Tuesday, August 28, 2012
Just be aware of the past hypothecation and rehypothecation these events are associated with this type of event. Too many carnivores in the same room and if you are in this game then you can become "collateral damage". I bring up Morgan tonight because it will leave damage.
On Friday we will have the 10AM Bernanke speak. When this is concluded be aware that a beatdown of PMs may follow. I would be surprised if they take Gold below 1600 this week.....but they may. Miners will follow. Here is what I would expect. NO definitive QE announced.....no surprise there....but IF they do not announce QE do not despair. He will instead pump the improvements in the economy and then state that there is NOT ENOUGH IMPROVEMENT YET and that MORE WILL NEED TO BE DONE VERY SOON. He has to talk the talk or it would be a bloodbath Friday. He can levitate the market for awhile with the overhanging threat of QE ...AND sell bonds with the threat of a collapse looming also. This can play out for awhile but not forever. Eventually his bluff will be called and he will announce the bazooka. In the meantime he must hold QE over the head of the market like a club and those pronouncements will provide the impetus to push the PMs higher. Remember the boyz return next week and the market moves will begin in earnest. The gold bulls may get their revenge if the mo mo boyz start to get in. The big boyz are loaded.......now its the rest that will get to play. http://lewrockwell.com/wile/wile57.1.html
Posted by kliguy38 at 8:16 PM