Today the record was 5-1 in called trades. Trading 3 contracts, one would have had a profit of
$425.00 following the trade management.  we were done trading at 9:15am this morning!

Trend Trades - 0-0
Scale in Trades - 0-0
Counter Trend Trades - 4-1

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Something doesn’t seem right here. The rumour is that China is looking to increase it’s gold reserves from 600 tonnes to 4000 tonnes in order to diversify. This doesn’t make sense to me for several reasons:

1) China’s currency is the most undervalued asset when measured in dollars. No matter how much you want to argue that gold will go to $2000 per ounce in the case of a collapse of the dollar, in current dollar prices, the Yuan is far more attractive. Why China would choose gold over it’s own artificially cheap currency makes no sense.

I did not watch the coverage of the protests against Obamacare last weekend, nor the coverage of the actual passing of the health care bill, nor the coverage of President Obama’s signing. I had had enough by the time all this came up. I knew where I stood, nothing that happened in the last 24 hours was going to change my mind, and I definitely had better things to do.

Adrian Ash defines deflation; he explains the things that go into making up the money supply and why inflation is still the likely outcome of Fed policy.

One of the most important — yet least widely known — sectors of the global economy is in the beginnings of a rebound.

It’s called the machine tool industry. It’s the backbone of manufacturing. Machine tools cut, grind and shape metal to make components for machines. Machine tools include things like lathes, milling machines and drill presses. These tools make the parts that go into everything from networking equipment to medical devices.

A brief history of long-dead paper currencies. They fail to survive despite rulers’ mandates, but they wreak some havoc before they die.

Hot rocks? This is Part I of a discussion of geothermal energy and investing. Part II will appear tomorrow. It’s a work in progress. I’ve been mulling this over for quite some time. There are some things that I want to get off my chest and share with you.

I Love Geothermal, But…

Longtime readers of Energy & Scarcity Investor know that I love geothermal energy. It’s my inner geologist channeling its way out. And my inner technologist, too.

Stock indexes attempted to rebound from what was becoming an oversold condition. The Nasdaq 100, shown here with the QQQQ etf, tried to reject the spike low from July 15th. The open of the day session was right on that low and price tried to move lower. After spending some time in that new low area, prices started to reject the new low and a move began to retrace back into the lows of yesterday.

The S&P E Mini Futures contract closed up today. We retraced the entire loss of yeasterday but have a  ways to go to get above where we were consolidating in the 850 area. After an down day yesterday we did most of the work between the 38.20% and 23.6% retracement level closing just below the 23.6% level and the resistance level of 850. If the S&P can hold the 750 level next week then this bodes well for a short term bottom that has been put in. The markets had a strong down day yesterday, so we will have to see what next week brings.

Harami Candle Stick Formation

The Dow was down today. After a down day on Friday, the markets posted supply and demand pictures that imply a turn or at least a pause while it ponders the situation.