Gold and Silver have been holding steady over night which is a good sign, they need to base and build support from here.
The Gold mining index is sitting at support for the moment, it needs to hold this support area and the 50 dma for a few more days before we feel confident that this will hold as support. We are watching closely, will may look at bidding some stocks we like tomorrow if these today's lows hold. The important thing to notice on the chart below is that the Gold mining index is still making higher highs and higher lows, that is a positive for the mining stocks.
Financials are testing the upper bounds of the Downward trend line, it needs to hold these prices and move above this trend line for us to get bullish. But for now, I think this resistance trend line pointing downward (Red Line on the TTFS chart) will hold and act as a place where you should sell financials and possibly go short. The down trend from April is still in place and it is making lower lows and lower highs since then, that is bearish for financials.
I can’t believe someone is willing to buy this piece of paper. I really don’t know what an Extendible Step-up Deposit Note is, but I wouldn’t buy anything that has a maturity date of Aug, 2021. Just like the Fedi is buying and selling his Treasury notes to bring down the long end of the yield curve, now the vampire banking system is also going to start sucking the blood out of the financial system too. In the next few years if not sooner, there will be no need for toilet paper because the Fedi will hedonically adjust the inflation numbers down by substituting TP with paper dollars. The sad part of Barclay closing of this deal is that it was sold only in Canada (it is not even open to the US, so I don't know what to make of that), good luck getting your money back if you decide to buy this on the TSE. This probably means that the Canadian Loonie is going to go down with the rest of the world financial system because the Fedi has suckered our bankers into helping bail them and the world with Canadian $ Liquidity.
Barclays Announces Closing of C$6,000,000 Extendible Step-up Deposit Notes Offering
08:00 EDT Wednesday, August 31, 2011
TORONTO (Business Wire) -- Barclays Bank PLC (“Barclays”) announced today that it has issued C$6,000,000 principal amount of Extendible Step-up Deposit Notes, Series I-32 with a final maturity date of August 31, 2021 (the “Notes”) pursuant to an underwriting agreement dated August 26, 2011 between Barclays and Stuart Investment Management Limited. The Notes will be listed and posted for trading on the Toronto Stock Exchange commencing at the open of trading today.
Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 145,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.com.
The Notes are being distributed solely in Canada and have not been, and will not be, registered under the Unites States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered, sold, resold or delivered, directly or indirectly, in the United States of America, its territories, its possessions and other areas subject to its jurisdiction or to, or for the benefit of, a U.S. Person (as defined in Regulation S under the 1933 Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirement of the 1933 Act.
Kristin Friel, 212-412-7521
GWY-V Galway Resources Update
The company just issued a great news release with amazing drill results and the market just shrugged it off.
It seems even good news is bad news for the share prices at the moment. I think that this just the overall sentiment in the Gold sector right now, everyone is worried about a financial collapse and the shares could stay flat or weaken. If we were in a normal stable economic world, news like this would have definitely lifted the share price higher and the stock price could have easily been sitting at $2.00 right now. It tells you that the sentiment is definitely not bullish for the gold mining sector at the moment.
When sentiment is bearish, that is when we should be buying, when things are cheap. But bearish sentiment could last until the DEBT CRISIS is dealt with.
We still think this is a good buy long term, but what happens with it's share price in the short term is difficult to predict, GWY will trade with the overall market.
If you recently bought some shares in the last week and have some profits, you may want to consider taking some profits and buy back if it gets cheaper.
Galway Intersects 16.0 Meters Of 29.4 G/t Gold And 16.0 Meters Of 10.6 G/t Gold
06:30 EDT Wednesday, September 28, 2011
TORONTO, Sept. 28, 2011 /CNW/ - Galway Resources Ltd. (TSXV: GWY) is pleased to announce assay results from 11 additional drill holes from the Company's ongoing diamond drill exploration program at its California gold-silver property in Colombia. This property is located adjacent to, and on strike with the La Bodega/La Mascota deposit (acquired for $1.5 billion in cash by AUX Canada). Galway's property is also at the lowest elevation among the major deposits identified along the California gold trend. Galway also owns a 360 meter-long fractional land position that appears to be directly within AUX's La Mascota mineralized structure. Galway has three diamond drill rigs operating in California, and has ordered a fourth rig, which is expected to be operational in November. Galway also has an additional two diamond drill rigs operating in Vetas at the high-grade El Volcan gold-silver mine. El Volcan is located 8 km southeast of California and is the largest gold producer in the region.
"The high grades seen in holes 123 and 127 are located in the two gap areas being drilled on either side of the Pie de Gallo Zone, which is the core of the trend that Galway is exploring. This once again affirms continuity within, and extensions to, California's robust mineralized trend," cites Robert Hinchcliffe, President and CEO of Galway Resources.
I have not verified this content below, but I will look into it and see if it is credible, but I believe it is. Golden Fortunes.
Tuesday, September 27, 2011
You can click on the site and read the report.
This might make your blood boil!
The first ever GAO audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill (HR1207), so that a complete audit would not be carried out. Ben Bernanke, Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve nearly 100 year history were posted on Senator Sander¢s webpage earlier this morning.
sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3 (Summarized below)
What was revealed in the audit was startling:
$16,000,000,000,000.00 (TRILLION) had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the worldÃ¢s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest.
Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs. To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is only $14.5 trillion.
The budget that is being debated so heavily in Congress and the Senate is only $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world. In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion. ****
When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self-identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.
Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and super-corporations like Halloween candy. The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows:
Citigroup: $2.5 trillion($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion* ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
IT WILL BE INTERESTING AS TO HOW MUCH ATTENTION (AS WELL AS THE SLANT) THE MAINSTREAM MEDIA GIVES THIS UNBELIEVABLE POSITION OF OUR GOVERNMENT HAS PLACED US IN WITH NEVER PREVIOUSLY HAVING AN AUDIT OF THE FEDERAL RESERVE.
I AM CONFIDENT THAT WE WILL HEAR SOMETHING LIKE THE FED HAD TO GIVE STIMULUS TO WHOM THE $16 TRILLION WENT TOO BECAUSE IF WE HAD NOT ALLOWED THIS IT WOULD BE THEIR COLLAPSE AND THE OURS.
HAS ANYONE EVER HEARD OF CLOWARD AND PIVEN ECONOMICS? (PARAPHRASING) IT INVOLVES TWO HARVARD PROFESSORS WHOSE BOOK SAID TO CHANGE ANY GOVERNMENTÃ¢S ECONOMIC SYSTEM INTO A SOCIALIST ONE, IT SIMPLY DRIVES THEIR ECONOMY INTO THE DITCH THEN THE CITIZENS ALLOW THE GOVERNMENT TO DO WHAT THEY WISH TO SAVE THEM
At the moment, you may want to stay away from the holding in his funds if this does happen and he needs to liquidate.
This could be a much bigger problem if all hedge funds are forced to liquidate this fall.
Raising More Cash might be a good idea on strong up days in the markets, even if it means breaking even on the trade.
The market are choppy at best, but after seeing today's action and the amount of bad news coming out of the financial sector, I would start looking at good entry points to get short financials, I added to HFD-T today and would suggest adding it to your watch list. But from what I see right now, there is very little chance the financials will strengthen from here.
John Paulson: Redemptions before redemption
Wednesday, September 28, 2011
The Wall Street Journal’s Gregory Zuckerman has a fascinating article about the latest indignity associated with hedge fund manager John Paulson: In anticipation that Mr. Paulson will have to sell some of his extensive holdings to meet redemptions, rivals are scouring his positions to see which are the most likely to go overboard.
If true, the moves could have a profound impact on some stocks, bonds and other assets in the weeks ahead. As the article noted, most investors in Mr. Paulson’s funds have to tell him by the end of October if they want their money returned by the end of the year.
While there is no indication yet that investors are heading toward the exits, the poor performance of Mr. Paulson’s funds suggest that it could happen. This year, his big bets on Sino-Forest Corp., Hewlett-Packard Co. and U.S. financials have soured, and his stake in the world’s biggest gold exchange-traded fund – the SPDR Gold ETF – retreated about 13 per cent in September. Add it up, and it isn’t hard to come to the conclusion that some investors may be disillusioned with Mr. Paulson’s investment prowess, established a couple of years ago when he scored $20-billion (U.S.) betting against the U.S. housing market.
According to Gurufocus.com, his top 10 equity holdings are: the SPDR Gold ETF , Anglogold Ashanti Ltd. , Citigroup Inc. , Anadarko Petroleum Corp. , Transocean Inc. , Capital One Financial , Hartford Financial Services Group Inc. , Wells Fargo & Co. , Hewlett-Packard and Suntrust Banks .
Theoretically, these stocks could fall if Mr. Paulson scales back his bets to meet redemptions, and some investors clearly want to get ahead of that trade, given the enormous size of Mr. Paulson's $29-billion portfolio. However, the Wall Street Journal article emphasizes his holdings of Lehman Brothers bonds.