Today’s Call: Dow Jones Industrial Average to rise. Currently 12,004.
Rationale: Despite the fact that there is simply no good news or reason to buy stocks right now, the increases in the M2 Monetary base generally go into the stock market first. The only question is whether or not it will overwhelm the shorts. Our guess is that in 72 hours it will.
Calls to Date: Good Calls: 29, Bad Calls: 23, Batting .558
Key Indicators for Friday, June 17, 2011
Gold Price Per Ounce: $1,540 BENEFITING FROM PERMANENT UNCERTAINTY
MINT Perceived Target Rate*: 2.25%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.2%
Dow Jones Industrial Average: 12,004
M1 Monetary Base: $1,921,900,000,000 RED ALERT!!!
M2 Monetary Base: $9,084,400,000,000 YIKES!!!
*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.