Monday, April 29, 2013

Metals ready to finish margin calls…Equities at risk of margin calls...

Some interesting data which helps to explain why lumber prices are not too far above 15 year lows on a miracle QE real estate recovery:
  • South Korean Industrial Production -2.6% m/m (vs. +0.6% expected) 
  • New Zealand Building Permits increased by -9.1%(MoM) in Mar vs. 1.9% in Feb, well below estimate set for 2.0%.
  • U.S. April Dallas Fed Manufacturing Index: -15.6 vs. expected +5.0, prior was +7.4
Not to be fooled, precious metals look to be nearly complete with their bounces from deleveraging round 1…round 2 is likely up next and will most likely spread into equities deleveraging Round 1.

I have a few more charts coming as a part of this post so check back later to see the updates.
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