Christian Financial Radio Network

The Gift of Giving / Emini Futures Trading - Monday December 28th, 2009

2009-12-28T16:35:00.000-08:00

(QQQQ)(DIA)(SPY)(GLD)($INX)

S&P 500 Emini Futures Trading

Not much to report today. Narrow 6 point range which traded from our 1120/1121 zone up to our 1124/1125 zone, back down to 1120, and finally back up to 1124. Volume was again light with less than 473k contracts changing hands. Tomorrow looks to bring more of the same but don't be lulled into a false sense of security. We issued a caveat last night regarding trading activity this week and we feel it bears repeating - Tax Selling, Window Dressing, Terrorism

Under the Terrorism heading we have officially added Weaponized Suppositories as the next possible radical innovation. If you already think tightened security measures have made flying a "pain in the rear", just wait till you get a look at the TSA's new Security Directive for 2010.

CFRN Will Be Sponsoring A Webinar Next Week

Details Tomorrow

The Gift of Giving
We promised some pictures from the Christmas Party at New Hope Orphanage on the show today -

We did all this for 1,000 orphans, for $1,000.00

Our monthly budget is $10,000.00

As 2009 draws to a close, please consider a tax-deductible donation to New Hope Orphanage.

Last Show Before Christmas / Emini Futures Trading - Tuesday December 22nd, 2009

2009-12-27T21:58:00.000-08:00

(QQQQ)(DIA)(SPY)(GLD)(SLV)

Our final official broadcast of 2009 was Tuesday December 22nd. (click here)

It's now Sunday evening, the house is quiet, and yes... it was a wonderful Christmas.

I know that in the week leading up to the big day some of my commentary may have sounded a bit Scroogish, but I offer the following as evidence that I'm really not Ebenezer.

I put these up myself - (ok the wife helped a little)

And yes the mall was "Holiday Hell" but these smiles made it all worth it.

So you ask "What does this have to with trading?"
Now who's the Scrooge?

I hope your Christmas was equally as wonderful and that on some level you were touched in a special way not by Target, or Tinsel, or Tra-La-La-La-La, but by family and friends and most of all, in your celebration of the birth of Jesus Christ.

S&P 500 Emini Futures Trading
Let's take a quick look at what happened since our last broadcast.

Tuesday our last broadcast day, the market repeatedly found support at our 1110/1111 zone. On Wed morning the market dipped one last time to rattle the door knob at 1111 (1111.25 to be exact) and began a light volume climb that took it to our next level 1124/1125 on tonight's open.

Our next official market broadcast will be January 4th, 2010. We will however, offer a live daily devotional this week @ our regular time through New Year's Eve and we may even have a special guest or two. Although we are not trading this week for reasons previously discussed, here are the areas where in our opinion, the market will be forced to make important decisions that can become great trading opportunities.

1133/1134

1126/1127

1124/1125

1120/1121

1117/1118

1113/1114

1107/1108

Ranges are exceptionally tight this week and a major breakout in either direction would come as no surprise. From tax selling to window dressing to terrorism........

Be careful out there!

As always,

Pray Hard & Trade Safe

Blessings to you and yours,

SFEG / Santa Fe Gold Corp. CEO Dr. Pierce Carson Provides Shareholder Update

2009-12-21T21:24:00.000-08:00

(SFEG)(GLD)(SLV)(ABX)(FCX)

W. Pierce Carson, President & CEO, Director

R.J. Bommarito,
Shareholder Communications

SFEG / Santa Fe Gold Corp. CEO Dr. Pierce Carson Provides Shareholder Update And Announces Appointment Of R.J. Bommarito As Head Of Newly Formed Shareholder Communication Division -

Click Here For Interview

Why consider an investment in Santa Fe Gold Corp?

Santa Fe Gold is a rapidly growing mining and exploration company focused on acquiring and mining gold and silver properties. But what sets it apart and makes it a compelling investment? The key ingredients: Quality assets; experienced management; and a superior business plan for dynamic growth. Near-term cash flow from the Summit silver-gold mine provides the company a significant edge in today’s difficult market for junior miners. Management intends to leverage Summit’s profits to expand the Summit operation, develop the Ortiz gold project and acquire other quality precious metals assets. Look for expanding revenues and greater market recognition in the years ahead!

Proven management team – extensive experience, impeccable credentials, disciplined.
Management ownership in excess of 25%.
One mine is nearing production and a second is in the pipeline.
Operating costs are estimated to be less than $300 per ounce of gold produced.
Resources exceed 2 million ounces of gold with excellent exploration upside.
Santa Fe Gold offers significant exposure to silver as well as to gold.
Industrial mineral assets provide diversification.
Properties are located in the politically stable United States.
Strategy for growth through increased production, acquisition and/or merger.
36 potential acquisitions have been identified.
In response to the global economic crisis, governments around the world have committed trillions of dollars to bailing out the economy and are facing large deficits. These actions will inevitably lead to continued devaluation of the dollar.
Gold prices have risen in each of the past seven consecutive years. From the beginning of 2002, gold has risen 200%, or a compounded rate of about 20% per year.
Analysts predict gold will surpass $1,500 per ounce in coming years.
In the recent period of extreme market drops and volatility, gold has held up best and has been the best investment. Even in a climate of recession, emerging gold mining companies might be expected to do well for their investors. Such was the case in the 1930’s when Homestake Mining rose by 600% while the Dow at one point lost 90% of its value.
Santa Fe Gold is undervalued considering its substantial resource base and in light of its imminent production. Market revaluation can be anticipated in 2010 as the company transitions from an exploration company to a producing company.

Investor inquiries click here.

Visit Santa Fe Gold Corp to register for upcoming Company News & Alerts!

Stay tuned to CFRN for upcoming Interviews!

Santa Claus Rally Or Just A Big Fib? / Emini Futures Trading - Monday December 21st, 2009

2009-12-21T16:20:00.000-08:00

(QQQQ)(SPX)(SPY)(UDN)(UUP)

Wall Street Kicks Off Holiday-Shortened Week On Upbeat Note

12/21/2009 4:41 PM ET

TOP MARKET NEWS

GM Ropes In Former Microsoft CFO As Finance Chief

Jabil Circuit Swings To Q1 Profit

Stocks Rally Amid Upbeat Healthcare Reform, Corporate News - U.S. Commentary

Stocks Holding Onto Significant Gains In Mid-Afternoon Trading - U.S. Commentary

Obama Praises Senate Vote Clearing The Way For Health Reform

(RTTNews) - Stocks saw notable gains on Monday, as some traders bought into the market amid progress on the healthcare reform front and continued revitalization in corporate activity. The day's upside may have been limited by light trading volume amid the Christmas holiday-shortened week. (more)

S&P 500 May Climb 6% on Santa Claus Rally: Technical Analysis

By Shani Raja (Bloomberg) --
The Standard & Poor’s 500 Index may end the year as much as 6 percent higher if a typical December rally drives the gauge past a key resistance point, according to technical analysis by Bell Direct’s Julia Lee.

The index, which closed yesterday at 1,096.08, has climbed through December in 16 of the past 20 years, said Lee, an equities analyst in Sydney. Further gains this month in what’s sometimes known as a Santa Claus Rally could push the gauge past 1,121, the 50 percent retracement level that Fibonacci analysts identify as a point of significant resistance.

“The 1,121 level is the 50 percent retracement from the high of the bull market in 2007 to the low of the cycle in 2009,” said Lee. “It will be a challenge to break past that, but if it does, my guess is that the index will drift even higher to 1,160. If it doesn’t, we’ll probably just see a sideways movement.”

The S&P 500 tumbled 57 percent from its high on Oct. 9, 2007 to this year’s March 9 low as the global recession deepened. The gauge, which has rallied 62 percent since then as government stimulus measures helped shore up economic growth, has climbed less than 0.1 percent so far this month.
The S&P 500 had its biggest December gain in 1991, when it rose 11 percent. Its steepest decline was 6 percent in December 2002. The index has posted an annual gain in 14 of the past 20 years.

In technical analysis, a Fibonacci retracement is created by taking two extreme points on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6 percent, 38.2 percent, 50 percent, 61.8 percent and 100 percent, according to Investopedia.com.

Once these levels are identified, horizontal lines are drawn and used to identify possible resistance and support levels. If a price breaks through one of the levels, it may signal a move toward the next resistance or support point.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.

CFRN S&P 500 Emini Futures Daytrading Results

Sloppy, choppy action might best define the ES today. Price broke out above our 1104/1105 area in pre-market trading and spiked to just over the 1110/1111 zone before reversing. For the past 2 weeks our weekly levels have included the 1107/1108 zone. Although those numbers do not appear in this weeks calculations, we did highlight them on the chart above in yellow to show that even though we may have forgot them, the market certainly did not. In fact on the move up, price turned down just enough to touch the doorknob one last time at 1107 (to the tick) before relenting to move higher. Henceforth, such obsessive market behavior will be referred to on this blog and radio program as "pulling a Monk". If you've never watched an episode of Monk, please do and you'll fully understand what we're trying to convey.

Reminder - Tomorrow will be our final official broadcast of 2009.

Merry Christmas!

Weekly Trading Zones / Emini Futures Trading - Friday December 18th, 2009

2009-12-20T18:12:00.000-08:00

(QQQQ)(DIA)(SPY)($INX)(GLD)

Friday our weekly levels continued to highlight opportunities on both the long as well as short side for S&P 500 Emini Futures Day-Traders.

We only have 3 1/2 trading days this week, and our final pre-holiday broadcast will be Tuesday. Price action will most likely be somewhat subdued, but these are the areas which if reached, are where we believe the market will be forced to make decisions. Our bias indicator turned bullish Friday afternoon and remains such in Sunday night's early trading. Should prices spike on the London session to the 1104/1105 area, we will be on the lookout for signs of weakness and a potential reversal.

1124/1125

1110/1111

1104/1105

1096/1097

1090/1091

1082/1083

1067/1068

One thing to remember, the markets in general are up over 60%.

The question to ask is "How will this effect tax selling?".

Will investors and traders choose to wait until January 4th to take profits and in doing so, delay capital gains taxes for 15 months? One thing is almost certain in our opinion - Equities that have failed to perform in this broad based rally, will most certainly be sold to offset any tax liabilities investors are faced with. This line of thinking does present the basis for the potential of a sharp correction in early January which could in turn lead to some potentially excellent buying opportunities in the first quarter of 2010.

And let us not overlook this warm and fuzzy tidbit -
Goldman Sachs employees will divvy up over $19 Billion in Christmas bonuses in the worst economy since the Great Depression. Their largest bonus payout in history.

Dear Santa,
All I want for Christmas is to be half that smart.

Blessings and Merry Christmas!

Return of the Pod / Emini Futures Trading - Thursday December 17th, 2009

2009-12-17T15:22:00.000-08:00

(QQQQ)(DIA)(SPY)($INX)(GLD)

Now Showing: "Return of the Pod"

The podmaster was all over the podcaster today, checking and re-checking to make sure those of you in Pod-Land would not be disappointed again. As always, just click the headline above to replay today's show. Of course for the sophisticates in Pod-Land, we also offer the ability to subscribe to the daily pod via Apple iTunes and about 78 other various and sundry pod-catching app's. So whether you tune in live and trade along with us, or enjoy the show after the fact, we're just happy to have you as part of the CFRN Family!

Merry Christmas!

S&P Emini Futures Trading

Tonight's commentary will be brief. Go look at the levels listed in Monday night's post, then blow-up today's chart. Those are the same levels you see in play on today's chart. (that's why we call them weekly levels)

We will be taking time off for the Holiday's beginning next Wed and we will return on Monday January 4th, the first trading day of 2010.

Emini Trading Strategies - CFRN Exclusive Interview w/ David Marsh

2009-12-17T15:33:00.000-08:00

(QQQQ)(DIA)(SPY)($INX)($ES)

About David Marsh

I have been involved in the markets since the early 1990’s. I started with futures trading, then moved on to options trading, graduated to stock trading, then full circle, back to futures trading—where I will stay permanently. During this time I also learned daytrading and swing trading.

When I was 21 years old I drove all the way from my home in Buffalo, NY to Chicago to go to a $3800 Options Class. It was a great course, I learned a lot and was able to visit the CBOT (Chicago Board of Trade)—I even bought a CBOT sweatshirt! But when I got home, I was broke, so I had to put everything I had learned on hold and went back to work!

I managed to save up some money and open an account. It only took a couple months and I blew out the account. Once that happened I went back on my quest to find the secrets to trading. I read a lot of books and went to a lot of high priced seminars and even bought some home study courses from the GURUS. I learned about technical analysis and all the different indicators one could use to predict future market prices.

Honestly the first 3 years were tough. I blew out a lot of trading accounts and lost tens of thousands of dollars. I realized trading is a tough business but I moved on—knowing one day I would find what I was looking for. It took a while but I finally realized that what I was missing was discipline. I had a hard time following through with rules!

I totally changed my thought process on trading. I realized it was a tough business and that if I couldn’t follow rules then I really had no business trading. After that my trading career turned right around!

I then developed a very simple approach to trading. I found 2 indicators that when used together were highly accurate. Of course I back-tested it for several months to see how it worked and to create rules, entries, exits etc. After about 3 months I traded live with real money and the results have been fantastic.

My whole mind set is different. My goal way back was to make a killing in the market. Now that’s not the case. Now I trade for a living! I take a small chunk everyday to make a very comfortable living. I like to see it as an apple tree outside my house. Everyday I go outside and take the apples I need for the day. I don’t try to cut down the whole tree!

I earn my “living” by trading for 1 point a day! Trading for 1 point a day is a very easy goal to achieve. If I need to make more money, I simply trade more contracts. To give you an idea of what 1 point a day can produce, take a look at my Business Plan.

That is why I offer a 30 DAY DOUBLE MONEY BACK GUARANTEE. I know and guarantee that if you follow my strategies and the discipline that comes with it, YOU WILL MAKE ONE POINT every single day you trade.

Click Here for today's interview.

The Lost Pod / Emini Futures Trading - Wednesday December 16th, 2009

2009-12-16T22:30:00.000-08:00

Either a technical glitch or old age created today's now infamous "Lost Pod Episode"

Be it software failure or just the old guy forgetting to hit the Red Button, today's show (all 3 1/2 hours) is gone, as though it didn't happen, as if it never existed. Poof!

But we know better, don't we?

It did happen, and it was bloody well awesome!
(Right?)

S&P Emini Futures

When you click the chart above and "blow it up", you'll see the weekly levels that were in play today and some arrows. The arrows in tonight's chart do not represent any particular trade that we may or may not have taken in real time with or without real money. =)

What each arrow represents is a Decision Point. They represent places one would consider entering the market as opposed to exiting if you happen to already be in. Get it? I hope so because there is a difference. Our Bias indicator turned bearish immediately following the Fed announcement and remains such on the Globex session. Should the market trade below 1101 and hold, refer back to Monday nights post for the areas we believe will be important.

David Marsh Live

Thursday December 17th, 2009

2:00pm Eastern

It's been almost 2 years since we spoke with David on-air. In fact, shortly after our last interview he became so overwhelmed that he decided to "Shut Down". The good news is, it didn't take long for David to realize that his true calling is teaching. Yes, he makes a nice living trading, but his greatest satisfaction comes from helping others learn to do the same. We're glad that David is back in the game and we look forward to a series of interviews leading up to his next webinar and the release of his newest product which in his own words is "Killin' It".

If you missed our interview 2 years ago - Click Here

SixthSense / Emini Futures Trading - Tuesday December 15th, 2009

2009-12-15T16:18:00.000-08:00

(QQQQ)(DIA)(SPY)(INDU)(SLV)

SixthSense is a wearable gestural interface that augments the physical world around us with digital information and lets us use natural hand gestures to interact with that information.

We've evolved over millions of years to sense the world around us. When we encounter something, someone or some place, we use our five natural senses to perceive information about it; that information helps us make decisions and chose the right actions to take. But arguably the most useful information that can help us make the right decision is not naturally perceivable with our five senses, namely the data, information and knowledge that mankind has accumulated about everything and which is increasingly all available online. Although the miniaturization of computing devices allows us to carry computers in our pockets, keeping us continually connected to the digital world, there is no link between our digital devices and our interactions with the physical world. Information is confined traditionally on paper or digitally on a screen. SixthSense bridges this gap, bringing intangible, digital information out into the tangible world, and allowing us to interact with this information via natural hand gestures. ‘SixthSense’ frees information from its confines by seamlessly integrating it with reality, and thus making the entire world your computer.

Imagine pulling up a chart, anywhere, anytime. Not a smart phone chart - A Real Chart!
You're standing in line at the grocer and trading off the back of the chap in front of you.
hmmmm.....

Speaking of charts lets take a look at today's Emini action -

As we noted on last night's post, our bias was short coming into the day. On the Globex session price came within .25 of our 1101/1102 zone. Price rallied all morning and briefly traded above our next higher zone of 1107/1108. The probe higher failed and we were offered our first short entry at 1107.50 as price pulled back to the 21ema. The first red arrow is above the Twin Tower pattern. Price traded below our ema all the way back to the 1101/1102 zone. The market then bounced 3 points to close the session at 1104. Our Bias indicator remained bearish into the close but we will watch closely for signs of a reversal on the overnight session.

As a reminder, tomorrow is Fed day so be careful out there.

MIT's Thin LCD Lets Your Fingers Do the Talking (gigaom.com)
SixthSense Technology - A Whole New Web (philbaumann.com)

Emini Futures Trading - Monday December 14th, 2009

2009-12-14T23:00:00.000-08:00

(QQQQ)(DIA)(SPY)(GLD)($INX)

Bill Provenzano from UpsideBreakOut.com shared some great advice today on meditation. The Good News is, you don't have to shave your head, renounce all your worldly possessions, or move to a mountain top. Just click the headline above and you'll get the gist of the Good Word which has the potential to change the way you approach your trading and just might make you an official CFRN Happy Camper along the way.

Here are our weekly numbers.

1120/1121

1111

1107/1108

1101/1102

1098

1092/1093

1083/1084

Our weekly numbers are calculated after the close each Friday. In the future we will strive to publish our numbers before the open on Monday. While these numbers are good for the entire week, they should not be considered "Magic" numbers. These are simply levels where we believe (after years of observation) that the market may or may not have a significant reaction. Since this is the first time we have publicly published our numbers, we suggest that you simply make note of them on a chart or jot them down on a sheet of paper.

Observe what happens as price approaches these levels. Does it trade through, or is it rejected?

Prior to each market open, we generate daily levels inside the weekly zones. Those numbers will be discussed on the radio program every day. Again, this is not magic. We are not psychic. The Holy Grail has officially evaded our grasp. We simply understand a few things. We encourage you to follow along and see if what we do, and our manner of trading, can be beneficial to you. If not, "take a hike". =)

Along with our weekly and intra-day numbers, we will also publish our Daily Bias. (yikes)
I know, daytraders should never have a bias right? We should simply trade what's in front of us right?
Well let's clear something up. We may trade short on a day when our bias is long. (huh?)Yep, and the other way around as well. So what's the point? Here's a few pictures to spare me a few thousand words...

I would like to take this opportunity to extend my eternal gratitude to Greg who for several years has been a foundational part of our daily program. I will greatly miss the easy camaraderie we shared. Should the opportunity once again present itself where our daily schedules "mesh", the welcome mat is out and as Tom Bodett would say, "We'll leave the light on for you."

To the students of Trading Faith - I wish you great success in your endeavors to become traders. I pray that the hand of God be upon you, that He bring you clarity, wisdom, and discernment straight from the throne. May He heartily bless you with both His mercy, and His grace. You will always hold a very special place in my heart and in the history of CFRN.

To all of the CFRN family -

"May God richly bless you
this holiday season"

Merry Christmas

from

Emini Futures Trading - Friday December 11th, 2009

2009-12-14T21:38:00.000-08:00

(QQQQ)(SPY)(DIA)(GLD)($INX)

Prayer Changes Things / Emini Futures Trading - Thursday December 10th, 2009

2009-12-10T23:15:00.000-08:00

(QQQQ)(SPY)(DIA)(SINX)(SLV)

"Where Am I?"

I was looking for my old friend CFRN

I feel like a stranger in a strange land..........

Relax!

We've made changes in our programming and you didn't complain.
(big surprise)

Now we're rebuilding the website and that's going to take a while.
(no surprise)

Bottom line?
(surprise, surprise, surprise)

=)

When we're done...
All you ever dreamed of, will become reality.

(OK, that's a stretch)

Emini Futures Trading - Wednesday December 9th, 2009

2009-12-09T19:54:00.000-08:00

(QQQQ)(DIA)(SPY)(INX)(GLD)

One of our listeners, a good friend, has a son in Afghanistan. Today CFRN officially adopted Sgt. Brady & Co. We will pray corporately each day for them, as well as all the brave men and women of the Armed Forces for their unwavering courage, service and sacrifice for the greatest country in the world -- the United States of America

Soldier's Psalm 91 Prayer
(Harriet Yoder)

O Lord Most High, help Sgt Brady & Co. to dwell in your secret place and abide under Your shadow.

Help them to believe and say out loud for everyone to hear that You are their refuge and their fortress; that You are their God; and that in You they put their trust.

O Lord God Almighty, please deliver Sgt Brady & Co. from hidden traps and diseases.

Father God, cover them with Your camouflage; hide them under Your wings; and let Your truth be their shield and buckler against the fiery darts—the lies—of the enemy.

Lord Jesus, help Sgt Brady & Co. not to be afraid of terrorists' attacks in the night; or weapons that fly by day; or sicknesses that walk in darkness; or destruction that wastes at noonday.

O Holy God, though a thousand fall at their side, and ten thousand fall at their right hand; please let it not come close to Sgt Brady & Co..

O Lord Most High, let them live to see the reward of the wicked, because You are their refuge and their home. Let no evil conquer them and let no plague come into their house or near their family.

O Lord, my Strength and my Redeemer, please set angels over Sgt. Brady & Co to keep them in all Your ways, to bear them up in their hands and to keep their feet from stumbling.

Father God, help Sgt Brady & Co. to tread upon the lion and adder and trample the young lion and the dragon under their feet.

Lord Jesus, I love you with all my heart and I know Your name. Deliver Sgt Brady & Co and lift them on high to soar with the eagles. I call upon you to be with them in times of trouble to deliver and honor them because I know Your name. Please show them Your salvation and satisfy them with a long life.

I ask this prayer in the name of Jesus Christ

Amen.

‘Wake up, gentlemen’, world’s top bankers warned by former Fed chairman Volcker
December 9, 2009

One of the most senior figures in the financial world surprised a conference of high-level bankers yesterday when he criticised them for failing to grasp the magnitude of the financial crisis and belittled their suggested reforms.

Paul Volcker, a former chairman of the US Federal Reserve, berated the bankers for their failure to acknowledge a problem with personal rewards and questioned their claims for financial innovation.(more)

Burton Schlichter Joins the CFRN Family / Emini Futures Trading - Tuesday December 8th, 2009

2009-12-08T16:14:00.000-08:00

(QQQQ)(DIA)(SPY)(INX)(SLV)

Click the headline above to listen to today's show and our first on-air chat with Burt.

Bill Provenzano of UpsideBreakout.com will become a part of our DAILY Broadcast beginning next Monday.

From now until Tuesday December 15th, TradeStalker is donating a portion of their sales to "Wheels for the World". To make it easier for you to participate in this wonderful opportunity,
we are cutting our subscription prices by 25%. For full details Click Here

It's Getting Interesting in Marxistville:
Competing Copenhagen Theories

Are rich countries taking over, or will poor countries reap rewards of redistribution?

» Guardian: Copenhagen Climate Summit in Disarray After 'Danish Text' Leak

» IBD: Greens' Real Target U.S. Economy
» AT: Climate Treaty Reparations Would Cost $50-$200 Billion Per Year

Misleading Mainstreet: The Keys to the Phony Recovery

By Bill Bonner

12/08/09 Johannesburg, South Africa – The Dow stayed in the same place yesterday. The correction in the gold market continued, with a $5 loss in the gold price.

The employment news on Friday was better than a poke in the eye with a stick. But how much better? Better enough to justify higher prices on Wall Street? Better enough to sell your gold because you believe that it will be clear sailing from here on out?

Uh…we wouldn’t advise it.

Maybe Main Street has been misled – again – by Wall Street and the feds. Spread around enough hot money and it begins to look like there’s a real recovery going on. Employers – as well as consumers – are duped. Business owners, for example, are likely to think that the recession is over and halt the layoffs.

More likely, Friday’s announcement that unemployment has bottomed out is bogus. A single swallow doesn’t make a spring. Nor does a single month’s worth of jobless numbers tell us much about the underlying trend.

Jobless rates…like other financial numbers…bounce around. One month is insignificant. We’ll have to wait to see what happens next, just like everyone else. But there are probably a million or so more job cuts to come before the bottom is finally reached.

Don’t blame businessmen for being confused. The press reports make it sound like it’s back to business-as-usual. And for the banking industry, it DOES seem as though nothing has changed. They’re lending to cockeyed private equity deals…aiding and abetting speculators in the carry trade…and handing out billions in bonuses. Just like old times.

They’re…Read more…

Financial Transaction Tax / Emini Futures Trading Monday December 7th, 2009

2009-12-07T20:44:00.000-08:00

(QQQQ)(DIA)(SPY)($INX)(GLD)

Need we say anything?

Financial Transaction Tax
We received numerous emails today regarding the "Trader's Tax". Yes it is real, and yes you do need to contact your congressman. We first reported on the proposed tax during a broadcast back in February -

Christian Financial Radio Network: Tell Congress to Block the ...

Feb 21, 2009

Tell Congress to Block the Trader Tax - H.R. 1068. (SPDR)(AAPL)(QQQQ)(GOOG)(SPY) H.R.1068 : To amend the Internal Revenue Code of 1986 to impose a tax on certain securities transactions to the extent required to recoup the net cost of ...

and again in March

Christian Financial Radio Network: Defazio Wants To Stop ...

Mar 13, 2009

This is not a tax on profit, its a transaction tax that you pay regardless of the outcome of your trade. No one day trades with that kind of profit factor that I know, or have heard of. That means daytrading the ES ends, ...

We encourage you now as we did then to let congress know this tax will not cripple Wall Street, it will strangle Main Street. This is serious folks. Read the blogs above, listen to the podcasts, Take Action! If we do nothing we may all be saying "Welcome to Wal-Mart" in the very near future. I have received a return letter from My congressman assuring me he will vote NO!

Rally Congress Today!

More on Climate-Gate

» Vanity Fair: Al Gore: The Poet Laureate of Climate Change

» Politico: Saudi Arabia Calls for 'Climategate' Investigation

» Newsbusters: Did Russian Secret Service Leak ClimateGate E-mail Messages?

» ClimateGate E-mails: Confirmed East Anglia E-mails

Tomorrow, Burton Schlichter will join us on-air for our opening commentary.

Capture the Move w/ Burton Schlichter

Capture the Move is a commodities futures and options trade advisory published by , a veteran trader and senior market strategist with Daniels Trading in Chicago. CTM was created to give ‘easy to understand’ and specific trade recommendations to both the novice and the experienced trader. In addition to spending 12 hours a day, 6 days a week following the market, my knowledge and experience in fundamental and technical analysis are available to guide you through the process. CTM offers an in-depth look at market strategies allowing you to capitalize on them. This is accomplished by pinpointing entry levels, targets and stop losses designed to capture intermediate to long-term price moves. CTM is catered to offering promising ideas for the serious trader in a precise manner with specific recommendations and risk parameters.

What you can expect to receive

Via email, subscribers will receive explicit trade recommendations, or ‘trade alerts’, which describe specific entry levels, stop losses, targets along with brief explanations of the trade. CTM doesn’t stop there. Risk management of the trade from start to finish is a high priority. Common phrases used throughout the life of each trade include: “trailing stops”, “reducing risk” and “locking in profits”. CTM will notify you from start to finish the progress of each trade. Additionally, you’ll be provided access to your account 24 hours a day, so you always have full transparency of the day’s action.
As a client of Daniels Trading there is no cost to you - full access to a dedicated, experienced professional is at your fingertips. Join the others who have Captured the Move and allow yourself to become an active trader while still maintaining your busy life.

Burton R. Schlichter

Daniels Trading

Senior Market Strategist
100 South Wacker Drive
Suite 1225
Chicago, IL. 60606
866-928-3310 Toll-Free
312-706-7647 Local
312-706-7547 Fax
bschlichter@danielstrading.com

In Memory...

Leslie Burton Joins the CFRN Team / Emini Futures Trading - Friday December 4th, 2009

2009-12-04T22:40:00.000-08:00

(QQQQ)(DIA)(SPY)(GLD)(SLV)

About The Weekly Gold Digger and Leslie Burton
The Weekly Gold Digger has been a concept in my mind for many years! I had begun my interest in the precious metals business in 1979, working in a precious metals recycling business. We had an EPA approved furnace and chemical tanks to recycle the metals derived from scrap and X-Ray Film that was collected from hospitals. This is where my tracking of the metals began to zero in on the fluctuations and the refinery money rendered upon each delivery. Commodities seemed like a natural fit from the physical metal, so I became an AP in 1985 spending most of my free time in a trading room set-up for the floor brokers to come off the floor to do their charting while they have a break. This is where I learned the most valuable lessons regarding the mindset of the floor traders and how they look at the specific formations on a very short-term basis. I found that because someone owned a seat and was a floor broker did not necessarily give them the ability to trade or have any control over their future. Sometimes the seat price fluctuations themselves were a tradable commodity. I discovered that a meat trader may have great insight into a potential slide in the stock market. I found that while I enjoyed learning varied indicators and methods in trading that I was constantly looking to integrate more as a way of filtering the trades through a cone that became more and more refined. This process is ongoing and I continue to enjoy sharing my ideas with others and regard the analysis and study to be infinite. It is in this exchange that I have written the “Weekly Gold Digger” to formulate ideas about the future pricing of the metals and related commodities.
The Weekly Gold Digger is a weekly publication to hone in on the Gold market in the present economic environment. The publication may point out historical factors that have or may influence the price of gold. The Gold market is tracked and forecast in its relationship to the US Dollar Index and many other markets that may affect the price. Assets move according to market sentiment and chart formations that may trigger buying or selling trends. Exact trade recommendations may occur when optimum conditions are met. Risk management is emphasized on trade recommendations.

A general summary of the markets action and the related commodity markets such as the US Dollar and Crude Oil markets.
A forecast including targets with support and resistance numbers.
Trade Recommendations on occasion with Risk Management included.
Chart example to reference points of interest.
On occasion educational web seminars

For both novices or experienced traders, the “Weekly Gold Digger” attempts to make sense of the economic environment and bring a way to strategize using one of the most enduring and valued commodities traded!

"I let my 24 years of "lessons learned" to act as an informational storehouse for my clients. We can then sort through the trading methods and risk management of the client to adapt to the current market conditions."

– Leslie Burton
Futures & Options Broker

Senior Market Strategist

Daniels Trading

(877) 224-1952 / (312) 706-7648

(312) 706-7548 FAX

lburton@danielstrading.com

Emini Futures Trading / Prosperity for God's People - Thursday December 3, 2009

2009-12-03T20:54:00.000-08:00

(QQQQ)(DIA)(SPY)($INX)(SLV)

Today we spent more time with Bill Provenzano from Upside Breakout and tomorrow we will introduce you to Leslie Burton from Daniels Trading.

The Single Best Trade for 2010
By Steve Belmont
Chicago, Illinois

What was the single, most damaging trade of 2009? There are a number of candidates: short stocks, short gold and long the dollar would all be in the running. These would have all been painful trades, but not nearly as painful as shorting Eurodollars - i.e. betting that short- term interest rates would RISE.

Furthermore, this losing trade would also have been the most baffling. Throughout the year, it seemed as if the pieces were falling into place for a big spike in short-term interest rates. The Fed was printing money like there was no tomorrow; the dollar was tanking, which raised fears that the Chinese would dump US debt; and gold - that well-known inflation barometer - kept powering higher.

A jump in short interest rates seemed like an easy bet. It was almost a no-brainer. Except that it wasn't...We suspect a lot of smart investors got hurt on this trade. What they did not count on was the possibility that fear and risk-aversion would cause investors to herd into short- term instruments like T-bills...and that investors would continue herding into these instruments even after rates fell dramatically.

With the benefit of 20/20 hindsight, it is easy to see why short-term interest rates plummeted this year. After the economic collapse of 2008, the Fed had one goal and one goal only - to recapitalize the banking system. TARP was just the first step. The only way to achieve banking health after the terrible implosion of the real estate market was to "guarantee" profits for the major banks. The Fed pursued this objective by extending massive amounts of credit to the banking system at interest rates near zero, thereby enabling banks to replace high- cost financing and capture a healthy spread on their loan books.

This gimmick has worked well...too well.

Big money-center banks are borrowing money from the Fed's discount window at 1/4 percent and then turning around and buying 10-year Treasurys yielding 3.2%. This represents a "risk-free" profit of just below 3% in an environment that is still more deflationary than inflationary. Of course, if long-term rates run were to run higher, these plump interest rate spreads would turn negative and produce losses. But that's a problem for another day.

As long as short-term interest rates remain at rock-bottom levels, banks will continue to buy T-bonds and other higher-yielding instruments. In other words, the Fed is subsidizing the purchase of Treasury notes and bonds, which is helping to keep long-term rates low. (The Fed may tell the public that it is keeping rates low to encourage bank lending, but in so doing the Fed is actually DIS-couraging it. Why lend to small business when you can make a guaranteed 2.9% return lending to the government?)

But this game won't last forever. We doubt the Fed will be able to maintain low short-term interest rates indefinitely. Market forces may force the Fed's hand as early as next year. As inflationary pressures build and/or the dollar continue to weaken, the Fed will be forced, if not to raise rates directly, then to tweak its policy statement so that expectations of continuous, rock-bottom rates are disrupted. Either event could have far-reaching consequences for all of the markets...especially the Eurodollar market that tracks short-term interest rates.

We expect the Fed will hike short-term interest rates if the bull market in gold and/or the bear market in the dollar get out of control. Or should we say, MORE out of control.

Rather than wait for this event to occur, we are advising our clients to position for it now by buying long-dated put option spreads on Eurodollar futures. We prefer options that expire in 2011 so that there is plenty of time for the trade to work.

Obviously, there is no guarantee that short-term rates will rise soon from today's extremely low levels, but we like the odds.

Regards,

Steve Belmont,
for The Daily Reckoning

Bill Provenzano The Christian Trading Coach / Emini Futures Trading - Wednesday December 2nd, 2009

2009-12-02T11:53:00.000-08:00

(QQQQ)(DIA)(SPY)($INX)(GLD)

Click the headline above to listen to today's program and then visit Bill @ UpsideBreakOut.com

Excerpt from Bill's site

I have discovered what should have been obvious to me from the start:

The principles for all success, including trading success, are rooted in the Bible.

"By your great skill in trading
you have increased your wealth"
Ezekiel 28:5

"But remember the Lord your God, for it is He who gives you the ability to produce wealth"
Deuteronomy 8:18

Would Jesus Go "All In"?
Does the Bible forbid trading?

Bill will be with us again tomorrow so be sure to tune in.

Emini Futures Trading - Tuesday December 1st, 2009

2009-12-01T20:28:00.000-08:00

(QQQQ)(DIA)(SPY)(GLD)(SLV)

Tomorrow morning we have a very special guest -
Bill Provenzano a.k.a "The Christian Trading Coach"

Emini Futures Trading - Monday November 30th, 2009

2009-11-30T22:27:00.000-08:00

(QQQQ)(DIA)(SPY)(GLD)(SLV)

Today's topic today ran somewhat off the financial path. Our desire had nothing to do with condemnation, sensationalism, or any other 'ism, but by the prompting of the Holy Spirit last Friday, I was encouraged that we should take a look at some topics that have caused many people to turn away from God. Our program was created to call people to God, not push them away. Over the next few days our goal will be to embrace those touchy topics with love and grace.

Homosexuality and Abortion are the first two topics we will approach.

Most Christians are either for or against. Period! Our discussion will not be so much what you believe, but why you believe it. Anyone who has listened to this show for any length of time has heard me discuss both issues. Sometimes with anger, sometimes with arrogance. If you will bear with me and actually "listen" to today's show, you may find some things you didn't expect.

Jesus said "Love God, Love People,You'll Be OK!"

He didn't say love some people, love people who do right, love people who follow the letter of the law...

What He said was "Love God, Love People,You'll Be OK!"

hmmmm...

Am I suddenly coming out of the closet as a Pro-Choice Rainbow Coalition Preacher? No.

When I could simply talk about Fibs, Stochacstics, Moving Averages or Debtors in Dubai, why would I choose to walk a path that will make me no friends and perhaps even cost me a few listeners? Because I really want to do what Jesus would do. I know, I know, you have the T-Shirt, the Bumper Sticker and the Bracelet, right? Of course you do! But do you really know what He would Say? Think? Do?

hmmmmm...

I choose this unfavorable path for two very good reasons. I said 2 very good reasons.

#1) A famous Christian author posed this question which is part of every Stand-Up Christian Comedian's routine. I know you've heard it, but here it is again -

"God created Adam and Eve, not Adam and Steve"

I've heard it, I've used it on this radio program, but now, here's the Jesus Question -

"Who created Steve?"

#2) My wife and I spent some time this summer with a friend whose father is gay. Not only is he gay, he is a Minister. (go ahead - Gasp!) But just for a minute let's forget his sexuality, let's forget his profession, let me just tell you that he is one of the kindest, most thoughtful, caring, insightful, loving, giving, God fearing, God loving and humble men I have ever known. Yes his Church accepts him, but the Christian world at large condemns him.

I know, it's easier to just wear the T-Shirt and tune out.
But you could take the high road and TUNE IN as we discover TRUTH together.

Until our next program, I offer some thoughts for you to consider and I encourage you to email your thoughts and questions as well.

The Mosaic code, and its applicability today:

The Torah is composed of the first five books of the Hebrew Scriptures (Old Testament). It contains numerous laws which make up the Mosaic code. Rabbi Simlai wrote in the Talmud (Jewish traditional commentary about the Hebrew Scriptures) that God gave 613 commandments to Moses. One list finds 3 commandments in Genesis, 111 in Exodus, 247 in Leviticus, 52 in Numbers and 200 in Deuteronomy. These included 365 prohibitions -- a number equal to the nominal number of days in the year. Also included are 248 positive commandments which Rabbi Simlai said corresponded "to the number of organs and limbs in the human body." Hundreds of these dealt with animal sacrifices and other topics that are not currently practiced. That leaves about 300 commandments that can be practiced today.
The Holiness Code in the Torah permits:

slavery (Leviticus 25:44)

The code requires:

	A child to be killed if he/she curses their parent (Leviticus 20:9)
	All persons guilty of adultery to be killed (20:10)
	The daughter of a priest who engages in prostitution to be burned alive until dead (21:9)
	The bride of a priest to be a virgin (21:13)
	Ritual killing of animals, using cattle, sheep and goats (22:19)
	Observation of 7 feasts: Passover, Feast of Unleavened Bread, Feast of Firstfruits, Feast of Pentecost, Feast of Trumpets, Day of Atonement, Feast of Tabernacles (23)
	A person who takes the Lord's name in vain is to be killed (24:16)

The code prohibits:

	Heterosexual intercourse when a woman has her period (Leviticus 18:19),
	Harvesting the corners of a field (19:9),
	Eating fruit from a young tree (19:23),
	Cross-breeding livestock (19:19),
	Sowing a field with mixed seed (19:19),
	Shaving or getting a hair cut (19:27),
	Tattoos (19:28),
	Even a mildly disabled person from becoming a priest (21:18),
	Charging of interest on a loan (25:37),
	Collecting firewood on Saturday to prevent your family from freezing,
	Wearing of clothes made from a blend of textile materials; today this might be cotton and polyester, and
	Eating of non-kosher foods (e.g. shrimp). This prohibition has been satirized on the God Hates Shrimp website.

Of the 613 laws, most Christian denominations regard very few as binding on Christians today. Conservative Christians often accept:

	the Ten Commandments found in three places -- one of them being Exodus 20:3-17.
	Leviticus 18:22 and 20:13 which relate to sexual behavior of two men.

They also accept laws which prohibit:

	Sexual contact between individuals who are too closely related,
	Bestiality: out-of-species sexual contact,
	Adultery, and
	Some laws regarding the execution of properly convicted murderers.

21^st century Christians are free to wear have sexual relations during the wife's monthly period, wear tattoos, eat shrimp, lobster, pork or meat cooked rare, wear polyester-cotton blends, seed their lawns with a grass mixture, and get their hair cut. But most conservative Christians consider homosexual behavior -- and sometimes merely having a homosexual orientation -- as taboo. At first, we were unable to find any logical explanation that would justify conservative Christians concentrating so much on these two laws against homosexuality while abandoning most of the remaining 611 Mosaic laws.
But further examination found the reason. Using an Protestant English translation of the Bible, conservative Christians believe that the validity of the two anti-homosexual "clobber" passages in Leviticus has been verified by passages in Paul's Epistles. The NIV and KJV of the Bible clearly condemn homosexual behavior at 1 Corinthians 6:9 and Romans 1:28 in the Christian Scriptures. These translations generally interpret the Greek words "malakoi" and "arsenokoitai" as referring to homosexuals.

We can be fairly certain that this is not the meaning that Paul wanted to convey. If he had, he would have used the Greek word "paiderasste." That was the standard term at the time for males who had sex with males. We can conclude that he probably meant something different from persons who engaged in male-male adult sexual behavior. Down through the years, Christians have interpreted these words as referring to people of lacking a high moral standing, or to masturbators, or to men who sexually abuse boys, or to boys who are the victims of sexual abuse. Interpreting these passages as referring to sexually active homosexuals appears to be simply the latest in a long series of attempts to make sense out of obscure words. The precise meaning is unknown; it was buried with Paul.

The meaning of To'ebah (often translated abomination)

The Hebrew word "to'ebah" (or a form of the word) appears over 100 times in the Hebrew Scriptures (Old Testament):

Twenty-six times in the Torah:

	Twice in Genesis,
	Once in Exodus,
	Six times in Leviticus,
	Seventeen times in Deuteronomy.

It is in the Major Prophets 58 times.

	Five times in 1 & 2 Kings,
	Three times in Isaiah,
	Eight times in Jeremiah,
	Once in Malachi,
	Forty one times in Ezekiel.

In the Writings, it is found:

	Once in Psalms,
	Twenty five in Proverbs.
	Scattered throughout Ezra and II Chronicles.

It was not used by the Minor Twelve Prophets, or in Numbers.

It is often translated as "abomination" or "detestable" in English. It can refer to the breaking of either a moral or ritual law. ₁Examples of ritual codes involving "to'ebah" in the NKJ translation are:

	Genesis 43:32" "...because the Egyptians could not eat food with the Hebrews, for that is an abomination to the Egyptians." So, the President of Egypt meeting the Prime Minister of Israel sitting down to a meal together would be committing an abomination.
	Leviticus 11:10" "But all in the seas or in the rivers that do not have fins and scales, all that move in the water or any living thing which is in the water, they are an abomination to you." Eating a lobster is an abomination.
	Leviticus 11:41" "And every creeping thing that creeps on the earth shall be an abomination. It shall not be eaten." We have been told that rattlesnake tastes just like chicken.
	Deuteronomy 17:1: "You shall not sacrifice to the LORD your God a bull or sheep which has any blemish or defect, for that is an abomination to the LORD your God." When engaging in ritual animal sacrifice, it is an abomination if the animal is not perfect.
	Deuteronomy 22:5: "A woman shall not wear anything that pertains to a man, nor shall a man put on a woman's garment, for all who do so are an abomination to the LORD your God." Presumably this would include a woman wearing jeans or slacks or a man wearing a kilt.
	Deuteronomy 24:4" "then her former husband who divorced her must not take her back to be his wife after she has been defiled; for that is an abomination before the LORD." This relates to a woman who has been divorced by two husbands. If she decides to be loyal once more to her original marriage vows and returns to her first husband, then she commits an abomination.

When "to'ebah" refers to the breaking of a ritual law it might be better translated "ritually improper," or "involves foreign religious cult practice." Some of the "to'ebah" passages are considered without significance to Christians today. Many activities which were "to'ebah" transgressions to the ancient Israelites simply do not apply to modern cultures.
Rabbi Gershon Caudill wrote that:

"Jews do not obligate any other religion to the observance of the Torah laws, which were given specifically to the Jewish people and their descendants, including converts. This is with the possible exception of the seven Noahide Laws, and there is dispute among the halakhic authorities as to which seven laws non-Jews need observe IF they are indeed required to observe any Torah laws at all." ₂

Do you have any idea how far I went out on the limb today? The friends I spoke of listen to this broadcast. How will they respond? In love I hope, for I love God and I love them. Am I endorsing the homosexual lifestyle? No!Will many of my faithful longtime listeners swear me off? Maybe...

I have opinions on politics, our economy, and how people should raise their kids.

But from this day forward, when it comes to the things of God, I will no longer offer you my humble opinion.
From this day forward I will only offer you the Truth.

What's the difference?

That's your homework!

Pray Hard and Trade Safe
CT

SFEG / Santa Fe Gold Corp - Emini Futures Trading - Wednesday November 25th, 2009

2009-11-25T22:00:00.000-08:00

(SFEG)(GLD)(SLV)(QQQQ)(SPY)
It's no great secret around the CFRN Studio's that my personal portfolio is 95% invested in one equity - SFEG. I understand that most economists, financial theorists, and college professors would heartily disagree, not with my choice, but simply my philosophy.

There is however, at least one fellow who based on his legacy, did understand our long-term strategy. You may even have heard of him - Andrew Carnegie

"Concentrate your energies, your thoughts and your capital. The wise man puts all his eggs in one basket and watches the basket."

Many of our listeners came to know SFEG as Azco Mining in the .10 / .50 range. Many are asking themselves, and us, what course of action they should take given the current market conditions and share price. We are not investment advisors. The disclaimers on this blog as well as on our radio program fully disclose that you should seek qualified and licensed counsel before making any investment decision.

However, without any degree or license, I can still tell you the truth, which is the same truth I have told you for years (just go back and listen or read). The money I have invested in SFEG is not really mine. It's on loan from God. He has called me by His Word to be a good steward and faced with the myriad of investment choices available, I chose to choose AZMN (now SFEG). I won't go into great details here but I chose to choose that which God himself was directly involved with. God created man but He did not create the internet, biotech, or many of the other things that men today choose to invest in. I'm not saying any of those things are wrong or amiss, I'm just saying that given all the opportunities to invest His money in, I chose to put it into something that He Himself directly placed in the belly of the earth thousands of years ago.

Does that mean this stock or any other natural resource stock is a sure-fire winner because of the God Factor? Nope! More money has been stolen from hapless investors in the name of God than for any other valid reason I can think of besides perhaps, pure old-fashioned greed.

Yes God created the Gold, Silver, Copper, Moly, and the many other marvelous metals and minerals that lie beneath the crust. However, He also created man. Not only did he create man but He gave man, free will. (gasp)

Cheat, Steal, Lie, Whatever.

What was God thinking? That's a far deeper discourse than we have time for on this blog but perhaps you should tune into our radio program if you truly want a better understanding of the nature of God.

Bottom Line -
You have to look at the "Men Behind the Metals"

God created them both (men & metals) but he only gave one of them free will.

For the last 5 years my self-imposed job as both an investigative journalist and steward of His money, has been to investigate the "Men Behind the Metals" of SFEG.

The commodity I found there, is far more precious than silver or gold.

But why should you believe me? I'm merely a man.

You could read the most excellent column I've provided below and make a decision, or, you could just talk to Him. See what He has to say. Believe it or not, no matter how much you may have misused that free will He gave you, He misses you. He longs to walk with you in the cool of the garden, and maybe even give you some investment advice....

But if none of the above or below floats your boat, there's always Cramer and CNBC..............

(i'm just saying)

How to Invest in Gold Mania
By Jeff Clark
Stowe, Vermont

"There's no doubt in my mind that we'll have a mania in gold. And because the gold and especially silver markets are so tiny, the rush into them will be like trying to push the contents of Hoover Dam through a garden hose. Our positions will go absolutely ballistic." - Doug Casey, September 2009

There's certain to be a rush into gold and silver, and buying before Main Street catches gold fever is the only way to play this trend. Because when Midas fever hits, prices will explode to the upside, for both the metals and the stocks. How do we know that?

First, let's look at gold. If we added up all the gold ever mined on the planet, its total value would equal no more than $5 trillion at today's prices. Yet, look at how this compares to the debt and bailouts and other monetary mischief of current governments...

Let's make this chart very clear. Of the $5 trillion in gold ever mined...

The US government has thrown over twice as much at the economy in the past 12 months.
The US debt is more than double this amount so far this year.
Total global government bailouts are almost four times larger (and this is a conservative figure; one estimate puts it at $24 trillion).

I intended to include annual gold production as one of the comparisons, but the chart isn't big enough and neither is your monitor: 2008's global gold production equaled about $73 billion, and to make that figure discernable on the chart would require the Global Bailouts bar to hit the ceiling above your head. That's how small the gold market is.

The implications are undeniable: when the greater public rushes into gold - whether in response to inflation, dollar woes, war, whatever - the price will be forced up by an order of magnitude.

While physical gold will protect our wealth, it's the gold stocks that can potentially make us wealthy.

Once again, to get a sense of the Lilliputian size of the gold industry, I compared it to several other leading industries and stocks.

The value, as measured by market capitalization, of all gold producers around the world is less than Wal-Mart's. Every gold stock would need to nearly double just for the industry to match ExxonMobil. The oil and gas industry is about 12 times bigger.

When your neighbors and relatives and co-workers and friends all start clamoring to buy gold stocks, the pressure on prices will be enormous, rocketing our positions upwards.

Meanwhile - and admitting we're first and foremost gold bugs - the picture for silver is even more dramatic. The potential for silver stocks is jaw dropping.

If the gold industry is tiny, then silver's $9 billion market cap makes it a nano industry. The entire silver industry is over 21 times smaller than gold's! If gold explodes, silver will go supernova.

Consider these macro-facts about a micro-market and what they reveal about silver's enormous potential:

There are over 200 companies in the S&P 500 with a market cap larger than the entire market of silver producers.
There are five times more gold stocks than silver.
Total silver production in 2008 was valued around $10.3 billion (at today's prices). That represents just 1.5% of the $700 billion bailout last year, and 0.006% of the current US monetary base.
Of the 20 largest silver producers, only five actually call themselves a "silver" company, due to the fact that about 73% of all silver mined is a byproduct of other metals mining.

Any flood into the silver market would overwhelm it. In other words, the rise will be stunning. While it's not going to happen tomorrow, I strongly suggest you get on board before that rocket ship takes off.

Just putting these charts together stirred my feelings of restlessness, making me anxious for the mania in precious metals to arrive. But the timing is not up to us. Be patient, because if you're invested in gold and silver and the respective, high-quality stocks, you're on the right side of this trend.

Regards,

Jeff Clark
Senior Editor, Casey's Gold & Resource Report
for The Daily Reckoning

Good Golly Miss Moly - A Heavy Metal Tribute to Santa Fe Gold

2009-11-24T21:58:00.000-08:00

(GLD)(SLV)(SFEG)

Thursday, July 27, 2006

Good Golly Miss Moly - A Heavy Metal Tribute to Azco Mining (AZMN)

Over 3 years ago we discussed with our listeners one of Azco Minning (now Santa Fe Gold's) hidden assets - MOLYBDENUM.

The rest of the world is finally catching on as to just how important this heavy metal could be. If you hold Santa Fe, you hold Moly. Click the headline above and take a trip down memory lane. And when you're done, have a read as well...

Unscramble These Letters: MOLYBDENUM
By Chris Mayer
Gaithersburg, Maryland

The mere whiff of an economic recovery has sent the prices of many industrial metals soaring. A genuine recovery and/or inflationary trend will cause prices to soar even more. Heck, we may not even need much of a rebound. Current extraction rates of certain metal minerals imply we're going to see some big price moves soon.

Andre Diederen is a senior research scientist at TNO, in Holland, a sort of think tank aiming to apply scientific knowledge to industry and government. Diederen argues in a recent research paper that we face a "looming metal minerals crisis."

"During the next few decades," he says, "we will encounter serious problems mining many important metal minerals at the desired extraction rates. Amongst them are all precious metals (gold, silver and platinum- group metals), zinc, tin, indium, zirconium, cadmium, tungsten, copper, manganese, nickel and molybdenum."

Diederen advances in this forecast because many of these metal minerals have relatively low reserves. As we've mined much of the high-grade ores, we now have to dig deeper and process more rock to get a given amount of metal. Lower grades require exponentially more energy, as Diederen shows. So he believes that the "decades-old paradigm of increasing reserves as demand rises" is no longer valid without cheap and abundant energy. The bump up in costs will be so great, in fact, that much of the known mineral resources will never become economically viable reserves.

By his estimate, the planet holds less than a 50-year supply of a number of essential metals and minerals.

More importantly, we reach peak production of many metals well before the 50-year period is up. For example, the remaining lifetime reserve of zirconium is 19 years, but peak production is well behind us already (1994). Referring to the chart below, Diederen writes: "Although exact data fail, the elements strontium [Sr] through niobium [Nb] will soon reach their peak production or have already passed their maximum extraction rates."

All the elements here face stiff headwinds as far as increasing extraction rates. Some of the more interesting ones - from left to right - include silver (Ag), gold (Au), molybdenum (Mo) and niobium. The latter is worth highlighting because Capital & Crisis recommendation, IAMGOLD (IAG:nyse), owns a niobium mine that is something of a wild card to value, but throws off significant cash flow. It is also one of only three such mines in the world and produces 8% of world supply. It's a nice little bonus you get for owning IAMGOLD.

Diederen also makes the case that many metal minerals have no acceptable substitutes for their major applications. And finally, even where we have plenty of proven reserves, we may still face supply constraints because so much of the resource is in one place that is not easy to access. An example Diederen uses is chromium, which is mainly located in Kazakhstan and southern Africa.

Common ideas people put forward that would avert the Diederen thesis include recycling and technological progress. As to the former, Diederen makes a good case that even with more intense recycling, we'll need more primary production to meet growing needs. As to the latter, he cites the Jevons Paradox: that when we use something more efficiently because of technological progress, we wind up using more of the resource in absolute terms. Certainly, you can see that with oil over the long term.

Car engines and all kinds of applications are more energy-efficient than ever, yet our oil usage in absolute terms has gone up materially over the years.

The developing supply crunch in these metal minerals sets the backdrop for a major, long-term bull market.

Molybdenum is one of the most interesting metal minerals from an investment standpoint. That's why I have recommended Thompson Creek (TC:nyse), a major miner of molybdenum, to the subscribers of my investment letter, Capital & Crisis. I've stuck with this story despite a gut-wrenching, hair-whitening ride. Over the last two years, the stock has traded as high as $25 per share and as low as two dollars. It currently sits at $11.70. The story here is all molybdenum, the price of which has drifted down to about $11 a pound from prices around $35 in the middle of last year. So if we don't see a rise in moly prices, TC isn't going anywhere.

But longer term, I see good reasons for moly to rise, mostly tied to the story of steel demand, against a rather tighter supply of moly. But for now, the company had $262 million in cash last quarter end. It also raised another $200 million after the quarter ended. So the market cap is now about $1.6 billion and the company has practically no debt and nearly $500 million in cash.

Thompson Creek could be acquired by a copper miner, such as Freeport- McMoRan, looking to boost its exposure to moly. More likely, I think, is that Thompson Creek uses its cash hoard to buy a more-cash-strapped competitor. We'll see. But the stock seems ripe for M&A with all that cash.

Detour Gold (DGC:tsx; DRGDF:pink sheets) is another ripe takeover candidate. In a world where the gold majors are struggling to increase production, Detour has the largest deposit not already owned by one of the biggies.

As metal minerals prices slowly rebuild their momentum, I would expect to see a large number of takeover deals in the sector. Place your bets now.

Regards,

Chris Mayer,
for The Daily Reckoning

P.S. Did you catch our exclusive interview with Dr. Marc Faber just now, detailing his predictions for 2010 and beyond? We went live a couple of hours ago and already it's creating quite a stir. If you just watched it, you know what we're talking about...

Watch Interview Here

Emini Futures Trading - Tuesday November 24th, 2009

2009-11-24T21:48:00.000-08:00

(QQQQ)(DIA)(SPY)(GLD)(SLV)

Will Silver Outshine Gold? Emini Futures Trading - Monday November 16th, 2009

2009-11-23T17:15:00.000-08:00

(GLD)(SLV)(QQQQ)(DIA)(SPY)

Why Silver’s Breakout Could Bring It Out of Gold’s Shadow

by The Sovereign Society

From a speculator's perspective, the total return potential now in silver is probably greater than gold. On a percentage basis, the price of silver can easily outpace gold over the next few years as both metals hit record highs after adjusting for inflation since 1980. Silver might achieve that goal far more quickly than gold.

But as gold reaches over $1,145 this week (+10% in November) there's one missing ingredient required to legitimize this historic bull market; silver must exceed its March 2008 high of $20.78 an ounce... More »

On Doing God’s Work

“Gold Finger -
A New Take On Operation Grand Slam With A Tungsten Twist”

Ahmadinejad's 'Divine' Mission

Why Is Hanna Rosin Mad At God? / Emini Futures Trading - Friday November 20th, 2009

2009-11-20T23:15:00.000-08:00

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Why Is This Woman Mad At God?

She takes it out on Conservatives, Born Again Believers, Patrick Henry College, Sarah Palin, and Mothers who Breast-Feed just to name a few, but the obvious underlying theme here is God Anger. Pure and Simple.

Of course we've all raised our puny little fist at some point and questioned or even possibly threatened Him. However, while most of us quickly regain our senses and repent, she's managed to turn it into a paycheck.

Her anger doesn't stop with the Almighty, it extends to unborn children -
"Some of this reaction can be explained just by listing the religious right's priorities in order. In the pantheon of family values, avoiding abortion sits at the top, above marriage or staying home to raise your children. Conservatives have spent the last 30 years seeding the country with crisis pregnancy centers dedicated to convincing young women not to abort their babies, regardless of their personal situations. The fact that Britney Spears' younger sister made the same decision to keep her pregnancy at 17 and that Juno was a hit movie only adds an unexpected glamour to the choice."

And should they manage to avoid Planned Parenthood and escape the Forceps of the Late Term Abortionist, give them no milk cries Hannah. Well, at least not their mother's milk.
The evidence for the value of breastfeeding is scientific, it is strong, and it is continually being reaffirmed by new research work. The American Academy of Pediatrics encourages women to make an informed decision about feeding their infants based on scientifically established information from credible resources. David T. Tayloe, Jr., MD, FAAP President American Academy of Pediatrics

God's Harvard?

The Daily Show With Jon Stewart

Mon - Thurs 11p / 10c

Hanna Rosin

www.thedailyshow.com

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Health Care Crisis

I think you get the point. Google her, listen to today's broadcast, make your own decision.

Did Christianity Cause the Crash or Did Hannah Need a Paycheck?