Traders & Investors Club

The gold rally in early June failed to make a new high and silver and copper are also displaying signs of technical weakness along with most of the commodity sectors. Conversely, the last US Dollar pullback found support right at the 76.8% Fibonacci retracement level which may well confirm the continuation of Kevin's long-predicted Dollar recovery.

The technical picture of the stock market is one of continuing weakness on both sides of the pond. The QE-fueled stock and commodity buying frenzy is about to run out of gas which leads Kevin to suspect that a long-term top in both asset classes is not far away. He does not rule out one last bear rally; it all depends upon whether or not the virtual money printing presses will be cranked up yet again.

All of this coincides with the recent Financial Services Authority mini-survey of Wealth Managers (firms that manage assets and investments for retail clients) stating that 14 out of 16 of them were judged to pose "a high or medium risk of detriment to their customers". This may be news to the FSA and the financial press but it is hardly news to us here at the Club. It would actually be funny if it weren't so serious.

As the inevitable deflationary scenario plays out, the Financial Regulators still continue, King Canute-like, to command the ocean to retreat. Isn't it said that a sign of madness is to repeat the same behaviour over and over again and yet expect a different result each time?