Daily Archives: April 17, 2013

Brazilian Breakdown

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I’ve been quite prolific lately, so I’m going to take it easy on myself tonight and not do any long post at all. I’ll simply say that the chart of the Brazil ETF, shown below, has broken a trendline, so this is yet another example of a breakdown in the market which, chip by chip, is really starting to wear away.

0417-ewz

My own portfolio is 80% committed, with 80 shorts and – - gasp!!! – - one long which is, of course, GDX. We’ll know in a big hurry if I jumped the gun on that one or not!

Gold and Silver as a Macro Sign Post

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The last week has been a fright fest for the gold “community”. But these are the financial markets, not a community. There is a world outside of what ever is going on in gold and silver. A macro economic backdrop filled with entwined and correlated assets and markets all trying to form a message when taken as a whole.

Sure, gold – as a monetary metal – is a big one when it comes to macro indications, but what is really important is the great question that has been ping-ponged about for many years now between intellectuals on either side of the debate; inflation or deflation? (more…)

BOC Maintains Interest Rate & Lowers 2013 Forecast

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The Bank of Canada maintained its overnight interest rate at 1% today (Wednesday), cut its 2013 economic growth forecast to 1.5% from 2%, and raised its 2014 economic growth forecast to 2.8% from 2.7%.

As I write this at 10:30 am EST, most of the commodities in my list are down and Canada’s TSX Index is down 103.21 from yesterday’s close. Most world market indices are also down. (more…)