My OperaSilver Standard Resources Inc, SSRI, The Greatest Speculative Investment Of All Time Has Fallen
Wednesday, June 11, 2008 1:58:52 AM
It's an evening star for Silver Standard Resources Inc
The Chart of Silver Standard Resources Inc,SSRI shows an evening star candlestick pattern on Friday June 6, 2008, and then a 6.9% fractal break lower today.
Silver Standard Resources Inc. was the speculator's delight; this junior exploration mining company has been written up, talked up, glorified up by wealth management site owners across the board, as well as by those in the mining industry as the investors dream. It has never made any money -- its simply been a speculative darling.
SSRI has been the standard bearer of the Toronto Junior stock exchange: to those who were wise enough to buy it in 2001 it's been a gold mine, but now today with collapse of the yen carry trade as a source of investment liquidity, and margin debt becoming more expensive, the end of age of natural resource investing of all types has arrived, which is not only seen in SSRI's chart, but in the chart of oil company Occidental Petroleum, OXY, and natural gas producer Cabot Oil and Gas, COG as well.
The chart of Cabot Oil and Gas, COG, shows a spectacular island reversal forming: first a gravestone doji, then a pop higher, and now a lollipop bearish engulfing candlestick; the chart screams "sell me".
Liquidity for the 'crack up boom' in commodities, RJI, such as oil, USO, and natural gas, GAZ, is no longer available as interest rate differential investors are selling their investments in the BRICs, EEB, especially in Brazil, EWZ, and the once red hot Petroleo Brazil, PBR, to repay their 0.5% interest loans obtained from the Bank of Japan.
The EUR/JPY, the barometer of the yen carry trade, shows its conclusion as a source of liquidity and capital investment: FXE:FXY daily shows a dark cloud cover and fall lower, and FXE:FXY weekly shows a dark cloud cover as well (with rising price on falling volume, a very bearish omen).
The Yen, FXY, fell 1.03%; and the Euro, FXE, 1.1% today; the fall of these took the gold ETF, GLD, down 2.7%; and the HUI indexed gold mining shares, GDX, down 5.2%: the gold mining shares have disconnected from the price of gold as seen in GDX:GLD, and can no longer be used as a leveraged investment over gold.
The HUI shares, like the energy service shares, OIH, led by Barrick Gold, ABX, which fell 6.8%, have been two of the greatest investment stories of all time; their ability to accumulate and store wealth is done and over.
The spigots of liquidity and financial wealth have been turned off.
The two great dynamos of the former 'age of aspiration' and 'age of prosperity', that being Alan Greenspan credit liquidity, and the use of the 'yen carry trade', that once inflated wealth, will now act in reverse to deflate stock and bond wealth world wide, as risk aversion to the level two assets and level three assets at banks, KBE, and investment bankers, KCE, increases; and as lack of demand for durable goods from new housing increases, as consumers spend less, as unemployment grows, as higher enery costs work their way through the economy, as businesses find credit either expensive or impossible to obtain, and as investors sell assets to repay the Bank of Japan yen carry trade loans.
Buying gold or short selling is recommended for the 'post yen carry trade age'
The yen carry trade died today June 10, 2008: we have commenced on the age of state corporate rule, and age of failure of fiat wealth of stocks and bonds, where an 'investment demand for gold' will arise and be seen in a rising ratio of gold relative to stocks, GLD:VTI, and GLD:VEU.
My investment maxim is: in a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength. Therefore in as much as gold relative to stocks in the US and worlwide fell, it behooves one to buy on its dip, as gold will soon be going much higher soon, as Alf Field in Kitco Commentary relates, stocks and bonds are heading off into the Abyss while gold is going much higher.
I strongly recommend that one dollara cost average gold at both BullionVault.com and GoldIsMoney.com during the month of June 2008.
For those who are not of the gold conviction, and in as much as we are just on the cusp of a global investment meltdown, which could come via any number of prevaling systemic risk events, I suggest that one consider that 'growth investing' is an investment principle of the 'bygone era of Milton Friedman neoliberalized financialization', where investment bankers, KCE, and Banks, KBE, acted through Presiden Bill Clinton to repeal the Glass Steagall Act, and offered leveraged debt, such as CDOs and LBOs, and credit margin galore, which drove up the Russell 2000 growth shares, IWO, to 90.16 on october 8, 2008, the day of the 'appropriately fated' Citigroup CDO Bust.
The weekly chart of the Russell 2000 growth shares, IWO, shows rising price on falling volume which is very bearish; and it shows a bearish harami for last week, and the lollipop hanging man candlestick as of this week. All of which is in a 'broadening top pattern' going back to November 6, 2006: the age of growth investing is over.
Here are the ongoing Google Finance Charts:
domestic stocks
SKK, Russell 2000 Growth,
SRS, Real Estate,
SSG, Semiconductor,
TLL, Telecommunications
foreign stocks and debt
EEV, Emerging markets,
FXP, China,
TBT, Government bonds.
Caveats, the chart of the Proshares 200% inverse of the S&P, SDS, shows the lollipop hanging man candlestick on a rise in price on falling volume, which suggests a fall lower; nevertheless, the chart clearly shows an Elliott Wave 3 breakout is in progress.
And the chart of the Proshares 200% inverse of the Russell 2000 growth shares, SKK, shows the lollipop hanging man candlestick as well; the chart shows a spiked bottom as investors flocked to the Russell 2000 growth shares, such as Cabot Oil and Gas, COG, during the recent TAF, TSLF, and PDCF rally, which was accompanied by a last and final use of yen carry trade loans from the Bank of Japan which is seen in the EUR/JPY, FXE:FXY Daily and FXE:FXY Weekly, forming a dark cloud cover candlestick yesterday, and making a fall lower today.
The Chart of Silver Standard Resources Inc,SSRI shows an evening star candlestick pattern on Friday June 6, 2008, and then a 6.9% fractal break lower today.
Silver Standard Resources Inc. was the speculator's delight; this junior exploration mining company has been written up, talked up, glorified up by wealth management site owners across the board, as well as by those in the mining industry as the investors dream. It has never made any money -- its simply been a speculative darling.
SSRI has been the standard bearer of the Toronto Junior stock exchange: to those who were wise enough to buy it in 2001 it's been a gold mine, but now today with collapse of the yen carry trade as a source of investment liquidity, and margin debt becoming more expensive, the end of age of natural resource investing of all types has arrived, which is not only seen in SSRI's chart, but in the chart of oil company Occidental Petroleum, OXY, and natural gas producer Cabot Oil and Gas, COG as well.
The chart of Cabot Oil and Gas, COG, shows a spectacular island reversal forming: first a gravestone doji, then a pop higher, and now a lollipop bearish engulfing candlestick; the chart screams "sell me".
Liquidity for the 'crack up boom' in commodities, RJI, such as oil, USO, and natural gas, GAZ, is no longer available as interest rate differential investors are selling their investments in the BRICs, EEB, especially in Brazil, EWZ, and the once red hot Petroleo Brazil, PBR, to repay their 0.5% interest loans obtained from the Bank of Japan.
The EUR/JPY, the barometer of the yen carry trade, shows its conclusion as a source of liquidity and capital investment: FXE:FXY daily shows a dark cloud cover and fall lower, and FXE:FXY weekly shows a dark cloud cover as well (with rising price on falling volume, a very bearish omen).
The Yen, FXY, fell 1.03%; and the Euro, FXE, 1.1% today; the fall of these took the gold ETF, GLD, down 2.7%; and the HUI indexed gold mining shares, GDX, down 5.2%: the gold mining shares have disconnected from the price of gold as seen in GDX:GLD, and can no longer be used as a leveraged investment over gold.
The HUI shares, like the energy service shares, OIH, led by Barrick Gold, ABX, which fell 6.8%, have been two of the greatest investment stories of all time; their ability to accumulate and store wealth is done and over.
The spigots of liquidity and financial wealth have been turned off.
The two great dynamos of the former 'age of aspiration' and 'age of prosperity', that being Alan Greenspan credit liquidity, and the use of the 'yen carry trade', that once inflated wealth, will now act in reverse to deflate stock and bond wealth world wide, as risk aversion to the level two assets and level three assets at banks, KBE, and investment bankers, KCE, increases; and as lack of demand for durable goods from new housing increases, as consumers spend less, as unemployment grows, as higher enery costs work their way through the economy, as businesses find credit either expensive or impossible to obtain, and as investors sell assets to repay the Bank of Japan yen carry trade loans.
Buying gold or short selling is recommended for the 'post yen carry trade age'
The yen carry trade died today June 10, 2008: we have commenced on the age of state corporate rule, and age of failure of fiat wealth of stocks and bonds, where an 'investment demand for gold' will arise and be seen in a rising ratio of gold relative to stocks, GLD:VTI, and GLD:VEU.
My investment maxim is: in a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength. Therefore in as much as gold relative to stocks in the US and worlwide fell, it behooves one to buy on its dip, as gold will soon be going much higher soon, as Alf Field in Kitco Commentary relates, stocks and bonds are heading off into the Abyss while gold is going much higher.
I strongly recommend that one dollara cost average gold at both BullionVault.com and GoldIsMoney.com during the month of June 2008.
For those who are not of the gold conviction, and in as much as we are just on the cusp of a global investment meltdown, which could come via any number of prevaling systemic risk events, I suggest that one consider that 'growth investing' is an investment principle of the 'bygone era of Milton Friedman neoliberalized financialization', where investment bankers, KCE, and Banks, KBE, acted through Presiden Bill Clinton to repeal the Glass Steagall Act, and offered leveraged debt, such as CDOs and LBOs, and credit margin galore, which drove up the Russell 2000 growth shares, IWO, to 90.16 on october 8, 2008, the day of the 'appropriately fated' Citigroup CDO Bust.
The weekly chart of the Russell 2000 growth shares, IWO, shows rising price on falling volume which is very bearish; and it shows a bearish harami for last week, and the lollipop hanging man candlestick as of this week. All of which is in a 'broadening top pattern' going back to November 6, 2006: the age of growth investing is over.
Here are the ongoing Google Finance Charts:
domestic stocks
SKK, Russell 2000 Growth,
SRS, Real Estate,
SSG, Semiconductor,
TLL, Telecommunications
foreign stocks and debt
EEV, Emerging markets,
FXP, China,
TBT, Government bonds.
Caveats, the chart of the Proshares 200% inverse of the S&P, SDS, shows the lollipop hanging man candlestick on a rise in price on falling volume, which suggests a fall lower; nevertheless, the chart clearly shows an Elliott Wave 3 breakout is in progress.
And the chart of the Proshares 200% inverse of the Russell 2000 growth shares, SKK, shows the lollipop hanging man candlestick as well; the chart shows a spiked bottom as investors flocked to the Russell 2000 growth shares, such as Cabot Oil and Gas, COG, during the recent TAF, TSLF, and PDCF rally, which was accompanied by a last and final use of yen carry trade loans from the Bank of Japan which is seen in the EUR/JPY, FXE:FXY Daily and FXE:FXY Weekly, forming a dark cloud cover candlestick yesterday, and making a fall lower today.
