Gold Trading Directions
Just a friendly reminder from our pals at JPM that the rock
needs to be rolled up the hill one more time; in a research note today they are
now predicting more QE from the ECB at the June and July monetary meetings with
a cut in rates in September.
So, after a $40 rally off the lows, muppets clients now
have an official reason to buy gold at today’s highs near 1577. Maybe some day
the public wakes up, but I doubt it; after all, these are the smartest guys in
the room remember? That the market will undoubtedly back off from here on “profit
taking” [thank you CNBC money honeys] isn’t anything to worry about. Neither is
the probable fact your investment adviser sold the market aggressively in the
1575-ish area while you were buying.
“Hey man, it’s just a
coincidence.”
So, we now have QE baked into the gold cake not only from
the Fed, but now from the ECB as well. Super; when they don’t deliver what
then? Who is left to buy? Even if they deliver, if we are still in this price
area of 1550 – 1600, who is going to take the lead and take on the Central
Planners above 1630?
One thing I am fairly certain of is the desire, on the part
of Chalky Soetero and his pals, to keep gold out of the news as election season heats
up by the day and week. No way do they want the sheeple people of Amerika to wonder
why gold is rising? They might get ideas.
On the currency
front, if it’s daylight in Europe, some politician is lying and desperately
trying to convince someone, anyone, that Plan G will work [even though the
trial balloons of Plan A-F were dismal in approach and can’t work]. We will get
fireworks on the upside as over leveraged shorts will bail in a panic [like
today for instance] but the big money knows Europe
and the EURUSD are toast.
It isn’t a question of if, it’s only a matter of when; what
weekend do they announce Greece
is gone out of the Euro? Come every Sunday afternoon from here on out, every
money manager on the planet will be glued to the screen to see what’s happening
at the open in New Zealand.
And lest you think it’s only Greece,
the fellas in Spain and Italy will be
watching very closely to evaluate their exit options as well. Forget the
politicos; if there lips are moving they are lying.
Have a good day everyone.
-vegas
No comments:
Post a Comment