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Posts by "qiman"
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Posts by Anonymous "qiman":
Last week, it seemed as if bulls and bears were merely trading punches as spot metal vacillated between $1,200 and $1,180. Despite the apparent draw, some real damage was done to gold's momentum.
Bullion ended the week as it startedwith short selling. Friday's short selling, though, was a lot more aggressive. Open interest shot up by nearly 20,000 contracts on Friday as prices sank. The buildup replaced the contracts that had been offloaded when shorts covered their midweek bets. In other words, a whole new wave of short-sellers came to the market Friday.
The move came after money managers liquidated long positions to a level not seen since April 2009. The Money Manager Strength Index fell below 90 last week as 9 percent of portfolio runners closed out long gold positions. The index measures the bullishness of managed gold futures on a scale of 1-100. The index had been topping out in the high 90's for months.
http://www.hardassetsinvestor.com/component/content/article/3/2246-gold-shootout-at-the-24k-corral.html
The main focus on the data in the coming week will be the first estimate of growth in the April-June quarter.
Economists said the second quarter real growth probably came in at an annual rate of just 2.5%, down from the 2.7% rate in the first quarter.
The recovery has averaged a 3.5% growth rate since it started last summer. Just a few weeks ago, economists were looking for a growth rate in the second quarter closer to 3%, and a month before that were predicting a number closer to 4%.
Since then most economic indicators have surprised to the downside.
http://www.marketwatch.com/story/second-quarter-gets-no-respect-2010-07-25
A wildly enthusiastic editorial published by Xinhua , Chinas official state newswire, lauded Dagongs report as a significant step toward breaking the monopoly of western rating agencies of which it said China has long been a victim.
Compared with the US conquest of the world by means of force, Moodys has controlled the world through its dominance in credit ratings, the editorial said...
China is not shy about reminding the U.S. who's got the biggest pockets. As the Financial Times quotes Mr. Guan:
China is the biggest creditor nation in the world and with the rise and national rejuvenation of China we should have our say in how the credit risks of states are judged.
Might Makes Right Economic Collapse
Indeed, Guan is even dissing America's military prowess:
Actually, the huge military expenditure of the US is not created by themselves but comes from borrowed money, which is not sustainable.
http://www.georgewashington2.blogspot.com/2010/07/china-calls-our-bluff-us-is-insolvent.html
http://www.marketwatch.com/story/china-may-link-yuan-trade-to-currency-basket-2010-07-23