News that Moves: Kudos to IBD, Technical Trader's Take: Gold / US$ / US Treasuries

RCM Comment: I love a good reality check. The majority of media outlets are clamoring to report on bank bailouts and market rallies. However, the story below gives a good view of the real world and the obstacles in the way of a sustained recovery. Credit must be given to the Investors Business Daily for its shrewd and even-handed reporting.

Amid Push To Save Giant Banks, Small Ones Fail At A Rising Clip
By MARILYN ALVA, INVESTOR'S BUSINESS DAILY

The federal government has put hundreds of billions of dollars into financial giants such as Bank of America (BAC) to keep them afloat, claiming they are too big too fail. But what about the 8,300 other banks and thrifts that account for a third of the nation's deposits and at least that much of business loans? Fail they may, as have 58 since the recession began in late 2007 — 33 since the start of this year.... Read more.

Technical Trader's Take: Gold has quietly crossed above the $920 line of resistance and sits at $933 as I write this note. Meanwhile, the US$ is poised to break down or has already done so against a number of other currencies. Treasury yields are breaking out as prices break down.

A technical analyst's job is similar to that of a big game tracker: We scan the path for footprints and try to determine the animal and direction. The footprint I described above suggests perhaps that an Asian elephant has become weary of feeding on US assets and is instead moving on to more golden pastures. The herd is sure to follow, stay alert....