Wednesday, August 4, 2010


It looks like(for today anyway) that the recent stealth move in the PMs may have legs, as the boyz took the weak shares from the retail weenees. I love this game. Anyway don't feel bad I coughed up a little too. Still have nice core, and as always on the channel move up, I wish I had more. Oil still sucks, but don't be too concerned on the DTO trade. Add at 84.50 and sit tight. Noticed you had a nice conversation last night. And yes....I will be just fine if the demons come.hehehehe

(Reuters) - Gold rose above $1,190 an ounce in Europe on Wednesday, benefiting from softer appetite for assets such as stocks and expectations of a rise in Chinese demand, though an ongoing dearth of safe-haven demand capped gains.

Spot gold rose to a high of $1,197.05 an ounce, its strongest since July 23, and was bid at $1,196.15 an ounce at 1141 GMT (7:41 a.m. EDT) versus $1,185.35 late in New York on Tuesday. U.S. gold futures for December delivery rose $10.90 to $1,198.40.

The precious metal has lost much of the support that drove it to record highs earlier this year, based on concerns over economic growth and fiscal stability. Other factors are, however, now emerging to support gold after its dip.

"The initial impetus of safe-haven buying of gold has faded away," said Standard Chartered analyst Daniel Smith. "We are slowly moving to other drivers."

"Ultimately we are going to see more portfolio money coming into gold," he added. "We could see consolidation in the short term, but ultimately on a one to three month view we are going higher."

Concerns over the pace of the recovery in the United States knocked equities on Wednesday, with European shares falling more than 1 percent to session lows. U.S. stock index futures also fell, pointing to a lower opening on Wall Street.

Weak U.S. consumer spending and housing data in recent days have fueled speculation the U.S. Federal Reserve may further loosen monetary policy at its August 10 meeting. This may favor gold, which tends to benefit from a looser economic policy.

On the currency markets, the dollar fell toward a 15-year low against the yen, but was broadly flat against the euro and versus a basket of currencies.

All you need is ignorance and confidence and the success is sure.
Mark Twain


  1. I feel Like I have been born again (As a little baby jackal) I have been trading w/o emotion lately, and my trade results have improved.
    Thanks to all for taking time out of busy schedules to post thoughts.

  2. I highly recommend the HBO special Homeless the Kids of Orange county.....absolutely rivetting docu

  3. Great Title

    Gold was supported at the 78.6 fib all through the overnight session. Strange that ANV is finding resistance at the same fib.

    Nice 5% move on TGB and NGD

    Silver still looking good.

    No HBO here but I will catch in when I am back in the states next month.

    With the exception of the Thai baht the dollar is strong in SE Asia. The hotel, and car service I booked in both Laos and Vietnam are all asking for payment in Dollars. Even the governments want dollars for their Visa fees. hehehe

  4. great article

  5. Excellent yet Scary read.....

    " Those who cannot learn from history are doomed to repeat it"

    Winston Churchill

  6. ATPG and SGY kicking butt, SGY had good earnings!

  7. ATPG holy chit......SGY like a champ yum yum

    got back into lil sgg yesterday....looking for 60

  8. ATPG and SGY have been brutalized from the high, SGY hit 52 week low on July and if it breaks 14.70 watch out!

  9. traded some sgy today, sold too soon. Hopefully, there will be a good entry at some point this week...kli, I've been holding my original slw for 18 mos. @6.83!!! can't complain about that one. Thanks and more thanks to you and joe.

  10. btw, good discussions last night. I do hope and pray we will be able to communicate when the trading stops. Your friendships mean so much to me, albeit they are cyber ones. Also, watching ags today shoots holes in the deflation myth for me. All that monetizing is coming home to roost.

  11. Classic GORO move today, not budging while the rest of the sector soars. I don't mind, SSRI is doing alright and GORO will probably rally arbitrarily at some later date.

    As for general equities Jesse makes a convincing case for a drop to the 1,000 region in the near term.. Fits my confirmation bias so I can't argue.

  12. morla....that is pretty much what I am expecting then strong rally into the end of year....the 970 area should be hit in october

  13. Agree with Kli and Morla with a drop but my target is 9000 Dow and 950 SPX. I think the turn happens at Dow 10800 to 11000 and SPX 1130 to 1150.

  14. I just wanna see oil get to 84.5

  15. Jesse's channel lines seem to suggest 1130 as a major resistance point, let alone 1150. My market position is best mirrored by Jesse's forecast (long gold miners short equities in general) so that's where my confirmation bias is pretty thick.