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Very Interesting day today especially for stocks. My question is how long are the “sheeple” going to believe that the bottom for stocks is in place? Even the Fed in it’s latest minutes said the economy is in a mess, and that was what prompted them to start buying treasuries. The bought more Bonds again today, once again with newly printed dollars. They say that Inflation is not high enough yet to propel the economy, that we face a real danger of futher disintergration. My outlook is still this 8000 for the Dow is the magic number. If it breaks and can successfully stay aboove that level then yes we’ll see another thrust to 8500. However in the face of the earnings season reporting starting with Alcoa, I don’t think enough fuel is there to launch much past 8000. I do think there could be one more try but I feel the odds are a lot greater that the market is like a drunk reeling closer and closer to the edge of a very steep cliff. I actually think we will see a test of the recent 6500 temporary bottom before we will ever see 9000 again. Now for Oil, it has creeped right back around to $50 barrel level and trade in the next few weeks between $45 and $55 barrel. Gold and Silver chart patterns are coiling tighter and tighter like a Jack in the Box about to pop! Keep accumulating all forms of precious metals since we definitely will see new all time records set again in pricing especially for Gold. Gold and Silver Stocks by the way (the producers), are moving up and I think regain their position as the leader offering better returns than bullion. However, you absolutely should be keeping at least 5-10% in Bullion for protection. After all George Soros (remember him) has just stated that Gold is a good place to be invested in. In light of all the manipulation wouldn’t it be very interesting if some big buyers came forth and started taking delivery of Gold and especially Silver. Can you say Short Squeeze? – See Ya Tomorrow – Good Investing! – jschulmansr

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Exposed! Five Myths of the Gold Market and find out:

·        Who’s been driving this record bull-run in gold?

·        What Happens When Inflation Kicks In?

·        Why most investors are WRONG about gold…

·        When and How to buy gold — at low cost with no hassle!

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 Worsening economy forced FOMC’s hand: Minutes – Market Watch

By Rex Nutting, MarketWatch.com

WASHINGTON (MarketWatch) — A significantly worsening economic outlook forced the Federal Reserve’s hand in mid-March, leading the Federal Open Market Committee to commit to buy up to $1.25 trillion in long-term assets to goose the economy and prevent a slide into deflation, according to minutes of the March 17-18 meeting released Wednesday.

 

The summary of the meeting indicates little debate among the FOMC members on the question of buying longer-term Treasurys, with the major disagreement coming over how much to buy. Read the minutes.
All members of the committee agreed that “substantial additional purchases of longer-term assets … would be appropriate,” the minutes said. “Members agree that the monetary base was likely to grow significantly.”
Some members said that the worsening economic outlook and the specter of deflation argued for “very substantial purchases of longer-term assets,” while others said some of the heavy lifting could be accomplished by other Fed programs, particularly the new Term Asset-Backed Securities Loan Facility (or TALF).
Ahead of the meeting, most market participants believed the FOMC would not announce a plan to include Treasurys in its purchases.
Almost all members of the policy-setting committee of the U.S. central bank said risks were rising that the economy would worsen more than forecast, and they all agreed that inflationary pressures would remain subdued for some time, according to the heavily edited minutes.
“Several expressed the view that inflation was likely to persist below desirable levels,” the minutes said, a euphemism for disinflation or deflation.
The most notable development in the economic outlook since the January meeting was the “degree and pervasiveness of the decline in foreign economic activity.”
The staff economists at the Fed lowered their forecast for economic growth this year and next, raised their forecast for unemployment, and lowered their inflation forecast, the minutes said.
Some members of the committee noted some stability in some economic data, including housing starts and consumer spending. However, others said “strains on household balance sheets,” reduced credit and “the fear of unemployment” could lead consumers to increase their savings and thus reduce their spending. The predominant risks were on the downside, they said.
“Risk” came back into vogue today and with it up went the Euro, crude oil, most commodities and also gold. Down went the Dollar and up went the Yen as carry trades were favored. Copper topped $2.00 once again although it could not hold above that level on the close. Even lowly natural gas moved higher. Poor ol’ pork bellies were left out of the party however (folks – eat more bacon!).

 

Gold bulls have managed to push prices back above the broken neckline of the short-term bearish head and shoulders pattern shown on the daily chart. That is a minor victory but they will need to continue their push to get it back above $900 to give themselves a bit of breathing room. That would allow some chart interpreters to see a consolidation range trade set up especially after price bounced off of the 100 day moving average.

 

Gold is still caught in the tug of war between risk and risk aversion with traders unsure exactly how to trade it. Physical buying of gold from overseas, especially India, is strong below the $900 level but that is insufficient in and of itself to push prices higher. It can serve to put a floor under the market but to take gold higher, it is going to require strong investment interest. Interestingly enough, the reported holdings of the gold ETF, GLD, have remain fixed for some time now.

 

A side note here is that a case can be made for gold forming a bullish head and shoulders pattern on the longer-term weekly charts. That would requires a close above the $1000 level, preferably nearer the $1030 level. That would provide a target near the $1360 level. Of course before that could happen, gold would first have to get back above $930 so do not get too excited if you are a bull. Plenty of technical work remains for gold bulls as bears are still in charge of the market for the short term as there is always the risk of further long liquidation if gold were to move below the 100 day moving average.

 

There were no deliveries for April gold reported today.

 

Silver drawdowns out of the Comex continue on their torrid pace with another 2 million ounces coming out yesterday. Whoever is taking the silver out of the HSBC warehouses has managed to draw down stocks from near the 80 million ounce mark (registered category) in December of last year to yesterday’s 63 million ounce mark. That is no small feat. I think it no coincidence that the reported holdings of the silver ETF, SLV, have also shown a reported increase since the first of this year of some 52 million ounces. If SLV is sourcing silver from the Comex warehouses, the paper silver shorts at the Comex would do well to begin getting nervous.  Still, silver is not yet acting like any of the shorts at the Comex are concerned – yet! This is a fascinating development to monitor. Keep in mind that the only way to effectively break the back of the paper shorts at the Comex is to strip the metal out of the warehouses. If this continues for silver, and that is a big “IF”, we are going to see just how effective that strategy will be. Only the risk of having to stand and deliver can force the shorts out of the game. They do not fear regulators.”- Dan Norcini, More at JSMineset.com

 

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Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

·        Who’s been driving this record bull-run in gold?

·        What Happens When Inflation Kicks In?

·        Why most investors are WRONG about gold…

·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

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 My Note: Did I say Buy Gold? Please do yourself and your loved ones a favor Buy Gold, Silver, and Precious Metals in any form and in any way YOU CAN!-jschulmansr

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Subject: Two trending markets revisited and analyzed for you

Last week I watched a video analysis of the S&P and Crude Oil markets. The technical analysis was right on at the time, but those markets have changed quite a bit in the last few days. The S&P had a huge rally and Crude seemed to steady out, so what’s the new analysis? Glad you asked!

Below are two free videos, one on Crude Oil and one on the S&P, that gives us an indepth technical look into these markets. Again the videos are free and very informatitive. Just Click on the Links Below…

          S&P Video Analysis:                                                    Crude Oil Projections:

Here’s your chance to analyze that stock you have been thinking about adding to your portfolio. Just enter the ticker of any company, name of a commodity, or forex pair and get your complimentary technical analysis. It cost you nothing and and no payment info will ever be requested.

Click Here To Enter Your Symbol/s

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Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. –  jschulmansr

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