“Asking the important questions in life!”
Just when you think Asia can’t possibly go any more “full retard” in their quest
to push gold higher, along comes last night with another $20 blast to the upside.
Even in 2011, I don't recall it getting this frothy, this quickly … but no matter,
we’re here and it’s just beginning.
The important question, though, is asking, “is it different this time”? … and
before reflexively simply saying “NO”, there are some considerations to consider
that might change the balance of power in gold’s favor … 1) the world is in far
deeper debt than in the 2008 - 2011 bull run, 2) over $12 trillion in negative interest
rates on sovereign debt and climbing daily, 3) much greater political hostility,
4) China, 5) gold is under owned relative to other asset classes like never before,
especially in the U.S., and 6) central bank QE cannot solve the world’s problems
and only digs the hole deeper.
Add ‘em all up, and we are indeed in a new gold paradigm … the really good news
isn’t that gold has rallied sharply over the last several weeks … no, the good news
is that 1) volatility is higher and most likely will stay elevated for a very long time,
and 2) trading ranges will be much higher going forward than previously seen
… and that means profitable trading, instead of being “stuck in the mud” with shit
ranges and dealer "scumbaggery".
Make no mistake, the “scumbaggery” will always be here as long as the large New
York & London banks run things … that shouldn’t be a surprise … but, the agenda
for gold can’t be controlled any longer, and the fiscal irresponsibility of
governments is being laid bare before investors like never before … they’ll take
their “ounce of flesh”, but they can’t control the ranges or volatility like in the past
… and remember, the higher we go the more volatile the market.
Gold two months ago looked dead … no interest, no volumes, no liquidity, and
scant investor appeal … amazing what happens when the world wakes up and
discovers en masse that governments are full of shit and can’t be trusted,
something we’ve known like forever! As I have previously stated on the blog,
“gold doesn’t matter until it does”! … well, it matters now … and I don’t see it
backing off anytime soon in the volatility department … we are just at the very
beginning of this move higher, and now that the 6 - 8 year resistance levels got
taken out rather quickly, it should make for good trading going forward for a very
long time … all I can say is “bout EFFING time”!
The “Chuckleheads” overnight ramped the range to over $20+, before getting
nervous and seeing gold go to the lows for the day so far … so, not the one way
street they usually find themselves driving down … to say that gold needs a “rest”
is an understatement, but like always when it comes it will be quick and vicious,
taking no prisoners and filling sell stops at the low of the move. New York is
coming in now … bid/offer spreads can be expected to be a few pennies higher,
given the increased level of volatility, but shouldn’t … I repeat shouldn’t present
any problems for the market … however, knowing the scumbag bullion dealer
banks, they’ll use any excuse under the sun to pad their pockets … oh, it’s good
to live in interesting times!
Today’s action rather quiet, given recent days, until Fed Pie Hole Bullard throws
some cover for the scumbag bullion dealer banks [who no doubt are short a
shipload] and lets it slip that a 50 basis point rate cut at the end of July “ain’t
gonna happen” … and Bingo,Bango, BOOM!, down goes Frazier to a new low for
the day, at which point banks can’t buy enough to cover shorts … don’t you wish
you had somebody that would cover for you like the FED does with U.S. banks?
I should have pointed out yesterday, that our new algo modifications will start
tomorrow … I always do trading in my account first, to make sure changes are in
fact warranted in real time, and not simply being biased by hindsight … so today
sees me & the crew here trading their frickin’ brains out and making a shipload of
money … yup, it is better than excellent. Tomorrow sees our first full day
implementing the algo for the PAMM.
My only hope is that gold stays this volatile in the weeks/months/years ahead of
us … these type of ranges, whether they occur in Asia or not, are great for gold.
Given what I said above, I think it has a very good chance of remaining like this
for a very long time … “about time the world woke the F up and figured it out”!
So, I might be in Asia tonight, we’ll see what China does on the open … otherwise
onto tomorrow mi amigos … Onward & Upward!!
Have a great day everybody!