Tuesday, May 4, 2010

AND THEN THERE WAS ....FEAR

The horror of it all. Terror on the streets. Good day for a nice bleed. Enjoy the game gang. Could reality finally be setting in to this marke??? Sorry. Don't fall for it. Or....be my guest and go all in short. See what part of your anatomy you lose. See ya in hell. your pal kli

Reuters) - Gold hit five-month highs above $1,190 an ounce on Tuesday and record peaks in euro, sterling and Swiss franc terms as fears Greece's debt woes could spread to other euro zone economies prompted haven buying of the metal.

Spot gold hit a peak of $1,191.90 an ounce and was bid at $1,188.40 an ounce at 1320 GMT (9:20 a.m. EDT), against $1,181.40 late in New York on Monday.

Investors are concerned a 110 billion euro ($146.5 billion) bailout for debt-laden Greece announced on Sunday may not be enough to resolve its financial crisis, and that other euro zone economies like Spain may also be hit by debt problems.

"(There) seems to be an ongoing theme of safe haven buying as the market remains unconvinced about governments' efforts to contain the sovereign debt problems in Europe," said Ole Hansen, senior manager at Saxo Bank. "We have seen spreads to German bunds widening again today on Spain, Italy and Portugal."

"Fear and momentum are two very forceful factors when markets move," he added. "When the two come together, it is like a tidal wave, difficult to stop."

The premium investors demand to hold peripheral euro zone government bonds rose and the cost of insuring against defaults was higher as worries remained over a bailout plan for Greece and fears of contagion to other issuers.

These fears sparked a cross-currency rally in gold prices. Gold priced in euros, sterling and Swiss francs hit record highs on Tuesday.

8 comments:

  1. Now they are trashin the miners......rip um apart .......hehehe

    ReplyDelete
  2. zzzzz zzzz zzz
    S&P 500 bounce off 50 dma but still downtrend on daily
    zzz zzz
    wake me up in a couple days
    zz

    ReplyDelete
  3. Glad I took the day off that was all nice waste. bot sum miners today ssri slw auy.....sittin on a lotts cash still.

    ReplyDelete
  4. Me, too, kli. I'm not buying this is the end yet.

    ReplyDelete
  5. Quiet here, everyone take off?

    SWC and PAL took a nasty hit, has palladium lost its luster after the huge run? I like big losses like that.

    Once again I'm hoping for a little more weakness to buy back in. Especially AUY (which I have a little of still). Sick of seeing it bounce between low 10s and high 10s without playing the bounce.

    CNAM below $5...wow.

    So quiet...

    ReplyDelete
  6. This was a longside sidestep day for me aligning with my Friday evening post (miners are knackered so dump them, Monday is contratrend long daytrade only, Tuesday expect return to 1180 but patience on reversals...). All cash here tonight, looking for re-entry on short positions and long reversals tomorrow. No rush, like I said Friday evening, wait for the el primo entries. Also glad I passed on CNAM per earlier posts. SWC will be interesting to watch for a reversal at some point, that was a major smackdown, but was the weakest miner from a technical perspective for the past week. Patience is a virtue in this environment.

    ReplyDelete
  7. I think the decline is doing it's job with more talks of P3 in forums and among bigger traders as the 50 dma is almosted tested on both the Dow and S&P today. The 100 and 200 dma could also be tested depending on how long and dangerous they want to cut it, a quick V turns requires fast moves down or a slower bounce and basing off the of the 50 and 60 dma would do the same in completing the oversold daily technicals. A P2 commodity spike to end the fireworks will not be allowed so you will likely seem a dome form, side note is something out of left field could come and breakdown below 1025 means the top is in and its time to start getting out of paper. This move down could go to 1140 (20 week moving average without any damage to the multi month doming top over the 200 week moving average.

    If deflation was imminent physical gold and Goldman Sachs would be trading much lower. Strong dollar is causing some pain to US corporations and will impact early the late spring employment situation in the US. China plays will continue to hurt a little more until the fear of unemployment outweigh inflation and the government can funnel the hot money into something else besides real estate.

    If you ignore the shows of angry labour unions in Greece, the devaluation of the Euro is proceeding nicely which should contain rising unemployment and bank failures in the EU.

    Remember to stay unleveraged as much as possible and/or very short term trades if you are playing leveraged positions.

    Homer saw a pick up in volume for what it's worth.

    I think a lot of regulars took a brief vacation in Nashville, glad I got to enjoy the Grand Ole Opry a few years back.

    ReplyDelete
  8. Yep, 1140 would be sweet, that would have the shorts pile in to rip it the other way...perfect ponzi action. Notice we are setting at the crucial 1173 level that we battled before, break that and we are going down there.

    ReplyDelete