IT’S QE OR ELSE

                              The Bernank: Man Of The Moment

Next week, the world literally turns its lonely eyes to the Mariner Eccles building for more “Hope & Change”.

“Ohhhhhhhh, Chalky Soetero is giving his umpteenth campaign speech?”

“Errrrrr, not quite.”

The world is hoping, praying really, that Weimar Ben opens the money printing monetary easing floodgates at the June Fed meeting. As with all things, the devil is in the details, and even if he comes through, the key will be if it was enough. Hide the kids if he does nothing.

The monkey wrench in the equation is Greece; with a newly elected socialist government only a couple of days old, and ready to tell the banksters in Brussels to go pound sand, how much of the taxpayers money does Ben give away?

Not to worry, Vampire Squid [GS] will let the moneycrats know what to deliver early next week before the meeting. The real question is which Belgian or French caterer is doing lunch. Remember, “The private sector is doing fine.”

Gold especially is subject to the “buy the rumor sell the fact” mantra of Trading 101. How many times have I warned [and been right by the way] that the rock gets rolled up the proverbial hill, only to be rolled back down when the Central Planners sense the public is now just a tad long the yellow stuff?

And on cue today, the EURUSD put on a blistering short covering rally because of course too many people are short the pair. Forget the disappointing retail sales figures; it’s all about QE and the “Hope” the Fed bails out Europe and saves the day; the “Change” of course is that something but failure will be the result. Now that’s what I call “Hope & Change” trader style.

Too bad it won’t change anything because Italy is next; say goodnight Europe, the party is over in 3 …. 2 ….. 1

Have a good day everyone.

-vegas

SCHOOLYARD BULLIES

                                   This Is Who Represents You

What happens when a collective group of people are pushed to the edge of sanity by politicians? Well, if you live in Europe, you are about to find out. Italy declares bank “Holidays”; Switzerland is considering capital controls and travel controls; and to top it off, Saxo Bank [Netherlands] has quadrupled trading margins involving Swiss Francs [CHF].

The pain of Greece is clearly spreading. And while you will suffer, the politicians will conference somewhere where the hookers are plentiful and the caterers superb. If there are any companies out there whose biz is booming it is A) caterers, and B) those that make paper for Drachmas.

Markets are on the proverbial “pins and needles” Defcon 1 red alert.

Gold was its usual self [as of this year], going $20 in 20 minutes; the new normal is to see just how fast money destruction can occur in the span of the shortest amount of time possible. Makes no difference up or down, although stop destruction on the down side has always been a crowd favorite amongst professional traders.

Record short EURUSD spec positions at the Crimex [let’s face it, that’s what they are – just ask any former MF Global customer] means that any burp from a Pol in Europe will jerk the market one way or the other; today was no different. Although today isn’t over as I write this, we definitely got the "Flying Wedge of Death" going on in most pairs.

What needs to happen isn’t going to happen; shut the politicians up and get them in a room until something concrete and credible is brought forth they can agree. And just to be clear; no hookers and sea bass in white wine sauce until you got something – understand?

“How do you expect us to live?”

Of course, as the world knows to well, this weekend comes the Greek elections. I’m just thinkin’ out loud here; by any chance is there a full moon this Sunday?

Maybe what the continent needs is some Chalky Soetero “Hope & Change”. Given how his campaign for “Preeeezy” is going, putting him in Europe for a few weeks would probably improve his poll numbers.

If this wasn’t so serious and affecting so many people it would be hilarious.

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