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Whaddya gonna do?....
Obviously the world is fine. I mean GOOG beat by .32, C only lost $5B last quarter and announced 9,000 new job cuts, and we can deal with $117 oil, right? I mean I drive a Nissan Maxima and it now costs me $50 to fill it up (using regular). I am just very annoyed every time I have to pay that. There are many, many people that can't afford to pay that.
So because everything in the world is fine and dandy, the Fed cuts are going to end, and that means the dollar should take off like a bat out of hell. Last night of course, gold was up $5, until C's earnings, then the dollar rallied and gold got the shit kicked out of it.
When I check at 7am gold was down $5, when I got to the office it was down $23. The dollar was ripping and crude was tripping and the market was going sky high. GOOG closed up 90 points.
Gold at it's worst, was down $35 and managed to get that loss to only down $21. I will say the gold stocks acted like champs, with the HUI down only 13. Hell, gold has been up $5 and the HUI down by that amount.
Of course it's no matter that the dollar cut its gains in half and crude was up by $2 to $117. Keep repeating to yourself, "$117 oil is good for the economy!"
The country is an illusion of itself. Don't let CNBS fool you, things are bad out there. Treasury rates are rising which is going to make it harder for those who need ti, to refinance. The Fed, sensing opportunity, is jawboning that they are done raising rates. IMO, it is nothing we haven't heard before. In fact, on the 30th, they will cut rates and talk tough and say they are done. I wouldn't believe it.
This is the box the Fed is in. Are they going to cut rates and sacrifice the dollar or are they not going to do anything and kill what's left of the housing market? You tell me.
Gartman was on Fast Money tonight saying that he sees a huge seller at $950 who won't let gold lift beyond that number. You know who that is of course. So, we now know who and where gold is being capped.
Back to the market for a second. The financials were very strong in the early going, but did not close well, what that means is either it was profit taking or no one believes that much of the BS.
In all, all roads lead to gold. But this is one of those extended detours. that we have to deal with.
So because everything in the world is fine and dandy, the Fed cuts are going to end, and that means the dollar should take off like a bat out of hell. Last night of course, gold was up $5, until C's earnings, then the dollar rallied and gold got the shit kicked out of it.
When I check at 7am gold was down $5, when I got to the office it was down $23. The dollar was ripping and crude was tripping and the market was going sky high. GOOG closed up 90 points.
Gold at it's worst, was down $35 and managed to get that loss to only down $21. I will say the gold stocks acted like champs, with the HUI down only 13. Hell, gold has been up $5 and the HUI down by that amount.
Of course it's no matter that the dollar cut its gains in half and crude was up by $2 to $117. Keep repeating to yourself, "$117 oil is good for the economy!"
The country is an illusion of itself. Don't let CNBS fool you, things are bad out there. Treasury rates are rising which is going to make it harder for those who need ti, to refinance. The Fed, sensing opportunity, is jawboning that they are done raising rates. IMO, it is nothing we haven't heard before. In fact, on the 30th, they will cut rates and talk tough and say they are done. I wouldn't believe it.
This is the box the Fed is in. Are they going to cut rates and sacrifice the dollar or are they not going to do anything and kill what's left of the housing market? You tell me.
Gartman was on Fast Money tonight saying that he sees a huge seller at $950 who won't let gold lift beyond that number. You know who that is of course. So, we now know who and where gold is being capped.
Back to the market for a second. The financials were very strong in the early going, but did not close well, what that means is either it was profit taking or no one believes that much of the BS.
In all, all roads lead to gold. But this is one of those extended detours. that we have to deal with.
posted by Neal | 5:13 PM
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