A Whole Lot Of Nothing

A day that started off with bad news from Caterpillar ended pretty weakly.  Nothing exciting.  I haven’t done a trade since covering some shorts a couple of weeks ago.  Since then, I’ve been waiting for the oversold rally.  It hasn’t happened.  For those wanting a rally, the main concern is that all the oscillators are going back up to the top without the prices of going up.  That’s a negative divergence.  I still believe we’re one good catalyst away from a rally.  But, I’m not holding my breath.  The only exciting thing going on these days is the income I get from bonds.  Other than that, unless you’re a day trader, you’re waiting for the next guy to make a move.  Not very exciting.

Metals

Gold continues to push higher after it broke out Friday from the lower highs it had been making since the summer time.  If you look at a weekly picture, the rally could fizzle out pretty soon.  But, I believe too many people are becoming concerned about potential future inflation and gold may make a run at its old highs some time real soon.  I own some gold mining shares which give you a little more juice than the underlying commodity.  I also own silver in the form of the ETF SLV.  I think this trade could continue to work because we’re also seeing a move out of treasuries.  Perhaps I’m not the only one that thinks treasuries are a bubble and inflation might be a problem.  So, the metals trade and the short treasuries trade should continue to work.

A New Treasury Secretary

Well folks, the Paulson put trade is over.  We have ourselves a new Treasury Secretary in Timothy Geithner who was confirmed today by the Senate.  Let’s see how aggressive he is.  He has a lot of work to do.

Copycats

Over the weekend, I was informed another website was stealing my content and re-publishing.  As a loyal reader, make sure you make me aware of this if you don’t mind.  I appreciate it.  I go to a lot of work to keep this site free and I love the communication that we have between us.  If you see stolen content, please report it to http://www.karleggerss.com, the originator of this content.  Thanks.

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