What a hell of a ride these last months have been.
Friday, November 21, 2008
Gold goes nowhere for the entire week, building
energy to spike up, which it did today with almost
no indication from other markets. Gold basically
decoupled from other markets and showed its
true potential as the only TRUE CURRENCY
in the World.
It turned back up right after this shot but may
Dow rallying 15 min before the close. Dollar falling to .8808,
Euro was rallying but just dropped of sharply.
Gold held right on the blue up trend line and
turned back at 75% on its rally up. Classic moves.
Now, will the white down flag resolve up classically too?
A very tough day to trade unless you were already
long. None of the other markets gave any valid
signals that would have helped you have any idea
that gold would move up this strongly.
I still think some major buyers (like China) were
involved. This was just to big and solid an up move
to be merely safe haven buying. Short covering
had to be involved at one point.
The important thing is that we are now above
750 and will probably stay above it.
Additionally, the psychological level (round number)
of 800 was pierced (not persuasively) and not just
bounced off of from below. Gold may very well
go above 800 this afternoon before the 2:15pm pst close
until Sunday at 3pm pst. Then we may see gold really
take off if more problems come about on the weekend.
Dollar pulls back after hitting .8873
Euro sells off then rallies
Yen sells off
Bonds down from their highs
Dow all over the map
Oil staying below 50 (Jan09 front month)
Absolutely crazy! Dollar rises, Euro and Dow tank
and gold still rockets up on STRONG volume.
Nothing makes sense at all!
And now gold is starting to drop like a rock as
the profit takers move in.
It's possible that China could be buying gold, but
I have no news on that.
Gold is actually moving OPPOSITE the Euro
and the Dow this morning.
Simply crazy trading counter to all logic.
Gold moved up independent of the Euro, Dow,
It could be that some big traders wanted to get
into gold before the Turkey Day Holiday.
Right after gold topped at 77990 (the 7737 posted
on the chart is wrong), it sold down
rather quickly and is still dropping.
I have been tied up trading and moving funds
around so I haven't been able to post, but
I should be able to post some more now.
Problem is, that when the market moves so fast
I can't trade and post at the same time, and I have
to trade first.
Thursday, November 20, 2008
This is just a possibility among many others.
We all have been wondering why gold hasn't
gone ballistic, but it hasn't because of the
manipulation, and that will continue, until
it doesn't work anymore, which it ultimately won't
Until then, we have to consider all possibilities.
Gold is punching through successive up flags
and will probably have a big sell off from which
it should/could bounce back well.
720 may be the support level (see Dan Norcini),
although 715 is where the 75% retrace point is at 71490
but gold could also retest below 700 again.
Remember, CRIMINALS are running this game
and they don't want to go to jail or be executed.
They will DO ANYTHING to avoid that.
And YOU are expendable to them.
Dow is sinking, and gold will go with it, if for
no other reason than being sold to pay for
margin calls in equities, or just pure panic
selling to get cash.
Oil is in the 50's, may break into the 40's just
from lack of demand due to people driving less
because they're broke, rather than due to the
price of fuel.
My neighbor, the trucker, says business is very
lean except for a few military contracts to haul
heavy military things, and oil drilling equipment
to Wyoming where there is a big oil development.
But not enough work for all the truckers out there.
Trucks are getting repossessed in droves.