Gold: Are You a Buyer or Seller?

Gold (GLD) closed today at $98.36. Way too many investors like gold at these levels to suit my investor taste. I am inclined to wait and see if the 50-day EMA at $94 will hold.
Note: To enlarge the chart, double-click inside of it.

Silver: Are You a Buyer or Seller at These Price Levels

Given the following silver (SLV) chart, what would you do? Buy or Sell? SLV closed at $16.54.

Let's see 93% of silver investors are bullish on it, according to Trade-Futures.com. I really don't know anyone who is not bullish on this metal, or for that matter on Gold, which is why I am a contrarian on both metals at these price levels.
Note: To enlarge the chart, double-click inside of it.

Investment Account: 100% in SPY

SPY closed today, Monday, at $106.45. I am now 100% invested in my investment account with an average cost of $104.24. As long as the 15-week EMA is greater than the 40-week EMA, I will remain invested. See yesterday's post for the weekly EMAs on the S&P 500.

S&P 500 Weekly Update for September 18, 2009

S&P 500 closed at 1068.30 for the week end September 18, 2009. The bullish (long-term) trend remains in place (See following chart.) The fourth 25% will be allocated to the SPY position on today's market close.

Does GM Have a Deal for You

All you have to do is purchase a new GM car and be "dissatisfied" with it, which should not be too hard to do, between 31 and 59 days after the purchase. You can not trade in a vehicle, and you will have to pay the registration fees. However, when you return the car, GM will refund the sales tax on the vehicle.

Also, keep-in-mind that you can't wreck it (You can have no more than $200 damage on it.), and you can't put more than 4,000 miles on it. You must also provide proof of insurance on the vehicle.

The American taxpayer has out done itself again. This is one sweet deal. Everyone should take advantage of it. After all, driving a free new car for two months is a real "steal", right?

I will be seeing you over at your local GM dealer.

Thanks to Karl Denninger over at the Market Ticker for this insight car tip.

Bernanke: Recession Has Likely Ended

Federal Reserve Chairman Ben Bernanke made his most emphatic declaration yet that the recession has ended! But Mr. Bernanke reiterated that tight credit conditions and a soft labor market will prove to be a challenge. That's right, Bennie Boy. It all about jobs, and they are not expanding. If jobs are not expanding, where is personal income going to come from to sustain retail sales? If it wasn't for "cash for clunkers and first time home buyers tax credit," retail sales would dropping like a brick! All what has happen is that we have brought demand forward for cars and homes. What Ben, are you going to do for an encore?

And what is this about tight credit, Bennie Boy? Don't you look at your own charts of member bank reserves that provide the banking system with the ability to make loans? Just look at the following chart. Reserves on a year-over-year basis are growing at over 1,800%!!! It is not tight credit. It is that the consumer can not take on any more debt. As a matter of fact, the consumer is "Deleveraging" itself from its debt burden.
Note: To enlarge, double-click inside of it.

Ben Bernake is either going to go down in history as the smartest Fed Chairperson or the biggest Dunce of all time. I think you do which one I believe he will be.

Third 25% Allocated to SPY

SPY closed yesterday, Monday, at $105.28. I am now 75% invested in my investment account with an average cost of $103.56. Once again, I will wait until Friday's close, September 18, to determine how I will implement the final 25%.

S&P 500 Weekly Update for September 11, 2009

The third 25% will be deployed tomorrow on the market's close. I will update the purchase price after the close tomorrow.
Note: To enlarge the chart, double-click inside of it.

Second 25% Allocation in SPY

SPY closed Tuesday at $102.94. I am now 50% invested in my investment account with an average cost of $102.70. Once again, I will wait until Friday's close, September 11, to determine how I will implement the third 25%.

Plutocracy: Rule of America?

Over the weekend, I read an interesting post (The True Middle Class) by blogger Tim Knight over at the "Slope of Hope." In his post, he looked at classes within American from the perspective of "in-the-know." The entirety of his post is as follows:

"There are some who call the United States a classless society. I certainly do not. But my view of "class" this morning only partly has to do with assets owned by a given party. It also has to do with how "in-the-know" someone is.

Cornupecuniae - This is the ruling class. The top 1% of the U.S. owns 34% of the wealth. Since the mid-1950s, the "skewed-ness" of wealth distribution has becoming increasingly distorted. But the important thing here is the concentration of knowledge and power, because that upper echelons have, over the past few decades, turned the United States into a virtual plutocracy. Consider the ethics and well-being of Goldman Sachs, and you pretty much get the picture. We'll call this Group #1.

Ignoramus Felicitia - Here's where just about everyone else is. This is where people who really don't understand the world around them reside. They don't really read that much. They like their sports, their action movies, their sit-coms. They need distractions, lest they risk a chance of being exposed to something unsettling. As long as they can get their $1.99 hot dog/Coke-with-refills at Costco and have a roof over their heads, they're not going to cause any trouble. I'd say this is 95% of the country. Let's call this Group #2.

Illuminata Miserque - And here we have those who may or may not have money, but they have knowledge, and they find that knowledge distressing. They learn; they read; they converse; they dig deeper; but there's not much they can do about what they find. This, as you can imagine, is the realm of Slope. Every day there are superb articles shared here, and as a group we continue to learn more and understand better; however, the principal result of which is agitation. We'll dub this one Group #3."

S&P 500 Weekly Update for September 4, 2009

The bullish trend continues as the 15-Week EMA exceeds the 40-Week EMA. See the following chart. I will implement the second 25% purchase of SPY on Tuesday's close. After the purchase, I will have committed 50% to this investment strategy. I will update the price on Tuesday evening.

Note: To enlarge the chart, double-click inside of it.