Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Markets Kicking and Screaming, Gold Bottom in Place

Stock-Markets / Financial Markets 2012 Jul 19, 2012 - 02:31 AM GMT

By: HRA_Advisory

Stock-Markets

With summer doldrums well and truly upon us markets have been drifting lower on low volume and trying to hold their May lows. Most metals and certainly gold have performed better and seem to have bottoms in place.

After such a long bear run it's not likely we will get a huge bounce during the summer when so many are trying not to think about the market. Not every stock is falling however. As we note in the updates there are three companies on the HRA list that have been getting a lot more attention from traders and several others that are getting traction based on results to come. That isn't much but it is an improvement. We don't know yet how "real" any of these discoveries are, but new finds are the shortest route to renewed investor interest in the sector.


Major markets have not been cooperating thanks to debt issues that won't go away soon. There are plenty of headwinds still but commodity prices, though lower, are all at levels that make them hard to pin the blame on for weak markets.

This is still about sentiment. It's not likely most economies will generate strong enough numbers to rock the markets. If things calm enough new discoveries may be able to help the juniors themselves and we're pinning our hopes on that for the time being.

It's been an eventful month in Europe, and we don't just mean the Euro 2012 Cup (Congratulations to Spain on a great win). The EU held its 19th summit since Greece fessed up to it's debt problems. There were no expectations it would produce anything momentous since the 18 before it hadn't. The markets were taken by surprise when, for once, the European political class managed to do something almost decisive.

This meeting followed the latest US Fed meeting where the decision was made to extend and somewhat expand "Operation Twist" and keep US long term yields low. Not that the market needs much help in that regard. Traders have been so spooked and piling into the US debt market in such numbers that rates are already miniscule.

That central bank meeting followed two other events that went the way the markets wanted but produced no lift whatsoever. First up was an agreement by EU members to lend Spain up to 100 billion to help shore up its banking sector. EU creditor nations managed to prove one again that they didn't get it. The way the announcement was handled and the strings attached to the loans meant the markets quickly gave the deal a thumb's down.

Things were salvaged to some extent by good news on the Greek election. Pro bailout parties prevailed this time, though the margin of victory was thin. There is now a three party coalition in Athens though almost all of the cabinet comes from the leading New Democracy party.

Although the pro bailout forces won, their fear of losing to charismatic leftists meant they were also selling the idea the debt deal would be rewritten. Greece has indicated it wants a two year extension on the deadlines to reduce its deficit to 3% of GDP. Creditors are not pleased but the new timeline is probably actually a best case scenario with a collapsing economy. Creditors tsk tsking won't change that.

Markets reacted badly to all the news above. It's probably for the best that it did. Europe is an amalgam of fiscally prudent and fiscally idiotic states. Until Europe reduces its debt load to something manageable---if that ever happens---the opinions of fiscally strong countries are the only ones that really matter. Those governments are the ones that can afford to undertake major new initiatives or underwrite joint debt. It's been clear since the crisis erupted that creditor countries will only act when the market forces them to.

By Eric Coffin
http://www.hraadvisory.com

    The HRA – Journal, HRA-Dispatch and HRA- Special Delivery are independent publications produced and distributed by Stockwork Consulting Ltd, which is committed to providing timely and factual analysis of junior mining, resource, and other venture capital companies.  Companies are chosen on the basis of a speculative potential for significant upside gains resulting from asset-based expansion.  These are generally high-risk securities, and opinions contained herein are time and market sensitive.  No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer, solicitation or recommendation to buy or sell any securities mentioned.  While we believe all sources of information to be factual and reliable we in no way represent or guarantee the accuracy thereof, nor of the statements made herein.  We do not receive or request compensation in any form in order to feature companies in these publications.  We may, or may not, own securities and/or options to acquire securities of the companies mentioned herein. This document is protected by the copyright laws of Canada and the U.S. and may not be reproduced in any form for other than for personal use without the prior written consent of the publisher.  This document may be quoted, in context, provided proper credit is given. 

    Published by Stockwork Consulting Ltd.
    Box 85909, Phoenix AZ , 85071 Toll Free 1-877-528-3958

    hra@publishers-mgmt.com   

    ©2012 Stockwork Consulting Ltd.  All Rights Reserved.

    HRA Advisory Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in