Market Shorter Headlines

By Colin Barr, Fortune senior writerNovember 30, 2010: 1:03 PM ET

NEW YORK ( -- WikiLeaks' founder claims he has the goods that could take down a big U.S. bank. But there's little sign anyone believes him.Julian Assange, the founder of the site that has gained notoriety by publishing secret U.S. military and diplomatic documents, said in an interview this week that the next WikiLeaks target is a major bank.

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Here's a stock that one of my old business school buddies turned me on to a while back, precisely for its volatility. Green Mountain Coffee Roasters Co. GMCR closed at $35.78, a more than 18% gain for the day. GMCR rally came off the news that the SEC probe didn’t have any significant findings of wrongdoing.  The stocks exuberant surge stems from both, the good news and the fact that there are just not a lot of sure bets right now.


Above is a one year chart from Google Finance. GMCR has been quite volatile, historically. Its 52 week range has bounced around 19-37 dollars.  We suggest picking it up at the current prices we don’t expect much more of a surge. The rally should start to lose steam as it plateaus around its huge 18% bounce. We don’t think it’ll make any significant gains past 20% gain off its 30 dollar start today. The stock surged up to $36.34, but found a lot of resistance past 36 dollars as it already staggered back down before the close. Expect a bit of a correction this week of around 5-8%... CONTINUED BELOW 


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Macy's, Inc.





  • Even with the added liquidity being pumped in by the FED, Macy’s is one of our ultra safe shorts at anything above $25.00, which is close to its 52 week high of 26.03. Right now, it’s hovering around 25.08, with today’s high at 25.20 so far.  It should easily shave off 2-3 dollars within the next few weeks. The stock hasn’t been able to stay past its ceiling of 25-26 dollars for very long, in the last 52 weeks.... CONTINUED BELOW

Commodities have been retreating since Friday, which may lead to some speculation as to whether precious metals have found their top.

Our analysis suggests that the pull back is primarily due to the massive liquidity injections by the Federal Reserve. The markets are coming off a two-week high, which was artificially spurred by the quantitative easing dolled by the FED. We must really anchor down this point. There also some negative effects from the CME’s margin requirement hikes, as well as sudden rises in interest rates-- but remember these are all non-market tactics. These non-market tactics will only temporarily stave off or distort the upward trends because of the severe structural weakness within the global economy...CONTINUED BELOW.

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Let the games begin... JP MORGAN VS. SILVER


JP Morgan’s short position on silver futures should go down as either one of the most shortsighted or nefarious business moves in its history. As reported on PRN News Wire, “NIA exposed in 'Meltup' that JP Morgan was short 30,000 silver contracts representing 150 million ounces of silver. This is one of the largest concentrated short positions in the history of all commodities, representing 31% of all open COMEX silver contracts.”1 In March, JPM was accused of profiting off silver by illegal manipulating the futures. Since late August; however, silver prices have spiked. JPM now faces two lawsuits one of which involves accusations of racketeering in order to suppress silver futures. Last week the CME group raised the minimum margin requirements on silver purchases from $5,000 to 6,500. The CME has at least temporarily stopped the bank's bleeding.  With all that has been going on behind the scenes, one wonders if JPM had any influence in this virtual bail out?

Hagens Berman Sobol Shapiro LLP announced today that JP Morgan and HSBC face charges of manipulating the market for silver futures and options in violation of federal commodities and racketeering laws in a new lawsuit filed Tuesday in the U.S. District Court for the Southern District of New York.2

What does this mean for traders? The general consensus is that metals will not relent until there is a plausible horizon for the end of the currency crisis and the global depression. In our view, gold and silver still have very high ceilings, perhaps continuing their bull run for the next year or two. As we approach the 1500 mark, I am certain gold will break the 2000/ounce mark by this time next year or even sooner... CONT.


1 GLD 122.49
+0.62 (0.51%)    
2 INX CA$0.47
0.000 (0.00%)    

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