Category Archives for "Additional Articles"

Margin & The S&P Correlation

Margin debt, also known as “borrowing to buy stocks and other securities” has increased and gotten ahead of the S&P 500. It normally follows the index in both directions, up and down.  When stocks on margin debt get ahead of the market index, any significant drop can have a cascading effect because stocks and other securities tend to get sold […]

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The Gold Canary?

If you’re not familiar with the Canary in the coal mine example, see previous post. If you are looking for a sign of a top in the Gold Market, look no further than Boca Raton, FL where a local company just installed a vending machine that dispenses gold bars.  The end of the bull run in […]

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60 Minutes – “Canary in the Coal Mine”?

This is what makes the the markets so interesting.  You never know where the next signal is coming from.  First, let’s understand what the phrase “Canary in the coal mine” means.  Early mines didn’t have any form of a ventilation system, so the miners would send a into the mine ahead of everyone else.  Canaries are sensitive to methane and […]

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Do The Federal Reserve Policy Makers Control Interest Rates, or Simply Just Believe That They Do?

Current evidence would suggest that the Federal Reserve’s recent policy decision to inject $600 Billion over the next several months into the banking system by purchasing Treasury Bonds seems to be having an opposite effect from what they intended. Today, on December 14, 2010 the 30-Year Treasury Bond was yielding over 4.5% which is the […]

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