Monday, February 7, 2011


My usual intro to anything Goldman says about commodities is:
Mother: .....And remember, the Lord loves a working man.
Navin: ........Lord loves a working man.
Father: ......And son, don't never, ever trust whitey.
-The Jerk (1979)
Simply because the former Alaron trading operation is the crown jewel of the squid.

It was recently pointed out to me that my use of the "don' never, ever trust whitey" line had become reflexive.
When I asked how I was told, "Well it's like the Iranians and 'Death to America', repetition lessens the impact".
I was then directed to this video:

I won't be using the lines from The Jerk for a while.
Ahyhoo, here's Goldman via Pragmatic Capitalism:
Credit Suisse isn’t the only firm calling for a more rational approach to markets.  John Noyce, Goldman’s trading desk technician says there are signs of a peak in the commodity complex (via Hedge Analyst):
  • The Index has been above its 55-dma for an extreme, 101 consecutive  daily  closes.  Gold  and  Silver  managed  105 and 104  respectively  before  they  closed  back  below  the 55-dma. The %age the 55-dma stands above the 200-dma is also pretty “excessive”.
  • Looking  back  over  the  past  decade,  these  are  very extreme setups, but  is worth noting that the CRB doesn’t  have  the  same  track  record of  filling  the gap  to  the 200-dma  when  it  does  eventually  begin  to  correct  lower  as  Gold and Silver do on an individual basis....MORE