Meanwhile, back at the factory, the spin offs are spinning, the lifestyle’s inspiring, and the character development beats on. Turning to the box scores we see that—much like my life—the market is a tumultuous beast that I am determined to tame. Booking profits all the while.

The S&P 500 gained almost nothing today; it could only muster a minor 4.18 point or (.37%) gain.

Gold took a breather and closed down 11 points to close at 1132 per oz.

Buyers met sellers in a decently orderly fashion. Headlines were light—so much so that the Jessica Simpson interview on Oprah took center stage. I’ve yet to hire Jessica for her starring role in my new epic, The Adventures of Pinky Megiston, but after her daring performance on Oprah, she is definitely on speed dial. She fits the part perfectly: she’s one of the most famous actresses in the world with all sorts of security problems. The first time I saw her, I wondered if I’d ever met someone so beautiful with so many problems. Given her propensity for the spotlight and controversy, it was easy for me to develop an infatuation and eventually fall in love with her. Whether or not our affair is ever consummated in the honeymoon suite of reality, it will reign authentic in the archives of my memory.

Syndication is a girls best friend, right?

Speaking of syndication (blatant attempt to segue from my inappropriate digression), Greece’s syndicated 10-year debt offering may or may not go well, and depending on the outcome, the markets may continue to behave or may roil.

Rating’s Agencies

Here is where it gets tricky. If the ratings agency Moody’s were to downgrade Greece’s sovereign rating two notches—in line with ratings at Fitch and S&P—Greece’s sovereign debt would be ineligible for ECB repo operations when collateral criteria reverts to the normal minimum thresholds (A3/A- or above) at the end of 2010.

From the wires:

“The Greek cabinet will meet March 3 to discuss the additional austerity measures demanded by the rest of the Euro Zone, with an announcement on further budget cuts expected after the meeting. German Chancellor Merkel will meet with her Greek counterpart on March 5. In currency markets, euro sentiment depends on the final shape of Greeces austerity plans.
Considering the Greece story only really caught fire after the last ECB meeting, ECB President Trichet’s monthly press conference on March 4th is a must see. Moreover, the ECB’s three- and six-month special refinancing operations are scheduled to expire at the end of the month. The market will be looking for a bravura performance from the ECB, an institution often characterized as rigid. Real flexibility is needed in the face of unprecedented challenges to the European monetary union.”

Just a few things to think about (besides Jessica’s exquisite form).

And the beat goes on.

Stock market futures initially sold off on the payroll and unemployment headlines this morning at 5:30 AM PST. They spent the day recovering, and ended up rallying to the highs of yesterday.

S&P 500 Futures - 15 Minute

The Dollar sold off, squeezed the shorts, then fell to the lows of yesterday.

$USD Futures - 15 Minute

Gold rallied, pulled back to it’s logical limit, then rallied to near yesterday’s highs.

Spot Gold - 15 Minute

And the beat goes on.

Risk on trade is on.
Stocks up, dollar down, gold up.
Next year comes the storm.

S&P/Gold/Greenback

Market Rap 9.November.2009

The risk on trade was
on. Stocks strong, dollar weak as
gold keeps shining on.

S&P 500 - Daily

Spot Gold - Daily

Today’s trading was a flight away from risk–risk off. US equities were weak with the S&P 500 (SPX) off 2.82%, the Dow Jones (INDU) Industrial Average down 2.51% and the tech heavy Nasdaq Composite (COMPQ) down 2.5%. The Volatility Index traded higher by 24% at 30.71. On the Nasdaq, there were 4.2 decliners for every advancer. On the NYSE, 6.5 decliners for every advancer. Volume was heavy all around.

S&P 500 - Daily

Volatility Index (VIX) - Daily

The US Dollar index closed higher by .62% at 76.39, Ten year Treasury futures traded higher by to close at 118 19/32 or up .76%, IEF closed at $91.99.

IEF - iShares 7-10 Year Treasury

Below are a few of the intraday charts.

US Dollar Index - 15 Minute

Crude Oil - 15 Minute

ES S&P Electronic Mini

Citigroup: He Said, She Said

I couldn’t help but reach for puts in Citigroup (C) today. Analyst Mike Mayo was quoted as saying that Citigroup will write down $10 billion of deferred tax assets, representing 10% of Citigroup’s tangible equity. Citigroup quickly responded they had no idea how the analyst was making those calculations. No matter if Citigroup learns how to calculate or not, their common stock is likely heading south of $1 within the next 6 months to year. I am short the big C–the former largest bank in the world.

Citigroup - Daily

The Shimmer of Gold and Silver

Yesterday, I noted that my stance had changed on the precious metals. I am positioned to take advantage of a move higher in gold and silver.

Gold was weak at the equity open this morning, but strengthened throughout the day to close near unchanged. This is evidence of the strength in gold to come. I am long select gold miners and maintain my stop below yesterday’s low. Credit default swaps on Japanese sovereign debt are rising, and the Yen is outperforming against the US Dollar versus other major currencies including the Euro (FXY), the British Pound (FXB) and the Aussie Dollar (AUD).

The charts below show this outperformance graphically. It is my view that this relationship will eventually lead to US Dollar weakness, and therefore strength in gold.

Gold - Daily

FXY - Japanese Yen

FXE - Euro

FXB - British Pound

FXA - Australian Dollar

Next week, same time, same place. And the beat goes on.