Follow the Megaphones
CIGA Eric

Stocks jump after better-than-expected jobs report

Major stock indexes climbed more than 1 percent, including the Dow Jones industrial average, which rose 122 points to add to strong gains for the week. Treasury prices slid as demand for safe havens eased.

The cheerleaders with megaphones, also known as spinsters, are loud and well-organized. The real megaphones or trend patterns of valuation, however, are rarely discussed. Stocks, relative to historical dividend yields are getting cheap, and they’re going to get a lot cheaper before the decade is over. Cheerleaders tend to cheer the upside, but rarely have the insight to get you out before the next round of what can only be described as the "arse paddlings"

S&P 500 Real Dividend Yields 10 Yr Average:

Source: finance.yahoo.com

More…

Gold – Big flush looks over
CIGA Eric

The big flush of the 2009-2010 run, similar to 2005-2006, looks over.

The Big Flush – Gold London P.M Fixed and the COT Futures and Options Open Interest Stochastic Weighted Average:

Gold London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest and The Big Flush Combination Chart:

By design, money setups up within the panic and confusion. The minimum upside target of the October breakout of $1,400, yes it is still in play, could be achieved by late spring. Many within the "gold community" will not be ready.

More…