Friday, December 2, 2011

Gold Silver and Market News for 12/2/11


Submitted by: Francis Soyer

Today's trading session is all about the Jobs number at 8:30 a.m. The street is looking for a Non Farm Payroll print of 125k. Given the recent fluff coming from the BLS I will not be surprised to see a print in the ball park of 200k.

Wednesday after a massive short covering rally thanks to a symbolic Fed move to lower window rates by 50 bps. We know that Bears were marched into a buzz saw after that announcement. The announcement coming of course after the Banking sector's credit ratings were cut by S&P. The Fed had to act to prevent an exodus from the Markets and the Bears were counting on it. Thus the Fed hammered them, one of things Bernanke is very good at. We also know there are still shorts out there scrambling to cover as yesterday some traders reported not being to find a locate (borrow shares) for the S&P 500! or specifically the Spiders (SPY) Spiders are extremely liquid and normally incredibly easy to borrow for shorting. This tells me that from a fundamental point of view money managers are very bearish and for good reason.

From a hard numbers point of view the Feds activity Wednesday is really a gesture of empathy towards the banking industry and will do nothing to help save the EURO. The ECB bankers know this and know the EURO is defacto dead. The timing of its death is the 60 trillion dollar question. It will depend on how long the EFSF (European Financial Stability Facility) can buy time and prepare for the exit of Euro. According to some news out of London authorities are making preparations for civil unrest. In the meantime expect a steady stream out of Europe of "proposed solutions" to remedy the situation designed to inspire market confidence.

All of these proposed solutions will fail. Given that most astute money managers know this are short the markets like never before. Hence my bias in the short term is that this rally will continue today and until the lions share of these shorts are Murdered. The inflated non farm print will also be by design to aid the killing of Bears. Expect this monster NFP print to be revised down later and grossly so. January I see as being a completely different environment and probably where Bears will want to be. Below the ECON data agenda for today:

8:30 Non Farm Payrolls

9:00 Richard Fisher Speaks

10:00 Charles Plosser

1:30 p.m. Eric Rosengren Speaks

and for a much needed TGIF uptick:

RETIRED  HUSBAND

After  I retired, my wife insisted that I accompany her  on her trips to Target.

Unfortunately,  like most men, I found shopping boring and  preferred to get in and get out. Equally  unfortunate, my wife is like most women - she  loves to browse.

Yesterday  my dear wife received the following letter from  the local Target:

Dear Mrs. Harris ,

Over  the past six months, your husband has caused  quite a commotion in our store. We cannot  tolerate this behavior and have been forced to  ban both of you from the store. Our complaints  against your husband, Mr. Harris , are listed  below and are
"documented  by our video surveillance cameras":

1.  June 15: He took 24 boxes of condoms and  randomly put them in other people's carts when  they weren't looking.

2.  July 2: Set all the alarm clocks in Housewares  to go off at 5-minute intervals.

3.  July 7: He made a trail of tomato juice on the  floor leading to the women's restroom.

4.  July 19: Walked up to an employee and told her  in an official voice, 'Code 3 in Housewares. Get  on it right away'. This caused the employee to  leave her assigned station and receive a  reprimand from her Supervisor that in turn  resulted with a union grievance, causing  management to lose time and costing the company  money.

5.  August 4: Went to the Service Desk and tried to  put a bag of M&Ms on layaway.

6.  August 14: Moved a 'CAUTION - WET FLOOR' sign to  a carpeted area.

7. August 15: Set up a  tent in the camping department and told the  children shoppers they could come in if they  would bring pillows and blankets from the  bedding department to which twenty children  obliged.

8.  August 23: When a clerk asked if they could help  him he began crying and screamed, 'Why can't you  people just leave me alone?' EMTs were  called.

9. September 4: Looked right into  the security camera and used it as a mirror  while he picked his nose.

10.  September 10: While handling guns in the hunting  department, he asked the clerk where the  antidepressants were.

11.  October 3: Darted around the Store suspiciously  while loudly humming the 'Mission Impossible'  theme.

12.  October 6: In the auto department, he practiced  his 'Madonna look' by using different sizes of  funnels.

13.  October 18: Hid in a clothing rack and when  people browsed through, yelled 'PICK ME! PICK  ME!'

14.  October 22: When an announcement came over the  loud speaker, he assumed the fetal position and  screamed 'OH
NO! IT'S  THOSE VOICES AGAIN!

15. Took a box of  condoms to the checkout clerk and asked where is  the fitting room?

And last, but not  least:

16.  October 23: Went into a fitting room, shut the  door, waited awhile, and then yelled very  loudly, 'Hey! There's no toilet paper in  here.'

One  of the clerks passed out. 



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