The end of the Great Keynesian Experiment is upon us. Prepare accordingly.
Thursday, December 2, 2010
Terms and Conditions
Before we get started this morning, I thought I would share an email I received yesterday from my new friend, Graham, in Australia. (My new friend, Graham, in Australia! Isn't that awesome?)
"I have only request: as you get more followers (and potentially more "donations"), please do not change your style and the frank way you express your views. If you get too successful the trap for you may be that you try to keep everyone happy all the time by "sitting on the fence" or hedging your views so that you are never "wrong". The world is full of useless, equivocal market prognosticators. May you never join their camp!"
To live by these rules you, my dear reader, and I must have an understanding. You know I started this blog because I felt that we need to educate and warn as many folks as possible about what is, most assuredly, coming. The end of The Great Keynesian Experiment and all that that implies. However, I very much enjoy following the gold and silver markets and profiting from trading them. Obviously, this is an interest of yours, too. Now, I recognize that I seem to be particularly good at predicting future prices. Since that's all part of the fun, my promise is that I will continue to tell you exactly what I think is going to happen...today, tomorrow, next week and into the future. When I am right (often), take it for what it is...another good call by someone who has some experience in this arena. When I am wrong (sometimes), let's all just deal with it and move on. If you, my dear reader, promise not to whine and/or complain when the markets temporarily move against us, I promise to always tell you exactly what I think.
OK, on to today. I must admit that I am surprised and disappointed that gold and silver didn't blast off last night. Perhaps that move is still in the cards for later today but I felt quite certain that we'd be above $1400 and approaching $29 this morning. Nuts.
So, why aren't we? Good question. I've looked at all the headlines and checked for rumors. Nothing. So, to me, there are a couple of things going on:
1) Consolidation. We are already up $20+ this week in gold and we are poised directly below a "century mark". Gold often tends to consolidate and trade flat in between days of big up moves and gold often struggles with century levels...1000, 1100, 1200 etc. 2) BLS BS. You and I aren't the only ones concerned that the BLS will massage tomorrow's employment numbers, thereby creating the illusion of an improving economy, leading to dollar strength, leading to algo PM selling. Can't blame big $ traders for taking a "wait-and-see" approach to tomorrow. 3) Same old, same old. Feb11 gold did manage to make it to 1396 at 3:00 am before the Monkeys on the Night Desk drained $11 out of it over the next 6 hours.
So, sit back, relax and enjoy the action today. We've got about 9bil in POMO this morning so "sh*t ain't goin down". I'll be here keeping an eye on things and I'll keep you posted if I see anything interesting happening.
And one more thing, with so many new readers flocking to this blog (utterly unbelievable to Mrs Ferguson and I), I've being asked quite often for a "glossary" of Turdisms. This would probably be a fun note to construct...maybe something to do over the weekend. So, if there are any acronyms, terms or names that you'd like me define, put it in the comments section below or email me at email@example.com. (can't wait to see which ones you all find to be the most confusing).