VEGAS TRADES GOLD IMAGE

VEGAS TRADES GOLD IMAGE

Friday, May 4, 2012

SEND IN THE CLOWNS


                                Politicians Speak Markets Plunge

Schaeuble: “Being a member of EU is a voluntary decision”.

German Finance Minister Checklist:
Step 1: Ok, first tell mistress to sell EURUSD at 17:00 [check],
Step 2: Tell mistress to cover EURUSD after the drop and before she goes shopping [check].
Step 3: Go find a TV camera and say something stupid [move the market lower] [check],
Step 4: End interview and go meet mistress with Dominique Strauss Kahn [check].

Sounds like an awfully productive day. Use the cover of a U.S. NFP report as cover so you can deflect blame for the move. And who says these guys are stupid?

Meanwhile ……….. at the U.S. BLS [Bureau of Lies & Statistics]

                                         Chief Statistician BLS

More lies, damned lies and then statistics out of the U.S. today that sent gold and other financial markets on a double reversal move guaranteed to allow you to pursue those 2012 tax loss strategies you have been thinking about.

Add to that the du jour “loose lips sink ships” talk from Europe, the Central Planners lurking about, and you have markets that are approaching mental breakdown.

This chart [courtesy of zerohedge.com] pretty much sums up Amerika today:


It’s easy to lower the unemployment rate when the number of workers in the economy plunges compared to the number of jobs lost. Duhhhhhhhhh.

I weep for the future.

And, as all this plays out gold sits precariously right at support in the 1620 – 1630 range. I don’t like the action right now in gold; maybe I’m wrong, but my guts tell me gold is about one inch away from getting clobbered to the downside. We’ll see next week, but with the break in oil and the dollar rallying, it’s going to be tough to get this stuff back over 1680.

Have a good weekend everyone.
-vegas

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