.
When companies borrow more debt than they can service, they
eventually file for bankruptcy. And if the U.S. government were a
business, it would be bankrupt. Our government, for all its good
intentions, is collecting less revenue (taxes), because the economy is
soft. At the same time, it is in the uncomfortable position of soon
having to borrow money just to pay the interest on its debt. That
spells trouble.
The Chinese are not stupid. They see the coming crisis in the U.S.
dollar (an event I have been predicting for the past five years) and
they are moving their own citizens into gold bullion. China is
already the world's biggest gold producer. China also sits on over a
trillion U.S. dollars, which it received for all the junk "made in
China" products it has shipped to the U.S. Is it not in the best interest
of China to see gold prices rise?
Don't tell this market commentator that gold is expensive at $1,000
U.S. an ounce. Tell me that when gold reaches $3,000 an ounce.
Michael's Personal Notes:
Monday is Columbus Day in the U.S. and Thanksgiving Day in
Canada. To all my American and Canadian readers, a safe and happy
holiday. I've convinced my kids (even though they are getting "a bit
too old for this stuff") to walk in the Columbus Day parade in
Manhattan on Monday. Me? I'll be walking, thinking about gold,
walking, thinking about gold, walking...you know how it goes.
Where the Market Stands:
If you have been reading the business papers and the popular
financial advisors of today, this is what you'll walk away with: "The
market rally is done; the market rally has lost steam." I don't buy it.
Sure, we've had the markets go up, down and sideways over the past
couple of weeks; nevertheless, Dow Jones 10,000 is well within
reach. Until this market proves otherwise, I may be one of the only
fools out there who's predicting that the Dow Jones will soon cross
the important 10,000 level. This morning, the Dow Jones Industrial
Average sits 11% higher than where it started the year.
What He Said:
"If the U.S. housing market continues to fall apart, like I predict it
will, the stock prices of major American banks that lend money to
consumers to buy homes will come under pressure -- these are the
bank stocks I wouldn't own." Michael Lombardi, in PROFIT
CONFIDENTIAL, May 2, 2007. Michael was one of the first to
predict the demise of banks before the credit crisis began. From May
2007 to November 2008, the Dow Jones U.S. Bank Index of the
world's largest bank stocks was down 65%.
** This Stock's Going Up Because It's Going Up
-- Ahead of the Street Column, by Mitchell Clark, B. Comm.
In the third week of August, I wrote in this column about an exciting
small Chinese company that's growing its business providing traffic-
management technology to big Chinese cities. The company's name
is China TransInfo Technology Corp. (NASDAQ/CTFO) and the
business is still very much at an early stage of development.
Of course, business must be booming, because the stock has turned
out to be one of the best performers on the NASDAQ. The stock is
up over 40% since I wrote about the business in August and that's
without reporting any material news.
I just love the infrastructure investment theme in the Chinese
economy. I don't want to speculate on China in non-U.S. dollars, but
fortunately, we have a lot of domestically traded Chinese stocks
from which to pick.
For a company like China TransInfo, its business is to set up
geographic information systems to help monitor and regulate the
flow of traffic in cities. The company is also developing electronic
toll collection technology for highways (China loves building roads).
In its last reported quarter, ended June 30, 2009, China TransInfo's
revenues increased 87% to $9.6 million. Net income for the second
quarter of 2009 increased 30% to $2.8 million, with fully diluted
earnings per share growing 15% to $0.13. The company finished its
second quarter with $9.2 million in cash and working capital of 34.5
million dollars.
A company like this is considered very small potatoes on Wall
Street, yet a lot of individual and institutional investors have bid up
the price of the stock. If you analyze the stock's trading pattern over
the last several months, you'll notice that it's hardly experienced any
downtime at all.
This stock has gone up and is going up because of bandwagon
momentum traders. There is a lot of enthusiasm about the company's
business prospects, but it hasn't reported any material news since its
second-quarter earnings report. No, this stock is going up because it's
going up. This can mean only one thing -- the bull market is back on.
** The Scoop on the Retail Sector
-- Calling the Trend Column, by George Leong, B. Comm.
Predictions vary on the outlook for the retail sector. Some feel that
the bottom is here or near, while others including myself believe that
there will be continued struggles ahead of us in the fourth quarter.
It's true that there have been some positive signs, but I feel the hurt
will continue for at least the next several quarters or more. Retailers,
even some of the discounters, continue to fight to win customers.
Prices are being slashed to eliminate excess inventory and this is
impacting operating margins, which have been on the decline.
Bellwether Wal-Mart Stores, Inc. (NYSE/WMT) warned that the
global recovery will be slow. It is focusing on its growth in China
and India.
Some argue that some retailers have beaten earnings estimates, but
keep in mind that the bottom line was improved primarily via cost-
cutting efforts. The problem is that there are limits to how much you
can cut from costs. At the end of the day, retailers will need to
increase their sales in order to drive profits instead of doing the latter
by cost-cutting. Until I see this happening, it will continue to be a
difficult environment in which to invest in retail stocks.
More evidence of the sluggish sales in the retail sector emerged
recently with soft retail data. Investors are hopeful that the worst is
over and that the recession is ending soon, just in time for the busy
Christmas shopping season, but it may be more hope than reality.
According to the National Retail Federation, the key holiday sales
are estimated to fall one percent for the November and December
months.
My concern continues to lie with the declining home prices and their
negative impact on wealth and consumer spending. We need to see
property wealth return before consumers begin to buy furniture and
other big-ticket items for their homes.
Moreover, there needs to be an improvement in jobs. The September
non-farm payrolls were weak and the consensus is that the
unemployment rate will reach 10% by early 2010 before improving.
As long as people have to worry about losing their jobs, they will
hold off on spending on non-essential goods and services. This is a
problem and could hamper the economic recovery.
Also keep in mind that the positive impact from the $800-billion
stimulus program is drawing to an end. There are less economic
incentives offered and this will surely impact whether a person
spends.
In addition, debt levels are continuing to expand, and will become
more of a concern going forward, as consumers watch their
disposable income fall. A good majority of people have fixed
budgets, and higher financing costs will reduce money available for
other purchases.
There is concern that retail sales heading into the third and key
fourth quarters will continue to be weak, especially given the post-
Thanksgiving shopping period heading into Christmas, which for
many retailers is the prime shopping period of the year.
Watch for the retailers in the fourth quarter. If you are currently
holding retail stocks, here is what you may want to consider. Given
the bearish sentiment towards retail stocks, you could write some
covered call options to generate some premium, thus reducing the
overall average cost of the stock in question.
** What to Expect Next Earnings Reporting Season
-- The Financial World According to Inya Column, by Inya Ivkovic,
MA
Price declines early this year gave us an opportunity to accumulate
holdings at a low price. For those with good nose for quality stocks,
it was a way of building a portfolio with the risk vs. reward balance
potentially tilted in their favor. That is how it can be on the buy
side's front line. These are the best of times when investors can buy
companies and even entire sectors at seriously depressed prices.
Usually, it is also a happy time when the buy side rules.
But if prices remain depressed for too long, the excitement is bound
to wear off after a while. Particularly after the position sort of gets
maxed out, like a credit card, at which point it would be
irresponsible to keep on loading up on the stock, regardless of how
cheap it might be, because the last thing an investor needs in volatile
markets is a down and beaten stock that is all alone and has no one to
play with. But sometimes that is what happens -- a fundamentally
sound stock can remain out of love for two or three years, sometimes
more.
There are two roads to take at this point. The investor holding a dead
whale could decide to stick by his stock-pick and, when it eventually
doubles or triples in price, which is definitely a possibility if the
company has been truly fundamentally sound, the investor would
come off as the "brainiac" who had insight and instinct no one else
did. But there is also a 50/50 chance the stock will remain the dead
whale and all the investor will have are chunks of its portfolio
declining, because he was too stubborn to admit he made wrong
decisions.
As the market went through its extreme swings the last year and a
half or so, many money managers found themselves in a similar
position; that is, quite a bit offside. They ended up there because
there were quite a few conservative and counter-cyclical companies
that endured the market crash and the ensuing mayhem reasonably
well, but when the dash into equities started back in March of this
year, those same stocks appeared never to have gotten on the
bandwagon.
Soon, the third-quarter earning reporting season will commence. The
published data will be a goldmine of information. What we are very
likely to see will be the companies and funds that led the pack last
year coming in among the last this quarter. It is possible that there
will be exceptions to this forecast; that is, stocks and funds that
either did well or badly during both comparable periods. However,
such non-events will be far and few between. This is in part due to
the fact that those individual investors and money managers who
played the down-market well would have needed to completely
revamp their portfolios in the second quarter just to keep up with the
previous downers that will likely be leading the herd back up this
quarter. Of course, this is not an easy feat at the best of times, let
alone in the current markets.
What else will this quarterly earnings season tell us? For investors
holding mutual funds, it will be almost like confession time. Mutual
fund investors will finally be able to learn how their managers
performed in the medium term and how many promises they kept
from the sales and marketing materials they have sent you. This time
around, perhaps more than ever, investors will have the opportunity
to see if the emperors are wearing new clothes, or any, for that
matter.
---
Copyright 2009; Lombardi Publishing Corporation.
Lundin says buy New Gold NGD-T
2009-09-23 19:44 ET - In the News
Brien Lundin, in the September, 2009, edition of the Gold Newsletter, says buy New Gold Inc., recently $3.36 (all figures U.S.). This is the first time Mr. Lundin has recommended the gold company. The newsletter editor says that 33 days after completing a $1.2-billion (Canadian) business combination with Western Goldfields Inc., New Gold had to eat a $190-million goodwill impairment charge on the deal in its second quarter financials.
Add to that foreign exchange losses of $31-million and the company ended up with a net loss of $203-million or 79 cents per share. Still, notes the goldbug, it was better than expected. The acquisition will add 140,000 to 150,000 ounces of gold production this year.
Mr. Lundin says the company expects operational improvements to continue for the rest of the year, forecasting a 2009 gold production of 330,000 to 360,000 ounces at a net cash cost of $490 to $510 per ounce.
New Gold is also developing its New Afton project which it hopes will be in production by the second half of 2012. It expects New Afton to produce 85,000 ounces of gold and 75 million pounds of copper over a 12-year mine life. The newsletter editor tells his readers to buy on weakness.
Wednesday, October 7, 2009
Globe says Zechner believes Yamana is undervalued
2009-10-07 09:17 ET - In the News
The Globe and Mail reports in its Wednesday, Oct. 7, edition that J. Zechner Associates chairman John Zechner recommends buying Yamana, which he considers cheap. Anwar Ali writes in The Globe's BNN Market Call column that Yamana stock jumped 85 cents to close Tuesday on the Toronto Stock Exchange at $12.05.
The stock has a 52-week range of $4.29 to $13.01. Mr. Zechner says, "Yamana remains one of the more undervalued stories among the mid-tier gold producers with strong copper byproducts and excellent production growth." In his general outlook Mr. Zechner says: "Our bullish outlook reflects our positive view of the impact of stimulus programs, low interest rates, the amount of money 'on the sidelines,' and that we are past the worst of the economic cycle. But markets have gained over 50 per cent from their March lows and economic data won't improve quickly, leading us to reduce exposure to financials. We're overweight positions in the resource sector."
The stock was trading at $10.49 on June 17 when The Globe's Scott Adams said Yamana appeared to be inexpensively priced. The Globe reported on April 15 that Sprott managers Charles Oliver and Jamie Horvat were bullish on Yamana. It was then trading at $9.90.
UUU Huge Block Buys Canaccord and Anonymous Buy Before Press Release
 |
BNK,WZR,EFR,DEE,Cll Trend and Technical analysis
By the way... Why would Google replace its logo with a barcode today?
Probably because barcodes were invented 57 years ago.
A general nervousness around the markets this week
Simon Avery
Globe and Mail Update Last updated on Monday, Oct. 05, 2009 01:48PM EDT
There is a nervousness around the markets this week as a rising chorus of experts questions whether seven months of rapid gains in the stock markets have essentially been driven by government spending.
To calm those fears, companies are going to have to deliver solid results during the parade of third-quarter earnings that kicks off this week. Without that injection, the markets are going to falter, economists warn.
“The consensus view is that we're in for a tepid economic recovery, leaving the recent run-up in stocks with what many view as an unjustifiably high valuation,” Robert Kavcic, an economist with BMO Nesbitt Burns Inc., writes in a report entitled Can Stocks Earn Their Keep? “However, equity market valuations are hardly stretched, and as we head into the [third-quarter] earnings season, the recovery in corporate profits has the potential to surprise to the upside.”
Among the positive factors he points to is aggressive cost-cutting by companies. U.S. businesses, for example, slashed compensation almost 7 per cent in the second quarter. In addition, just as consumer prices are down this year, production costs are also lower. Add to that a lower U.S. dollar, and companies south of the border have the potential to post strong profitability.
“The recent rally in equity markets has been built largely on expectations of a recovery in corporate profits. While the consensus view on the economy seemingly argues otherwise, there are mounting signs that the earnings recovery could be on the strong side” Mr. Kavcic wrote.
The economist also points to the spread between the 2-year and 10-year U.S. Treasuries, which is at 2.7 percentage points, its steepest since at least 1980. A steep yield curve between the two can bode well for the economy and adds to banks' profits, he said.
Companies' ability to boost profitability in this economy will prove key to the market's performance, experts say. “The economic recovery may be sub-par, but the leverage on corporate profits may still positively surprise,” says Vincent Delisle, strategist with Scotia Capital.
While there is always the chance of a double-dip recession, investors can best protect themselves by overweighting cyclical stocks. Mr. Delisle picks the Americas and emerging market exchanges over those of Europe and Japan. In terms of sectors, at the moment he favours U.S. energy, materials, discretionary, financials and technology.
Stock markets could post returns of between 10 per cent and 15 per cent in the next 12 months, compared with low single-digit returns for government bonds and cash, he forecasts.
Investors need to adopt a tactical approach in current conditions, rather than a long-term, buy-and-hold view, he advises in a report.
The stock markets got a positive jolt from earnings results for the previous quarter, when share profit was better than expected. But this round, expectations seem to have risen higher, leaving less room for positive surprises, writes Peter Buchanan, an economist at CIBC World Markets Inc. As one indicator, he notes that more than half of all analysts' earning revisions for the third quarter have been upwards, a figure which is higher than usual.
Among the economic news putting pressure on the markets: Job losses are up, while sales of previously-owned homes and orders for manufactured goods are both down. The unemployment rate in the United States hit its highest point since 1983 last month at 9.8 per cent. Rising joblessness and falling disposable income is hurting consumer confidence, economists say.
“Real GDP growth likely turned positive again in [the third quarter], but the path out of recession will not be smooth so long as the outlook for U.S. consumer demand remains week,” wrote Meny Grauman, an economist with CIBC World Markets Inc.
It's not clear yet how much consumer spending has been propped up by government support, principally the “cash-for-clunkers” auto incentives in the United States. “The real barometer of the American consumers lies in the labour market,” Mr. Grauman said.
Statistically, summer stock market gains are followed by October weakness. The 10 per cent jump on the Toronto Stock Exchange ranks 10th best since 1956 and compares to a median gain of only 1 per cent. But the probability of the market rising in October after a strong summer is only about 35 per cent, writes George Vasic, a strategist at UBS Securities Canada.
Cro Target 1.00+
Canadian Arrow prepares to drill nickel projects
cnw
SUDBURY, ON, Oct. 5 /CNW/ - Canadian Arrow Mines Limited (CRO: TSX-V) (the "Company") having recently completed a $1.83M financing is pleased to provide an update on the exploration programs planned on its nickel-copper properties located in northwestern Ontario.
"Over $1.5M is to be expended on resumption of our exploration activities," comments Company President Kim Tyler. "First pass drilling programs are prepared to evaluate the six highest priority targets on our regional projects in addition to drilling proposed on the open extensions of our flag-ship Kenbridge nickel/copper deposit."
The initial focus will be on the Turtlepond Lake group of projects located about 40 km south of Dryden, Ontario and 70 km east of Kenbridge. The Turtlepond Lake Group consists of three previously under-explored historic nickel-copper occurrences, (Glatz, Emmons and Prigg), coincident with recently surveyed electromagnetic conductor/magnetic anomalies, and three other newly discovered geophysical targets, North Glatz, Night Danger, and Double E. All targets are clustered within 1.5 km of each other. A map detailing the Turtlepond projects can be viewed on the Company's website at:
http://www.canadianarrowmines.
- This company has connections to very well funded mining operations through decades of experience. I believe Mr. Tyler when he says they are speaking with 5 strategic partners for completion of there project through joint ventures. Joint venture speculation could drive our sp into a frenzy.
- The drill program which comprised our 253 million dollar property is open at depth and further drilling could significantly increase the resource. Some of our strongest results were on outer edges of the drill zone. De-watering of the 2500 meter mine shaft will allow them to get at these areas. The intersection I speak of is the 7% nickel over 5 meters that intersection comes from the end of the drill core. Further exploration could offer up amazing results. 0 summer 2008 drill results out, any significant finds in mine ready atikocan or kenora/dryden properties will lift stock.
- The company has contractual agreements with Opiwica explorations (OPW) on the TSX.V to mill there major gold and copper find with in close proximity of Canadian Arrows Planned site. Mining could begin on both projects in early 2010. This represents earnings and is a good partnership for a company seeking to be the next significant Nickel Copper producer in Canada.
- Canadian Arrow has the ability to produce nickel in its mine at 3.47 per pound nickel. That kind of number is unheard of in comparison to other mines. With production scheduled for early 2010 (around the same time our economy should be significantly rebounding) what if nickel prices return back to 15 dollars per pound? This site will look like a gem to any investor! (plus the property would be worth about 400mil at 15 dollars per pound nickel.
This is just a few of the key points that I believe make this company look attractive. If my predictions are correct we will see a significant rebound to normal multiples over the course of the next couple of months and with any significant news pertaining to my points and our sp and volume will be sent soaring. JV with cash on the books and abilitiy to help put project into production will send our sp back to .50 if not higher! I am Bull on Canadian Arrow mines.
- The drill program which comprised our 253 million dollar property is open at depth and further drilling could significantly increase the resource. Some of our strongest results were on outer edges of the drill zone. De-watering of the 2500 meter mine shaft will allow them to get at these areas. The intersection I speak of is the 7% nickel over 5 meters that intersection comes from the end of the drill core. Further exploration could offer up amazing results. 0 summer 2008 drill results out, any significant finds in mine ready atikocan or kenora/dryden properties will lift stock.
- The company has contractual agreements with Opiwica explorations (OPW) on the TSX.V to mill there major gold and copper find with in close proximity of Canadian Arrows Planned site. Mining could begin on both projects in early 2010. This represents earnings and is a good partnership for a company seeking to be the next significant Nickel Copper producer in Canada.
- Canadian Arrow has the ability to produce nickel in its mine at 3.47 per pound nickel. That kind of number is unheard of in comparison to other mines. With production scheduled for early 2010 (around the same time our economy should be significantly rebounding) what if nickel prices return back to 15 dollars per pound? This site will look like a gem to any investor! (plus the property would be worth about 400mil at 15 dollars per pound nickel.
This is just a few of the key points that I believe make this company look attractive. If my predictions are correct we will see a significant rebound to normal multiples over the course of the next couple of months and with any significant news pertaining to my points and our sp and volume will be sent soaring. JV with cash on the books and abilitiy to help put project into production will send our sp back to .50 if not higher! I am Bull on Canadian Arrow mines.
Review This .pdf 12 page report:
Silver basks in gold's glory Platinum could also get investment boost from U.S. ETF
Lewa Pardomuan
SINGAPORE — Reuters Last updated on Wednesday, Oct. 07, 2009 07:49AM EDT
With gold (GC-FT1,043.503.800.37%) at last piercing a new high, investors may next turn their attention to silver (SI-FT17.400.100.61%) , which now looks overdue for a rally even as it and other metals remain constrained by a halting global industrial recovery.
Often dubbed bullion's bridesmaid, silver is now trading at near its lowest ratio to gold in a year, slipping to around the equivalent of 59 units per ounce of gold, just above September's low and down more than a quarter from the peak in late 2008.
Signs are emerging of investors seeking an alternative to gold – which hit a lifetime high of $1,048.20 (U.S.) an ounce on Wednesday, surpassing the previous record in March 2008 – as a hedge against inflation and a falling dollar.
India's HDFC Bank, a large seller of gold in the world's top consumer of the metal, is looking at offering silver bars for sale in some cities because of interest from investors, a bank executive said on Wednesday.
“If it does move higher, you'd expect silver to outperform. The last time gold hit its high, silver was trading at $20. It's got a lot of catching up to do,” said Mark Hewlett, a commodity analyst at Cornhill Capital in London.
Silver was little changed at $17.44 on Wednesday, moving closer to a 13-month peak of $17.63 in the middle of September but nearly 19 per cent below its record high of $21.24 from March 17, 2008, the same time gold last peaked.
Unlike gold, investment into the world's largest silver-backed exchange-traded fund, the iShares Silver Trust (SLV-N17.080.704.27%) , has flatlined for the past three months, while gold inflows have boosted ETF holdings to near record highs. Silver holdings were unchanged at 8,594.22 tonnes.
But like gold, silver has also witnessed a surge in speculative long investment on the Comex futures exchange.
Physical trading was muted in Hong Kong, with silver bars offered at a discount of 10 to 20 U.S. cents to the spot London prices, barely changed from last week.
“Physical demand for gold will definitely slow down because of the high prices. Platinum (PL-FT1,335.009.700.73%) is still expensive, so probably people would like to buy silver because it's cheaper,” said a physical dealer in Hong Kong.
“But I still have doubts because most investors see silver as an industrial metal,” he added.
Industrial applications accounted for half of global demand for silver last year, followed by jewellery and photography, while implied net investment demand made up a mere 5.6 per cent, according to the Silver Institute.
Platinum, which is also used in jewellery, has been hit hardest by falling demand from automakers, as the industry suffered heavly during the economic meltdown. Autocatalysts accounted for around half of global consumption last year.
Platinum rose 1.33 per cent to $1,331 an ounce on Wednesday – still 42 per cent below last year's all time high – but it too may be due for a repricing.
“If the expectation is that gold rallies from here, platinum may have a U.S. ETF in the near future which will bring a lot of investment demand which could mop up the excess supply left by poor car sales,” said Mr. Hewlett of Cornhill Capital.
“This could see it out-perform silver as the silver ETF is already alive and kicking.”
While gains in other precious metals may be overdue, analysts were agreed that, ultimately, there was no substitute for gold.
“It's difficult to see to reasons to sell it, given we're seeing a continuation in the weakening of the U.S. dollar,” said Darren Heathcote, head of trading at Investec Australia.
Will The Gold Bugs Bull Run Continue?
The Associated Press and Reuters Last updated on Wednesday, Oct. 07, 2009 07:48AM EDT
Stock markets rose and gold prices hit a fresh high again Wednesday as investors continued to show faith in a global economic rebound.
European and Asian stocks gained ahead of upcoming corporate earnings report.
The optimism, which has been building, snowballed Tuesday after the Australian central bank boosted its benchmark interest rate by a quarter of a percentage point, signalling a shift after months of cutting rates and buoying hopes for a sustained rebound.
Wednesday morning, Germany's DAX was up 0.2 per cent, Britain's FTSE 100 rose 0.2 per cent and France's CAC-40 was up 0.4 per cent at 3,784.01.
Major benchmarks in Asia were about 1 per cent higher or more, and Wall Street was expected to edge up at the open. Dow industrials futures were up 24 points at 9,678.00 and Standard & Poor's 500 futures were 5.4 points higher at 1,054.00.
“The Reserve Bank of Australia's rate hike was taken as a sign of a return to normalcy rather than a break on growth,” said Mitul Kotecha, analyst at Calyon.
That notion has helped investors become more positive about the upcoming batch of earnings reports for third quarter accounts.
First out of the gates is aluminum company Alcoa Inc., due to release figures Wednesday, with financial companies Goldman Sachs, Bank of America, Wells Fargo and industrial conglomerate General Electric due next week.
Markets will also be preparing for policy decisions by the European Central Bank and Bank of England on Thursday.
Both are expected to keep their benchmark interest rates at their respective historic lows of 1 per cent and 0.5 per cent. The focus, however, will be on the policymakers' views of recovery and the possibility of increasing monetary stimulus as well as — in the wake of Australia's rate hike — when they intend to start tightening their policies.
Gold, which had hit a record Tuesday, also continued to rise, with spot bullion at a record $1,048.20 (U.S.) an ounce Wednesday.
And This:
James Regan and Ruchira Singh
SYDNEY/MUMBAI — Reuters Last updated on Wednesday, Oct. 07, 2009 07:46AM EDT
Gold consumers across Asia greeted bullion's run to a record high cautiously on Wednesday, with a few moving to cash in gains but the majority opting to wait for the rest of a rally they believe has only just begun.
In contrast to a second day of busy trade on global gold (GC-FT1,043.804.100.39%) markets, the scene at shops and jewellery merchants from Sydney to Hong Kong to Mumbai was marked by a distinct lack of occasion, suggesting that the wave of retail scrap selling that greeted gold's record run in March 2008 may not be quick to recur.
“Today's been like any other day,” said David Carr, of KJC Coins Australia in Sydney, which deals in precious metal coins and bars. “No one's coming in to sell gold because the price jumped overnight, it's more wait and see, business as usual.”
The Australian outback gold mining town of Kalgoorlie, home to a nearly Times Square-sized electronic ticker tape broadcasting up-to-the-minute bullion prices, also was quiet.
“There's nothing going on that's out of the ordinary,” said John Horner, editor of the Kalgoorlie Miner newspaper.
Profit taking – read selling – replaced gold purchases that in New York and across Europe on Tuesday had swept spot bullion more than $10 (U.S.) above its previous March 2008 peak, and carried through on Wednesday to a record $1,048.20 an ounce.
The issue of scrap supply in the gold market – generated largely from the resale of jewellery to merchants – has taken on greater importance in recent years, as the advent of physically backed Exchange Traded Funds (ETFs) attracts new investors.
The biggest such fund now holds more than 1,000 tonnes of gold, equivalent to the world's fifth-largest central bank, and analysts had said that only the flow of scrap material into the market had prevented gold from soaring much sooner, much higher.
While there was some evidence of retail sales, it wasn't overwhelming.
“It is simple, buy low and sell high – I am making a 10 per cent profit already so I am selling,” said Nguyen Duc Hung while waiting to sell five taels of gold at a shop on Hanoi's Ha Trung street. Vietnam is Asia's second-biggest gold buyer.
To date, there have been no reports of gold hoarders burying stashes in secret spots as was the case in 1980, when gold zoomed above $800 an ounce for the first time, or about double today's level when adjusted for inflation.
“Both buyers and sellers are coming to the shop today, they are more or less evenly balanced,” said Osamu Ikeda, general manager at Tanaka Kikinzoku Kogyo, Japan's top bullion retailer.
Rival Tokuriki Honten Co. Ltd. saw a similar scene.
“There are no queues outside our shops,” said general manager Fumio Yamamoto. “For the Japanese, the (yen-based) price is too high to buy, but too low to sell.”
One of the biggest reasons Asian consumers may not be rushing to sell is that gold's record high is limited to those trading in the U.S. dollar, whose steady decline since March has been the biggest factor in bullion's rise.
In the Australian dollar, gold prices are down 20 per cent since March; in the yen, they're still far from their peaks.
The next focus for the market will be India, where consumer demand typically peaks next week for the Dhanteras and Diwali festivals, and the strong rupee kept the local price of gold under the psychological level of 16,000 rupees ($342) per 10 grams.
“Buying was very strong in the last couple of weeks, but it has been affected now even though the rupee has given a good cap to local prices,” said Pinakin Vyas, assistant vice president, treasury at IndusInd Bank, a private bank in Mumbai that imports gold to sell to local traders and jewellers.
“Investors will not buy at these levels though need-based buying from jewellers will continue. People will wait for some time and then come back to the market.”
Amid speculation about the long-term prospects for the dollar, the outlook for inflation, the economic recovery and the fate of the financial system, some of the smaller players in the global gold story had a much simpler view.
“The price is high and I don't wear them,” said a 60-year-old Hong Kong housewife standing outside a downtown jewellery store, who only gave her surname of Fung, after selling a gold ring and a gold pendant purchased more than 20 years ago.
“So I sold.”
Tuesday, October 6, 2009
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