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Before The Bell: Gold Losing Luster; Tough Times For FedEx


Gold is headed for its largest weekly decline in 25 years. Fedex see harsh future.

Morning Perspective: Gold Losing Its Shine?

According to Bloomberg, Gold is headed for the largest weekly decline in 25 years. This morning gold fell 3.1% to $914.64 in London after earlier hitting its lowest level since Feb. 19. Assets in StreetTracks Gold Trust (GLD) declined 2.2% as investors dumped the precious metal on the belief that the dollar has bottomed. GLD is the largest fund backed by gold. The 8.8% decline in the commodity this week marks the largest since March 1983. For more, read Professor Lance Lewis' column Yellow Metal Retreats.

From the Bull Pen: Professor Lewis said corrections are part of every bull market and maintains his bullish stance in gold. Bulls can attempt the upside in GLD with an entry at $90 and sell-stops below $86.

From the Bear Cave: Professor Cooper had a bearish play on Agnico-Eagle Mines (AEM). Bears believe the stock may be headed for the $65 strike. Buy-stops can be placed above $70 on any downside attempts.

FedEx Beats but Guides Lower

FedEx (FDX) reported earnings for 3Q this morning. The company said earnings per share came in at $1.26, which was $0.04 better than analyst estimates of $1.22. Revenues increased 9.9% year-over-year to $9.44 billion also above consensus estimates of $9.11 billion. The company; however, issued downside guidance for the fourth quarter with EPS coming in the range of $1.60-1.80 vs. $1.95 consensus. The company also stated that the forecast assumes no additional increases to current fuel prices and no further weakening in the economy. For context, read Toddo's Random Thoughts: The Phantom of Deflation.

From the Bull Pen: Given the overall economic concerns, bulls may look to other areas for upside plays. Coca Cola (KO) may be an option, sell-stops can be set below the 200-DMA ($57.70).

From the Bear Cave: With FedEx trading lower, bears can expect downside pressure in UPS (UPS); buy-stops can be set above yesterday's high ($72).

For more ideas, see Minyanville's Spotlight Stocks.

Quick Check Around the World

The shortened week winds down as Asian markets are mixed up and Europe is in the red.

Asian trading closed with the Hang Seng -3.47%, Taiwan +1.93% and Shanghai +1.13%.
A quick glance towards Europe finds the CAC -1.26%, DAX -0.65%, FTSE -0.74%,

As of 8:30 AM EST, S&P futures are higher by +3.7 points to 1302 and Nasdaq futures are up by +6.75 points to 1731.

A Look At Commodities

Commodities are lower. Gold is down -25.3 to 920.00. Crude is lower -3.30 to 99.22. Silver is down -1.075 to 17.320, and copper is off -11.55 to 354.40.

The dollar index is higher +0.652 to 72.798.

On the Radar

Initial Jobless Claims: 378 k vs. 360 k cons.
Continuing Claims: 2865 k vs. 2840 k cons.

10:00 Philadelphia Fed: -19.0 cons
10:00 Leading Indicators: -0.3% cons

Good luck today and enjoy the long weekend!
Initial Jobless Claims: 378 k vs. 360 k cons.

Continuing Claims: 2865 k vs. 2840 k cons.
No positions in stocks mentioned.

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