“Gold feasts at the chocolate factory!”
“Well, that escalated quickly to the upside, didn’t it”? … what took six months before, has taken 5 days now … and I’m left wondering if the default by Venezuela on a $750 million dollar loan collateralized with gold via Deutsche Bank, has anything to do with the explosive rally we’ve seen over the last 5 days … what if the collateralized gold was “leased out” to third parties, and now those 3rd parties can’t find the gold to return, and it’s forced Deutsche Bank to scramble and cover? … which begs the question, “just how uncovered and/or short are the big bullion banks when it comes to gold”? … and what if some big mega corporation decided to take some of their cash hoard [cough, Apple, cough] and put it into gold and announced it publicly? … to the moon Alice!
But, and this is a very big but, first gold has got to get above 1340 and STAY THERE … the 7 year resistance zone between 1340 - 1370 is gigantic, and I can only imagine the scumbag bullion banks passionate defense of said resistance with glee … however, all things must eventually come to an end, and gold price suppression is surely due … it’s only a matter of time, and when said resistance is taken out, the world suddenly remembers gold again and look the hell out above … until then, though, it’s simply the “Comex Con Game” being run on specs for the banks benefit.
And lo & behold, did the scumbag bullion dealers ever pull a fast one on the trading community today in gold … could see this coming, just knowing the way they sell the market and try and keep it down … just too far too fast, and more importantly too many specs long … we’ll see where gold goes from here, but the market has woken the hell up … still, you can’t buy rallies in gold and expect to make money … you can get lucky sometimes, but when turn it they kill you … today a case in point.
The macro picture is only getting worse, which means gold should be volatile for a while … strange for a Summer, but not totally surprising given the macro news. So, I’ll be watching gold from here on out, as it springs to life again … as I’ve said before about gold, it never matters until it does, and in the last 5 days gold has/is making a statement.
And like the guy on ZH, I’ve never in my trading lifetime, spanning many decades, have I ever seen as complete a “disconnect” between reality in the economic world and stock prices reflected in the SP500 … it’s like I’m watching a fantasy land movie … there simply isn’t any justification for the stock market to be where it’s presently at and priced for perfection … the manipulation force here is beyond control and belief, and the panics up/down get worse with every passing month … is it any wonder liquidity is drying up, as traders throw the towel in and abandon trading the SP500, or aren’t willing to leave open orders in the system, for fear of getting run over by the HFT’s and the central bank manipulators … what a “shitshow circus”, where you risk $200 to make $10 … a complete trading farce.
Again today, there’s really no words for the insane action we see in markets … oh, not in New York, where it’s nothing but a protect and defend mirage, but overnight in Asia & Europe, where they trade reality, and then New York trades hopium … in my entire life, I’ve never seen such a mess, and we got one group of Twits to thank for it … round up the usual suspects and let the firing squads have at it!
I’ve mentioned previously in the blog, that there are new products & projects coming down the pike … I’ll start explaining them and how they integrate into trading … whether you’re just a reader, a PAMM client, or simply an occasional visitor, what you can do to benefit … I’ll be starting this Sunday, in the blog update.
For gold at least, the day’s over before it even began, with a $10+ range before the sun even came up … you know what that means, and it isn’t good for New York trading conditions … granted, sometimes the “Chuckleheads” in Asia get lucky and the market goes one way from Asia to the New York close … but remember, in the long run every dumbass system or algorithm ever designed HAS TO WORK at some point … not for very long mind you, but at some point it’s good … what we’ve seen the last 5 days in gold highlights this point.
The SP500 today, a complete chopfest mess … I don’t even want to look at it, it’s so fucked up … better off left alone for now. Like I said before, when gold gets back above 1340 again, I’ll get interested again … since we see that today, tomorrow sees us back to the gold arena … quite frankly, I thought the Summer would be slow … but events in China, the idiotic FED, and economies the world over slowing down considerably, MOAR QE here we come … get ready for QE+ and eventually negative interest rates, and that should mean an active tradeable gold market … should mean … add to this the trouble at Deutsche Bank, and the scenario for gold to rebound to some of its former glory via volumes & liquidity, and trading conditions have improved dramatically over the last week … of course, we’ll see what it means, but the stock indices right now are a complete “shitshow circus” to trade, so there’s no downside to rekindle efforts in gold.
Onto tomorrow mi amigos … Onward & Upward!!
Have a great day everybody!
-vegas
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