Friday, October 11, 2013

Asia Wants to Take Candy From Your Baby, and Other Must-See Charts for Friday

In yesterday's post, I gave you a bunch of bullish charts, mostly in energy, and said the easiest path for gold prices was down. Well, all three of those energy picks are up today, and gold is way down. 

If you're bullish on gold and just got kicked in the teeth, don't worry. Your day is coming. In the meantime, here are some charts I find interesting. You should give them a look as well.

Chart #1: Asia Wants to Take Candy From Your Baby!

Bloomberg reports that Asia’s craving for chocolate will outpace the 2.1% increase in global demand in 2014 amid a rally in cocoa prices to the highest in almost two years. So, if you're looking for a commodity to get long, there you go. Also, lock up the brownies.

Chart #2: Fed Hawks and Doves

I'm not talking about the (pretty lame) superheroes, I'm talking about which Fed Governors are easy-money maniacs, and which are austerity kooks.  Hey, that's how THEY describe each other, not me. Anyway, this handy chart will help. Oh, also, Congressional shenanigans have sparked fiscal problems that make a QE cut less likely. The story says no cut in October, but I'd be surprised if we see one in the first half of 2014.

Chart #3: Gas Prices Falling 

You're probably aware of this anyway, but here's a chart to make it easier to visualize. Usually, this is a sign of recession, and it still could be if Congress screws the pooch. But this time, it's just the demographics that see America driving less and driving more fuel efficient cars. Meanwhile, Asia will take all the fuel we can sell them, so don't worry about America's energy producers.

Anyway, I'd take lower gasoline prices as an economic boost. If you were looking for a reason for the market to rally or something.

Chart #4: Fed Governors Shrinking

Judging by this, our next Fed Governor is going to be a hobbit, or maybe a Zuni fetish doll.  'Nuff said. 

Chart #5: Jobless Claims Spiking

Thanks to the government shutdown, jobless claims jumped to a 6-month high.  In fact, Bespoke Investment says that jobless claims spiked the most since Superstorm Sandy.

Interestingly, Goldman Sachs says that the government shutdown is eating away at GDP growth.

Chart #6: Foreign Holdings of US Debt

China has $1.2 TRILLION riding on Washington figuring a way out of the mess it has made.  Do you think the Chinese might be a little nervous? Japan has $1.14 trillion, so it's nervous, too.

Other Stuff You Should Read

Hey, and remember how I said that natural gas looked poised for a breakout on October 9? Well, it just spiked to a 3-week high

A bank examiner says she was told to "back off' taking a closer look at Goldman Sachs.

Why the White House Rejected the Latest Republican Proposal. Don't be ashamed to admit you're confused.

There's a loophole that could open the door to a wave of intra-state secessions. I'll be the Governor of East Texas. Yee-haw!

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