I can't think of a better Friday.
Finally, the over hyped, over priced, and over subscribed Facebook initial public offering goes off. It was priced at 38, ran up to 45, and then everybody looking for the quick buck- flipped it. Trading at 38- right now. I'd laugh if it settled the day lower.
If I did anything with this stock- I'd short it. Buy puts. I can't stand Facebook or Zuckerberg. I'm just glad it's over with, I got tired of reading about it everyday for a month.
Yesterday, the dead cat bounce in precious metals happened. This is that point in every market when the sellers have sold, buyers begin buying, the shorts had to cover, and the gold market rallied nearly 40 bucks. Silver rallied as well- but less than a buck. Precious metals are up again today. I bought everything I wanted to. Still keeping my fingers crossed that the selling is over with. There is a serious base in silver in the 26-27 range. I have seen that level tested many times and it holds. There are market insiders and geologists who say that silver cannot be produced for less than 20 bucks an ounce on average. That makes sense to me. The costs of the mine, permitting, equipment and trucks, personnel, smelting. I think the days of sub 20 silver are officially over.
Last night, I was looking at some worldwide oil production and consumption charts. I called the top of this market on Mar. 1. After looking at those charts last night, I am every bit convinced that oil is well priced at 80 bucks. I am edging down to 75 or until such point that actual demand meets price. (West Texas Intermediate)
The media loves to proclaim the death of gold anytime gold finds itself in a prolonged down draft. I posted one of those stories this week. What the media never does, is proclaim the death of the US stock market. Short term death. The market has been getting it's collective ass kicked for 2 weeks.
Yesterday, after reading the reports of 32-50000 job cuts at Hewlett Packard, and 200,000 more people losing their unemployment benefits- I continue to wonder how long this facade of economic health can last. The powers that be are desperately trying to hold up the market, ignore the coming death of the euro zone, the breaching of the debt ceiling, while trying to get to the elections in Nov.
The market continues to crumble.
It is a glorious Friday. I have one last Frankendamus prediction. There is no way in hell the Kenyan gets re-elected. Period. I don't care whether Romney whacks a school bus full of children driving drunk. I have a strong feeling by election time as thing deteriorate, the Kenyan is toast.