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May 5, 2006

We certainly live in interesting times, Fri., May 5, 2006, 3:50 PM

A benign U.S. Jobs Report, which could have been spun either way, was instead spun both ways. The interest-sensitive segment of the market zoomed, but the USD fell and gold continued to rally.

Most days, it's a matter of ‘choose your poison', but today, it's been ‘let's all party'. The Dow is up over 135 points. Hmmm.

That's not to say all is well.

Today, Porter Goss, the head of the U.S. CIA, abruptly resigned. Interesting timing. Hmmm.

Today also, Iran stated that they weren't worried about a U.N. resolution related to their nuclear ambitions because they will soon have an oil bourse with contracts done in Euro.

Presumably Iran's argument is that Europe, Japan, Russia, and China, which just happen to be all the non-American permanent members of the U.N. Security Council, want to see their currencies rise against the USD. NOT.

The Globe & Mail has carried a report on the plan for the Iran oil bourse. I still don't see who, other than Venezuela, Bolivia, Cuba and a few other nations, is going to trade there, but I guess we'll just have to wait and see.

I'm like a lot of others " unconvinced.

In fact, I think this is a cover story to drive the USD further south, and oil and gold prices further north.

But at this point I haven't a clue as to who is doing the spinning " their side or ours. Everybody seems to have an opinion.

In any event, while gold price went up today, the share prices of a lot of gold stocks went down. Not all mind you, but a lot.

So what's up with that?


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And I see that Warren Buffett is gathering his troops, and the whisper is that he's going to invest some of his $45 billion cash horde. And CNBC is even guessing at the names of targets.

Pardon me, but isn't that a little misleading? Everybody knows that the timing of Buffett's next acquisition is going to signal an all-clear ahead for equity markets. Maybe that's a reason -- cover story -- for the 138 point Dow gain today.

I think I'll knock off for the day. There are just too many stories swirling about.

Oh, btw, "HooHa" did send me a nice letter. I think he made a good point, which is shared by a large segment of my readers. He'd just like me to spend more time addressing the very long trading strategies " 3 to 5 years out " so that he might take steps to protect his wealth in a way that suits his needs.

I got the message, and it's a good one.

Posted by Posted by Bill Cara on May 5, 2006 03:50:55 PM | Category: Cara Today in the Market

Discourse

[forward from last thread - more appropriate here]

Bill-

When they say "sell in May and go away" ... are they talking about today? Sheesh.

t4k

PS: could you comment on the incredible strength of BA sometime?

Posted by: trade4keeps [TypeKey Profile Page] at May 5, 2006 4:06 PM [link]

Interesting observation on miners-

"As the chart details, even after the significant gains in the metal stocks, they have been underperforming the underlying metals to the point where the relationship between the two is at levels which in the past has led to rallies in the stocks. So, while it's certainly hard to say that metal stocks are underrvalued after the run they've had, the data below suggests that investors shouldn't be too quick to jump off the bandwagon."

http://tickersense.typepad.com/ticker_sense/2006/05/metal_stocks_tr.html

Posted by: stockman [TypeKey Profile Page] at May 5, 2006 4:43 PM [link]

USDX have good support right about here ~85 , if it breaks then it goes to 81.5

http://globalgold.blogspot.com/2006/04/usdx-e-waves-gold-euro-update.html

Posted by: real1 [TypeKey Profile Page] at May 6, 2006 11:40 AM [link]