"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
Trader Dan's Work is NOW AVAILABLE AT WWW.TRADERDAN.NET
A Ho-Hum Day
The gold market seems relatively quiet in comparison to some of what we have been treated to over the last couple of weeks. Some traders are probably welcoming the break to see if they locate their stomachs after last week's wild ride.
Sellers surfaced near the $1720 resistance level noted on the chart preventing gold from continuing to build on last Friday's rebound off the $1680 level. It fell below psychological support at $1700 but has moved back above that level here later in the session, although not by a lot.
The reaction to the late Friday ISDA news has been somewhat muted with some risk aversion trades being seen in today's session. I am noticing however that many of the commodity markets seem to be managing some late session bounces. It seems that at least for today, shorts appear unwilling to try pressing many of them any lower.
The same thing is being seen in the S&P 500 pit with early session weakness giving way to some short covering and light buying although the market still remains lower on the session.
Bonds were up nearly one full point but have given up the brunt of their gains, remaining slightly higher as we head into the after hours.
One gets the impression from the price action across a larger number of markets that neither the bull nor the bear camp is willing to push their case too hard today.
HUI drops to 500 today. It will be a nightmare if market starts the big correction here. Frustrated. I am tired...
ReplyDeleteIt's sickening to watch the cartel be so firmly in control of the action. The specs are too much of wimps to know how to trade with those guys.
ReplyDeleteUntil there is a more widescale loss of confidence in the current monetary system - I don't expect things to change. We're dealing with the same old lot of specs who have proven time and time again to be ineffective against the cartel.
The cartel is successfully funneling money to equities and the long bond and keeping commodities and PM's fairly well contained so far. There are several ways for the specs to gain the upper hand. A coordinated physical squeeze at times of high demand comes to mind.
One has to wonder if by chasing specs out of PM's if they are chasing them right into oil, gas and other commodities that aren't so easily manipulated by paper flushes. I think it's quite obvious that is exactly what is happening. THey should just let the PM crowd go at it.