The dollar was last up .86 to 78.35.
The Dow was down 122 points.
Here are some major commentaries from John Williams who does analysis on government data and puts everything in proper order.
His figures are impeccable.
His latest findings are showing a negative M3 growth which is startling. His CPI is running around 9% and his rea; unemployment rate is still at 22%.
Here is his official releases: (click on www.shadowstats.com)
Although the following is not startling it is nontheless important for all to read:
Submitted by Tyler Durden on 01/19/2010 19:24 -0500
What is there to say about the endless barrage of insider sales that hasn't been said for 9 straight months before. Insiders are selling into the neverending rally, as domestic mutual funds have no equity inflows, yet stocks somehow miraculously keep rising, providing yet more attractive exit price points for directors and insiders. In the past week insiders bought $18 million worth of stock and sold $419 million. There is no way to spin this data. There were no notable buyers, while Nelson Peltz was vacating HNZ shares with a vengeance, selling $30 million worth of the canned food maker. Ralph Lauren also apparently wasn't too hot on Polo's Spring/Summer collection.
The PPI showed a .2% month over month gain as inflation seems to be seeping into the usa economy:
Inflation is certainly rising in these 3 countries, China, Canada and the UK:
REUTERS China gov't economist sees inflation, rates rising
BEIJING, Jan 20 (Reuters) - Chinese consumer price inflation accelerated "significantly" in December and is likely to average 3.0 percent this year, Zhu Baoliang, a senior government economist, said on Wednesday.
REUTERS UPDATE 3-UK inflation surges at record pace in December
LONDON, Jan 19 (Reuters) - Britain's inflation accelerated in December at a record pace, prompting worries that interest rates might rise sooner than expected, though the surge was largely due to an unflattering comparison with a year earlier.
REUTERS UPDATE 1-Canada inflation hits 10-month high on gasoline
OTTAWA, Jan 20 (Reuters) - Higher gasoline prices pushed Canada's annual inflation rate to a 10-month high in December, but the news is unlikely to knock the Bank of Canada off track in its pledge to hold interest rates steady for some time.
I rarely talk about what is going on inside the silver and gold warehouses of the comex. I do not trust the data. We know of deliveries of metal but they are not recorded.
We are aware of cash settling some of the contracts.
With that cautionary note, there have been unbelievable movements in silver at the comex recorded yesterday and today:
I would like to point out that january and Feb are non delivery months in silver. Movement out of dealer inventory cannot be explained. The shear number of oz of 4.45 million oz in one day is just not belieable. You would need over 60 Brinks armed trucks.
The inventory of the dealers is now down to 47.5 million oz. Normally the inventory is greater than 110 million oz of silver.
I have no answer for you but something is up!!
In gold there was a huge withdrawal from the dealer inventory to the customer inventory. However we are entering a delivery month (Feb) and this is normal:
We have witnessed two new ETF's trade. The commodity is Palladium and Platinum and with the introduction of these two metals, we have seen a dramatic rise in the price of the metals;
Demand for Physical Supply Fuels a Six-Month High; 'Everyone Is Watching'
Wall Street Journal – January 20, 2010
By MATT WHITTAKER And CAROLYN CUI
Platinum and palladium futures rose sharply, settling at their highest levels since July, boosted by demand from new exchange-traded funds that are luring investors but could prove to be a headache for consumers of the physical metals.
Benchmark April platinum on the New York Mercantile Exchange advanced 2.7% to settle at $1,639.40 an ounce while most-active March palladium on the exchange gained 3.2% to $461.95. The front-month platinum contract for January delivery gained $43.70, or 2.8%, to $1.635.10, while palladium rose $14.20, or 3.2%, to $461.70.
Since the Securities and Exchange Commission approved the launch of the new ETFs in late December, platinum futures have gained 15%, while palladium futures have risen 30%.
ETFS Physical Platinum Shares (symbol PPLT) and ETFS Physical Palladium Shares (PALL) began trading Jan. 8 on the New York Stock Exchange Arca platform and were the first ETFs for the platinum group metals in the U.S. These funds create additional investment demand since physical metal is put into storage to back shares that trade like a stock but track the price of the commodity.
The platinum ETF gained 3% to finish Tuesday's session at $165.12, while the palladium ETF rose 2.6% to $46.94.
The two funds have already each accumulated more than 100,000 ounces each of platinum and palladium, which are used primarily by the auto industry for the production of catalytic converters. The platinum market was about 6 million ounces, and showed a small surplus last year. A 100,000-ounce swing is big enough to turn the market to a deficit.
"Everybody is watching what is unfolding with these U.S. ETFs," said Timothy Murray, U.S. general manager of Johnson Matthey, a precious-metal refiner.
On top of higher prices, the volatility of platinum and palladium is hurting consumers such as car makers, liquid-crystal-display glass makers and medical-device makers. Amid sharp daily price movements, some customers have waited and missed opportunities to buy, while others have been forced to buy. "The ETFs are certainly making their lives difficult," Mr. Murray said.
Frank McAllister, chief executive of Stillwater Mining Co., the biggest palladium producer in the U.S., said that customers recently have been placing their orders for next year because they are worried about prices going even higher. "The ETFs are part of it," he said. Stillwater plans to increase its palladium mine production by 29% to 515,000 ounces this year.
Analysts expect further metal-price gains as buying of the physically backed ETFs effectively removes metal from the market. Commerzbank analyst Eugen Weinberg estimates the amount of platinum purchased for the New York-based ETF since its launch was more than double the amount produced by mines during the period.
Russia has announced a huge 800,000 oz of gold gain to official reserves or about 27 tonnes of gold. I am sure this is from their agency sovereign entity, Gokhram.
This was announced earlier in the month. Here is the official release from Moscow:
Here is a Jim Sinclair article on the total breakdown of credit in the usa marketplace:
Here is Dan Norcini on the tightening of credit in China and its meaning: