IT STARTS

 

“When the world’s masses start buying … there will be no top!”

Of course the “Chuckleheads”, right along with Mrs. Wantanabe & Gal Pals, 

panic bid gold higher at the Asian close into the European open … it’s what 

they do best! And if history is any guide, after a $16 range for the effort, New 

York will be a bucket of shit, as the dealers attempt to sell it off, and take the 

“Froth & Mojo” out of the market. Now, there are times when those attempts 

fail, price continues higher, and we end up with a mini melt-up … and for that, 

we need the SP500 to nosedive below 2700 during the NYSE session, and more 

importantly stay there.

What makes gold so incredibly tough a market to make money trading, is that 

New York is historically & generally, a “bummer” for gold bulls … as I’ve 

stated previously, and if you somehow think I’m stretching facts a bit, then do 

the research yourself and check it out … “without New York, gold would already 

be above $10,000 per OZ., cuz the majority of the rallies come from Asia & 

Europe, and almost ALL the selling occurs in New York … not every single dollar 

of course, but the vast majority of any bull up move doesn’t happen in New York”.

Turning to today’s gold market … “So, here we are with a $16 range … don’t be 

surprised if it isn’t extended much or at all when the day is over … I hope not, but 

the market doesn’t ask or want my opinion” … we’ll see what happens. 

And like the sun rising in the East, lo & behold the longs get sucked in, the 

“Flying Wedge of Death” [FWD] shows up, the range is extended a paltry 

couple of bucks, and the market tanks when stock indices go  

“Thelma & Louise” and gold can’t rally … and here we sit at midday with the 

aforementioned “bucket of shit” … “this is what happens when Asia & part of 

Europe put in a $16 range and then the metals dealers show up for New York 

trading … having fun yet”!?

If you don’t know history, you’re doomed to repeat it! And gold throughout the 

years and decades I’ve followed it and traded it, has a definite pattern of 

behavior that is unique to markets … it picks up “Froth & Mojo”, and then 

proceeds to lose it … it’s “fingerprints” I’ve talked about before and are 

predictable … and finally, anytime the lemmings in Asia do “stupid shit”, like 

rallying or dropping price > $10+ per OZ., 90+% of the time New York will 

undo it and make fools out of those traders that were dumb enough to think 

gold is some kind of “straight shot” to money making heaven … not 

back-in-the-day, not today, and for sure not tomorrow either!

Here in the early PM afternoon in New York, and gold looks to be lucky if it 

can hold 1230 … the correlation magic with USDCNH, now a long forgotten 

memory, since the ChiComs have left the YUAN/GOLD peg go to hell in a 

handbasket … so that leaves the “SPOO’S”, the SP500 futures contract for 

traders to become obsessive over and chase price up/down over every futures 

tick … “enter the “Plunge Protection Team” [PPT], and if you think somehow 

this correlation will work out to being long gold, well, I got some beachfront 

property in Kansas to show you! … the PPT will ensure most traders in both 

gold & Spoo’s, get shafted “bigly & yuge” … and sure enough, mission 

accomplished looking at both M1’s in each market”.

One trade buy signal in the C2 & PAMM … PAMM up a few bucks.

Looking at the screen when I came in at about 5 AM EST, I knew right out of 

the gate, it was going to be another bullshit day … only more “chop” with 

more spikes … and while I thought there was a chance for gains above 1240, 

however brief they might be, dealers put the hammer down rather quickly off 

the high … “simply put: this is what you get when Asia has a $16 range; don’t 

count on further gains”. Here at 1 PM EST in New York, gold is about $3 lower 

than where it was 8+ hours ago, hanging onto the 1230 handle by a thread 

… and if this is some kind of shock to you, then you haven’t been listening 

these last weeks and months as I’ve written about gold … “gold is infamous 

for shit like this”!

The one buy signal we did get, made us sweat a little before rallying 

… nevertheless, I’m not unhappy jettisoning the trade when I did … seeing 

stocks getting “monkey hammered” and gold limping higher “inch by inch”, 

instead of running like it should have, had me nervous in the trade for 

anything substantial on the upside … sure, we got one more blitz higher, but 

that blitz itself got faded quicker than a cheap suit in sunshine … and now, 

here we are lower in the PM … maybe it rallies back some, but this market 

needs to see some downside action … with 40K retail spec longs coming 

onboard these last 2 weeks, I think some of them got out today, and the rest are 

positioned with stops below the 1229- 1227 level … the downside action doesn’t 

need to be vicious, just quick … unless stocks get their rally boots on from here 

into the election, I don’t think the 1220 - 1215 level gets breached.

Today sees another day of below average 8 hour ranges for New York; the 7th 

in a row … my advice for Asia? … “take some fucking Valium or something and 

settle the fuck down! … stop buying the damn highs, and stop panic selling the 

lows … in other words, stay up late and “pajama trade” New York, and quit being 

the world’s biggest idiot traders … FFS”!

Onto tomorrow … let’s hope the morons in Asia don’t ruin another trading day 

… I’m outta here … until tomorrow mi amigos … Onward & Upward!!

PAMM Spreadsheet directly below.

 

click to enlarge

Have a great day everybody!!

-vegas

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