This is a pretty neat tool, tweeted by the Kirk Report. Input a ticker symbol into the ETFdb Stock Lookup Tool and it will list all the ETFs that have that stock in it’s top 10 holdings.
Not sure I’ll ever need such a thing, but it’s pretty neat!
Ritholtz’ editorial cartoon reminds me of those alligator shirts that were once in fashion:
Here, Barry brings “behavioral finance” down from the ivory tower, and into the trees!
Have not seen this Gold Strategy before. Wonder if it really works?
The indicator is embarrassingly simple… but really effective.
The idea behind it is: You want to own gold only when it is in a bull market. But how do you know if gold is in a bull market? Here’s how I define it…
Gold is in a bull market if it is going up not just in terms of U.S. dollars, but in terms of the four major currencies (the U.S. dollar, the euro, the yen, and the British pound).
Specifically, if gold is up versus all four currencies at the end of a month, you want to own gold for the next month.
If gold is down against even one currency, it’s not in a bull market. Whether gold is down in just one currency, or down in all four currencies, the result is the same: You lose money in gold.
It appears gold will end July DOWN in all four currencies. If you want to trade this indicator, you should be OUT of gold for the month of August… This indicator says, “Stand aside.”
Taking some commodity profits. Emerging/Developing markets are the majority of my alerts getting set off today.
Jeff Cox from CNBC asked the question yesterday:
Even amid the trumpeting of an economic recovery and the resurgence of the stock market, companies reporting earnings are showing a strong reticence to part with the cash stowed away in their coffers.
. . .
“Investors are simply favoring those companies where corporate treasurers understand the importance of liquidity, particularly in a period of declining inflation and in my judgment rising deflationary expectations,” said Bob Andres, CIO and wealth strategist for Merion Wealth Partners in King of Prussia, Pa. “Maybe they’re simply saying cash is king and holding cash is acting responsibly.”
Corporations are holding about $1.8 trillion on their balance sheets, money that has swelled as the US has weathered its worst downturn since the Great Depression.
There’s more to this story, and that’s why I crunched the numbers for members last week in How to Profit from the New Sovereigns.
Metal’s supporters put faith in physical demand
The Aden Report declared in its weekly update Wednesday evening: “The gold price fell to a three-month low yesterday in both dollars and the euro. … It’s clearly in a D decline, and it’s weak by staying below $1,200, basis December. If gold now stays below $1,180, it’s very weak and it could test the $1,135 level. In a worst case, it could test its rising 65-week moving average, now at $1,080.”(But editors Mary Anne and Pamela bravely add: “If it does, it would provide an excellent buying area.”)
The influential Gartman Letter, which had a very profitable position in gold hedged into foreign currencies plunge into losses early this month, and which is now down to a minimal gold holding, was actually talking about shorting gold on Wednesday morning:
“Were we forced to take a trading position we’d sell gold short, for the longs now have several months of strong overhead resistance to overcome before they regain the upper hand. That may well take weeks, if not months, to accomplish, and we’ve other markets far more interesting to involve ourselves in.”
(Paradoxically, this will cheer up many in the pro-gold camp. They maintain that the Gartman Letter is a reliable reverse indicator in gold — certainly unfair.)
I love the last line the Goldbugs are using the Gartman Letter as a ‘reverse indicator’ lol
jock 6:27 PM on July 30, 2010 Permalink | Log in to Reply
Hmm. Seems to me that gold goes up when gov’ts debauch their currencies. And gov’ts take turns! Most recently Europe was trashing the Euro. So, at that point, didn’t gold’s performance vrs. the Euro count more than against others? Now the Brits are seemingly adopting a tough budget, which would – I’d expect – make gold less attractive to UK investors. Maybe the US next buys up more toxic mortgages or passes a stealth stimulus bill, and causes gold to soar in dollars.
SO, I wonder if gold priced vrs. the “debaucher du jour” isn’t a better indicator of a gold bull than gold priced against a basket of currencies … . FWIW.