Tuesday, July 13, 2010

R.I.P. George Steinbrenner (1930-2010)

Love him or hate him, he was provacative and kept baseball interesting


  1. Dave, we moved recently so I haven't been able to post for a while. I started to post, then came across this article from Jesse. Sums up everything better than I could hope to. It's based on an article by Chris Whalen.


    I dunno if the Tea Party will be it, but I think at some point a 3rd party has to emerge as Gerald Celente has called for.

    Americans will eventually figure out that the 2 parties are essentially the same except for positions on gays, abortion and welfare.

    BOth sides take 'campaign contributions' from the moneyed and powered interests, and their views are essentially the same, especially when it comes to voting on or crafting legislation, NOT the rhetoric they spew in front of the camera. I like Jesse's term 'faux democrats', sums up Rubin and his crew.

    It is so confusing all these overlapping ideas: welfare and generous pensions for everyone...from your own pocket, don't tax the rich or they'll leave vs everyone pays a fair share of tax, Austerity for...the poor and middle class. Only the rich produce anything of value, not government....Then we privatize public utilities and they gouge the people with higher prices, and fees. CEO's take obscene bonuses based on accounting chicanery so many times the average workers salary to loot the companies they work for and look the other way. Do unions defend workers from the capatalist fatcats (Seinfeld reference)...or do they cripple the companies they work for?

    Everyone seems to be feeding at he trough in an intense frenzy to get what they can before the House of Cards collapses. A reset must be in the cards, if you believe in cycles or not.

    I listen to Barney Frank and Geithner then read Andrew Jackson's words. Hard to believe this is the type of people we now have running the US.

    Sorry to ramble its been a while.

  2. I liked those Seinfeld episodes with Larry David as Steinbrenner's voice. Hilarious.

    I wonder how much gold Georgie boy owned.

  3. Welcome back Rothbard! Thanks for the comment

  4. Harvey Organ says

    "I am totally amazed at the upcoming options and expiry of gold. August Comex gold, strike calls, puts
    Strike Price calls Puts.
    1180 2794 5080
    1200 5331 7114
    1210 1080 2104
    1220 985 2096.
    Notice that in every strike price, we are witnessing a two to one ratio of puts over calls. For years, it is always two or 3 to one of calls over puts.
    Thus it will be almost impossible for the crooked bankers to force the options into worthless territory.
    Suppose, they knock gold down to 1180, then the 1180 puts and calls would be worthless, but the 1200 put with 7114 contracts, and the 1210 put and the 1220 put would be in the money and these could be exercised for contracts. The put traders are always the more clever players, followed by the call players."

    Can you tell me what I am missing here. Month after month we have seen the calls cleaned out on option excercise date. Now like a drunk playing find the lady they switch in desperation from calls to puts and guess what the price of gold is now going to soar and they are going to get cleaned out again.

    Can you tell me why this is not bullish for gold?

  5. I was the source for Harvey's comment. Here is the entire section of last nite's Midas report:

    *Chuck Cohen has had some hot hand lately with his insightful analysis of the horrendous stock/gold market sentiment as a significant reason for both to rally. The weak hands have been shaken out of the gold market. More from Chuck this morning…

    Bill, it still looks very strongly that the unreal negativity towards stocks (see Hulbert article above) is being exactly matched by the attitudes towards gold. I would assume that the Hulbert Gold Survey remains very cautious while today the DZZ-DGP ratio is at a remarkable 2:1 ratio, the highest or most bullish I have ever seen. This persistence of unbelief must mean that the move in gold and silver will be something we have yet to see.

    The gold market reminds me of the breakout of the stock market in August 1982 when, after dropping 7 days in a row down to 776, it went up 45% over the next two months and 350% by October 1987. Chuck

    *The Café Sentiment Indicator hit an all-time low the past four days. Never seen anything like it before taking into account the level of the gold price. It is SO bullish!

    *Gold has weathered the bandied about BIS gold swap news perfectly, suggesting the real deal IS market friendly, and a reason why it was hidden and not announced when the gold swap occurred.

    *The demand for physical gold below $1200 has been very pronounced, as brought to your attention in this column. The Gold Cartel was using up too much ammo at those prices to press their case at such cheap price levels.

    *The technicals are extremely constructive as brought to our attention by Dave from Denver…

    I agree with Chuck, but this is even more compelling:

    August Comex gold, strike calls, puts

    1180 - 2,794 5,080
    1200 - 5,331 7,114
    1210 - 1,080 2,104
    1220 - 985 2,096

    I don't scrutinize this heavily every month, but when is the last time you can recall ever seeing at the money/near money strikes with a significant amount of more open puts than calls. I cannot. This is hugely bullish.

    A high put/call ratio, in fact I've never seen a put/call ratio on Comex gold greater than one, is one of the best contrarian market indicators of which I am aware. Combine that with DZZ/DGP volumn ratio as per Chuckie C. and THAT IS HUGELY BULLISH!!