Of course, any seasoned trader knows, large moves up or down (such as gold's epic move up to $1800) need to be filled, so a healthy move down in gold is in order - especially given now that CME raised margin requirements, again.
We're sure the people at Texas University are happy. They took delivery of $1 Billion in gold back in mid April when gold was $1450. We remember Texas U received a lot of slack from the MSM about such an "irrational" move as the MSM called it, and immediately the hedgefunds and asset management teams jumped on the short gold bandwagon based on false economic data (green shoots anyone?) and "hope." Remember, hope is not a sound investment strategy. Neither is investing in phony markets.
Will we see a repeat? With every central bank of the world locked in a race to devalue their currency the fastest, gold has only one way to go. Central planning has thus failed, because they have created a self-fulfilling feedback loop. The more money they "print" to shore up the banksters, the worse the global economic conditions become. A reader recently emailed us his take: "You are right. It seems like the higher the markets go on false recovery hopes, the worse the REAL economy gets." We know. Which is why gold is in high demand. And, which is why the markets are so screwed up - on the worst Consumer Confidence report since 1980(!) "the markets" rally - 54.9 versus 63.7, almost a full 9 point drop in a month. Can't wait to here the pompom cheer leaders on CNBS call that bull...ish.
Speaking of bull...ish news, the
Any "analyst" worth his weight in radioactive rice knows that the latest Consumer Confidence report is signaling
Then again, we've been saying since we began this blog, the recovery was all an illusion and the global economy was in a depression. Don't worry about the global economy entering a "new recession" because the global economy never got out of the first one - and all this despite "the markets" rallying 100% since the lows. Which should tell you how good "the markets" and the carbon based lifeforms that run them behind silicon based lifeforms are at reading reality. Epic. Fail.
Just yesterday we asked if the signals for an international ban on short selling was about to be enacted, as the EU dismissed rumors that they would ban short selling. Sure enough, before the day was over, the ban on short selling was enacted. Oops. Once again, ZeroHedge tears them apart. Here's a rundown of yesterday's game - At 1:00 PM, short ban yes. At 2:00 PM, short ban dismissed as rumor. At 4:00 PM, no short ban. At 5:00 PM short ban on. Ahhh yes. Confidence.
One thing we can have confidence in is another major liquidity crisis in Europe. The stage is set. Confidence.
Speaking of confidence, Retail Sales, which we speculated last month will go higher this month based on M1 money supply of a whopping 12% YoY, went higher. But not by much - just 0.5% (with +/- 0.5%) on expectations of 0.3%, and that includes gasoline sales which were up 23.6%! Isn't it ironic that Wall Street's finest can't even get this number right, based on M1 money supply? Do they even know how to add and subtract basic math?
Further, as we explained last month, sales in price is not sales in units. So, once again, retail sales signal nothing good about the economy other than that we have inflationary pressures mounting. It doesn't take a
We learn that for the first time ever, student loan debt has increased so much that it now exceeds credit card debt in the U.S. But why not? After all, student loans are doubly and triply back up by the U.S. gov't which is the U.S. taxpayer. Must read article on the big scam called a college degree.
Speaking of scams, the whole "corporate profits" thingy is about to blow up - another smoke and mirrors game going down in flames as Charles Hugh Smith explains in great detail. Must read.
Before we leave the whole Europe
Be sure to check back often as we update Fukushima news later on in the day. You won't want to miss it.