Gold continued its rebound overnight, trading in London all the way up to $748 for immediate delivery -- a brand-spanking-new 27-year high. Only one other time in history has gold been this expensive. Also, as we noted last week, never has gold been able to sustain this high of a range for this long…
A good sign?
But the mkt sells off at the late trading today because a major Wall Street bank lowered its sales expectations for Chinese Internet company Baidu.com. Recently this company, together with other technical stocks, shows a strong yet extended rally with about 70% gain in past month. The pull back caused the sell off in the tech sector which also lead to big market pullback. However, tech sector just rebounce from their low on August, we view opportunity for the correction in this sector.
Thursday, October 11, 2007
Tuesday, October 9, 2007
Money source for our retirement account
“China's got a massive plan to build many more nuclear power plants -- $50 billion and 32 plants by 2020,” notes Mayer. “The ‘whisper’ number of 300 more by the middle of the century is even more mind-blowing.”
Despite China’s rapidly growing appetite for oil (now second only to the U.S., as we reported yesterday ), the red nation is far behind on a nuclear scale. Only 2.3% of the country’s electricity is derived from nuclear power. Compared with 20% here in the U.S. or an incredible 80% in France…China’s got a long way to go.
“Given what China's demand for other commodities has done for the prices of those commodities, we should take note of its new surge into nuclear power. It would seem to bode well for the price of uranium and the profits of those who sell it.
“Even if uranium prices doubled over the next few years, nuclear energy would remain an extremely competitive energy source. Eventually, of course, new uranium mines will come online. And eventually, of course, the price of uranium might retreat. But so what; the price might soar in the meantime, especially because demand seems certain to increase sharply.”
go check the Uranium stock on the google finance if you are searching sth for your IRA account.
Despite China’s rapidly growing appetite for oil (now second only to the U.S., as we reported yesterday ), the red nation is far behind on a nuclear scale. Only 2.3% of the country’s electricity is derived from nuclear power. Compared with 20% here in the U.S. or an incredible 80% in France…China’s got a long way to go.
“Given what China's demand for other commodities has done for the prices of those commodities, we should take note of its new surge into nuclear power. It would seem to bode well for the price of uranium and the profits of those who sell it.
“Even if uranium prices doubled over the next few years, nuclear energy would remain an extremely competitive energy source. Eventually, of course, new uranium mines will come online. And eventually, of course, the price of uranium might retreat. But so what; the price might soar in the meantime, especially because demand seems certain to increase sharply.”
go check the Uranium stock on the google finance if you are searching sth for your IRA account.
Friday, October 5, 2007
Energy Crisis again?
I read a news today about the energy that would want people to pay attention to the potential energy sector play again!
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The latest figures released by the International Energy Agency,” comments Kevin Capp “show the global production of liquids dropped by 854,000 barrels per day from August 2006-August 2007.
“In addition, we're pumping out 1.53 million barrels per day less than the all-time high of 86.13 million extracted in July 2006. Translation: The sun may have already set on our ability to meet world demand.
“This is not good.
“Running that close to the bone means any systemic shock — a hurricane that damages drilling platforms in the Gulf, a terrorist attack on oil pipelines in Nigeria, an unexpected cold snap in the Northeast — could cause prices to skyrocket, impacting everything from costs at the pump to costs at the grocery store. What's worse, the less oil we have, the less it takes to zap the price upward.”
===================
The latest figures released by the International Energy Agency,” comments Kevin Capp “show the global production of liquids dropped by 854,000 barrels per day from August 2006-August 2007.
“In addition, we're pumping out 1.53 million barrels per day less than the all-time high of 86.13 million extracted in July 2006. Translation: The sun may have already set on our ability to meet world demand.
“This is not good.
“Running that close to the bone means any systemic shock — a hurricane that damages drilling platforms in the Gulf, a terrorist attack on oil pipelines in Nigeria, an unexpected cold snap in the Northeast — could cause prices to skyrocket, impacting everything from costs at the pump to costs at the grocery store. What's worse, the less oil we have, the less it takes to zap the price upward.”
Wednesday, October 3, 2007
The rumor on the street for gambling again
Let's see what it is, however we should remain cautious.
“Investors shrugged off a profit warning from Citigroup and instead focused on the possibility of more Fed rate cuts,” reads the first sentence of CNN’s report. Oh boy… that’s bad. The rates are being cut for a reason. And it’s not because Bernanke wants your 401(k) to return 20% this year.
we remind you: The Fed’s last rate-cutting spree began with a surprise cut on Jan. 3, 2001. The next day, stocks surged, just as they did last month. By the end of January, the buzz wore off and the Fed cut by 50 bps again… and stocks surged yet again. Less than two months later, the Dow lost 10%.
“Investors shrugged off a profit warning from Citigroup and instead focused on the possibility of more Fed rate cuts,” reads the first sentence of CNN’s report. Oh boy… that’s bad. The rates are being cut for a reason. And it’s not because Bernanke wants your 401(k) to return 20% this year.
we remind you: The Fed’s last rate-cutting spree began with a surprise cut on Jan. 3, 2001. The next day, stocks surged, just as they did last month. By the end of January, the buzz wore off and the Fed cut by 50 bps again… and stocks surged yet again. Less than two months later, the Dow lost 10%.
Monday, October 1, 2007
As we pointed out, 14300 is coming!!!
that is just a pause for the mkt, we will enjoy the rally first!~:)
Friday, September 28, 2007
Gold and Materials go crazy when US greenback tanks hard
We continuously say buy gold , buy materials , the downtrend of USD is not done yet with the irresponsible FED.
Traders now send the usd to hell , killing every hope!
Traders now send the usd to hell , killing every hope!
Tuesday, September 25, 2007
GS shows his dirty hands on Gold and Oil today
Goldman Sachs raised its six-month target price for gold from $775 to $800 this morning. “Gold continues to gain support from the structural realignment in the relationship between gold and the U.S. dollar,” as statement from the bank read, “driven mainly by rising consumer and central bank demand in the rapidly growing emerging markets.”
Goldman also predicted $85 oil by the end of 2007. In another release today, forecasters at Goldman raised their entire oil outlook through the end of 2008, predicting an average price of $85 for 2008 and a high of $95 by the beginning of 2009.
With the recover of material and energy sector, Market is doomed to test the new high 14300 for DOWS pretty soon.
Safe play would be gold and materials.
Goldman also predicted $85 oil by the end of 2007. In another release today, forecasters at Goldman raised their entire oil outlook through the end of 2008, predicting an average price of $85 for 2008 and a high of $95 by the beginning of 2009.
With the recover of material and energy sector, Market is doomed to test the new high 14300 for DOWS pretty soon.
Safe play would be gold and materials.
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