Morning Call: Tuesday, July 7, 2009
"You can't beat deflation in a credit based system" -- Robert Prechter.
That quote is in Maudlin's letter written by Niels Jensen. Basically you've got to make the big calls right to be a successful investor. Is it Inflation or Defaltion? Yesterday we saw the Reflation Trade go into reverse. Interestingly the DOW and the S&P were up led by the safe haven stocks we had mentioned like Procter and Gamble.
That quote is in Maudlin's letter written by Niels Jensen. Basically you've got to make the big calls right to be a successful investor. Is it Inflation or Defaltion? Yesterday we saw the Reflation Trade go into reverse. Interestingly the DOW and the S&P were up led by the safe haven stocks we had mentioned like Procter and Gamble.
Technically there's support for oil in the mid $50's and for Gold in the mid $870's. The S&P needs to hold $875. So where does the US$ go? As the G8 meets the "gang of four", Russia, India, France, and China may push for a new global reserve currency. Not only is that unlikely any time soon, its effect on the US$ can only be negative. Those are the type of discussions that should be held behind closed doors.
For the markets we are being told that we are migrating from the Day Trade to the Night Trade. So beware if you're not up to speed with the "headlines" overnight as they will drive the opening moves. Yesterday the trade was to buy low beta oils and sell the high beta ones. Interesting!
For the markets we are being told that we are migrating from the Day Trade to the Night Trade. So beware if you're not up to speed with the "headlines" overnight as they will drive the opening moves. Yesterday the trade was to buy low beta oils and sell the high beta ones. Interesting!
Nuclear Tuesday
The UX reported price was unchanged this week at $52. One concern we have for our bullish case is what will happen in Kazakhstan? Will the government takeover or regulate production? We think not. They want to be the largest producer in the world and need foreign capital and expertise to do that.
The UX reported price was unchanged this week at $52. One concern we have for our bullish case is what will happen in Kazakhstan? Will the government takeover or regulate production? We think not. They want to be the largest producer in the world and need foreign capital and expertise to do that.
What we did find is that Cameco is least liked of the foreigners (UUU – the Russians, Areva and Cameco). We are told they are the last to get H2SO4 when supplies are tight.
So we will…… Invest the money.
Quote of the Day:
It’s a recession when your neighbor loses his job; it’s a depression when you lose yours. --Harry S. Truman
Ed Pennock, CFA, Managing Director
416-369-6921,
Graham Farrell, Institutional Equity Trading
416-369-4208, gfarrell@dominick.ca
epennock@dominick.ca
The above note is prepared by an Institutional Salesperson based on morning meeting comments and general Institutional desk discussion and should not be construed as a research report or a solicitation. For information purposes only. D&D Securities, its clients, and principals may have positions in these securities.
