Trader Dan's Market Views: 11/03/11

“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)

"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people. Source – The Declaration of Independence

Thursday, November 3, 2011

CME Group attempting to clean up the MF Global mess

Dow Jones is reporting this morning that a total of TEN firms have agreed to accept portions of MF Global's clientele.

The firms are as follow:

Dorman Trading LLC
BNP Paribas
RJ O'Brien & Associates
Mizuho Securities USA
Newedge
FC Stone
Rosenthal Collins Group
Penson Financial Services
ADM Investor Services
Macquarie Futures USA

HUI is continuing to outperform the broader equity markets

The lower interest rate environment (the ECB cut rates and the Reserve Bank of Australia did likewise) is proving to be a boon for gold. That is helping pull silver higher even as it waffles back and forth between risk on and risk off trades. The end result is that a fairly good stream of buying is coming into the gold shares, many of which remain undervalued in the eyes of prospective buyers.

The gains in the mining sector are outpacing the gains in the broader equity markets while on downside trips they are holding better. It would be a pleasant change if there were a growing group of investors who were viewing gold and silver shares as defensive holdings in the current economic climate.