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I hate it when I am this right.....
Driving in this morning, I had a feeling that gold would be in trouble when I heard it was up $11 on slight dollar weakness. As soon as the god awful jobs number was released the dollar tanked hard, almost taking out it's 40yr low of 74.75 while gold shot up to $941+. I knew right then and there gold was dead for today as the dollar would reverse. This was jobs Friday, and that's the way it plays out. There is no rhyme or reason, it's just the script "they" play.
As sure as the pimples on my ass, within a few minutes the dollar "magically" got back half it's losses and when the ISM number came in slightly better than expected the dollar took off like the subprime/derivative situation had been cured. I saw gold started to come in to only up $5 and went into action. Like I said yesterday, I only had a few gold stocks in my trading account, what I did have, I immediatley sold at nicely higher levels. I also shorted GOLD which was trading up THREE DOLLARS!!(That in it self is a joke).
When the stock market opened, it looked like I made the wrong decision as the gold stocks shot up as the HUI was up 8+. The stocks I had sold were higher where I had sold them. Oh well, that's the way it goes, I was ahead on my GOLD short though.
After a few minutes, gold went south, hard. I immediately shorted GLD and GDX as I knew we would be in for a rough day. I really thought gold would be down $20-$25 as I had seen this action on many a jobs Friday and knew what was coming.
To make a very long day short, gold at it's worst was down about $20, before rallying back to close down $15+. GOLD gave back it's entire three point gain, plus another point on top of that. However, for the most part, the gold stocks acted ok, in the face of such a shitty gold day. However, the gold stocks managed to piss away yet another good stock market day. The HUI closed down 7+, which, when compared to yesterday's down 11 when gold was higher, is not too bad.
Today, was clearly an operation by the ESF (Exchange Stablization Fund) and the bullion banks. Gold was in danger of taking out it's 40 year low and that was unacceptable. Like I have been screaming, this happens every single jobs Friday whenever there is a bad jobs number. Gold was clearly capped by the bullion banks at $941 as was evidenced by the hard sell down from that number. All it took was some selling to take out the stops.
Today goes down as one of the top 10 manipulated days since I have been following gold. This action today shows why the gold market is one that is never to be trusted. It is not a fair and natural market. I am embarassed to call myself a particpant. It is shit like this that makes other people laugh at us. It is not a question that gold was down $15, but rather the way it was down. Gold need to come in, but not like this. In addition, we now get to hear from every idiot, who had no clue as to the true reason for the gold bull market, tell us how the gold bull is dead, and that they knew it was going to end poorly like it did today.
Where does gold go from here in the short term? I haven't a clue. On Sunday night, the CB's in Asia and Middle East could be buyers. Or, they can join the train and start selling. I do know though, that after today's joke of a jobs number, all roads still point to gold more than ever.
As sure as the pimples on my ass, within a few minutes the dollar "magically" got back half it's losses and when the ISM number came in slightly better than expected the dollar took off like the subprime/derivative situation had been cured. I saw gold started to come in to only up $5 and went into action. Like I said yesterday, I only had a few gold stocks in my trading account, what I did have, I immediatley sold at nicely higher levels. I also shorted GOLD which was trading up THREE DOLLARS!!(That in it self is a joke).
When the stock market opened, it looked like I made the wrong decision as the gold stocks shot up as the HUI was up 8+. The stocks I had sold were higher where I had sold them. Oh well, that's the way it goes, I was ahead on my GOLD short though.
After a few minutes, gold went south, hard. I immediately shorted GLD and GDX as I knew we would be in for a rough day. I really thought gold would be down $20-$25 as I had seen this action on many a jobs Friday and knew what was coming.
To make a very long day short, gold at it's worst was down about $20, before rallying back to close down $15+. GOLD gave back it's entire three point gain, plus another point on top of that. However, for the most part, the gold stocks acted ok, in the face of such a shitty gold day. However, the gold stocks managed to piss away yet another good stock market day. The HUI closed down 7+, which, when compared to yesterday's down 11 when gold was higher, is not too bad.
Today, was clearly an operation by the ESF (Exchange Stablization Fund) and the bullion banks. Gold was in danger of taking out it's 40 year low and that was unacceptable. Like I have been screaming, this happens every single jobs Friday whenever there is a bad jobs number. Gold was clearly capped by the bullion banks at $941 as was evidenced by the hard sell down from that number. All it took was some selling to take out the stops.
Today goes down as one of the top 10 manipulated days since I have been following gold. This action today shows why the gold market is one that is never to be trusted. It is not a fair and natural market. I am embarassed to call myself a particpant. It is shit like this that makes other people laugh at us. It is not a question that gold was down $15, but rather the way it was down. Gold need to come in, but not like this. In addition, we now get to hear from every idiot, who had no clue as to the true reason for the gold bull market, tell us how the gold bull is dead, and that they knew it was going to end poorly like it did today.
Where does gold go from here in the short term? I haven't a clue. On Sunday night, the CB's in Asia and Middle East could be buyers. Or, they can join the train and start selling. I do know though, that after today's joke of a jobs number, all roads still point to gold more than ever.
posted by Neal | 9:22 PM
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