The Golden Sunrise
The essential morning read for investors!
Golden Sunrise is the Golden Surveyor’s broad-based market and world view.
Written daily 4am-7am by markets information specialist GS John!
Today’s Golden Sunrise
Monday, May 10, 2010
Hours of daily research consolidated for you
Brussels Sprouts 750 Billion Euros
The financials powers that be in Europe met over the week-end and generated a package of quantitative eases that have markets soaring around the world this morning. Last week was not so pretty.
|
Market |
2009end |
30-Apr |
7-May |
ChangeWK |
%changeWK |
|
Japan-Tpx |
907.59 |
987.04 |
931.74 |
-55.3 |
-5.603% |
|
HongKong |
21417 |
21108.59 |
19,920.59 |
-1188 |
-5.628% |
|
Shanghai |
3263 |
2870.51 |
2688.38 |
-182.13 |
-6.345% |
|
Taiwan |
8112 |
8004.25 |
7567.18 |
-437.07 |
-5.460% |
|
South Korea |
1633 |
1741.56 |
1647.5 |
-94.06 |
-5.401% |
|
Australia |
4833 |
4897.4 |
4480.75 |
-416.65 |
-8.508% |
|
Singapore |
2880 |
2974.64 |
2,825.16 |
-149.48 |
-5.025% |
|
India |
17344 |
17,588.71 |
16,751.99 |
-836.72 |
-4.757% |
|
|
|
|
|
|
|
|
UK-FTSE |
5438 |
5529.29 |
5123.02 |
-406.27 |
-7.348% |
|
Germany |
6012 |
6136.7 |
5715.09 |
-421.61 |
-6.870% |
|
France |
3960 |
3816.99 |
3392.59 |
-424.4 |
-11.119% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DJIA |
|
11008.61 |
10,380.43 |
-628.18 |
-5.706% |
|
S&P500 |
1132.99 |
1186.69 |
1110.88 |
-75.81 |
-6.388% |
|
NasComp |
2308 |
2461.19 |
2265.64 |
-195.55 |
-7.945% |
|
NDX100 |
1887 |
2000.63 |
1849.44 |
-151.19 |
-7.557% |
|
R2000 |
640.1 |
716.6 |
653 |
-63.6 |
-8.875% |
|
NYSE |
7327 |
7474.4 |
6916.14 |
-558.26 |
-7.469% |
|
Tran |
4131 |
4670.72 |
4298.12 |
-372.6 |
-7.977% |
|
Util |
399 |
387.95 |
370.85 |
-17.1 |
-4.408% |
|
|
|
|
|
|
|
|
Canada-TSX |
11702 |
12210.7 |
11,692.43 |
-518.27 |
-4.244% |
|
TSX Venture |
1554 |
1673.8 |
1549.35 |
-124.45 |
-7.435% |
|
Brazil |
63296 |
67530 |
62,890.08 |
-4639.92 |
-6.871% |
|
|
|
|
|
|
|
|
Gold |
|
1180.7 |
1210.4 |
29.7 |
2.515% |
|
Silver |
|
1861.1 |
1842.9 |
-18.2 |
-0.978% |
|
Copper |
|
333.75 |
313.1 |
-20.65 |
-6.187% |
|
Crude Oil |
|
86.15 |
75.11 |
-11.04 |
-12.815% |
|
Natural Gas |
|
3.92 |
4.015 |
0.095 |
2.423% |
|
CRB Index |
|
277.71 |
261.02 |
-16.69 |
-6.010% |
|
|
|
|
|
|
|
|
$index |
|
81.99 |
84.65 |
2.66 |
3.244% |
|
Euro |
|
1.3308 |
1.2724 |
-0.0584 |
-4.388% |
|
Yen |
|
1.0651 |
1.0941 |
0.029 |
2.723% |
|
|
|
|
|
|
|
|
VIX |
|
22.05 |
40.95 |
18.9 |
85.714% |
|
VXN (Nas) |
|
22.06 |
41.52 |
19.46 |
88.214% |
|
VXV (S&P) |
|
23.67 |
36.62 |
12.95 |
54.711% |
|
RVX(R2000) |
|
28.34 |
45.83 |
17.49 |
61.715% |
Investors Business Daily shows Japan at +2.1% and Canada at +.2% the only major markets up year to date.
The BRICS have Brazil down 14.4%, Russia minus 8.8%, India is in the red by 3.4% and China is a negative 3.4% as well.
Europe has the UK -11.8%, Germany -14.5% and France down 20.2%.
Australia at -8.8% and South Africa -3.4%.
South Korea -1.6%, Hong Kong -5.3% and Taiwan -8.9% complete the summary.
The major portion of the damage was done to these markets last week.
Gold finished on Friday at an all-time high weekly close.
Just for contrast-here is the CAC (Paris) which has been the weakest market year-to-date and was mangled last week. The CAC is heavy banks with exposure to PIGS debt. The banks are soaring. The CAC is up 270 points, FTSE and DAX same 1.5 hrs into the weeks trading.
The bigger French banks and financial institutions are up 16-20% this morning…shows how weak they really have been perceived and, possibly, the depth of the short positions…In this US, pre-market the 3xutrashort financial etf FAZ is down 1.99 or 13.45%.
The response of the euro was immediate.. This chart shows the spike up yesterday afternoon as the news was released. The yellow bar underlines market action from midnight as May 10th began in Asia.
This financial undertaking is already being described as the “nuclear option” with the caveat that is was necessary to prevent an economic collapse in Europe…not all that cheery.
Like the Fed bailouts, the primary beneficiaries of these actions are the financial institutions that created the problems.
As Kevin Ruud, Prime Minister of Australia, has shown us last week, a politician will take from anyone without context or pretext to fund his latest idea..the 40% tax on Australian miners being case in point.
The US congress, led by Countrywide beneficiary and whose wife is employed by the Chicago Mercantile Exchange Chris Dodd, will purse financial reform.
On a more interesting note, JP Morgan, involved with $79 trillion of the various and sundry derivative vehicles, will be charged with civil and criminal activities in the manipulation of the silver markets over the decade or so. JPM is known to hold the largest short positions in silver futures and the COT reports show that the largest 4 shorts hold 267 million ounces to be offset somewhere before the expiration of the agreements. It will be interesting to see what happens here…silver bulls have said for years that the price would be much higher absent the manipulation so we’ll see how it plays out.
The FTSE is showing 100 companies up and 1 down this morning (BP a negative .16%) with big bounces in the resource stocks. The world’s biggest silver producer, Fresnillo is up 5.93%-no great shakes this morning giving all the other influences-so the JPM case may or may not be a factor today. Fresnillo can be owned in the SIL etf for silver companies..the SIL is pretty new, not big volume and has silver’s built in volatility.
The SLV on a daily chart-with a comparison GLD-the tracking is closer than most expect..and until the out-of-nowhere drop last week and rebound was pretty synchronized. The gold/silver ratio has been in the low 60s for month and has moved to 67 on gold’s upsurge.
Volume spikes on SLV on Th and Fr, also surged back above the 50dma. Momentum turning slightly positive.
The day is going to be interesting as many trader’s are going to have carefully structured positions unwound, some will be bad positions they wondered where to bail on now turn positive and chartists scrambling to find support and resistance level.
The NYA provides a great chart for a starting with which to gauge what happens this week and how it all sorts out.
The potential amount of fiat currencies exploded this week-end with the actions of the European economists. The word is that they should have acted massively and decisively like Ben Bernanke did. Beautiful.
Sets up Ben to do for CA,IL,NYC, Harrisurg,PA would Trichet did for Athens (no you moron Georgia Bulldogs fans-not you) which is coming to a theatre near you soon.
The dollar pipeline to the Fed has been reopened for Europe and the IMF (30% US funded) will now play a role in paying for the latest bailout.
While paper money Euros expanded in supply potential, the price of Euros went up. The officials create $950 billion out of nothing and the multiplier if ever loaned by their banks will create many more.
NO gold or silver coins were created this week-end by any means or methods. That supply cannot be increased by decree. Think about owning a few.
We are living in interesting times.
JohnR
Goldensurveyor.com
