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Could it be any worse.......
Today was a brutal day all the way around. From the incredible shitty Philly Fed, to the incredible shitty stock market action, to the incredibly stupid shitty Congressmen who grilled Ben. One moron Congresswoman thought she was talking to Paulson when she asked:
Kaptur (D - Ohio): Seeing how you were the former CEO of Goldman Sachs...
Bernanke: No...no...no.... You are confusing me with the Treasury Secretary!
Kaptur: Where were you sir?
Bernanke: I was the CEO of the Princeton economics department.
Kaptur: Sorry, I got you confused with the other one.
That's our elected leaders.
All news today was extremely bullish for gold; there is no debating, nor doubt about this. The economic news is downright dreadful and we clearly have a lack of leadership in Congress, in the White House and at the Fed. The Fed seems to think the economy is in 'ok' shape and that a recession could happen later in the year, but not to worry, as they will use interest rates to save us all. They are also worried about inflation. In my nearly 20 years working on Wall Street, I have never seen the worldwide economy look worse. Rate cuts are just a band aid. This market and this economy are going down--hard. Jim Sinclair is correct....THIS IS IT!! PREPARE FOR THE WORSE.
Any who, I am even with everyone who doubled down on my beer be as I was expecting gold to come into NY down $7, and it was actually up $3. Shortly after the CRIMEX opened, gold was up $9 on the heels of the Philly Fed and it looked like it was going to be good gold day.
But, silly me, this is gold. Before you could scream "fix" gold completely reversed, and at one point was down $4 all the while the dollar rallied back to roughly flat. That type of action is is one the hallmark tenants in the gold market, reversing the gains of a good gold day. Today, for the most part was a huge upward struggle in the gold market. Every tick was met by selling. It hit up $9, gave back a few bucks, rallied then finally sold off. It closed down $1+
Now compare today's upside action to yesterdays downside. Yesterday, the gold market went pretty much straight down without a fight. Yeah, it may have rallied a dollar or two here and there but pretty much the bears/shorts had their way with the metal. Today was a fight from start to finish.
The HUI, at one point was up $11, gave that back and was actually down $10. However, around mid-day, the HUI rallied and was actually up nicely. However, the overall crush in the market also affected the gold stocks and the HUI close down $7. I guess all in all, when looking at whole picture, the performances of the metal and the stocks were ok, I guess.
The Fed has promised drastic "substantive" rate cuts, but so far all they are doing is jawboning. The market does not want that. They want action and they want it now. Listening to Ben, today, there was no sense of urgency, no sense that the economy is falling off the cliff.
There is tremendous speculation that the Fed is going to cut rates before the market opens tomorrow. They did a surprise cut back in September the day options expired (expiration Friday). Well, tomorrow, options expire. Almost everyone I deal with expects a cut. If the Fed does not cut tomorrow, the stock market will be a bloodbath. Screw the fact that IBM had good earnings tonight, it won't matter. Only a Fed cut will save the market and that will only be for a short time.
Back to gold for a second. Again, as Sinclair has said, the Federal Reserve boards of the world will do what they do best, and that is inflate, and obviously that is good for gold. Now, gold had every reason in the world to be much higher today, it was not, it was flat. Now you could argue that gold sold off in sympathy with the market and/or oil. Whatever. Gold needs to find it's sack and start acting on its own volition. Enough of this crap falling in harmony with other markets.
Tonight, we are not off to a good start as gold is currently off $8 as the world stock markets crash. This is not good.
Financially speaking, I think we are in the fight of our lives. Now more than ever, all roads point to gold. Let's hope it does not get road blocked.
Kaptur (D - Ohio): Seeing how you were the former CEO of Goldman Sachs...
Bernanke: No...no...no.... You are confusing me with the Treasury Secretary!
Kaptur: Where were you sir?
Bernanke: I was the CEO of the Princeton economics department.
Kaptur: Sorry, I got you confused with the other one.
That's our elected leaders.
All news today was extremely bullish for gold; there is no debating, nor doubt about this. The economic news is downright dreadful and we clearly have a lack of leadership in Congress, in the White House and at the Fed. The Fed seems to think the economy is in 'ok' shape and that a recession could happen later in the year, but not to worry, as they will use interest rates to save us all. They are also worried about inflation. In my nearly 20 years working on Wall Street, I have never seen the worldwide economy look worse. Rate cuts are just a band aid. This market and this economy are going down--hard. Jim Sinclair is correct....THIS IS IT!! PREPARE FOR THE WORSE.
Any who, I am even with everyone who doubled down on my beer be as I was expecting gold to come into NY down $7, and it was actually up $3. Shortly after the CRIMEX opened, gold was up $9 on the heels of the Philly Fed and it looked like it was going to be good gold day.
But, silly me, this is gold. Before you could scream "fix" gold completely reversed, and at one point was down $4 all the while the dollar rallied back to roughly flat. That type of action is is one the hallmark tenants in the gold market, reversing the gains of a good gold day. Today, for the most part was a huge upward struggle in the gold market. Every tick was met by selling. It hit up $9, gave back a few bucks, rallied then finally sold off. It closed down $1+
Now compare today's upside action to yesterdays downside. Yesterday, the gold market went pretty much straight down without a fight. Yeah, it may have rallied a dollar or two here and there but pretty much the bears/shorts had their way with the metal. Today was a fight from start to finish.
The HUI, at one point was up $11, gave that back and was actually down $10. However, around mid-day, the HUI rallied and was actually up nicely. However, the overall crush in the market also affected the gold stocks and the HUI close down $7. I guess all in all, when looking at whole picture, the performances of the metal and the stocks were ok, I guess.
The Fed has promised drastic "substantive" rate cuts, but so far all they are doing is jawboning. The market does not want that. They want action and they want it now. Listening to Ben, today, there was no sense of urgency, no sense that the economy is falling off the cliff.
There is tremendous speculation that the Fed is going to cut rates before the market opens tomorrow. They did a surprise cut back in September the day options expired (expiration Friday). Well, tomorrow, options expire. Almost everyone I deal with expects a cut. If the Fed does not cut tomorrow, the stock market will be a bloodbath. Screw the fact that IBM had good earnings tonight, it won't matter. Only a Fed cut will save the market and that will only be for a short time.
Back to gold for a second. Again, as Sinclair has said, the Federal Reserve boards of the world will do what they do best, and that is inflate, and obviously that is good for gold. Now, gold had every reason in the world to be much higher today, it was not, it was flat. Now you could argue that gold sold off in sympathy with the market and/or oil. Whatever. Gold needs to find it's sack and start acting on its own volition. Enough of this crap falling in harmony with other markets.
Tonight, we are not off to a good start as gold is currently off $8 as the world stock markets crash. This is not good.
Financially speaking, I think we are in the fight of our lives. Now more than ever, all roads point to gold. Let's hope it does not get road blocked.
posted by Neal | 9:07 PM
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