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Notable Public Posts

Send in the Clowns

Last week the Fed treated us to a whipsaw as market perceptions apparently were not in line with the FOMC policy statement, which was basically a punt.  Then the very next day the Fed’s James Bullard  jawboned the media about a possible October Federal Reserve tapering.  Hence, a letter writer was left with images of a 3 ring circus heading into the weekend.  From the opening segment of the September 22 edition of Notes From the Rabbit Hole:

Last week’s opening title was ‘Get Ready for a Climax to the ‘Taper’ Hype’ and boy did it ever climax.  The FOMC rolled over and the market over reacted.  Everybody it seems (bears, bulls, inflationists, deflationists, gold bugs; everybody) was punished at one point or another.  James Bullard even had the nerve to get in front of a microphone and exercise his jawbone about a possible October ‘taper’ and the anti-climax was on.

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September 23, 2013
Notable Public Posts

The Fed’s Great Adventure in Inflation

In the current policy and media stoked market environment, anything is possible.  It’s  the wonderful, magical world of hands-on policy making.  5 years after the financial crisis, but still not enjoying a ramping economy like the good old (and long gone) days of the last great secular bull market (RIP 2000)?  Just sit back, relax and let the man in charge control the image.

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September 20, 2013
NFTRH Interim Updates

NFTRH Update, Precious Metals & ‘Inflation Trade’ After Fed Roll Over

Here is what the US Fed did to the currency it is supposedly a steward of yesterday.  The USD plunged below an important support level.  If this breakdown holds below 80.50, it measures to the mid-70’s.  Enter an ‘inflation trade’, in which we’d look to fan out from the precious metals and include other commodity and global stock items.

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September 19, 2013
NFTRH Interim Updates

NFTRH Update, Post-FOMC

Well, they rolled over.  Unbelievable the lengths they will go to to have us believe they are stewards of a supposedly sound economy.  I have my doubts they ever planned to do anything and that Huey, Dooey and Louie (Fisher, Bullard, and whoever Louie is) were just media jawbones after all.  The nerve of these people.

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September 18, 2013
NFTRH Interim Updates

NFTRH Update, HUI Status

HUI has spent the week fooling around in a bear flag, which seems logical with the markets under the spell of FOMC.  Everything is just hanging around.  If markets start…

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September 18, 2013
Notable Public Posts

Gold: “Taper This”

The media love to get a hold of buzz words and then give them a spin and a life all their own.  Recent examples were the mainstream media’s presentation of ‘Operation Twist’ – which was simply an official yield curve manipulation designed to sanitize and dampen inflationary signals – as an inflationary operation, and the ‘Fiscal Cliff’ drama that sent herds of conventional investors to the sidelines* when they should have been contrarian (and bullish) back in Q4, 2012.

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September 17, 2013
NFTRH Interim Updates / Notable Public Posts

NFTRH Update 9.17.13, Precious Metals – Looking Past FOMC

The world expects the FOMC to update its expectations regarding a tapering of Treasury bond asset purchases tomorrow.  The world thinks that a tapering of these purchases would be bad for gold.

I think a decrease in T bond purchases would be anything from neutral to a potential positive (see post coming later today on the matter).  Regardless, it is time to be looking out beyond FOMC with regard to the precious metals, a most sensitive sector to monetary policy.

So here is a check list of what we want to see in order to press the bull stance.

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September 17, 2013