“What Asia should scream at the gold market!”
Iteration number [pick a very high number … no, higher!] into the stratosphere
… again, there isn’t anything Asia can do that New York doesn’t undo, once
trading goes through Europe into New York … about 90%+ accurate over time,
and while it’s easy & tempting to blame Mrs. Wantanabe & Gal Pals and/or the
assorted “Chuckleheads” that trade over there for being stone cold idiots each
and every day, a more serious analysis is my premise that the ChiComs buy in
Asia for physical metal, and don’t care about price … they just want the physical
metal … and they use their trade surplus with the U.S. to pay for it.
And then right at 7 AM EST, when our day starts, gold explodes higher in 3
minutes from nowhere, and here we are hours later only fractionally higher than
that … from my perspective, it’s gonna be very tough sledding higher from here
for 3 very big reasons; 1) gold is in its 10th week of being higher, something that
has not happened in the last 20 years of trading … not sure if it happened before
that, but we’re talking about sub $400 gold at this point, and it’s a far different
market now versus then, 2) the entire retail spec world is long gold, and looking
to get clubbed like a baby seal at a Japanese whale hunt, and 3) there will be
almost no news until the FED meeting on July 31, so look for some nervous
Nellies ahead of the FED … that’s not to say it can’t go 12 or 15 or even 20 weeks
in a row up … it most assuredly can … but if it does, it only means the trip down
will be more nasty & vicious than most of you have ever seen before, and wipe
out an entire generation of traders within days … trust me, they’ll find a reason
to do it.
Quite frankly, there’s no economic data in the U.S. the FED can point to that
justifies rate cuts … so unless they are simply building asset bubbles [yes, they
are!], there appears to be room for some major disappointment come July 31
… my guess is they cut 25 basis points and it’s “buy the rumor, sell the fact”
in most everything.
So, it should come as no surprise, other than screwing Asia again, that gold
continues to chop this week … the price breaks we most assuredly need, we
aren’t getting … the ones that screw the sell stops … every decent break has
ONLY come from a move up, NOT from a move down and then the sell stops get
hit off … last night in Asia saw this exact scenario … why the New York banks
aren’t tripping sell stops, I haven’t a clue, cuz it goes against their grain of
sandbagging retail specs … yes, there are legit reasons for gold to move higher,
but history suggests it won’t be with everybody on board for the ride … so far,
smooth sailing for the position holders in futures … I see very dark clouds on
the horizon for sell stops, and unless you somehow think gold is never gonna
have another down week [good luck with that], and that record length weekly
closes continue on the upside, you better be “Hoover Dam” careful being long
this stuff, cuz it ain’t gonna take much to send it “Thelma & Louise” for a short
term very painful ride to some kind of washout bottom … history of gold action
will confirm my cautiousness. “So New York … start doing your “Hoover Dam”
job already”!
Gold is so skewed as a market trading mechanism, it’s not even funny anymore
… Asia versus New York doesn’t even look, feel, or trade the same … they might
as well be different commodities … the way the FED manipulates gold, at the
benefit of the scumbag banks is disgusting … notice whenever price gets a little
out of line to the upside, along comes an Apparatchik from somewhere in U.S.
government to slap it down with some comments … and so starts the drops from
the top … in fact, the entire 10 week trip up, outside of the first few days, really
hasn’t seen any good buying from the New York session … it’s all come from the
“dark hours” and Asia … as a trader, it leaves you with nothing to hang onto, as
New York does nothing but screw people from every angle imaginable … long,
short, it doesn’t matter … then, after a grueling 8 - 10 hour day of fighting this shit,
you watch the market reopen at 6 PM EST for the new day, and it literally explodes
in your “Hoover Dam” face … something it couldn’t do if God was trading it
during New York hours … and it leaves you exasperated & frustrated at having
been played again … welcome to gold, it’s done this for what seems like forever,
and is the main reason the vast majority of traders who have traded gold lose
money. It’s called the “Comex Con Game”.
It’s Noon in New York … down $10 in Asia … up $14 in Europe & U.S., and since
the 10 AM EST data, gold is about $7 - $8 off the highs for the day, sitting in the
middle of its range around 1422 - 1423 … spikes from hell all over the place, as
scumbag bullion dealer banks front run Comex gold futures orders at the LBMA
[which is where we get the spot gold price XAUUSD] and give us bullshit
bid/offer quotes so traders can hang themselves into buying high offers and
selling low bids … nice thieving work if you can get it … criminals all of ‘em. But,
government sponsored criminals, so that makes it OK!
For the last couple of weeks, getting solid buy algorithm signals has been very
difficult … no algo buy signals today, mainly cuz all the breaks are coming off
screaming higher prices, and gold is not threatened to the downside … the way
this entire bull market has shaken out since May 1, is an episode for “The
Twilight Zone”, thank you very much manipulators … this should be changing
here soon, as there is NO WAY everybody gets to ride the bull train up and gets to
sell the top … so, I’m looking for more algorithm signals as we move forward. I’m
not at all disappointed in the algorithm, but in the way the market has decided to
implement price rises … that’s pure horseshit … and if it was up to me, I’d outlaw
New York banks from trading gold on ANY proprietary basis; that includes trades
on their balance sheet as well as the IBC’s in tax havens they control and send
bucketed trades. Of course, this will never happen, cuz everybody in the trading
food chain gets a cut from these offshore entities … this is how the trading world
works.
I want to be clear, though, in that I’m not looking for some major crash in gold,
but simply some weekly downturns in the $15 - $20+ range, that reflects long
liquidations … trees don’t grow to the sky, and neither does gold … if the market
were real instead of manipulated, it would be easier … however, we deal with the
cards were given and go from there … as it looks now, nothing of real significance
is gonna happen until 2 PM EST on July 31 on the upside … the downside could
be far different simply from position squaring and the need to protect futures
profits if price starts to go south … we’ll see what happens, but right now it’s
simply a game of “hurt the shorts, then hurt the longs, rinse then repeat” … and if
you’re not out before the turn, it can get quite ugly cuz you have no idea where or
when it will stop.
As we enter the afternoon trade, you can see long liquidations starting to
become a factor … get below the low at 1414, and it has the potential to get ugly
quickly … and btw, that would be a major double reversal, something almost
never seen in gold unless there is major news affecting price … and we aren’t
facing that … so becomes the very skittish nature of gold at the moment and
being long with a sell stop underneath … you simply got no idea how bad it can
get, and while you’re thinkin’ you’re only risking “X”, history says it can be “10X”,
cuz longs usually have their stops bunched in the same place on the charts, and
I got news for you … “banks can read charts too”!
Ending the trading day, right near where we started it [so far] … yuck! … Onto
tomorrow mi amigos … Onward & Upward!!
Have a great day everybody!
-vegas
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