At 10:30AM the natural gas inventory/storage was released, showing an injection of 31Bcf.
This is being portrayed as low. You know what happens after this, week after week.
We shall see if UNG resumes its eternal drop in the following days.
Thursday, April 28, 2011
UNG jumps, and why (now that is a good question!)
This is UNG today, up quite a bit, +3.3%
At 10:30AM the natural gas inventory/storage was released, showing an injection of 31Bcf.
This is being portrayed as low. You know what happens after this, week after week.
We shall see if UNG resumes its eternal drop in the following days.
At 10:30AM the natural gas inventory/storage was released, showing an injection of 31Bcf.
This is being portrayed as low. You know what happens after this, week after week.
We shall see if UNG resumes its eternal drop in the following days.
Wednesday, April 27, 2011
Gold & silver ETFs soar after Fed's QE announcement; gold at $1,527
Please take a look at the gold, silver, and precious metals ETFs (that we track live here). It's is a sea of green:
With the price of gold hitting a new record high, it is no wonder:
The reason for this is clear, QE continues.
Bernanke: “We are going to continue to reinvest maturing securities, both Treasuries and MBS, so the amount of securities that we hold will remain” approximately constant, “The amount of monetary policy easing should remain constant going forward from June.”"
With the price of gold hitting a new record high, it is no wonder:
The reason for this is clear, QE continues.
Bernanke: “We are going to continue to reinvest maturing securities, both Treasuries and MBS, so the amount of securities that we hold will remain” approximately constant, “The amount of monetary policy easing should remain constant going forward from June.”"
Monday, April 25, 2011
Gold and silver soar; Precious metals ETFs: AGQ up +982%
Both silver and gold are soaring today, particularly silver, which is up over 5%.
Please take a look at the ETFs that we follow live:
Please take a look at the ETFs that we follow live:
AQG is up a mind boggling +982% since 2009.
Bank of China vs. Soros and Wild Rumors: Yuan Appreciation Will Not Help Against Inflation
We track all currency ETFs live here. The Chinese currency ETFs we use is CYB.
Throwing cold weather on Bill Soros comments and wide and wild spread rumors last week about a sudden major Yuan appreciation, the Bank of China says that the revaluation of the yuan will not be an effective weapon against inflation "but rather a consequence of growing inflationary pressure".
In fact, today China's yuan fell by its daily limit against the U.S. dollar after several large import settlements led to a temporary spike in demand for the U.S. currency.
The comments were made by Deng Lei, deputy general manager of the treasury department of the Shanghai branch, Bank of China.
"I do not see much of a correlation between the two, as the rocketing prices of international commodities have contributed to the current inflation rate," "For instance, if the yuan appreciates by 5 percent and the price of crude oil surges by 10 percent, the domestic market still faces a 5 percent rise, which leaves the problem unsolved," (China Daily today)
Billionaire investor George Soros said earlier this month that the appreciation of the currency as a way of controlling inflation would be "advantageous".
Previous experience in some South American countries has indicated that the rise of a currency might thwart its competitiveness in exporting goods, which can lead to the collapse of the national economy"
China this month registered its first quarterly trade deficit in seven years, reflecting the faster-than-anticipated rising prices of imported commodities.
The yuan's appreciation "will be no help in rebalancing global recovery, as it would depress US consumer demand and would not shrink the US trade deficit",
The yuan has gained 4.6 percent against the US dollar in the past two years, the second-smallest gain of 10 Asian currencies tracked by Bloomberg.
"Domestic demand, notably rising labor costs, has helped to cause the high inflation but it is inevitable during economic transitions," "Tightening monetary measures, therefore, will assist in managing the inflationary pressure caused by domestic stimulation plans after the financial crisis."
Deng also forecast the possibility of another rate increase in a "steady and gradual manner", he emphasized the moves "cannot continue indefinitely as it brings new pressure on exchange rate hikes that deviate from the idea of curbing liquidity".
Throwing cold weather on Bill Soros comments and wide and wild spread rumors last week about a sudden major Yuan appreciation, the Bank of China says that the revaluation of the yuan will not be an effective weapon against inflation "but rather a consequence of growing inflationary pressure".
In fact, today China's yuan fell by its daily limit against the U.S. dollar after several large import settlements led to a temporary spike in demand for the U.S. currency.
The comments were made by Deng Lei, deputy general manager of the treasury department of the Shanghai branch, Bank of China.
"I do not see much of a correlation between the two, as the rocketing prices of international commodities have contributed to the current inflation rate," "For instance, if the yuan appreciates by 5 percent and the price of crude oil surges by 10 percent, the domestic market still faces a 5 percent rise, which leaves the problem unsolved," (China Daily today)
Billionaire investor George Soros said earlier this month that the appreciation of the currency as a way of controlling inflation would be "advantageous".
Previous experience in some South American countries has indicated that the rise of a currency might thwart its competitiveness in exporting goods, which can lead to the collapse of the national economy"
China this month registered its first quarterly trade deficit in seven years, reflecting the faster-than-anticipated rising prices of imported commodities.
The yuan's appreciation "will be no help in rebalancing global recovery, as it would depress US consumer demand and would not shrink the US trade deficit",
The yuan has gained 4.6 percent against the US dollar in the past two years, the second-smallest gain of 10 Asian currencies tracked by Bloomberg.
"Domestic demand, notably rising labor costs, has helped to cause the high inflation but it is inevitable during economic transitions," "Tightening monetary measures, therefore, will assist in managing the inflationary pressure caused by domestic stimulation plans after the financial crisis."
Deng also forecast the possibility of another rate increase in a "steady and gradual manner", he emphasized the moves "cannot continue indefinitely as it brings new pressure on exchange rate hikes that deviate from the idea of curbing liquidity".
Thursday, April 21, 2011
UNG shows good bounce, but beware contango still in effect
UNG has bounced a little in the last couple of days:
It is a god bounce from the local low of $10.60 to $11.33 or so.
However, the current situation is that there is contango of 1.0% from May to June and of 1.7% from June to July contracts. This is still not good news.
It is a god bounce from the local low of $10.60 to $11.33 or so.
However, the current situation is that there is contango of 1.0% from May to June and of 1.7% from June to July contracts. This is still not good news.
Monday, April 18, 2011
U.S. Downgrade: Gold and Silver ETFsJump, Bond ETFs Drop Hard
The U.S. downgrade by S&P today to AAA negative is having major effects on the price of gold and bonds today.
From our gold etf tracking live site (click)
Look at AGQ, +843% since 2009, amazing.
From our bond ETF tracking live site (click)
Bonds are all negative (you don't see red on the dailies, but bonds move significantly less than stocks, 1% is a big move)
From our gold etf tracking live site (click)
Look at AGQ, +843% since 2009, amazing.
From our bond ETF tracking live site (click)
Bonds are all negative (you don't see red on the dailies, but bonds move significantly less than stocks, 1% is a big move)
Thursday, April 14, 2011
Natural gas injection is very bad news for UNG
UNG holder should take note that today there was an injection of 28Bcf.
The total amount in storage went up to 1.607Tcf, in spite of the the cold weather. This is very bad news for natural gas, in spite of the spike in UNG today. We have seen this pattern before in recent weeks.
The total amount in storage went up to 1.607Tcf, in spite of the the cold weather. This is very bad news for natural gas, in spite of the spike in UNG today. We have seen this pattern before in recent weeks.
Wednesday, April 13, 2011
European troubles continue: Portugal now only has money until May; food inflation soars
And we are in April!
This is today's cover of Jornal de Noticias:
The first headlines says: Government admits it only has money until the end of may". The country needs $5B to pay debts that come due in June. "To make matters worse, food and gas prices continue to rise".
That may be better than some other countries.
We track all country ETFs live here.
This is today's cover of Jornal de Noticias:
The first headlines says: Government admits it only has money until the end of may". The country needs $5B to pay debts that come due in June. "To make matters worse, food and gas prices continue to rise".
That may be better than some other countries.
We track all country ETFs live here.
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