September 7, 2007
Stock Du Jour (GLD) & Random Observations
A bit choppy but mainly a positive bias in the afternoon. There’s a new agribusiness ETF, ticker symbol MOO (I love it).
Notable New Highs: MS China A (CAF), Agnico Eagle Mines (AEM), Weatherford (WFT), Juniper (JNPR), Nokia (NOK), Biogen (BIIB), Barrick (ABX), and the gold ETF (GLD).
Notable New Lows: SourceForge (LNUX), Korn Ferry (KFY), Dillard’s (DDS), Ryland (RYL), Progressive (PGR), Nortel (NT), and Finisar (FNSR).
The Gold ETF (GLD) moved to a new 52-week high though it’s still below its May 2006 all-time high. Gold is a play on dollar weakness (among other things), and if there’s one thing that’s absolutely assured, it’s dollar weakness. (I may have just put the bottom in the DXY — nah.)
Cat: | Time: 7:51 am (utc+8)
September 7th, 2007 at 8:02 am
If it’s certain then why isn’t it priced in yet? o.0
September 7th, 2007 at 9:41 am
brandon: As the great Leon Levy used to say, the market is “pretty efficient.” It’s getting priced in little by little over time as the empire crumbles.
September 7th, 2007 at 6:30 pm
Lately Gold hasn’t been a dollar play recent, simply because the devaluation in the dollar hasn’t caused much activity in its price. However, markets change and we might see renewed interest in it.
September 7th, 2007 at 11:11 pm
I admit to being puzzled. In the face of a weak dollar and rising gold and oil prices, the U.S. bond is rallying. For that matter, why are TIPS spreads getting more narrow by the week? I suppose if demand weakens dramatically, and the dollar weakens slowly, inflation would be quite well contained.
Please set me straight if you have any ideas on how to reconcile these markets.
September 8th, 2007 at 7:10 am
Also odd is how silver is going in the other direction.
DJF