Some Days You Feel Like The Fox
Ever since gold rallied above 1580 the other day, the
“nibble nibble BOOM!” orders from the Central Planners have been hot and heavy.
The manipulations can especially be seen in the last 30-60 seconds of most 5M
candlesticks; only somebody who could care less about price would consistently
allow Blythe and her crew to butcher their orders in this way.
I don’t think I can ever remember another time when price,
from second to second, has been so chaotic and disjointed in gold. Watching
prices, you have no idea if the next second is going to quote a bid anywhere
near where it was a second earlier. What looks good one second literally stinks
the next.
“Run little fox, run!”
Overnight, as if on cue, the “Lemmings in Asia”
took the market up to the 1599 level. I guess when you sell it from 1560 all
the way down to 1528 the previous 2 days, 1599 looks like a bargain buy.
“Mrs. Wantanabe,
please go find a job will ya?”
Over in the currency arena, we got the “Flying Wedge of
Death” going on in some of the majors, particularly EURUSD. We got record short
positions in the Euro, so until some of these weak hands get shaken out, the
market is subject to quick, sharp, and vicious short covering rallies,
especially in the off hours and near the European close [9:30 A.M. – 10;30 A.M.
Chicago time].
After the $140 sell off [1670 – 1530] in gold, we’ve now
rallied back half-way to just in front of 1600. I would expect a few attempts
at 1600, but ultimately I think the market needs to step back and do some
backing and filling below 1580 before it can really go higher.
Ultimately, it’s going to be the Fed June Meeting that holds
the short-term key for gold prices. If Weimar Ben throws cold water on further
QE, price action is going to get ugly quick. Until then, prices probably will
be contained in the 1550 – 1610 area; price will move on perceptions of change
in the QE dynamic.
Really, what choice do they have but to print?
Have a good day everyone.
-vegas
