By Steve Cook
All American Investor
As reflected in yesterday’s Morning Call, ADP reported a positive employment number--but this is a secondary indicator and frequently deviates significantly from the Labor Department stat.
However, because there was no other economic data reported yesterday, the ADP report got more air time than it deserved. On the other hand, it set up the nonfarm payrolls figure which gets reported Friday morning and, as has been the case for the last two years, is widely anticipated.
Showing posts with label goldman sachs. Show all posts
Showing posts with label goldman sachs. Show all posts
Thursday, August 05, 2010
Monday, May 11, 2009
Commodities Ready to Soar on Upside Breakout (Chart)
Goldman Sachs Commodity Index, Weekly Bar.
I decided to use the weekly chart so you can get a better long term perspective.
The daily GSCI chart broke out to the upside on a close over 380. The weekly chart is now breaking out with a close over 400. Next upside target is 460. This might not seem like much, but it is 15 percent. The GSCI is currently over bought so there could be some chopping around before we head sharply higher.
I have been posting the charts on money supply, the FED balance sheet, and reserves for months. They all look like a gushing oil well. I wrote some time ago that it usually takes 12-18 months for these effects to bring inflation. We are now inside those windows.
I am also following long term interest rates. The Fed was in buying size and this caused a short term back up in prices. This will be a short term phenomena. A real battle is brewing between the FED and the bond vigilantes. The FED has used about 30 percent of their announced bullets already.
Expect commodity prices to trend higher over the next several years.
A good look at the GSCI chart shows a 2008 high near 900 on the upside. Since the GSCI is heavily weighted in oil, it is likely that a long list of commodities will make new highs before oil.
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I decided to use the weekly chart so you can get a better long term perspective.
The daily GSCI chart broke out to the upside on a close over 380. The weekly chart is now breaking out with a close over 400. Next upside target is 460. This might not seem like much, but it is 15 percent. The GSCI is currently over bought so there could be some chopping around before we head sharply higher.
I have been posting the charts on money supply, the FED balance sheet, and reserves for months. They all look like a gushing oil well. I wrote some time ago that it usually takes 12-18 months for these effects to bring inflation. We are now inside those windows.
I am also following long term interest rates. The Fed was in buying size and this caused a short term back up in prices. This will be a short term phenomena. A real battle is brewing between the FED and the bond vigilantes. The FED has used about 30 percent of their announced bullets already.
Expect commodity prices to trend higher over the next several years.
A good look at the GSCI chart shows a 2008 high near 900 on the upside. Since the GSCI is heavily weighted in oil, it is likely that a long list of commodities will make new highs before oil.
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 Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments. |
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Monday, April 13, 2009
Goldman Commodity Index Ready to Blast Off (Chart)
Goldman Sachs Commodity Index (Cash)
Notes:
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Notes:
- The Goldman Sachs Commodity Index is heavily weighted in oil
- The index is trying to claw its way above 380. This dates back to January.
- The current formation is bullish.
- Most times when a market continues to return to a area over and over, on the upside, it is an indication that the market wants to move in that direction.
- Expect a break out to higher levels in short order.
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| Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments. |
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Monday, March 23, 2009
Goldman Sachs Commodity Index Soaring (Chart)
The chart below is of the Goldman Sachs Commodity Index (GSCI).
The Goldman Sachs Commodity Index is soaring up. This is a good proxy of inflation and should be watched closely in the weeks and months ahead.
It should be noted that the GSCI is heavily weighted in oil. This is for good reason, oil is the single largest commodity in the world.
Two things to note in the chart:
The GSCI made its current low for the move last month at 305.85. The high occurred during July, 2008 at 893.85.
If you can't invest in commodity futures, you should be looking for stocks that benefit from inflation. Inflation type stocks should do very well in this environment.
The Goldman Sachs Commodity Index is soaring up. This is a good proxy of inflation and should be watched closely in the weeks and months ahead.
It should be noted that the GSCI is heavily weighted in oil. This is for good reason, oil is the single largest commodity in the world.
Two things to note in the chart:
- The GSCI is currently overbought as evidenced by the red line. Anytime a market trades above the red line it is overbought on a short term basis.
- The GSCI is coming into a major resistance--380-400.
The GSCI made its current low for the move last month at 305.85. The high occurred during July, 2008 at 893.85.
If you can't invest in commodity futures, you should be looking for stocks that benefit from inflation. Inflation type stocks should do very well in this environment.
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Wednesday, March 18, 2009
Gotham Gal shorts AIG, America, and Herself
Gotham Gal isn't happy. In fact, she is down right "pissed". She is mad at Goldman Sachs and AIG. She can't do anything about Goldman, but she can strike back at AIG. Gotham Gal says,
Gotham Gal, do you know who the parent company of AIG is? The United States of America. Any idea where our Uncle Sam got the money to buy AIG? Guess who owns AIG Gotham Gal? You and Fred. Well, you and Fred and the rest of us chumps.
Ok, now back to insurance. Did it ever occur to you Gotham Gal that you have your insurance policy with the safest insurance company in the world? Why would you want to take it to some risky old insurance company when you already have the cream of the crop? Your insurance policy couldn't be safer you lucky dog. It is backed by the full faith and credit of, well, all of us.
On a side note Gotham Gal? Do you own any real estate in Manhattan? I hope not. By the time all the people in NYC get done punishing all the bad companies like Goldman and AIG, there won't be anyone left to pick up the slack in the real estate market. If on the other hand you rent, that might work out really well.
Before you know it Gotham Gal, you might be wishing you lived in Philadelphia.
On a side note, I found the link to Gotham Gal over on one of the best blogs on the Internet--A VC. This blog is really worth bookmarking. Right, Fred?
Both Fred and I (Gotham Gal) have policies with AIG. The first thing we are doing when we get back is pulling our policies and putting them somewhere else.I can understand Gotham Gal being all mad about the bonuses handed out at AIG. By why is she taking it out on us?
Gotham Gal, do you know who the parent company of AIG is? The United States of America. Any idea where our Uncle Sam got the money to buy AIG? Guess who owns AIG Gotham Gal? You and Fred. Well, you and Fred and the rest of us chumps.
Ok, now back to insurance. Did it ever occur to you Gotham Gal that you have your insurance policy with the safest insurance company in the world? Why would you want to take it to some risky old insurance company when you already have the cream of the crop? Your insurance policy couldn't be safer you lucky dog. It is backed by the full faith and credit of, well, all of us.
On a side note Gotham Gal? Do you own any real estate in Manhattan? I hope not. By the time all the people in NYC get done punishing all the bad companies like Goldman and AIG, there won't be anyone left to pick up the slack in the real estate market. If on the other hand you rent, that might work out really well.
Before you know it Gotham Gal, you might be wishing you lived in Philadelphia.
On a side note, I found the link to Gotham Gal over on one of the best blogs on the Internet--A VC. This blog is really worth bookmarking. Right, Fred?
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| Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments. |
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