LET THERE BE LIGHT

                                       A Moment Of Clarity

Perceptions are everything; reality is nothing. The former is fluid; the latter is fixed.

Today, we know 2 things we didn’t know yesterday. The first is that Public Sector Unions are toast [thank you people of Wisconsin]. It was an impressive victory [about 8 points] for Scott Walker, the incumbent Republican Governor, and a total rebuke of spend, spend, and spend some more [of your money] union thugs.

Take away union vote rigging in libtard nation Madison, and decaying corrupt Milwaukee, and the margin of victory probably really was on the order of double digits.

A world away some hours later we get the Vampire Squid Alumni, Mario the Great, holding his usual ECB presser after the ECB formally met to discuss monetary policy for the Eurozone. Like Greenspan, and all true great economists, he said nothing better than just about anybody normal.

“Spin it all you want Mario, you have no clue what to do to get Europe out of its mess.”

Which brings me to gold: it’s now $100 off the lows on the heroin hopes of QE3 on June 20 from our buddy Weimar Ben. Anybody but me ever hear of the adage buy the rumor sell the fact?

From a trading standpoint, who isn’t already long gold looking for a pop up if we get the anticipated money printing easing? The Fed’s street mouth piece, J. Hilsenrath over at the WSJ [Wall Street Journal] confirmed it yesterday. This guy leaks more info from the Fed than “Deep Throat” ever did on Nixon back in the 70’s. So, when it comes, who’s gonna be there to buy it from you at a higher price?

And what if we don’t get it? Pleeeeeeze, don’t write me with what happened to your “protective” sell stop.

And what if that election in Dairyland is the start of something bigger come fall? With Chalky Soetero gone and a true Republican House and Senate, can and would the Amerikan economy be unleashed for growth and maybe a balanced budget? I dunno, we’ll see.

What I do know is this: gold is not a one-way street. Jumping back in the vegas hot tub time machine once again, I take you back to this exact moment on the calendar 32 years ago. Gold has come off its historic highs in January of $850 / oz.; pessimism is high, Carter looks like a shoe-in for re-election, and then gold bugs are talking about price levels for gold that make people’s eyes glaze over, and budget deficits are huge and growing.

Then, an interesting thing happened; Reagan was elected and set off the 80’s boom and gold went into a 20+ year bear market that saw prices back at the $250 / oz. level.

Funny thing about history; it tends to repeat itself.

Have a good day everyone.

-vegas

QE WHERE ARE YOU?

                                      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

THE 800 POUND GORILLA

                                         The Key To Victory

Q: The 800 lb. gorilla is very hungry and wants to eat. What do you give him?

A: Anything he wants.

With Europe about to go off the cliff, what with the new “austerity” in the PIIGS zone, bond yields climbing, and economies diving into recession, of course the Euro (EURUSD) must be manipulated by the ECB; we simply can’t have a currency crisis right now. 

[ http://www.zerohedge.com/news/bis-fxgold-intervention-profiles-and-after ]

Before I ask this next question, please don’t think it is rhetorical. Is there any financial market not being manipulated by some government?

Seriously, I think the answer is no. Which brings me full circle back to gold. I wrote in the updated algorithm manual [which you can download for free at the link “Get It Free”] that there are 3 main objectives to government manipulation of gold: 1) keep gold out of the news, 2) hurt as badly as possible all retail speculators [long or short], and 3) make the manipulation count [on the charts].

Since the middle of 2011, the stakes have been seriously raised by the “central planners”. Things are spinning out of control on the fiscal and monetary fronts; trillions of dollars have been thrown down the proverbial rat hole, and don’t think for a minute these guys are going to back down: the manipulations will get bigger and bigger as time moves forward.

Today is a perfect example when you look at gold. Smacked down hard very late in the day on Friday (over $10 / oz), together with another $15 on the down side in Asia to start the week, you got about a $25 move lower on the lowest volume imaginable. So how is that possible?

But wait, the game isn’t finished for the day yet; oh no, they have to destroy some retail specs first, and that comes with the allowed rally to a new high for the day to drive the shorts out of the market with their buy stops. OK, we get a new high by a few pennies, the shorts have been squeezed, now what?

Easy peezee. You smack it down hard to near the low in the next 50 minutes. And from there very little happens; trading dies for the day, as the market limps into the close, the high finally safe from assault in their view. This is how a “normal” market trades? [Ha ha ha ha]

Remembering what I said earlier, ask yourself if the 3 main objectives have been accomplished? Sure have, and in spades.

The difference between all of us traders and the manipulators is the fact that we are in the market to make money and they could care less; they are here to wreck havoc and target a price. It doesn’t matter if they lose billions, they just print what they need, and besides it is chump-change compared to what the objective is; keep the current U.S., Europe, and Japan financial ponzi schemes alive.

Trading can be simple, but it is never easy. Guessing what the central planners do [with JPM front running the whole process] can be tricky, but never think they aren’t there.

Have a good day everyone.

-vegas

SURPRISE!! POLITICIANS HATE GOLD

                                     Got Gold Chalky Soetero?

Let’s see, trillion dollar deficits per year as far as the eye can see? Check.

Oil prices rising driving inflation? Check.

Weimar Ben printing money like no tomorrow? Check.

Along with the Fed the BOJ and ECB printing money as well? Check.

You and I both know the table is set for gold to spiral higher rather quickly in the near future. The political gold cabal has literally thrown the “kitchen sink” at the market and all they got the market down is about 8% and about 13% from the all time high last September?

“That’s it? That’s all you got to show for the market manipulation of JPM & HSBC; the margin shenanigans of the CME; the stealth drops in the wee hours?

Seasonally speaking, March is usually a weak month for gold, with the lows generally seen mid-month. If that holds again this year, then the lows around 1632 will hold and from here we will base and go higher.

As I have stated in earlier posts, my only fear for gold comes from going lower on the year [1562] for the first time in 11 years. Selling could materialize rather quickly from the GLD and all the moving average lemmings who would sell. If that happens, who knows where it would stabilize.

Having said that though, emerging market Central Banks are strong buyers of physical gold at these levels, and with all the rumored selling of Weimar Ben and the gold cartel, how much more can they throw at the market before they are forced to capitulate and buy much, much higher?

The world is printing money at a record clip that would make the old rulers of Zimbabwe blush. It’s only a matter of time before the dam truly breaks and prices race higher. A close over 1802 / oz. and the gig is up. Sometime in 2Q 2012 and I think this gets taken out and from there the fun can truly start on the upside.

Be patient and let Chalky’s policies make you rich.

Have a good day everyone.

-vegas