"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


Tuesday, December 17, 2013

Silly Season Silliness

I am strongly suggesting that parents still looking for last minute Christmas kids for their children, look no further than the gold market as it can quite easily be substituted for one of those new, sleekly designed yo-yo's. Yes siree Bob, it goes up and down, up and down, up and down, with hardly any hiccups whatsoever ( you know how annoying those strings can be when they get knots in them ).

Seriously, the Silly Season Silliness was on full display today as the gold market gave back what it put on yesterday, which by the way brought it back to nearly where it closed last Thursday.

That is why I keep saying, do not read too much into any one day's price action. I marvel that all the usual perma-bullish players continue to come out of the woodwork whenever we get a strong move higher. Then they all disappear when the market gives it all back ( some of them blaming manipulation). When gold moves back up, they will come back. Count on that. I could also just as well say that the perma-bears are always growling whenever gold makes a move lower.

Here is the simple truth - gold continues to be stuck in a RANGE TRADE. That means it "ain't goin' nowhere" until it breaks out of the range in one direction or the other. The weekly trend is still down so the bears have a bit of an advantage but downside momentum has also been blunted so until they can force the price below $1210 and keep it there, they are not out of the wood yets either.

Until then, find something better to do with your life ( like going to see "The Hobbit- the Desolation of Smaug" - I LOVE HATING Azog and Bolg), instead of watching every single tick in price. As long as we are dealing with the vagaries of the Fed and the FOMC meeting, as long as we are dealing with year-end book squaring, and as long as we are dealing with pre-holiday thinning trade conditions, we are going to see volatility.

Since there is not much to say right now, I will merely leave you with a price chart noting the price action as it remains constrained within that broader range.