Today’s Call: NO CALL, taking a break as we revert to the mean.
Rationale: The 72 Hour Call is being mothballed for the moment. It has been a great experiment and has led us to one inescapable conclusion: There are no sure things in the day to day gyrations of the markets. One is best off calling long trends and picking logical entry and exit points for trades, adjusting them as the data relevant to the long trends change. Please continue to watch our Key Indicators at the end of each Mint. Thank you for following and drop us a note if time permits!
Result of Call for June 29, 2011: Euro to fall vs US Dollar. Was $1.4311:1€., Currently $1.45336:1€. Good Call.
Calls to Date: Good Calls: 33, Bad Calls: 30, Batting .524
Key Indicators for Tuesday, July 5, 2011
Copper Price per Lb: $4.30
Oil Price per Barrel: $96.83 A FAILURE TO INFLATE, WILL TREND LOWER
Corn Price per Bushel: $6.80 MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond: 3.14% WITH THE FED OUT, THE SKY’S THE LIMIT
FED Target Rate: 0.07% JAPAN HERE WE COME!
Gold Price Per Ounce: $1,516 BENEFITING FROM PERMANENT UNCERTAINTY
MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.2%
Dow Jones Industrial Average: 12,570 WINDOW DRESSING FOR 401K PORTFOLIOS
M1 Monetary Base: $1,954,300,000,000 RED ALERT!!!
M2 Monetary Base: $9,098,400,000,000 YIKES!!!
*See the MINT Perceived target Rate Chart. 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.