Here is an interesting article that calculates how much less the US Dollar will buy at current rates of inflation based upon the CPI and PPI. Read it and weap! The above chart is a glimpse. Read the article for the details:
Inflation's Power: The Dollar in 25 Years!
Saturday, March 1, 2008
Friday, February 29, 2008
New Grain/Biofuel ETN
Thursday, February 28, 2008
Following Fed Chairman Bernanke's testimony before Congress today, here is the score. Perhaps those Congressmen should have asked Mr. Bernanke this:
Can you spell, "inflation"?Scores:
(There are many more currencies and commodities, but these are the ones I follow.)
U.S. Dollar: DOWN
Foreign Currencies: 5 US Dollar: 0
Canadian Dollar: UP
Australian Dollar: UP
Great British Pound: UP
Commodity Inflation: 10
Commodity Index: UP
Crude Oil: UP
The prices of gold and crude oil have also reached new highs today. Crude oil prices were somewhat bearish yesterday following the EIA report that crude oil stocks in the United States rose more than expected, but new turmoil in Nigeria has put additional oil supplies at risk, driving price higher.
This chart shows gold today, but the crude oil chart is very similar.
Wednesday, February 27, 2008
When the market changes direction so rapidly, accurate execution of trades can become difficult, and a trader must remain extremely alert at all times. Many of these trades last less than 2 minutes each.
On occasions that the Klinger indicator suggests a change of direction, but price action consolidates rather than reverses, the likelihood increases that when prices reverse again in the direction of the previous trend, that trend force will be amplified. Additionally, if prices do not reverse powerfully in the direction of the original trend, the probability of a new trend or consolidation increases. In truth, one never knows precisely what is going to happen. There is no perfect indicator except prophecy!
Historical Precedent Just Two Weeks Ago?
Inflation May Be Worse Than We Think
Isn't it time, perhaps, for the Bernanke Fed to stop worrying about saving Wall Street bankers, and think more about saving Main Street? Where is Volcker when we need him?
Tuesday, February 26, 2008
The USD index is only 20 ticks away from its all-time low, and the EURUSD cross is only a few cents from its all-time high.
USD Index Daily chart
USD Index Intra-Day charts for 2-26-2008
Note in this chart of soybeans today that prices are struggling to main the settlement price from yesterday, denoted here by the dotted red line.
Each day, there are usually 2-3 very good trades that make most of the money. They most frequently occur near the beginning of the trading session during the day. 95% of all trading volume occurs during the day session between 10:30 am and 2:15 pm EST. However, these small trades add up also. I often will make more money on short, small trades like those depicted here than on the 2-3 large trades.
How do I know which trades will be the big ones, and which ones will be worth only a few ticks? I don't! I have to be in it, to win it! Thus, I keep reminding myself that I must keep my head in the game at all times! Being resolute in taking trades is a necessity in this business. Today and yesterday are good examples of staying with the trading to come out ahead and achieve my objectives. Grit, guts, constancy, and dauntless tenacity are a necessary character trait that are required and developed in this business.