If China Econ Data Shows Slowdown AUD/USD will Suffer

Traders will be keeping their eyes peeled for the Chinese economic data which will be released Friday evening (tomorrow 9/10/2010), two days earlier than originally scheduled. [1]  If there are any major disappointments or indication of slower growth, risk appetite on a global scale should be adversely affected.   Bloomberg news service sites that there is speculation that the movement of the economic announcement forwards by two days signals that China might tighten deposit rates to "curb inflation of savings by lending". [2] 

The Australian economy is tightly coupled with the #2 ranked Chinese economy and the AUD/USD is poised to take a big hit based on technicals, unless the Chinese economic data remains hot.  If the bear scenario plays out, I am looking for .8790 by 9/25/2010 and .7950 by 10/12/2010 as potential targets.  If point D on this bearish bat formation is invalidated (e.g. if China still shows surprising/impressive figures), a breakout should be able to get to .9400 then possibly .9600.

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Sources:
1. Forex Factory Economic Calendar Forex Factory Web site
2. China Day Ahead: Speculation of Deposit Rate Increase; Tighter Trust Rules Bloomberg News

Robot Trader Short EUR/USD Looking for 1.2440

My EA (expert advisor/trading bot) went short 1.26910, not the best price but I think it can work (this time).  My manual technical analysis based on the 4 hour chart shows projected moves of possibly 1.2440 by 9/14/2010 and 1.2200 by 9/18/2010 if this potential Gartley pattern will complete.

Looking for 10840 on Dow Futures by End of September 2010

If the Dow can hold the 34 period CCI zero line and get above and hold the 10400-10500 area I am looking for point D on this big Gartley to be tested by the end of September (10800-10880).

 When D is hit maybe we will get a that big selloff for the great depression #2

Would you eat Frankenfish (GMO Salmon) Made by ABTX.L?

Although the GMO (Genetically Modified Organism) salmon created by Aqua Bounty Technologies Inc (ABTX.L) which trades on the London Stock Exchange seems like it is more scrumptuous in the following RT News clip when compared to the regular salmon it is placed next to, I do not think I would want to trust my health to genetically modified organisms or the FDA:



On Friday September 3, 2010 Reuters news agency reported that the GMO salmon has been given the thumbs up by the FDA. [1]  The ABTX.L stock not coincidentally proceeded to double the Monday thereafter.  Personally I do not trust the FDA to be unbiased.  The food safety czar after all is former Monsanto lawyer and lobbyist Michael Taylor.  As you may well know, Monsanto is a company known for its GMO crops and bad environmental track record.  Current food is NOT required to even be labeled to show that it contains genetically modified organisms ore require any special testing due to Monsanto's historical undue influence over the FDA. [2]
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Sources:
1.  UPDATE 3-US FDA staff: Biotech salmon safe for eating Lisa Richwine, Reuters
2. You're Appointing Who? Please Obama, Say It's Not So! Jeffrey Smith, Huffington Post

Why Silver Can Explode to $133

The 1980 inflation-adjusted high of silver is $133.61 based on a $50.55 high price and the inflation calculator from the Bureau of Labor Statistics (based on CPI).  I would consider this to be a conservative estimate since the CPI is manipulated downwards by the government to cheap us on social security payouts.  Granted, the all time high price was extreme as it was driven by the Hunt brothers and their friends attempting to corner the silver market.  As is well documented, rule changes by the COMEX/CBOT/CFTC and Paul Volker raising interest rates to curb inflation wiped out the Hunts and crushed the silver price. [1]  Some speculate that the Hunts' punative bailout plan administered under Volker that eventually bankrupted them is the result of the Hunts being on the wrong side of the "Eastern Establishment", e.g. the money power controlled by the Rockefeller family ("arch enemies" of the Hunts per [1]). [2]

I think a similar run-up is possible today due to silver becoming more scarce and the huge short positions against it should fuel a big up move.  JP Morgan is known to have a huge short position on silver and central banks have been known to collude to suppress gold and silver prices for the past 30 years, which has caused an abnormal depletion of the silver supply. [3]  With China encouraging their citizens to buy silver and gold and countries such as India and Russia buying up bullion, there is strong underlying demand for precious metals.

Also, the Fed admittedly is already starting to monetize our debt and will proceed with its QE2 (quantitative easting 2.0) program and investors are seen buying small pullbacks in gold and silver.  It is expected by many that the Fed's policy will necessarily lead to hyper-inflation and that investors will rush in to precious metals to protect their capital.

Traders are looking at approximately $21/ounce on spot silver as a key level for shorts to hold:

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Sources:
1.  "H.L. Hunt's Boys and the Circle K Cowboys" by Larry LaBorde
2.  "MICHAEL GORHAM'S PAPER MONEY MOB!" by Charles Savoie
3.  "Commodities: Hoarding Versus Shorting" by Jeff Nielson