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Morning Rage 8.20.2012

The Hang Seng went the opposite direction losing 0.1% after a Chinese newspaper reported cuts in the
reserve requirement for commercial lenders were unlikely. Smaller banks were a hard hit sector today,
China Merchants Bank Co, which posted a 25.7 rise in first half net profits, slid 1.4% today. Corporate
earnings are to be a focus the rest of the month. Chinese instant noodle company Tingyi, jumped 5% to
close at its highest since May 4, with optimism that cost control will improve margins for the rest of the
year. China Pacific Insurance group was also among the losers dropping 1.2% today, after reporting a
55% fall in net first half profits.

The FTSEurofirst managed small gains today gaining 0.1% to keep its rally alive. The Spanish debt sale
tomorrow will be a crucial test with focus on the 10-year bond yields. Eurozone banks led the market
today with Banco Popolare gaining 6.2% and Societe Generale adding 1.3%. Deutsche was among those
not following the lead, down .6%, as the New York Times reported US prosecutors are investigating
them among several other banks on dealings with Iran and other sanctioned countries. September 6 th is
the next big coming date, as it is the next policy meeting.

Commodities are set to begin mixed as crude and gold begin down and silver and natural gas are set in
the green.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu

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The Final Doherty at the Close 8.17.2012


In major corporates news, J.M. Smucker, finished up 5.18% after reporting that their yearly profit will be above their initial projections following better than expected sales volume. Ann (ANN) jumped 20.57% after the retailer raised its yearly outlook and announced better than expected earnings. Finally, Foot Locker (FL) rose 1.71% following the athletic store’s upbeat earnings.
This will be the final Doherty at the Close as I finish my internship at KOTM and head back to school at Villanova this weekend. I hope you’ve enjoyed this market recap as much as I have. Thank you.

Thomas Doherty is majoring in FInance and Economics at Villanova University. Thomas@KeeneOnTheMarket.com

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Platinum Update 8.17.2012

Platinum producers have been battling falling prices and increased costs associated with mining. Before yesterday, platinum prices were trading down 21% on the year. Today platinum futures were trading at $1472.90 an ounce.

I remain bullish on platinum considering its correlation with gold. The spread between gold and platinum is currently very out of whack with gold currently overpriced with regards to the rarity of the metal.

Platinummmmm
David Cornes holds a degree in economics from the University of Montana.

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Natural Gas Update 8.17.2012

The coming week is expected to be cool along the Eastern Seaboard indicating restrained price bullish movement in the short-term.

The Energy Information Administration natural gas storage number released yesterday reported 20 billion cubic feet of natural gas in underground storage. Analysts were expecting 24 billion, the same as last week’s report.

NG8.17.2012 

David Cornes holds a degree in economics from the University of Montana.

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Treasury Yield Comparisons 8.17.2012

German yields reached six week highs after speculation that Spain would ask for a bailout as Spanish yields reached relative lows. Last week at this time short duration German bond were trading more negative than this week. For example, last week’s 6-month German yield was .1%, this week the yield is .02%. I will keep my eye out for any developments in Europe with regards to Spanish bailouts.

Opportunity still exists for traders to profit from the front end inverted yield curves of the UK and Australia.


Today LastWeek


David Cornes holds a degree in economics from the University of Montana.

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Morning Rage 8.17.2012

The Hang Seng rose near identically to the Nikkei gaining .8% due to Merkel’s support of ECB action,
however ended the week down .1% for its worst week in 10. China Mobile was down yet again losing
3.5%, now at its lowest since June 29 after having its worst single day of the year yesterday. Smaller rival
China Unicom and China Telecom lost 2.6 and 1%. Industrial and Commerce Bank of China rose 1.1%
however remains down 2.4% on the year.

The FTSEurofirst 300 rose .4% boosting the index to a 13 month high to begin today. The index is on
track to post its 11 weekly gain in a row, its longest streak since 2005. Autos were the best performing
sector rising 1% with banks right behind them gaining .8% whereas healthcare stock top the list of the
bottom losing .5%. The index has gained nearly 9% since Draghi’s words in late July. Around Europe
Madrid is up 1.6%, the French CAC up .05% and the German Dax up .22%.

Japan predicts it will emerge from 15 years of deflation in FY 13-14’ forecasting the GDP deflator will
increase .2%.

To add more salt to the wound, Spanish Bank non-performing loans rose to 9.42% in June from 8.95% in
May.

Commodities are set to begin lacking today with Gold up while silver and crude are down and Natural
gas looks to be stuck in neutral.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu