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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.
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.
posted by Neal | 12:35 AM
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