Wednesday, August 10, 2011

US Is On The Edge Of Abyss

There is a lot going on in the world and the PMs are going a lot higher. Let me explain. No, there is too much. Let me sum up.
1) France is on the verge of losing their AAA rating.
2) Italian banks are on the verge of collapse.
3) In the U.S., Bank of America looks to also be on the edge of the abyss.
4) The Fed signaled yesterday that rates will stay at zero for the next two years.
5) Rioting and civil unrest seems to be on the increase globally.
We were all watching The Cartel vigorously defend the 1770 level since Monday. Many smartypant shorts were watching, too, hoping against hope that the Forces of Darkness would not let them down. To their surprise (not mine), The Cartel failed and, once gold tripped by 1782, it quickly surged almost $20 to $1801 as all the smartypant bootlickers got squeezed and stopped. Predictably, gold has pulled back from $1800 as profit-taking set in. Equally predictable, The Cartel used some equity strength to sell gold on the Globex, too. The resultant dip stopped right on schedule at 1770 and gold has since solidified. I have a last of 1777. Look for another night of fireworks in Asia. If you doubt me, ask yourself what happened today to lessen overnight Asian demand. Anything? Nope. Look for gold to trade back to and, probably, exceed 1800 overnight.
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