Market Wrap with The Guys
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BYE BOYS ! BUY GOLD !https://www.youtube.com/watch?v=7SPf1GHq9vg
Here’s an article where the mystery writer believes the SNB was short gold and yesterday, pulled their peg to the Euro and covered their shorts. Remember, gold’s big downleg began almost to the day after the SNB announced their peg of the SF to the Euro. Interesting to say the least…………http://news.goldseek.com/GoldSeek/1421424060.php
Interesting for sure Silverdollar. The Swiss are more of a player in the gold and currency markets than the size of their GDP should warrant.
Cory – great point about the strength of gold in other currencies as of late, and the average US investor just not feeling that excited when it is priced in dollar terms. This is due to the strength of the dollar, but the rest of the world currencies that are dropping, makes gold appreciate nicely in their local currency – proving once again it is a global store of value. The dollar may not always be as strong as it is today, but gold should persevere.
Doc & Chris, I agree that that the 1277-1280 level is a major resistance area, and likely gold will need to pull back next week and likely won’t sail on through that level. However, I was very surprised with the strength of gold when testing the 1253-1257 level, as it just shot on through with the Swiss news. If gold shoots through 1280 next week and keeps on going then that would be a good sign, but it would be getting ahead of itself at that point. I agree that a pullback first and then another move up taking out 1280 would be a healthier sign.
In addition to options expiration, today also reminded me of many days in 2010-2012 when Fridays always seemed like everything was in the green. It was a feel good Friday warm feeling going into the weekend. Then the Monday would be a red day. I made some money selling into Friday strength and buying into Monday weakness fairly regularly.
It just seems like the markets have been insane for most of 2013 and 2014, and for the first time in a long time the market is starting to behave like a market. Oil was a 2 way street the last few days, gold had strength as a safe haven as did Treasuries, and the general markets were rewarding the good stories and finally punishing some of the bad performance, so the growth was there but muted and grounded in some fundamental sentiment indicators.
It would be nice to get back to markets where corrections can happen in the general markets, gold can rise with the dollar, commodities are reflective of supply and demand metrics and news, and everyone rings their hands over the Euro and Yen all day, just for the Euro to surprise the shorts, and the Yen to look like a mess. Just a thought…
Options expiry today,
big oil
big Dow
Big gold
Looks alot like short covering to me…..
Interesting. I had forgotten about the options expiry today. Short covering could well be why all 3 closed green.
Chris,
Very good points about how backing and filing would be bullish for gold’s setup.
All have a good week-end.
LPG
Absolutely superb, meaningful and spot-on comments by Chris and Doc.
The pull backs in gold are not bad…………they are in fact a good thing and are needed to sustain the general positive long-term trend of higher high’s and higher lows going forward.
Once again the team provides more excellent and rational thoughts on a highly volatile sector that is fraught with irrationality.
Very refreshing!
V
Doc / Guys …I am concerned
Gold is up 30 pts and gdxj is up 1% …what’s going on?
When gold was up 30pts gdxj was up always 8-12% NOT 1%. GDX is behaving normally. Any thoughts?
ALL MANIPULATION ! Don’t trust all the nubbers !
Don’t trust all the Nubbers — Franky, That’s a very British statement. I thought that the other day you said you were a fine Chinese lady. FYI, most of the world doesn’t use the word nubbers, and that would include Chinese women : – )
You’re a funny guy!
btw ……”A trader just placed a giant bet on a $130 rise in the gold price”
Frik Els | January 12, 2015
http://www.mining.com/a-trader-just-placed-a-giant-bet-on-a-130-rise-in-gold-price-53903/
Take matter to a higher level. Someday, central banks and governments will lose control and let the mountain of debt and derivative collapse. The bill they need to pay is so great that there is no way to hide it. Regardless they print or not, the system will fall apart to the left or right. The loss of control may have started. Look at the gyration of stock market, rise of gold, SNB black swan, ECB QE, Japanese kamikaze printing, Greek default, bank runs, Russian fight back, bankruptcies, de-dollarization, etc. There could be a lot more serious things on the way. The system is going insane. No sane people think it can last. Sooner we get all these settled, quicker we can return to a normal economy. Bank should support the economy instead replace the economy.
Lawrence,
One way or the other, the unserviceable debts of the world will and must be repudiated and they will be. It will either be done through a full on collapse and the subsequent open admission by world governments and central bankers whom have created this mess as they inform their subjects of the gravity of the situation.
Or the sociopathic western power elites may attempt to clear the decks through the doctrine of war and the deaths of millions or use a much less likely avenue and out of character humane public dialog.
But at this point it matters little.
The insolvency debt wheels are already fully in motion and nothing can stop a global reversion to the mean.
The unchangeable immutable universal laws of exponential mathematics and the forces of Mother Nature have already spoken; the only questions to be answered now are the timelines.
V
Well said Vortex. A good system is the one which can constantly cleanse itself of mistakes. Nobody is perfect and people make mistakes. As long as the mistake get corrected on time, we are OK. North American system has been able to do it. It gets through recession and depressions and there have been a lot of bankruptcies. It is OK, mal-investments and debts get cleared out, the system moves along. There is no wonder US has achieved the height no one else has. However, since Greenspan took over, the system started to loose its self correct capability. The system started accumulate bad debts and derivatives were created to control the correction. We go from one bubble to another. This actually fit well with Keynesian theory and someone on top is in full control. Inevitably, bankers are in control of the economy because they are the experts to the game. We start to produce more of vaporware instead of real things. Even producers like Boeing is infected. Instead of innovation and work hard on the products, they rely more on financial means to enhance the executive pay. This resulted in delay after delay of their new aircraft. Even after 787 were produced and sold, they were mostly grounded. At mean time, the people on the top get paid a lot. Middle class don’t see the benefit but increasingly pay more for the services.
I landed in Alberta in the 80s and for a long time I wanted to go to States but could not go due to various reasons. However, when I finally able to move, iI realized there are so many potential bombs in its finance and the bombs are increasing in size exponentially. I decided to permanently settled down in Alberta. Even Canada is following US foot step but it is still much lighter in its liabilities. Alberta seems mostly stays in the old time, still producing goods people need like energy, food, resources, etc. Now the best industry we have here is also damaged by US struggle with Russia and Saudi, I am not sure what the future is.
As for the war you talked about, I hope we don’t have to fight it. We actually long passed the point of war but threat of nuclear annihilation has deterred elites from leading us to it. It is the best consequence of nuclear weapon.
THE BOTTOM in silver was in DEC, while most were asleep,,,,,went down to $14 .
You could be right J. ….That was a damned good price.
Bird…….hope everything is well with you and yours….This year should be very interesting………………………j………………..
Thanks J…but all is not well. My wife’s Father is very sick and may be on his last few days or weeks. He has stopped eating normally now and needs blood transfusions. It is not a positive outlook. We hope for the best of course but aging is one fact of life none of us can do anything about. So we just say a prayer and wait.
Terrorist activity in Belgium ! ALL PLANT ! https://www.youtube.com/watch?v=e5Qx5JCU82o