72 Hour Call for June 15, 2011

Today’s Call:  Euro to rise vs US DollarCurrently $1.44397:1.

Rationale:  News from the Eurozone, specifically Greece, is almost overwhelmingly negative.  Anticipation of short covering on any good news out of the Eurozone.  Conversely, there is upward pressure on the dollar that may seek short term relief via central bank intervention.

Result of Call for June 10, 2011:  Dow Jones Industrial Average to rise.  Was 11,952, Currently 11,897.  Bad Call. 

Calls to Date:  Good Calls: 28, Bad Calls: 22, Batting .560

Key Indicators for Wednesday, June 15, 2011

Copper Price per Lb: $4.09
Oil Price per Barrel:  $95.30

Corn Price per Bushel:  $7.25
10 Yr US Treasury Bond:  2.97%

Gold Price Per Ounce:  $1,531

MINT Perceived Target Rate*:  2.25%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  11,897
M1 Monetary Base:  $2,022,700,000,000 RED ALERT!!!
M2 Monetary Base:  $9,005,800,000,000 STARTING TO DRY UP?  NOT!

 *See FED Perceived Economic Effect Rate Chart at bottom of blog.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.