Gold, the security that defies all market laws.....

Gold, is the security that defies all of the markets laws and by that I mean, it is the only security that goes down no matter what happens. Dollar higher? Gold down. Dollar lower? Gold down. Oil higher? Gold down. Oil lower? Gold down. Does the day in "y"? Gold lower.


And isn't it a miracle how the dollar climbed back from today's depths?

At least the gold stocks had a good day.....

Gold got squashed again today? Why? No clue. But let's talk about the gold stocks, which acted pretty well in the face of gold being down $20 and a pretty overall shitty market.

Let me tell you my trading war story for today. I have commented a few times that GOLD (Rangold Resources) often trades up a couple of dollars in the premarket, often for no reason. On Thursday, GOLD was down about three dollars in the market and normally when that happens, it's up in the premarket. So, I bot a few hundred shares at the close of the market on Thursday.

Before I left for the office this morning, true to form, GOLD was up about $1.5. Hey, anytime I can get a nice profit before the market is open, I take it. And if it's a gold stock that's up with gold down $2 (as it was at 7:15am), I am most certainly taking THAT trade. So, I blew the stock out, and happily went to the office.

Got to the office around 8:15 and saw that GOLD was right where it was when I sold it about an hour earlier. At 8:30 whatever economic number that came out and said that all was well with the US economy and send gold crashing, GOLD was still up so I naturally shorted the hell out of it; I also shorted several other gold stocks.

Now an interesting thing happened after the stock market opened, the HUI was only down 12 at it's worst. I literally visioned making at least $3 on my GOLD short, but only made slightly over $1 and I lost money on some of my other gold shorts. I was not expecting that! So, having seen this movie a few times, I covered my shorts and went long GOLD which was now starting to scream higher; I also purchased the GDX. By 3:30, I was flat all gold stocks with the exception of NSU which was nicely higher today. I think something is going on with that stock and we should know Monday if I am right. But that stock does not trade up .20 with gold up $20 let alone down $20.

To make a long story short, the HUI closing down a little more than 3, hopefully portends good things for the yellow dog next week. I have often said that the stocks lead the metal. I also found it interesting the silver stocks were flat to slightly higher in the carnage that was silver today. For those interested, I did buy GOLD on the close.

BTW, the economic situation gets worse now on a daily basis as things are starting to spiral out of control. And yeah, I know you are tired of hearing it, but all roads....yada, yada, yada.

Who woulda thunk it?......

Things aren't as grand as CNB Bullshit made it out to be last week. Who woulda thought durable goods would have sucked the way they did? Who woulda thought new home sales would blow chunks? Who woulda thought the dollar would be hovering near it's lows after they, the brilliant minds on TV, swore to us the dollar had bottomed. Who woulda thought that oil would come screaming back? Who woulda thought that gold would have snapped back so quickly? (But again, the old adage about the taking the stairs up and the elevator down is so true).

Who woulda thought that gold snapping back would barely get a mention on CNBC? Who woulda thought the Fast Money crowd would barely say a word about gold's advance? Who woulda thought no one on the show would have admitted they were wrong? (of course the most vicious critic of gold, my boy, Guy Adamai, is on vacation this week.) Who woulda thought that Dennis Gartman would flip flop?

Who woulda thought that gold actually had a follow through day? Who woulda thought the HUI would be higher when the market sucked? Who woulda thought that gold and the gold stocks rally when the overall market doesn't thus limiting the gains. (I am still awaiting for the trifecta).

Who woulda thought that all the stimulus the Fed has introduced over the last two weeks would be dollar bearish? Who woulda thought that cutting rates by .75 instead of 1 point is not restraint.

Who woulda thought that none of this would work as the problem is too far gone? Who woulda thought that all roads always have pointed to gold, no matter what the morons who have not a clue about gold, say.

Where are the up $30 days?

Gold having a nice day, up some $16. What I want to know is where are the up $30 days? This time last week we were having the complete mirror to today: oil was tanking and the dollar was surging and gold sold off $30+.

Today, is oil is ripping, and the dollar tanking yet gold up $16 and the HUI up 6. This is yet another example that I speak of when I mention this is the bullshit of the gold market.

Actually not a bad day, but.......

As usual the rules that hold gold back on an up day were in fine fashion all day. Driving in this morning I was a bit surprised to hear the dollar was getting crushed, as when I went to bed last night it was higher. Now don't get me wrong, I think the dollar is toast, and unlike the morons on CNBC, I think this is a dead cat bounce and not a bottom. Anyhoo, gold was up $14 when I got to the office, and in true gold fashion, before I blinked it was only up $7, with the dollar fall still intact; oil was somewhat lower.

So, it was at this point that one of the rules came into play, gold is lower when oil is lower, and gold comes down when oil is higher.

The Consumer confidence number came out and it hadn't been this bad since 1974, this added to the dollar weakness and allowed gold to go even higher.

In all gold was good for $20 to the upside today, and even the gold stocks put in a nice day as the HUI also closed up $20. However, the difference between an up gold day and a down gold day is like the difference between night and day. On a down day, gold rockets down, has a small bounce and rockets down some more. Today was a classical up day. Up a couple of dollars, down a couple of dollars. It was fight the entire day. Typical market action. Silver had a nice day up some .75.

Are we out of the woods for this correction? Who knows, prolly not. But, I found it to be hilarious that there was barely a mention about gold or the dollar. They are so pollyanna on that station that it's ridiculous.

I also find it quite interesting that everyone and their mother is calling a bottom in the stock market. Markets do not bottom when everyone says "we are at a bottom." Markets bottom when no one wants anything to do with stocks and when great, well run companies trade at a 5 PE basis. We are no where near that level. Many people and CNBC are in for a very rude surprise.

As I wrote last night, I thought the fact the gold stocks acting so shitty yesterday was a sign that more pain was in store. I was quite wrong and thus missed a good part of the rally this morning. I had a chance to buy a few stocks this morning but passed as I did not trust the gold rally. I guess that was a mistake. For what it's worth, I went home long a few gold stocks, but I am not that heavily invested. If the dollar keeps tanking and we have a follow through I will get more heavy into the stocks.

More pain ahead......

IMO, gold up $10 since Thursday (it was up $17, but the scumbags painted the tape toward the CRIMEX close), the market is ripping to the tune of 250 points, yet the HUI is down. More pain ahead.

Very appropriate........

From www.jsmineset.com

Ok, enough......

I have often stated that I am long term bull and believe that gold is going to well over $1600 and the dollar is going to hell in a hand basket. I absolutely refuse to believe that things are getting better just because Bear Stearns was bailed out; I just fail to believe the bullshit that is being spewed that everything is hunky dory.

Now, don't get me wrong. I trade for a living and have been doing pretty well shorting the hell out of the gold stocks since Monday of last week. In fact, if you noticed the close on a few AMEX gold stocks from last Friday (GSS, MFN, NXG), for some reason they had huge buy imbalances on the close and were gapped up. I shorted the hell of GSS and sold my MFN as that was an absolute gift close. (I went long MFN for a trade as it was acting well.) However, I have sold not one share of any gold stocks in my retirement accounts and have not sold as little as 1/10th of an ounce of my bullion. (Now, am I sorry I didn't sell my palladium? Hell yeah!! But I digress.)

My point is, either you believe the gold story or you don't. If you think the story is over, sell all your bullion and be done with it. If you do believe in the story, then this too shall pass. I will freely admit to having been very spooked reading all the stories about what grand shape the economy is in, and how the bull is back. It makes me want to sell and never look back.

But then I sit back and examine what is really going on here: the economy is in a mess no matter what the Fed does, multi-billions of dollars are coming into the financial system, a major wall street investment bank was bailed out, another one, though not a major (CIT) is on the verge of collapse and had to draw down it's credit lines, people still can't afford the house they are in and can't refi no matter how low rates are. And after I do this, I realize that without a doubt, my money is in the right place. Basically, I grab my balls and take a stand and realize that I should be heavily buying these dips.

I lost a shitload of money during May 2006, but I came back and I have 100% absolute conviction that gold will make a stunning comeback again. And when that happens, the Guy Adamai's of the world, who haven't a clue about gold, will still be bad mouthing it calling it a useless relic. They don't understand now, and they won't understand at $1600.

It's gut check time. Are you with gold or against it?

More very good reading.....

about why this isn't the end.

http://www.marketoracle.co.uk/Article4095.html

What am I missing here?..........

I am continuing to rack my brain as to what I am missing here when I read and here story after story about the Fed being more cautious and diligent on the mortgage problem. Is cutting rates by .75 rather than 1 and blabbering something about inflation being more cautious? Is it solving the problem?

Also, is lending out billions and billions of dollars (with more to come) also being more diligent? There is talk all over the street about how there is going to be a co-ordinated worldwide buying of Mortgage Back Securites to help ease the crisis. Is this being more diligent? Is this not the continuation of dumping mounds and mounds of liquidity on the system. And isn't that gold bullish?

Also, the main problem still exists and that is houses are still very overpriced and people are still in houses they can't afford. That is not about to change anytime soon. Isn't that recessionary? Isn't the consumer still pulling the reigns in when it comes to spending? Isn't THAT recessionary. Won't the Fed cut rates to help spur the economy? What am I missing here?

Aren't all roads pointing directly to gold?

More proof that we are not even close to a bottom.....

This weeks issue of Barrons is positively orgasmic that the bottoms are in! Almost every single article is bullish: "Dow 20,000 in a year, " "Financials have seen the lows of the year" and finally, my favorite, "Could the shine be off gold."

Mortgage Back Securities Buyback Denied......

Today, both the BOE and and the Fed came out and denied they are working on a plan to buy mortgage back securities in the open market place. In the past the Fed has also warned us about inflation at every turn, said interest rates do not need to be cut and the economy is in fine shape, and finally sub-prime is not a problem.

I bet you they start buying the MBS's by the end of April at the latest.

Relax all is well.......

1. S+P put Lehman Brothers and Goldman on credit watch negative.

2. There is talks about massive buying of mortgage back securities on both side of the Atlantic
http://www.ft.com/cms/s/0/a233faa2-f789-11dc-ac40-000077b07658.html?nclick_check=1
The above links to an article at the FT Times.com. I don't know if you need a subscription or not.

3. Congress is looking into the purchase (theft?) of Bear Stearns by J.P. Morgan. Congress has some small concerns as if the sale was legal, and why the Fed is putting tax dollars in Jeopardy.

4. Look for a new wave of problems with regional banks due to smaller builders going out of business.

Things are peachy!! Sell your gold now and get dollars!!! (That was sarcasm in case you were wondering)

Seriously, even though the Cult of CNBC swears all is swell now that the Fed is on the job, what about the consumer? Is he going to start spending again? Is he de-leveraged? But why should we care about things like this when the market can go up 300 or 400 points a day?

This made me laugh......

"COMMODITY BEAR SIGNALLED AS FED PERFORMS LIQUIDITY DRAIN....." so begins the headline on a rather questionable website devoted to precious metals and energy. Now there is nothing wrong with a PM site who questions the validity of whether the move is over or not, hey we all have our opinions and I will respect any opinion that is backed with supportive facts.

But, this website is notorious for flip flopping his views on gold and metal depending on where the metal is going, and I mean his long term views.

Now here is the same guy just a week ago:

http://www.clivemaund.com/article.php?art_id=68

I used to subscribe to this service a while back, but got sick of the flip flopping.

I did not read the story about how the Fed is allegedly draining cash because its wrong. Cutting rates .75 instead of 1.00 is not draining cash. Loaning out 100's of billions of dollars is not draining cash from the system it is the exact opposite. I guarantee you when gold eventually starts to climb again, this guy will be cheering the new bull market on.

I guess the bottom line is that price alone cannot be the catalyst for a direction change; fundamentals are. When a Paul Volker type is back in control of the Fed, then I will re-evaluate my opinion on gold. I also think it's amazing that this time last week the financial system was on the verge of crashing and just one week later all is well. It took several years of abuse and easy money to get into this mess, it will take a lot longer than one week to get out.

You know where the roads are pointing.

Morons, Idiots and Vagabonds.....

I am not going to comment too much on the activity in the gold market today except to say that last night in Asia, gold opened down some $25 but two hours later it was only down $7. I wrote on the blog that there was absolutely no doubt in mind that gold would be hammered once it hit Europe and hammered again when the CRIMEX opened. That's exactly what happened. I will go on to say that gold did not rally with oil on Tuesday after the Fed announcement, but happily sold off yesterday and today when oil was down some $3. However, gold failed to rally when oil climbed $2+ to close the day down less than a buck.

Finally, I will add, right after the Fed announcement, gold sold off some $7 then immediately rallied back to the flat line and in fact was up a buck or two before it began its disastrous three day run. Now what is the summation of all this? If you think gold is not being manipulated or forced down, than I have a very nice bridge for sale in NYC. Hell, buy the bridge and you can even travel toll free.

As of 9pm, gold is up some $10 in Asia. Think that it will last? It might, I don't know if Europe is open tomorrow for the Good Friday holiday. If Europe is open, then no, it won't last. I will say it again, this is May 2006 all over again.

What I would really like to talk about tonight are the morons, idiots and other dolts who freely comment on gold when they haven't a clue in the world. All day on idiot vision (CNBC), everyone and their mother, once again, tap danced on gold's grave. Bob Pisani went as far as to say the fact the dollar has bottomed meant that gold could only go down from here. The guys on Fast Money whacked gold like a pinata. My boy Guy "I am not bullish on gold" Adami, once again said the trade is over and to get out. "Gold is not a commodity, but something you speculate with!" was the exact quote that stuck with me. He too mumbled something about the dollar putting in a bottom and that would spell gold's doom.

I think it was one of the Najarian brothers who said that the Fed is being smart this time, and not just cutting interest rates but rather they are being creative about how they are lending money out at the discount window and allowing all sorts of bonds to be used as collateral, and that's why gold will die a quick death as the mortgage situation gets sorted out.

Mahendra from mahendraprophecies.com was on and said that because Jupiter was in the 7th quadrant and Mars was getting quirky, that was the reason gold was going lower. (Mahendra is a glorified 7-11 clerk who has his own website and has been calling for gold's demise for two years now.)

And finally, Ixekbhek, a tribal medicine man from the Isle of Veeneshu was on Fast Money and said "Boogah Boogah Boogah ooooh-oooh-oooh" and that was his reason why gold was going to turn to rust.

Now can we dispel all these bullshit reasons why the rumors of gold's demise are premature?


First, everything, and I mean EVERYTHING the Fed is doing is extremely inflationary. They are trying to fight off Ben Bernanke's worst nightmare, deflation. When banks won't lend money or a major money center investment bank is insolvent that is deflationary. The Fed has to keep the money pumping or the economy will die. Look at Japan in the 90's, it was/is an extreme case of deflation that has caused and kept the Japanese economy in a decade long recession. The Fed does not want that here.

Accepting any time of mortgage product as collateral for loans is inflationary. They are pumping more and more money into the system. Don't believe the hype that these are only 28 day loans; these loans will be as long as they have to be.

M3 money supply, which the Fed does not report anymore because they think it's a useless tool, is a measure of how much currency floats around the system. There are models that recreate M3 and they show the money supply is off the charts. This is obviously extremely inflationary.

The dollar is having a bounce. On the prior knock down of the dollar when it fell to 84 it had a small dead cat rally to about 87 and every claimed it was the birth of a new dollar bull, as, so the thinking went, the Fed cuts would spur the economy and that's what everyone was betting on. Complete horeshit that went for gospel on CNBC. So, the dollar bottomed at 70.50, and is now sitting around 72.82, IMO, another dead cat, and everyone claims, like Jesus, the dollar has risen from the ashes. (How's that for a holiday tie-in?)

Now, let me be a party pooper and dispel this crap. At the crux of the problem is housing and the fact that too many people are in houses they can't afford and never could in the first place. Wall Street took all these mortgages and packaged them together and created bonds, and from these bonds trillions of dollars in derivatives were created. When folks who bought a million dollar homes with nothing down on them, and interest only mortgages, stopped paying those mortgages, it caused massive defaults and greatly affected the value of those bonds and thus those derivatives.

And there is the problem, nothing has changed to help the homeowner pay his mortgage. Rates have come down this week, but banks are lending and in this day and age you need to have a spotless credit record to get a mortgage and you also need to have 20% equity to refinance. Is the Fed going to guarantee all FRE and FNM debt? If they do is that not inflationary?

What about the average consumer, who, to coin a phrase from Doug Kass, is not pent up but spent up? The average household is loaded with credit card debt, prolly over extended on his HELOC, so how is he going to spend to keep the economy going? Is his tax rebate, with the exception of a one time bump in the early part of the third quarter, going to keep the economy afloat? Speaking of which, huge tax rebates, are they not inflationary?

I would like to think you get the drift that EVERYTHING the Fed has done to this point, and will do, is extremely inflationary. On CNBC today, some schmuch floated the idea that this time gold won't respond to inflationary pressures. GOLD ALWAYS RESPONDS TO INFLATION, THAT'S WHAT IT'S THERE FOR!!!!!!!!!!!!!! It is an instrument against the debasement of currency. But you knew that already.

At some point, the ECB will have no choice but to cut rates as it is becoming increasingly evident that the Euorpean economies are slowing. I think when this happens you will see the dollar and gold going higher at the same time. Now, I know this will be hard for my boy Guy Adamai to understand, but if the ECB cuts rates, it will mean more monetary stimulus for the world's economies and we know what currency debasement means. However, the interest rate differential between the ECB and the US will narrow providing a lift for the dolllar. Speaking of interest rate cuts, the FED did say they will cut if needed. So, does the fact that they only cut 75 vs 100 bps, really mean much? More cuts are coming, IMO, rates are coming down at least another 100bps.

Tonight on Real Money, Cramer said the Bear Market is dead. Bear Market? Can a bear market last only three months, wouldn't that be a correction? IMO, the sharpest and strongest rallies happen in the context of a bear market just as the sharpest corrections happen in a bull market.

I have said it a million times and will say it a million more, all roads lead to gold.

CNBC.....

Just keeps amazing me. When gold was going over $1000, you heard about maybe once or twice an hour. Now that gold is tanking, you hear about the demise every five minutes. Jeez, do they hate the metal.

Gun to head....

Gold and the gold stocks recover here IF the market can hold up. THIS IS NOT A RECOMMENDATION TO GO AND BUY!!!!!!!!

Business as usual...

Like I said last night after gold was down $25 in Asia and came back to down $7, it would be smacked down hard in Europe and sure as shit it was. Now down $27 as the dollar screams higher on a dead cat bounce. Did the fundamentals change since Sunday and no one told me?


Again, just a clear operation and a repeat of May 2006.

This simply must be watched....

Jim Rogers on CNBC early this morning. He simply blows away Maria and some other clueless moron. Just pay attention to the commentators as they shrill away that the market MUST go higher.

Jim Rogers is a genius.


http://www.youtube.com/watch?v=6KLtm7-O4z8&feature=related

See what happens when a market can trade freely.....

Earlier gold was down $25+ in Asia, but as of 11pm is down less than $8. See what happens in a more natural market environment? Don't get me wrong, I still think gold will be smacked down hard when it comes into Europe. Unless of course, the stock markets crack hard and gold regains its safe haven status which it lost today.


In another random note, I was told by several different trading desks, that the "leverage police" came around to the various trading desks and these desks were told to scale back on their leverage. That prolly fed into the decline.

Houston we have a problem....

Gold down $27 in Asia. They got their mission accomplished. This is a repeat of May 2006.

What is there to say.....

They won, like always. To give you an idea how much this is all contrived bullshit, after the Fed cut rates, gold was down $7, but managed to climb back to the flat line and was even up a few dollars before the carnage began. So you tell me if this is an operation.

All you need to know about this crap, you can find at www.jsmineset.com. Jim and Dan have done a great job describing what is currently happening.


Some random thoughts.....

No matter what you hear, gold was not down $60 today. Yesterday after the announcement, gold was down $25 and today it was down $38.

Everybody, and I mean everybody is tap dancing on gold's grave, calling yet another top; but this time they really mean it. This is very bullish.

The Fast Money guys were orgasmic in their glee over the decline.

Dennis Gartman said gold could fall to $850 as that is where the next level of support is. Uh....wrong dumbass!!! $920 is where the 50 day moving average lays.

The gold stocks just got absolutely decimated. The HUI/AU ratio is below .2 and historically the stocks rally from there. (The HUI is off more than 10% in two days!!!)

The sharpest declines happen in a bull market.

And, the most important random of them all: ALL ROADS POINT TO GOLD!!!!!!!!!!!!

Sell Mortimer Sell...................

At 12:45am, gold is up $8.50 as the dollar is going back into its hole. Big Whoop. In a little over an hour it will be knocked down as it comes into Europe as has been the case for the last few weeks. Can you tell I am back to thinking the worst in the gold market. Now, please excuse me, I am still bleeding from my ass from the punishment it got today.

Just when I think I have seen it all, today comes along.

I had a very nice, long conversation with Jim Sinclair today, nothing earth shattering was shared, he is just a very nice, kind person who loves to share his knowledge with anyone interested in learning about gold and the market. I will share one little tidbit that I found a bit surprising. I had mentioned to him how shocked I was that gold gave back the entire $30 gain from Sunday night and really thought that after the Bear Stearns news, the brakes would be off gold for good. He replied to me that the brakes will never be off and that we will have the same fight to his target of $1650 that we have now.

I was shocked and surprised at that.

Just when you think you've seen it all.....

WARNING: THIS IS A CLASSIC RANT WHICH MEANS IT IS FULL OF PROFANTIY!!!!!!!!!!!!!


A day like this comes along and makes you hate life. Big fucking deal, the Fed only cut 75bps, vs 100bps, they left the door open to more cuts. The gold stocks told the story as to where gold was going as gold was up a couple of bucks, but the HUI was getting the shit kicked out of it. And of course after the announcement it was gold's turn to get killed as it was down as much as $25; the HUI was also down 25.

In all my years of trading this, this day was the biggest cluster fuck I have ever seen, especially given the liquidity that has been poured on the system in the last two days. The fact that the market was up over 400, makes it even more criminal. It was quite fucking obvious that there were unseen hands in both the dollar and gold.

Case closed. My chest hurts too much too write any more. I just hope anyone who doubts that this market is rigged more than a three card monte game, is a doubter no more

I really want to throw up......

Market up 250, oil ripping, dollar down, gold up $2 and the HUI down almost 10. This is unfathomable, it really is and speaks volumes about the naturality of the gold market.

Once again we are gettng robbed....

I will save yesterday's clusterfuck for another time, but today gold was up $10, now up $3. The HUI is down 6, with the market up 230. It never ends.

I really might just say F' it.....

Gold was up as much as $30 last night, now it's up $11. If gold can't explode on a day like today, when can it?


This might be the last straw for me, I grow weary of this bullshit. I am up some 300% on my physical, it might be time to dump it and be done with this aggravation. I may never touch another gold stock again.


It's just not worth the fucking aggravation.

No surprises here......

I am not calling for this, but it would not surpirse me in the least bit if gold closed lower today.

One bright spot.....

Gold stocks are rallying in Australia. Let's hope that continues into NY. Gold now up (spot) +23.

Why am I worried about tomorrow

I guess it's just being a gold bug and having my brains bashed in. How many times have we had a great overnight session (unitl Europe opens) only to see the gains more than halved once the CRIMEX opens? Even though the financial system is imploding before our very eyes, I still have some concern for tomorrow. I know, I know, I am prolly worrying about nothing, but gold is already $7 off the highs. I don't trust this market for anything.

I still think the Fed does something more drastic before the NY opening and that SHOULD propel gold higher, but who knows. If we suffer a true rout tomorrow, the fact that everything, including commodites are sold hard.


Oh how I would love gold to be up at least $50!

Exclusive video of JPM-BSC negotiations....

http://www.youtube.com/watch?v=S2C07yRCdT8



Gold up $20. I am gettng giddy, but still think they try and knock it down as it comes into Europe. Dow futures down 200 and S+P down 25. Should be interesting tomorrow.

It wasn't a misprint....

When I logged onto WSJonline tonight, I saw the headline that JP Morgan was going to buy Bear for $2 a share. Gotta be a misprint I thought as stories earlier today suggested $20. But reading the rest of the headline the market value for the deal was $236 million. Just stunning. STUNNING THE COLLAPSE IN VALUE IN TWO DAYS.

Oh yeah, the Fed cut the discount rate tonight by .25 and will accept a wider range of collateral. Gold, right now is up $12+ (but as usual prolly won't last), and for some reason the dollar, which was tanking is now back to flat.


These sure are interesting times. As Jimmy S. says: "This is it!!" The liquidity dump is enormous. Call me nuts, but I think there will be more actions tonight in world wide coordination in order to save the world's financial systems.

This article needs to be read.....

Ron Paul has written a great article regarding the reasons behind the suppression of the gold price. It is a must read article. He sums up his arguments much more eloquently than I ever could.

http://www.lewrockwell.com/paul/paul445.html

Someone really needs to explain to me.....

How the hell the dollar goes back to the lows of the day, yet gold barely budges still stuck under $1k. I kid you not, I hate this market.

Gun to head.....

Even with the collapse of the financial system, I don't think they let gold close over $1k. But it is nice to see the gold stocks higher with the market off almost 200.

Not Bad, I guess......

Sadly this day panned out just the way I thought it would. Gold was trading around $998, when one single trade posted at $1000. This was not a "real" trade but rather some eager beaver who posted the trade electronically so he could be the guy who said he was the first to trade gold at $1000. After the trade was done, gold went down a few bucks but then made a REAL assault on $1000, eventually hitting $1001 before backing off.

Now, the part that I thought would happen ,happened. After gold hit $1001, it immediately got taken down a few dollars, and before you knew it, gold was $8 off the highs, before closing around $995.

Oil at one point today crossed the $111 mark as once again the dollar was extremely weak. The dollar, right now, is basically in free fall. The Yen went below par for the first time in twelve years. The Euro hit an all time high. I would look for some intervention sooner than later.

Retail sales absolutely sucked and this, coupled along with a weak dollar and higher oil, had the stock market swooning. Then out of nowhere, the market staged a remarkable comeback and at one point swung some 300 points, from being down 200 to up 100. Now the reason, for this swing is two fold: First, S+P came out and said they said the write downs in housing coming to an end. Now saying they never saw the beginning or the middle of the problem how they can see the end is beyond me. Also, these are the same people who mis-rated trillions of dollars in bonds and mortgages. So trust them at your own risk.

Second, and this is the reason I believe caused the rally, Congressman Barney Frank, officially introduced legislation that would allow the banks to bail out bad loans and have the FHA pick up the crappy paper. Yet another bailout, however, the market will find this to be THE bailout. IMO, this is something the future generation(s) will paying for.

The gold stocks were strong all day, and what I really liked seeing was the fact that the junior stocks were running very nicely. Hopefully that portends more good things happening in the future. You know as well as I do, all roads.........

All in all, it's just another brick in the wall.......

Huge brick wall at $1,000. Can it break it convincingly? It should, but remember, this is the gold market.

Let's say......

You own a small software company, XYZ which trades for $10 a share with a total market capitalization of $100 million. One day, IBM comes along and decides to offer $18 share in a pure cash offer to buyout your software company; this would cost IBM $180 million, which is chump change to them. You would naturally think XYZ would trade very close to $18, right? I mean, assuming XYZ's management agreed to the buyout, the stock would naturally go there.

What has been happening in the gold market over the last two days is the equivalent of IBM buying XYZ for $18, but instead of going towards $18, XYZ, goes down.

Yesterday, the FED created $200 Billion out of thin air in a coordinated worldwide liquidity dump. Before the announcement was made gold was trading higher by $12 and shortly after the announcement, gold spike to up $15. The dollar which was already down in a big way, fell further. But before you could say "damage control" the dollar reversed hard and gold came all the way back to the flat line.

IMO, in a natural free market, there is no way in hell this could have occurred. For gold, this should have been the equivalent of throwing gas on an open fire. Oh well, at least the gold stocks had a great day with the HUI up 19. I have never seen the HUI up that much with gold flat. But then again with the market up 400, there was no reason why the gold stocks shouldn't have been higher.

Basically what the Fed did was agree to exchange, from the major money center banks, any piece of paper that had a AAA rating into T-Bills for $28 days. The thinking would be to free up the log jam of some of this paper that cannot get accurate bids, because as we all know, most of it really isn't AAA. The Fed has agreed to monetize shit. Or you could look at it as one of the biggest bailouts in history. The Fed is not through by any measure.

Apparently MER and LEH (I think it was them) agree with me as they basically said the bailout plan wasn't going to work and this caused the dollar to eventually fall to a new low vs the Euro ($1.55+) and caused the dollar index to fall to an all time new low below 72.50. The low dollar also accounted for oil to go over $110, another record high.

One would think this would cause gold to soar over $1k. But this is the gold market silly. Gold eventually did close up some $9, but it was a tooth and nail fight. The gold stocks did ok, with the HUI down a point. Not to bad saying the market corrected hard today and after all it was up 19 yesterday.

So, over the last two days, there has been a massive worldwide liquidity injection, oil has hit $110, the dollar is cracking too new lows every day, and gold has been up a total of $9. Sound like a fair and open market to you.

You know what I look forward too? The day the dollar skyrockets, oil is down a bunch and gold skyrockets. That would be some day.

Do I really have to say it anymore? All roads lead to gold.

Call me crazy......

But this is a worldwide liquidity pump and you would think gold would be skyrocketing well past $1,000. But, as true to gold's fashion, it gains got cut by almost two thirds before bouncing higher. Sighhhhhh..........it never ends does it.

Whaddya gonna do.....

Today was one of those days. Gold got the smackdown coming into Europe like usual, about the same time the dollar had yet another miracle and recovered from the lows. Are you like me and getting tired of this shit day after day?

Come CRIMEX opening every commodity and it's mother was selling off hard, however once oil started to rally a little bit later that gave gold a bid and before you knew it, gold, which was down over $12 and looked like it was going to be down $20, rallied back to flat. Silver which was getting absolutely demolished managed to cut it's losses in half. (imagine how much fun it is to fire up your computer and see silver down 4%!).

So, where are we right now? In the middle of a f'ing disaster that's where. Oil at $108 is not good for an economy already in recession. The banking situation continues to worsen by the minute. Stocks continue to slide; should I go on?

It really is something to watch oil skyrocket, the dollar flounder, and have gold flounder about as it tries to scratch out a meager gain when the conditions are more than ideal for the metal to go higher. Gotta love markets that are capped.

Watch HL......

A gold stock I like to watch as for some reason view as a tell is Hecla (HL). HL is relatively flat here, so that could mean the gold stocks are due for a bounce. Or maybe not. Gold down $6, but gold likes to play these games so be careful.

Watch out for the whooooooosh day......

This has all the earmarks of a whooooooosh© day. What that is you are looking at gold down $10 and look away for a split second, the next thing you know it's down $15...whooooooooosh©.

I still think today is going to be very ugly.

Strap in Kids......

Looks like the global commodity rout is on as everything is tanking. Gold, once again got the smack down coming into Europe and is now down $10. Silver is getting crushed down .85 or roughly 4%.

Someone wants gold down so be careful, today has disaster written all over it. I think all rallies in gold will be sold and sold hard today.


Sighhhhhhhhhhhhhhhh...........it really never ends does it. Oh yeah, somehow the dollar had yet another magical bounce.

Top Callers abound.........

So, on Friday, we had a typical jobs Friday reaction to the god awful jobs number and that is gold spiked and the dollar crashed, only for both to reverse hard. I will say it was nice to see gold close down relatively flat especially as some other commodities got crushed. (Plat down over $130!).

I have spent most of the day reading stories that are calling for gold's demise, some people know better and the others are just morons. In the latter category falls my favorite glorified 7-11 clerk, Mahandra from Mahandraprophecies.com, literally said the bear market in the dollar ended on March 3rd and that a new bull market was born. On the same note he goes on to say the bull market in commodities is over and the bear market has just begun.

Now, besides using some type of wave of nature bullshit, I have no idea where or how this guy comes up with his forecasts. I believe it was about three weeks ago when he again called the top for gold. If at first you don't succeed try, try again. This is probably his twelfth attempt at calling a major top. I guess this guy just says screw the fundamentals.

A very good website that I frequent is http://www.321gold.com/, which links a lot of good articles regarding gold. Bob Moriaty, the site owner calls the top and says get ready for the usual Mar-June doldrums and look for a "violent correction." However, he does add, that after the usual weak seasonal activity gold will start a new leg higher.

Call me thick, but I can't see any reason to panic here as the fundamentals are still and will continue to be excellent for gold. Sinclair said it best: "It is going from THIS IS IT to They are losing control." The US economy is getting worse by the day, there is no denying that. IMO, there is no catalyst to reverse this direction. Yes, the stimulus that Congress agree to, may help in the latter part of the 2nd quarter and may give a quick jolt to the economy, but after that the decline will resume. If one was to predict gold would go lower and the dollar would go higher, wouldn't it be smarter to suggest it would happen after the US taxpayer receives his handout? However, on the other hand the average US taxpayer is soooo screwed that he might actually use this welfare to actually pay down debt.

Are we going to get death defying corrections in gold? Of course, that's just the way the market has always been and always will be. I still believe no matter how many times the shorts get their asses handed to them they will be back to keep knock gold back down. Friday is a perfect example. How every single jobs Friday the dollar gets cracked and gold spikes higher only to reverse, mystifies me.

I can proudly say that since I got into gold six years ago, I have never sold one ounce of my physical holdings. And I promise you, if gold does have "a violent correction" I will be buying with both hands. In fact, the only way I would sell my gold is if Sinclair said to get out or Paul Volker became the new Fed chairman. As always all roads point to gold.

looks like....

We are going to repeat the scenario that we had at $900 gold. That is, gold is gonna huff and puff, and try and blow the $1000 number down only to fail on many occasions. However, once it does break $1000 convincingly, it will be off to the races.


Was I right about jobs Friday, or was I right?

So far typical jobs Friday action.....

In additon to the crappy jobs number, the Fed agreed to increase the TAF auctions to $100B. In a nutshell gold was up as much as $12, and is now up $4. Gold is clearly attatched to oil which started to slide. The dollar hit a new low at 72.46 and is now at 72.61.


I still look for the dollar to rally today and gold to slide. That's just the way it is on jobs Friday. Whooops....gold only up $2 now.


S+P futures tanking. Call me crazy, but for some reason I think the market has a chance to finish higher today.

These sure are interesting times.....

I gotta be honest, I have been on the Street for 20 years now so I have seen a few things, but not what is happening now. And, what is even more amazing is two years ago the meanest, nastiest bears laid out their scenario for what was going to happen to this economy and their scenario is playing out to the "T"

Things are a disaster and getting worse by the second. Credit crunches at every level in the US economy, bond markets that are freezing up, stagflation, crashing dollar, $105 oil, a plummeting stock market, if it's bad, it's happening. The Fed is in a box and they know it. By a box, I mean, there is no way in hell they should be cutting interest rates, but they have no choice. I am hearing of a cut tomorrow or Monday. The nastiest grizzlies were writing that when push came to shove, Ben would sacrifice the dollar and inflation for growth.

So let's review todays action in gold. Gold, once again got the smackdown coming into NY, it was up to $994 but was flat when the CRIMEX opened. For a while gold danced around, up a couple and down a couple, when all of a sudden wham! Gold fell a tidy $21 on an extremely weak dollar. But, before you could scream "The Cartel is trying to get back their power" gold made a very nice comeback to the flat line. However, once again it bobbed up and down before falling another $15 and finally one more stab upward before settling down $15. Silver was all over the place.

More importantly was that the gold stocks acted like champs today. Really, no kidding, they had a very impressive show with the HUI actually closing slightly higher on the day. That was all the more impressive saying the overall market got slaughtered and gold cracked.

Now, at 12:40am, gold is up $9 in front of the jobs number tomorrow. Last month at this time in front of the Jan jobs number, gold was down $7, only to be higher in the morning. So, I am not pumped it's up nine as it will prolly get the smackdown yet again coming into Europe. Also, gold could be up $9 in Asia as a counter measure to the CRIMEX attack in NY.

You know how I feel about jobs Friday; if the number is horrible, my prediction is strength early on than crackage. That's how jobs Friday work and I can't see why tomorrow would be any different.

Now that being said, I have two caveats; first, if the Fed cuts all bets are off, and second, if (and a big if this is) gold stays meaningfully above $1k, it could stay there for the day and possibly challenge Jimmy's $1024-$1050 level in coming days. A smaller measure that tomorrow could be ok is today's gold stock action could have been a tell for tomorrows action. Shoot me, I believe the gold stocks lead the metal. Hey, it's better than some of the other crap that's out there.

The volatility.........

Today is just nuts. NUTS!!! I have never seen gold this volatile intraday in my seven years being involved.

Just ridiculous.....

The action today. Hits $994, gets smacked down, down $15 then gets back to flat, and now down $13. Silver getting whacked. All this with the dollar that has broken 73 and in front of the jobs number tomorrow. Who the F' is selling/shorting this? Believe it or not, gold stocks holding in there ok, for now.

Did I say $13?

I mean $15.





You never see action like this on the upside. Never. Even yesterday.

Don't you just love operations.....

Did the shorts not learn anything from yesterday? Down a quick $13 on nothing.

Just so I understand..............

The dollar index is about to break .73, and gold is down. This has the potential of a classic down day in the yellow dog. First it was down $7, then came back to be slightly up on the day, now it's back down $5. This is classic action when gold is about to be smacked. We'll see, I guess.





Oh yeah, gold once again, got the smackdown coming into Europe. It traded as high as $994. Who says the trading if free?

WOW....WOWWEEEEE.....WOW.....WOW

Gold and silver have now gotten back everything they lost yesterday.


Funny, not a word about it on CNBC.

Shorts....

Are all over the gold and silver stocks, especially the silver stocks. Silver is almost where it was yesterday and the silver stocks are flattish to up slightly after getting absolutely drubbed yesterday.


Sighhhhhh..........it never ends does it?

Is the death spiral here?

So let's review: Gold was merrily bopping along up a few dollars when all of a sudden every commodity in the world began to sell off. At one point gold literally fell $8 in three minutes. (Funny, I have never seen it rise $8 in three minutes!) To make a long story short, gold closed down some $17 while silver got its ass handed to it and closed down .56.

Now I am not going to complain about today's losses, as both gold and silver really needed to come in a little. Today was a classic down day in; death like plunges, huge rallies then another death plunge to close towards the lows. Instead, what I am going to bitch about is the constant tap dancing on gold's grave that I heard endlessly today. Every single time gold was mentioned on CNBC today, the losses were mentioned with such glee it seemed everyone on the station had a huge short interest and was making millions off the fall. I already talked about the moron who called the end "to this parabolic move" in gold. Tonight on Fast Money, Dylan Ratigan, actually posed the question is this the end of the bull market in commodities? You would have thought these morons never saw profit taking in a bull market!

According to Dan Norcini over at Jimmy's site, he believes the rout started when China intervened in the Soybean market to try and temper food inflation. Well, in this black boxed market of 2008, if one commodity market starts to crater, they all do.

The gold stocks got absolutely hammered, at one point the HUI was down 24, before closing down 17. Nothing like giving back two weeks work in one day. Funny, I don't remember the HUI being up 17 let alone 24 during this run up. The shorts were having orgasmic convulsions, they were making so much money at one point.

All of this action happened in the face of a lower dollar as things keep getting worse out there. Ben, even suggested that banks forgive parts of home owner's mortgages. Nothing like a little socialism to help things out. The bottom line is the economy and the mortgage situation (along with the corresponding derivative situation) are both absolute disasters and getting worse.

So where too now? Prolly down, gold rarely has a correction like this that lasts only one day; usually it's a start of a downward trend. Does it continue tomorrow? Who knows, as on Wednesday, the ADP jobs report is released and if history is any indicator the report is almost always bullish (and wrong). But in the process the dollar has a two day rally and gold gets whacked. I can't see why tomorrow and Thursday would be any different. Then again, on the other hand, who knows what could blow up tomorrow?

You know what, I really don't care where it goes in the short term, I really don't as things are so FUBAR that it doesn't matter. Think about it for a second, the Federal Reserve Chairman of the United States of America is asking for the banks to forgive principle on mortgages. Does that sound like somthing a hold of gold should be worried about?

Please.....

Anytime someone on CNBC is mentioning the sell off in gold they are practically creaming their paints. God, is the hatred for the metal palatable.


Please, I am sure we all remember the days when gold was at $500 and sold off $20. Down $20 is a 2% sell off. Ohhhhhhhh.........I need to sell now, let me go to my box and get all my physical. If a $100 stock was off 2 points, would they be acting the same way?

Now Bob Pisani....

Is chiming in about how gold is parabolic, but what is more laughable; he claiming everyone is calling their brokers demading they get into gold.

Could they hate gold more?

I have decided to go on TV, write a book, and start a blog about subjects I am not remotely familiar with. First up is Buzkashi, which is a traditional Central Asian team sport played on horseback, and involves skilled riders who try and grab a goat or calf from the ground while riding a horse at full gallop. The goal of a player is to grab the carcass of a headless goat or calf, and then get it clear of the other players and pitch it across a goal line or into a target circle or vat.


The New York Buzhashi team sucks.

Do these morons even have a clue as to what they are talking about.....

Just heard some dickless wonder on CNBC saying that gold is at the top of a parabolic move and to be very careful. Do these idiots even know what they speak of? Can you have a seven year parabolic move?


If gold is in a parabolic move, I wonder what the move in Plat and Paladium are.

Strap in kids, the much needed correction may be upon us.....

Gold after hitting a high of $990+, wound up having a nice day, closing up some $10+ and the gold stocks had an even better day in an iffy market. However, IMO, we might be approaching a short term top, soon. According to Jeff Macke, in his mind, $990+ is a rounding mistake to $1000, and he is ready to call it a day on gold for now. Hell, even Sinclair, if you read between the lines, is a little worn out with this move for now.

When Cramer is screaming from the Mad Money pulpit that he loves gold, that may be a sure sign the party is in full gear and the cops are on there way to break it up. In fact, Cramer, pushed AEM hard tonight. As evidence to this, gold hit $987 tonight in Asia, and has since backed off $6 ($3 from the 6pm close). Now by all means this is not a big deal. In fact, I would like to see some basing here to gather strength for the next leg up. But, this is the gold market, and what should be some simple profit taking usually turns into a death like spiral!

So, let's tally, we have the WSJ, Barrons, Cramer, and lord knows who else liking gold, and Sinclair a bit negative. Is it a contrarian play to short it for a while? Who knows. But, the second my boy, Guy Adami, starts liking gold, I am shorting away.

Silver is extremely overbought and needs to correct. Sadly, a silver correction makes a gold correction look like child's play. I really think if Silver wanted to, it could correct $2 in one day. Wouldn't that be something? I AM NOT SAYING THIS IS GOING TO HAPPEN, ONLY THAT IT COULD.

Whenever gold finally does correct, you know the top callers will be out, and Guy Adami will have a big shit eating grin as he says "I told you so."

From the "still doesn't have a clue" department.....

My boy Guy Adami, on Fast Money, just said that he wasn't sure there were bubbles in all commodities, but there is definitely one in gold. He doesn't get it now, and he didn't get it when gold was at $800 and called for $700 gold.


Better he recommend a piece of shit company like Blue Nile (NILE) at $66 like he recently did. It now trades at 44.58. What's twenty points? Why not recommend a company that sells highly discrestionary items in a receding economy?

Hey, whaddya know......

They gave gold the smack down literally the second Europe opened. See the last two columns to know what I am talking about when it comes to a natural market. Oh...and the dollar somehow made a miraculous recovery. Amazing how that works. Well, at least silver is still strong.

Giddy as a school girl.....

As of 1:30 am on Monday morning, gold is screaming higher at $984 up almost $10, while silver is up .20 to $20.14, as the dollar is tanking again vs. the Euro at 1.5226. I am giddy and excited. However, I am tempted to stay up another hour or so to see if these gains are wiped away as gold comes into Europe. I am almost positive Europe has the short fire power ready to knock this price down.

Hmmm....what if they don't or can't? Could we see $1000 very shortly? hee....heeeeeee.heeeheeee...heeee. Like I said, I am giddy.

Another characteristic of a "natual" market.....

I often write about how I believed that the gold market is not a "natural" market, rather it is one that is controlled by very strong influences. You might think I'm nuts as the gold market is at record highs, but from observing the market tick by tick, one can see the characteristics of a controlled market. I still believe the greatest tell is the fact that gold still not has hit it's all time high adjusted for inflation; that high would be $2100. Given the fact that the economic climate is so much better for gold than it was in 1980, that fact is quite startling.

I was thirteen in 1980 and really didn't pay attention to gold back then, but I have learned that the entire market lasted basically five weeks. Gold was trading around $400 and had a parabolic spike that drove it to $$850 over those five weeks. Gold then came crashing back to earth and then eventually topped out at $750 the next time around. Keep in mind, the reason gold didn't go higher was there were real adults running the monetary system. Paul Volcker admitted there was inflation and was going to do whatever it took to break inflation's back. That's why rates went to 18%. Compare that to now, where the Fed believes inflation is under control and economic growth will resume in the second half of the year.

Back to the point of this entry. Platinum and Palladium have been on a tear, mainly on SA's electrical woes. The spikes upward have been parabolic and will not last. Right now, I would bet based on TA, plat and pal are way overbought. Now, there are two ways too work off an overbought condition. The first is to, obviously have the security go down in price. The second is for the security to churn in place where it is now; basically to do nothing, go up a few dollars, go down a few dollars. Guess what plat and pal have been doing? Yes, churning. Neither have been doing much over the last week or so. How long a churn has to take place is a matter of time and function until the overbought condition is worked off and the TA stats become more favorable to buy.

Now compare that situation to gold. As bugs, we are conditioned for gold to have let's say a $50 increase over a period of two weeks, then a decline of $45 in two days. So far on this latest leg higher, gold has held onto gains (knock wood). But my point is, so far plat and pal act like a natural market should. Gold for the most part hasn't.

Let's play the Contrarian Game.....

I mentioned earlier that Friday is the jobs number and that gold always acts funky. For example, if the number is bad, and it will prolly will be, the dollar will tank early and gold will advance nicely before both turn about 1/2 hour after the number is released.

A couple of days before the Fed jobs number is released, ADP releases there own report. Over the last few months, this report has been notoriously wrong, yet the market, both gold and stock, for whatever the reason give this report a ton of credence. So, how do you play it? If you want to play contrarian, short the market if the ADP numbers shows strength, and go long if the report shows weakness.

My personal opinion? I think the Fed report will not be good. If this happens, given gold's history on jobs Friday, I plan to short any strength for the day. If I am wrong, and gold is very strong, then obviously I will cover.

It'll be fun to play contrarian for a day on the ADP report.

I actually liked the action yesterday.......

In what was an absolute dreadful day yesterday, I actually liked the action in gold. The dollar was flat (after bouncing off 73.5) oil was down (small profit taking) and the market was absolute dreadful. Yet, gold managed to be up about $8 in the April contract, hitting a new high. That is very impressive!! I mean, don't get me wrong, gold had to fight tooth and nail for each tick higher, as I still think it is being capped. However, with each nice day like this, the bears (and DA BOYZ) are running out of steam. (And remember even though I called for gold to dead money until the IMF sales are through, I did say if something out of left field happens, gold would go higher---the dollar breakdown qualifies.)

However, as good as gold was, silver is the king here, as the May contract actually touched $20 ($20!!) for a nano second before closing at $19.91 for the day. Very impressive indeed.

I am going to cut the gold stocks a break, as they acted pretty bad in spite of gold being $8 higher. But, as the market was down 300, buyers weren't in the mood to go home long anything over the weekend. I think it was more of a lack of buyers in the gold stocks as opposed to outright sellers swamping the market. During the rare time the market tried to rally yesterday, the gold stocks had an even nicer rally. And when the market was in the depths of a huge downswing, the gold stocks went down begrudgingly.

In bond land, things have gone from horrible to frightful. There were three large hedge funds that were liquidating municipals. On good quality, AA rated paper, bids were at a 6% yield, which is some 160bps over Treasuries. Normally, munis trade at 10-20bps UNDER treasuries. This was the highest spread in history.

I used to sell munis for a living. If I was still doing that, I would be buying with both hands and both feet. You don't get opportunities like that everyday. A few years back, there was a credit crunch in the corporate bond market that sent spreads skyrocketing. I was buying good quality names at anywhere 9%-14% for 1-4 yr maturities. However, my biggest score was buying Time Warner bonds on the long end of the curve at a yield of 21%. My clients literally made millions of dollars as within three months those bond yield came back to their normal yields. At some point I would expect the same for the munis.

You will start hearing about ALT-A paper shortly. This is a class of mortgage that is a step up from subprime. ALT-A paper is now trading around .60 on the dollar, and will prolly only get worse.

So, bond land is a disaster and only getting worse, oil is at record highs, the dollar is at record lows, stagflation is running rampant, gold is at a record (but still way undervalued, especially at an inflation adjusted price of $2100) and the FED pretends all is well. I have never seen the economy this FUBAR.

I am not going to try and predict where gold is going to go this week as a number of things could happen from the entire financial complex melting, including gold, to the entire financial complex melting, except gold. Gold could skyrocket or gold could crash, so that means it will prolly tread water. LOL.

I will say though that jobs Friday is this week. Historically, when the jobs number comes out and it is terrible (which should also be this month's story) gold does very well in the early going as the dollar gets crushed. Then somehow, by some miracle around 1/2 hour after the number, both reverse hard so gold gets absolutely demolished and the dollar shines. How this happens I will never know as we all know the markets are free and balanced. (choke, cough, choke, choke, cough.)

One other thing I am hearing that I like is that you are starting to get the top callers in gold as many are saying this run can't last, it's getting long in the tooth, etc. etc. This is a good sign because as usual, all highways lead to gold, and gold is thinking about getting on a rocket ship. (But be wary of the IMF sales , or talk thereof and jobs Friday.)