Goldman Sachs (Stock) Breaks Down

While Friday’s Dubai-related selling left the S&P 500 flat for the last two weeks, Goldman Sachs (GS) dropped almost 3% and punched a new low for November (see chart below). This new low now places GS in its first short-term downtrend since February/March, and it marks a serious failure from the 50DMA resistance. This downturn … Read more

Officials Continue to TALK Up A Strong Dollar As the WEAK Dollar Continues to Hurt U.S. Trade Partners

Probably one of the longest running jokes in the financial markets is the amount of time U.S. officials spend talking about their support for a strong dollar while taking no action to actually support a stronger currency. On Monday, Federal Reserve Chairman Ben Bernanke made a rare contribution to the bluster by stating his own … Read more

More Voices for a Stronger Dollar

The Wall Street Journal printed a trifecta of articles to day that seem to cry out for the dollar to lift its head out of the sludge. Coincidentally (or not), the dollar rallied for its biggest one-day gain in almost three weeks. In “Uncertainty May Help Dollar“, analysts remind us that the economic recovery remains … Read more

Disappointing Economic Data Send the Pound On A Roundtrip for the Week

The British pound has taken some sharp twists and turns since first hitting 4-month lows against the U.S. dollar on September 28. I have been steadfast in my bearishness against the pound since mid-September, but I have found it necessary to dance in and out of positions given the persistent decline in the dollar against … Read more

Assorted Thoughts and Trades for September 25, 2009

Today has been a wild day in the financial markets, and I almost hesitate to jot down my thoughts before the close of trading. However, I will be shutting things down to get the weekend started as soon as possible, so I am writing now while thoughts remain fresh. There is no one theme I … Read more

Which Contrarians Are Correct About the Stock Market?

When everyone is a contrarian, no one is a contrarian. I consider this a corollary to the famous quote from Humphrey Neill: “When everyone thinks alike, everyone is likely to be wrong” (from a book I really enjoy but inconsistently apply “

No New News on Negative Rates from Bank of England’s Meeting Minutes

This morning, the Bank of England released its minutes from the September meeting of the Monetary Policy Committee. From my reading, it contained no new news on the prospects for negative interest rates. The “relief” from the minutes has so far lifted the pound against the euro, the U.S. dollar, and even the yen. I … Read more

Dollar Hits 11-Month Lows – Time for A Relief Rally?

The dollar’s inexorable descent continued Tuesday as the index hit fresh 11-month lows after consolidating for 4 weeks. Accompanying the most recent weakening in the dollar has been a surge in gold and silver. Gold touched $1000/ounce and silver is now up about 44% for the year. Barrick Gold (ABX) has FINALLY eliminated its gold … Read more