A DISTURBANCE IN THE FORCE

“A disturbance coming in 3 … 2 … 1 … !”

With Super Mario’s less than exhilarating performance yesterday, and basically

passing the easing buck back to the FED without giving them cover, I sense more

than a little disturbance in the gold bull’s force … with 3 to 4 interest rate cuts

already priced into markets over the next year, and those pesky economic

numbers not showing the weakness needed to cut rates, the FED’s in a “pickle”

of its own choosing … forget the massaging bullshit this time around come next

Wednesday … markets want cuts, not talk … and yesterday’s gold action showed

there’s some nervous longs out there not willing to give the benefit of the doubt.

Today, we get our first look at 2nd Qtr. GDP, and a print above expectations is

gonna put another nail in the interest rate cut coffin, something gold isn’t gonna

like one bit. We’ll see of course, but as we countdown to next Wednesday’s FED

meeting, a lot of people are getting nervous with their positions. Not really a

surprise Asia did Mr. Jack Squat last night … markets waiting for the GDP number.

Well, knock me over with a feather … first some good GDP news, that sees gold

break quickly, then a steep rally to new highs for the day on the announcement

E.U. countries central banks won’t sell gold anymore [cough, bullshit, cough],

then a steep drop almost back to the GDP lows on the “blah blah, yada yada”

from one half of the comedy team of “Kudlow & Mnuchin”, that the U.S. won't

intervene in currency markets, and now back to around 1420 - 1421 … got it?

Quite frankly, these markets [everything on the MT4] an utter embarrassment to

the word “market” … just shut ‘er down until Wednesday at 2 PM EST, and save

the world the horror of getting repeatedly mugged by a group of robbers &

thieves known as “liquidity providers” … of course, that won’t happen cuz the

world’s elites need the cash to make the world go around [translation: mistress

funds need replenishing], and the banks provide the cash at trader expense via

bagged trades & slippage … not on the official books of course … remember

FXCM that got busted out of the U.S. for sending customer trades to an LP they

controlled? … yea, something like that, where the cash that was stolen from your

account via trade bullshit, ends up in an IBC in a tax haven to be later distributed

to POLS, Apparatchiks, regulators, exchange pooh bahs, & brokerage house

execs … and of course, the non stop attempt to manipulate market opinions via

headlines from the very people stealing the money … a bigger fraud in the history

of the world has never been seen.

And so, here we are bumping along until the next planted headline drops, thus

alternately screwing longs & shorts, and nothing is really happening … all

controlled, managed, & massaged by the banks computer systems that know

“Hoover Dam” everything about gold’s dynamics up to the second … who’s

long/short and from where, and more importantly where the stops are at … where

all of the resting order are, and what it takes to run stops in terms of volume … all

at the push of a button, and all we see are the blimps on our screens … by the time

you see it, it’s too late to do anything about it … nice work if you can find it.

In all of this clusterfark, add the front running of futures orders by the banks who

make up the LBMA, which is where XAUUSD is traded in London, and in

conditions that are a total mess, you’d have better luck playing Keno in Las Vegas

… at least there, they’ll give you free drinks and maybe a buffet. Add it all up, and

unless the market is actually moving somewhere, you’re the chump at the poker

table if you decide to play … welcome to gold.

However, back to my premise for today … unless the FED provides some

unexpected juice come next Wednesday, which I highly doubt, positioned gold

longs got nowhere to go over the short term … and given the banks are heavily

short, I would expect some kind of cleansing in gold … and if the NFP numbers

coming Friday are as good as last month, the rout could be on … fact is, gold is

having a hard time rallying the last couple of weeks.

Again today, which I have noted before, gold in New York can’t break and start

the day unless we are coming off a high, or there is/was specific news … and

while the banks are doing their “Hoover Dam” best to sell the shit out of it on

rallies, gold simply refuses to entertain any “profit taking” [thank you, Bob

Pisani, CNBC hack] and allow the banks to run sell stops early … sure, yesterday

saw sell stops get hit off, but it was on a very big reversal off of highs for the day

… that kind of selling into the New York afternoon, usually isn’t the greatest for

buying since there isn’t a lot of time left in the trading day … what’s frustrating, is

after days like yesterday’s selling, there is literally no follow through to the

downside today … that means algorithm buy signals, if we get them, are going to

be weak in scope, something that today bears out … and suddenly, we find

ourselves back in the position of risking $200 to make $30 … simply put, another

shit day for gold … for being in a bull market, unless you happened to be trading

in the “dark hours” or in Asia on a few days the past month, you’d be very hard

pressed to show me any gains at all in price … “Is close your eyes and pray an

investment or trading strategy”?

One cursory look across the MT4, and there isn’t anything else moving either

… what the manipulators have done to major markets over the last 5 years is

nothing short of breathtaking … VIX [volatility] has been ripped out of everything,

and the great game stacked so against traders by the scumbag banks, it’s a

wonder any hedge fund is still in business. By all measures, FX has suffered the

worst, and there aren’t ANY CFD’s that make sense from a trading perspective

… all are complete ripoffs that only enrich the scumbag banks who offer them. So,

in some respects gold is escaping the havoc wrought in other markets … God

forbid if you’re a EURUSD trader, looking to make a living from that complete

mess … talk about zero volatility, the ECB has so fucked up that market with

manipulation, I can’t imagine anybody seriously trading it anymore.

Afternoon in New York, and by all outward appearances, gold looks like it’s gonna

settle below last Friday’s close around 1424 … not going to hang around and find

out … with Europe closed now, gold turns into the “Squid & JPM  shitshow” going

into the weekend … more than likely Monday, Tuesday, and up until 2 PM EST on

Wednesday, gold is going to redefine the term “ugly trading” … sorry to say, this

is simply reality … all eyes turn to the faculty lounge Twits come next week.

No algorithm buy signals today … this week sees one of the worst weeks for

trading conditions I can remember … take away the hellish spikes from reports,

POLS & Apparatchiks, and gold would have been declared dead by Tuesday

… outside of that, there was literally nothing here the entire week except the

drubbing it took yesterday, which as I have already said there was zilch follow

through … yea, I love to trade … what we saw this week wasn’t trading, it was

nothing short of a “manipulation scheme”. Hopefully, gold can get back on track

after the FED shenanigans come Wednesday … blog update on Sunday … until

then mi amigos … Onward & Upward!!

Have a great weekend everybody!

-vegas