The “Ure Ratio”
At its NY high yesterday, around 10 AM, gold was pressing up on $1060 per ounce. From there
it dropped to about $1,038. That’s a ‘swing’ of $22.
The Dow meanwhile, had a Monday intraday high of 10,072.32 and closed down 104.22 at 9,867.96. That’s a swing of 204.36 points.
The Ure ratio is presently: (204.36/22) or 9.29 when rounded. In other works, if you’re trying to guess where the Dow ought to close, and you are looking at gold, or visa versa, you can maybe ‘ballpark’ it by saying Gold times ten. So when I looked early on and saw gold was up about $1.30, I figured that would translate to a 13-point upside open.
No, it’s not a perfect indicator – just one of those things that goes through the back of my mind when I read emails like this one:
“tensions building how about this Around 7.30 am local time Monday (Paris/Amsterdam timeline) ING bank announced split-up. The stock fell 8% yesterday morning on the Amsterdam exchange. It’s also on the NY Exchange, so it fell there 8% too, upon noticing the Dow dragged down, European bourses fell, ING dropped further , 18% down. All financials down.
Now the talk all over the business channels is “tension on the banks”, ING drops another 10% this morning. My feeling is the tension building period (about the financials, which is right, they still are the problem) started really last morning. Like last year with the Iceland implosion, you were right, it showed more clearly a couple of weeks later that that was the start. Like now I think… “
Yeah a little pop at the open of the US markets would not come as a surprise, since even dead cats bounce… not a hard & fast rule, but seems to be useful for now.
If gold is up $2.00 then the Dow up 20 – which wouldn’t be much of an open – the market’s waiting for news to drive things this way or that. Here in about 45 minutes or so, we should have the new Case-Schiller/S&P housing index. That ought to push things a bit one way or t’other.
Say What?
“Recession over but not job losses.” Hopefully, this will make more sense than it does to me.
Oil Bourse
Inauguration on October 26th of the new Iranian Oil Bourse. Oh-oh….
Bank Questions
Readers keep asking:
“The big thing on the 25th/26th is that the gov’t did the big set up to nationalize the banks. That’s why no info was available from the banks this weekend; it is financial as predicted and huge and still widely unknown/unreported. The pieces all fit. What do you think?”
Just installing software so its easier to control the sheeple, I reckon. Patience and all things in time. Except this is pressing now:
Punish Responsible Behavior Department
There’s a report that some big banks may charge responsible people who use credit cards for – having the privilege of credit, I guess…and since we’re one of those families with no credit card debt, I can tell you I will quit banking anywhere that does such to us. So far, they haven’t.
Linguistic Watch
OK, why is the global coastal event still in modelspace? “Climate report wants coastal residents” says a report out of Australia. Oh, and warns to alert to such things that as sea levels come up, look for government to grab powers to confiscate and redistribute land.
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Meantime, the Discovery Channel page “South Pacific Quake Swarm – Armageddon” may be a tad early. Me a doomster? You mean because we have 1,151 days and that’s assuming we make it past 11/11/2011 which is only 745 days out. But who’s counting, right?
Vegetarian Call
Nicholas Stern says eating meat might reduce global warming. While others use the term Lord Stern when referring to him, but I don’t much buy into such titles nor am I 100% convinced giving up meat is the answer. True, giving up meat is likely better for you, however.
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I don’t suppose I need to explain for the umpteenth how the British use of terms like ‘lords’ and “Sir” plays right into the hand of the ruling class, do I? I mean unless you want to start calling me Sir George of Practical. Might be a nice counterpoint to Sir Alan of Bubbles, come to think of it…
Remember My IP Address Warning?
Over the past couple of weeks I’ve been encouraging you to bookmark both the SSL layer for this site https://urbansurvival.com as well as my static IP address.
Last week that sounded really nuts, but now we see where the Government Accountability Office says the SEC and Homeland Security need web backup plans...
Gee - ‘magine that