I’m always interested in how Government ties in with the markets. It’s been a bit of a hobby of mine, along with WWII battles, over the past 2-3 years and there’s no bigger tie then Goldman and the Government then recently…and BOY is it bigger then we know! In my recent late night surfing I came across Greg Roy. Greg recently released a special report with the same title of this blog post, Goldman Sachs’ Next Slaughter of the Stock Market Lambs, and being the digger I am, I read the full report and cold called him. I asked if I could repost a part of the report for my Trader’s Blog members. After some convincing he said ok.

This guy knows what he is talking about… Here is an exclusive excerpt from his newly released report Goldman Sachs’ Next Slaughter of the Stock Market Lambs.

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Goldman Sachs

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The OCTOBER 2009 trading results of my computer generated RadarScreen follows.  I am not particularly fond of mechanical trading but who am I to judge how others choose to trade?  I prefer the discretionary approach based on other factors besides a signal generated by a computer program.  That is just me.  Most of these trades would have never made it to my discretionary screening.  And there are several discretionary trades that were never triggered in the RadarScreen.  Go figure!?!  With proper money management and discipline to enter and exit trades a disciplined trader can make money with a mechanical system, mine or otherwise.  It is all up to the individual.  This is really an experiment for me as I compete against the computer. My discretionary numbers are also listed below and are few in number.  I am very picky about my trades as you can tell. If you are a day trader

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Gold was steady on Monday after briefly falling below $990 an ounce, as the euro trimmed some losses versus the dollar, but bullion looked vulnerable to a long liquidation after it failed to stay above $1,000 an ounce.

Physical demand was also supportive for the precious metal, traders said, who saw the jewellery demand picking as as the festive period in India, one of the top gold consumers of the world, approches.

Spot gold was at $991 an ounce by 1121 GMT, slightly up from $990.95 an ounce late in New York on Friday, when gold hit a two-week low of $984.70 an ounce.

“The stronger dollar is the reason which pushed gold below the $1,000 an ounce level,” said Eugen Weinberg, Commerzbank analyst said. “On the other hand, we’d expect a pick-up in physical demand if prices decline ahead of the festive season.”

Gold’s inverse relationship with the dollar over the past few weeks

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Standard & Poor's will consider creating a commodity futures index that excludes commodities listed in the United States, according to a new report in the Financial Times. Michael McGlone, head of the S&P GSCI, says the firm has been flooded with requests from clients concerned about the impact of the expected regulatory crackdown on commodity investors by the Commodity Futures Trading Commission.

The CFTC is widely expected to enact new rules this fall that would severely limit the size of positions that investors can take in the commodity futures market.

Many have predicted that such a crackdown would only serve to move commodity investors overseas, and the announcement by S&P is the latest sign that such a migration may in fact take place.

The S&P GSCI is the world's most popular commodity index. Approximately $60 billion is currently benchmarked against the index.

Read the full story here.

 

The dollar rose broadly on Monday, hitting a near two-week high against the yen, as traders trimmed short positions in the U.S. currency following broad losses so far this month.

Against the yen, the dollar rose more than a full percent, after speculative flows pushed it higher in quiet trade in Asia, where markets in Japan, Singapore and other centres were closed for holidays.

In the absence of economic events or data, traders took profits on currencies which have rallied against the dollar, including the euro, up more than 2 percent so far this month.

Analysts said some investors were becoming concerned that short dollar positions were overstretched, suggesting that a near-term correction may be in store.

“There’s already a lot of long euro/dollar positions in the market so it’s difficult to push the pair higher,” said Lutz Karpowitz, currency strategist at Commerzbank in Frankfurt.

Data from the Commodity Futures Trading Commission showed that currency

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Following the U.S. Treasury’s announcement last week requiring the world’s banks to maintain stronger capital and liquidity standards by the end of next year to prevent a re-run of the global financial crisis, 15 large banks that control the majority of derivative trading worldwide have committed themselves to maintaining greater transparency in a $600 trillion market that needs stricter oversight in the interest of the global financial system.   As part of a series of voluntary steps by the banks to expand the use of clearing houses for the over-the-counter market in derivatives, the international banking group on Tuesday made the commitment for targets in expanded central clearing systems to the Federal Reserve Bank of New York. Bank of America Corporation (BAC), Citigroup Inc. (C), Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS) and JPMorgan Chase (JPM) were included in the banking ...

Commodity speculators take heed: The popular crude oil exchange-traded note DXO is kicking the bucket — quickly and controversially — and other similar securities might follow suit.

Deutsche Bank announced late yesterday that they were pulling the plug on the PowerShares DB Crude Oil Double Long ETN (better known as DXO). Most ETFs and ETNs die out because they can’t attract enough investors. DXO seems to have suffered the opposite fate.

In the new clampdown on commodity speculators, it’s no huge surprise to see the world’s most popular double-long, leveraged ETN fold suddenly. Deutsche Bank didn’t specifically claim that the Commodity Futures Trading Commission put the kibosh on the DXO, but their press release did cite a “regulatory event” as the principal reason for the closure.

Set to close on Sept. 9, DXO is now hemorrhaging. We’re not sure which is worse for share prices: its imminent closure or that it’s double

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Gold bullion holdings rise at ETF Securities' trio of exchange-traded products.

 

ETF Securities said Monday that its three gold exchange-traded products increased their bullion holdings by 6.1% in the previous week, according to Reuters. The U.K.-listed funds, including Gold Bullion Securities and ETFS Physical Gold, held 7.989 million ounces of bullion on Friday vs. 7.53 million ounces on Aug. 21.

The increased holdings are a result of record capital inflows: In the past week, ETFS Physical Gold received new investments of $646 million, the company said last week.

The company also said last week that its U.S.-traded ETFS Silver Trust (NYSEArca: SIVR) product has expanded its assets under management to over $100 million since listing on July this year. The fund is up 5.8% since inception. “Investors are becoming increasingly bullish towards silver,” the company said.

The increase in bullion holdings of ETF Securities’ gold funds and the expanding AUM of SIVR come

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Monsanto Corp. (NYSE: MON), the world’s largest seed maker, says it’s on track to more than double its 2007 profit by the year 2012 and is expecting a “technology explosion” to provide even stronger products going forward. But while Monsanto continues to build on its reputation as a cutting edge agricultural business, it is also under siege by competitors and advocacy groups who claim the company is a monopoly.

The St. Louis-based Monsanto said in June that its fiscal third-quarter earnings fell to $694 million, or $1.25 a share, from $811 million, or $1.45 a share, in the same period a year ago. Sales slipped to $3.16 billion from $3.54 billion last year. The company also said its annual earnings would likely be at the low end of its $4.40 to $4.50 a share forecast range.

That’s not very impressive for a company that last year posted record net sales

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Sponsors of the United States Natural Gas Fund (NYSEArca: UNG) took baby steps toward restoring the fund’s ability to issue new shares yesterday.

 

Sponsors of the United States Natural Gas Fund (NYSEArca: UNG) took baby steps toward restoring the fund’s ability to issue new shares yesterday.

UNG is an exchange-traded fund that invests in the natural gas futures market. The fund stopped issuing new shares on Aug. 12, citing regulatory uncertainty in the commodities marketplace. The Commodity Futures Trading Commission is investigating the role of ETFs in the commodities market and is expected to announce strict position limits for such funds. Many expect the $4 billion UNG ETF to exceed the allowable limits, as it controls a significant portion of the front-month natural gas futures market.

Since halting the issuance of new shares, UNG has traded at a sharp premium to its underlying net asset value, as demand for the fund has outstripped

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