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USDCHF In Free Fall, Approaches Parity As Hungary Cries Uncle, The Global QE Monster Stirs, And LBMA Provisionally Nukes Gold
Another ridiculous market reaction following the ADP read today, when the AUDJPY initially dropped, only to see every deranged Japanese housewife, and anyone else with an FX account plough into it taking full advantage of 50x+ leverage to spook remaining weak short hands out. The catalyst: good news is good news, bad news is better news, as, just like Bank of America which just threw in the towel (more in a post momentarily), any incremental economic snapshot now means either more QE by the Fed or more QE by the Fed (and other CBs). We are back to the regime where dollar weakness is good for risk (especially beta>5.0 risk, meaning all the empty chatterboxes whose only strategy is to lever up on beta and pray will be out in full force on CNBC today). Incidentally, just as we expected, and right on cue, the Hungarian central bank said that the surging CHF poses "risks from the aspect of Hungarian economy's growth prospects, and that the weakening HUFCHF is causing higher than expected loan losses in bank sector." Define zero sum.
Of course, all this means is that fundamentals are pushed even further into the background, as the only thing that matters is which global bank can print bigger, faster, more. To wit: the USDCHF just cut through the bidside like butter, reaching the lowest levels seen since December 2009. So yes - 24 hours in which the US can gloat, then everyone will move from one side of the boat to the other, as the SNB finally says enough. Obviously, that will also be a risk positive, as yet another bank joins the debasement parade.
And yes, all those expecting this latest round of imminent central bank intervention (which is the only thing that matters anymore) to push gold lower, feel free to wait. Which is precisely why the LBMA decided to throw a gentle little intervention party 5 minutes ago in which it took away the entire bid side in gold. Enjoy the chart below of a perfectly and orderly JPM take down.
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Freefall bitchez!
AYB(ids)ABTU.
I do not know how you top yesterdays market shitshow comment.. but todays market action seems to be begging for something more..
FXF, bitches (one of my currency hedges)
Makes you wonder how long things can last at this rate,its like trying to shore up a boat with a 100 leaks sooner or later ones gonna get you.
Yea and the leak repair crew have settled on shooting more holes in the hull as the sure fix. Logic being that if theres only enough holes in the boat, the water wont be able to figure out how to get in!
hahahah! Won't figure out how to get in!
yup. Once the decision is made to "manage" the economy, ever-greater levels of "management" become necessary until the entire economy is nothing more than a facade of happy-looking indicators backed by no meaningful productive activity of any kind. The Fed now stands astride the entire Western economy, and I am merely waiting for the inevitable.
For the economy to "Buck" the Fed?
Yes; it must happen, absent some kind of martial law. The Fed has trapped itself.
We trapped ourselves. The FED was just our drug. It was destined for failure from the start. A machine of pure misery certain to enslave all who cross its path unless super human diligence and dedication are used to manage it. All these "experiments" end the same way...
Yes,
Eat ,Drink, and be merry, for tommorrow we die!!!!!!!.
Said the Fed..........
Still waiting for the US Military Joint Chiefs to take over before we have a major War, the people are not going to like the end to this pisha show.
When the SHTF at the Last Dance, you will not want to be at that dance.
Fk Martial Law, our men in uniform do not want to be a part of that bloodfest.
Civil Wars are Fugly.
well said SWR
Yup, that was pretty much my appraisal of the situation. We have backed into a Soviet-style misallocation of resources by "accident." Central planning by another name is still just central planning.
They'll fill the hull with pallets of freshly printed FRN's. Paper floats, don't you know.
For awhile, them it begins to smell bad and down it goes.
Utter insanity! Im going to wear my helmet around the streets today in case of any free-falling carbon based traders.
Die, motherfucker, die.
Nukes gold? It went down $5?
Or is gold allowed to do nothing but go up in a straight line?
Down $5 in a few seconds. It's the few seconds that is the problem.
Still not sure I can call that a "nuke". If $5 is the best the manipulation can acheive these days, I sure am glad I'm long.
Gold Price Change due to Predominant Selling -13.30
Gold Price: Total Change -1.00
14 mins by my count..
You need to learn to count. It is 7 min.
Yes, it's the old "overwhelm the bid" takedown strategy. Obvious to see but, yes, a $5 move is smalltime compared to what they are capable of.
Kind of like they're testing the waters. Let's see how gold responds between now and 11:00. I smell a larger beatdown coming. An attempt to jam it back under 1240.
You are looking to be correct there.
Gold and silver eagles show up at the local coin shop, I buy them with cash. This has gone on week after week, month after month, year after year since 1999. What's not to like?
Here they come, marchin down the street, gettin funny looks from, everyone they meet...
Hey hey its The Evil Empire. About to take the gold market down. Nothin we can do about it. Just makes The Turdman frown.
Its 11:10. Gold takedown on cue. 1242.
Its now 11:55. Very nice dip buying. 1248. Maybe the EE can't pull it off today.
The problem is, it's a rigged game; they pop gold, tell everyone to buy, then take profit; same as stocks; think about it, if the money dries up from mom/pop/401k stocks, get it from the gold-bugs and doom and gloomers. think about it; are you being sold? Look at the charts, gold went up immediately yesterday in the morning, now it falls just as fast,while you see media after media telling you about gold. Look at the price of silver in comparison; silver should be at $70 an ounce if you factored in pure logic, and the amount of silver in the earth versus gold. look at platinum, palladium, etc.
why gold, cause dey fck'n with your bird mind; which likes shinny things. It's like a fashion magazine; which spells pure trouble; like the tech bubble, the housing bubble, etc.
dey gonna drop gold just as soon as they get enough suckers in the net.
The difference is that you can't debase gold. They can try to paper over it, but that just makes it stronger in the long run.
And I predominantly own silver.
you debase gold when you can't convert it back to fiat at the same rate you bought it; simple. you can say to the farmer, i'll give you gold for food; but he'll say, "I want a lot of gold, cause I don't want to go through the trouble of converting it to fiat." You debase gold through it's conversion rate; which is psychological, cause gold has no real value, other than look'n pretty. Lets put it this way, when it comes time to convert your gold to something you want/need, you're either gonna get fucked or shot. maybe both.
Key word: Provisionally.
Meaning serving for a time; a measure taken beforehand.
It's a start before the big takedown.
And I heard that in Japan all they do is eat bucake.
Touché, Japanese housewives.
I'll give this charade a shelf life of about 7 days, maybe less.
Woohoo, cheaper gold! I, for one, applaud the JPM and LBMA sponsored subsidisation program.
Bears Bet Time is Running out for China
Just like 2008.
There is going to ba a massive rotation out of gold and into banking, retail, and semiconductor stocks.
Bonds and gold will probably get blowtorched.
Yeah, yeah, yeah, you and Johnny Bravo have been telling us that gold will get "blowtorched" down to 900 for months now.
The way I see it, the only thing that's been getting blowtorched is your ass betting against gold all these months.
Nothing personal, but stick to posting porn, you're much better at it.
+++++
It won't be long till they start all kinds of crazy talk. Out of weak hands to scare out and shit's getting deperate.
http://www.youtube.com/watch?v=Tmbiji_uP6c
There was never a massive rotation out of gold into stocks in 2008. It was a massive rotation out of stocks into gold. Try comparing a chart of gold and the S&P. Gold was at all time highs when the DOW was at 6500.
Bonds getting blowtorched is not a probably if we're talking an early '08 style push higher...it is a necessary condition. The whipsaw of the past few days in treasuries has been puke inducing, but i do think the trend is for higher yields and higher equities. dance pump monkeys, dance!!!!!!!
Heh, Robo tell us again how smart you were selling your yellow rocks a while ago. Maybe you feel a bit blowtorched?
yeah, he must work for the IMF.
has anyone calculated the loss on that yet ? 200 tons sold @ $1040 ?
A bit shy of US$1.2 billion, by my count. That's assuming short tons (2000 lbs in a short ton). It will be more if they were metric tons (2205 lbs per metric ton).
There is going to ba a massive rotation out of gold and into banking, retail, and semiconductor stocks.
Because the recovery is going so well? Because retail is driven by employment, and because that's going so well? Because everyone is beating a path to the mall to get the latest electronic gadget for back-to-school / beating the rush for Xmas season? Because the banking business model is so fundamentally sound?
Nice tits. Got anything else?
employment, final demand, fundamentals? lol...what market have you been trading? if the past two years proves anything it is that a market can rise on the back of a sinking ship.
Because of QE2. They are going to throw everything they've got at it. It will be stunning. Everyone has accepted this. Buying opportunity of the century, starts in about 6 weeks.
It won't work in the end, of course, but it will buy time through the elections. QE2 will trail off about '11/Q2 and then the wheels serious come off.
They'll have their 4-more-years in pocket, and a great selling opportunity that they timed themselves, and then it's down the rabbit hole. You fall forever because there is no bottom.
HUH? There was a fucking rotation into banking stocks in 2008? Nigga is you crazy?
I made a fortune shorting bank stocks in 2008; you're full of shit.
Yup just like the double dip during the great recession.
Oh wait it didn't happen like that at all. The first crash they gave up the good money. Gold. The second crash they gave up the bad money stocks and bonds.
one of them is wrong and its not gold.
there is no right or wrong. just is.
I think that was an end to end open ice stick pass from the LBMA to Comex, but the refs still miss the icing call.
The Healthcare Reform Act removed the blue lines and the red line, among other things.
I figured something would be pulled out of the bag of tricks to push down the price. This is an interesting video implying the gold in Fort Knox may not be there (no surprise) and not very pure (no surprise again): http://www.youtube.com/user/bstill3#p/u/7/PDZioD9QfAA
Is that Bill Still, the guy who thinks tally sticks are a good form of "money" and gold and silver coins are to blame for the demise of Rome? That guy?
I do not agree with him on everything but I give him credit for his work on the subject of exposing the money changers as always present to turn a profit at others expense.
Guns, check. Ammo, check. Potable water, check. Food, check. Large cache of porn, check. I'm ready, bitchez...
You also need gold or virgins to be able to trade in the world we will plunge into. Actually if you have guns...
Not. Even. Close.
Like to see how BRCM screams into this one given the recent carnage ...
Also fun to see how HFs unwind their defensive "I'm a dividend quality investor" strategy to jump back into the rocket ship.
Boatprices going down this year as much as 40% while gold is going up.
Sure I can buy a lot more boat with my gold.
Keep my eyes on the big scene and sceme of things.
Just gold going from the weak hands to the strong hands.
It`s POMO day, isn`t it? Looks like everyone was expecting it, "knowing" stocks will go up at 11h00am so they tried to get in before... wait and see
Yesterday was the 6th Hindenburg Omen observation as well...what this means for the markets will be known in the next couple of months.
screw them all , get physical.
Even Olivia Newton-John is into it:
http://www.youtube.com/watch?v=vWz9VN40nCA
Gold assault in progress
More Black Holes in this system than Space.
fuck JPM
Desperate not to give Gold record highs again,the sheeple will realise that all his far from well and "confidence" will evaporate.
Even if Gold were to print new highs, it would be against a momentum divergence. I sold the open on the the PM etfs. Talk about your crowded trades.
Gold is not "a trade".
yes it is; fiat to gold back to fiat.
They have computers, I have gold.
End of story!
OMGWTF gold is down a couple of bucks...MANIPULATION!!!
Right. The stock and bond markets are manipulated, but not gold.
I was wondering, Trav, what information would be acceptable to you to call the PM markets "manipulated"? That's a genuine question, no snarkiness intended.
Oh, and big news on CNBC (yeah, I see the conflict), APPLE introducing "something" new. What? Some new piece of i-Shit?
no one said its not "maintained". But to shout manipulation on every sell order is just an absolute joke ...
I didn't ask you. I wanted Trav's opinion.
.
Ignore the pattern at your own peril. If you knew about the pattern ten years ago, you could have doubled your gains in gold versus simply buying and holding.
"some new piece of i-Shit?" Yea and people are lining up already to buy.
yeah, "took away all bid side" ....sure. So you market pro, who did they sell to then? Gold was overbought and this on low volume and steady OI aka distribution, what the heck do you expect?
If this were not a ABSOLUTELY regular on time occurence, it would almost(almost) be totally humorous.
Maybe the Bad Seed is coming out in me, but I am actually looking forward to these SOB's death rattles............
I am so sick of being used as a Chess piece, it's way past time this beast DIES.
They are PURE EVIL...................in the truest sense.
EVIL.
"Grameen Foundation" ads on ZH. That sure beats the hell out of 'CuhRaimer' ads!
Regards
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