For the first time since early June, Gold has just broken back above $1300, continuing to mirror the ebbs and flows of USDJPY (which just snapped below 109.00).
Is 3rd time the charm? Gold is now outperforming The Dow year-to-date...
So far today:
Gold Futures Punch Through $1,300 as Global Stocks Extend Losses
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European shares decline, dollar weakens, gold and yen gain
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Terrorist attack in Barcelona adds to unease in global markets
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North Korea Provocations to Rise
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Confidence in Trump sinks
Bad News First
If the market breaks back below $1298.80, especially late in the day, then we have a strong suspicion of a blow off top. This ignores the global situation obviously. And we do not see that changing overnight... postponed maybe, but certainly not resolved either politically or financially.
Shit in their Hats?
The globalist leadership comprised of economists who live in ivory towers, liberal elitists who know what is best for us, the right wing appeasers who expect some invisible hand to keep Trump from moving and crossing even more lines, and the warmongering class remind of collectively of a person who has relieved himself in his hat. And rather than admit to it when questioned, pulls hard down on the brim of the hat to hide his incompetence. H/T Hitch
Umm... We told you so
Yes we did. Risk reward is our game. And we are not surprised this is happening. As traders we have played this. As investors we are sad, because we want it to be lower to accumulate. But there is a leak in the boat of our globalist bettors. They are buying Gold while telling us not to and to accumulate more "stuff" and paper goods aka FIAT bonds.
2 Days Ago Analysis
GOLD
Yesterday: GOLD declined into the 61.8% Fibonacci retracement level. Wave 'ii' brown did infact extend lower as suggested.
So far the bounce off the lows looks to have halted the decline. If we get a break of the high of wave 'b' at 1285 it will signal wave 'iii' brown has begun.
Wave 'iii' is projected to reach 1332 at the 161.8% Fibonacci extension.
For today: Watch for 1267 to hold, and a rise into 1285 to signal a turn up again.
Vince Lanci's Trade Recommendation also 2 days ago - Note the last line
1- Buy gold above 1277 with a stop at 1271 and take profits at 1298- take home if closes in the money.
2- Sell gold below 1270 with a stop loss at 1272 and take profits at 1262- take home if in the money.
3- under 1262: not a buyer after the minutes
4- over 1286- not a seller after the fed minutes
Hat tip Vince lanci of Soren k group.
From Moor Analytics - Buy the Dip? on Aug 11th
Today's US Activity
We have discussed previously a piercing of $1298.80 should not be faded going up or if it plummets back through. This is the actually the 4th time up and triple tops are made to be broken. The only thing that would negate this next leg up and possibly reverse hard is a run back through $1298.80. Otherwise we are now in a new leg higher. This is symptomatic of a bull market.
There will be selling between $1307- 1309 and then $1315. Above these areas we like $1336 as a real target. Tying the global situation to the market behavior tells us that any news of resolution will make Gold tumble. This is cultural as Gold longs always fear the worst. But ask yourself: Is anything ever resolved?
And while you the reader may be seeing a crisis ahead, and the rest of the world wears rose colored glasses... it is becoming apparent that on multiple levels Gold is benefiting both from the uintended consequences of easy money, and the utter incompetence of global world political event- handling.
People in the financial community (academics, world leaders, Supernationals.. the lying class) are loathe to say it publicly, they are losing faith and starting to buy Gold even while they extol the virtues of man's accomplishments.
What we want to say is "$1300? What is the big deal? We were at $1900 when none of this was going on. How is it that we are below that considering the deteriorating world since that old high in Gold. You know why..
Stock Shock
Stocks were lower in early trading Friday following the S&P 500 Index’s second-biggest selloff of the year a day earlier, as investors digested the political upheaval in the U.S. and the latest terrorist attack in Europe. Havens like gold and the yen rose.
U.S. shares fell slightly. Stocks in Europe extended their declines after a terrorist attack in Barcelona added to unease about U.S. policy paralysis and lingering tensions over North Korea. Airlines and hotels led the decline of the Stoxx Europe 600 Index. Treasuries gained and the dollar weakened. Core bonds across the euro region rose.
Investors pulled $1.3 billion from equity funds in the week ending Aug. 16 as tensions over the Korean peninsula escalated, according to EPFR Global data. Outflows from U.S. stock funds were triple that, suggesting doubts about Trump’s stimulus plans are an additional worry. Heightened terror fears added to the malaise after at least 13 people died when a van plowed into pedestrians in Barcelona Thursday.
Spain Terror
“The terror attacks in the U.S. and Spain just add to all the other geopolitical mess,” Simon Quijano-Evans, a strategist at London-based Legal & General Investment Management Ltd., said in a note to clients. “At some stage that is likely to culminate into a more extreme market reaction.”
Trump Fumbles
The fallout from Trump’s remarks on violence in Charlottesville, Virginia, continues to raise questions about his ability to retain his team and focus on his economic plans. Speculation that former Goldman Sachs Group Inc. President Gary Cohn, was poised to resign as head of the National Economic Council roiled markets on Thursday until the White House issued a statement that he was staying.
“Picking fights and getting criticized by members of one’s own party don’t help in pursuing one’s agenda,” Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a note to clients Friday.
Ostriches in Denial?
Still, some investors said the selloff is temporary. Neither the terrorist attack in Spain nor political turmoil in the U.S. should create a trend, said Naoki Fujiwara, chief fund manager of Shinkin Asset Management Co. in Tokyo.
“Both the U.S. and Japanese economies are doing well, and what’s most important is the direction of U.S. monetary policy,” Fujiwara said. “As long as the fundamentals are steady, the market will recover.”
Armageddon Fears Back
Held every fall in South Korea, the Ulchi-Freedom Guardian war games are the world’s largest computerized command and control exercise. Some 30,000 U.S. soldiers and more than 50,000 South Korean troops usually take part, along with hundreds of thousands of first responders and civilians, some practicing for a potential chemical weapons attack.
Scheduled long before the recent diplomatic fallout between Washington and Pyongyang, the U.S. and South Korean militaries will simulate warfare with North Korea from Aug. 21 to 31, well aware that North Korea could respond with another missile test, according to McClatchy.
In light of this perceived provocation by North Korea, which will almost certainly prompt some reaction, Scott A. Snyder, a Korea specialist with the Council on Foreign Relations said “Over the course of the next two weeks I expect tensions to escalate. This is always a sensitive issue, but it is more hair-trigger as the North Koreans are very sensitive to the likely additional nuclear-capable aircraft flyovers.”
Gold is higher now. Are you, the paper pushing, globalist ignoramuses who put our futures in the hands of a few academic supernationals on the left, and a man of disdainful character on the right not entertained?
You deserve worse.
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