Monday, December 20, 2010

High Volatility; Parlour Tricks and Pick Up Sticks

The reason for a breakout in PMs will be because they are currently being sold and leased on a massive scale.  Any big move down is a major indicator of one, and they are happening multiple times a day, NY standard time.  Then even after hours, like with platinum tonight, there are massive selloffs.  This gives support more than anything else though, and that is why, even though most of the selling is illegal, as it is highly leveraged, the favor is for a strong price down the road. 

A future strong price is always true after times of massive selling.  It was the reason Nixon close the gold window in '71; he couldn't afford to lease any more gold because the price was increasing past his selling price.  Then of course gold has been the best investment since, as it has maintained prime stability.  In this volatile market, stability is a price unparalleled, thus why precious metals 'allure de shine'.

The market makers, from the LBMA to the NY/WASH President's Working Group on Financial Markets, have a large stake in this market, but their unwind is at hand.  Watch them spin SLW for NFLX overnight and by day let JPM draw dawn their naked short positions.  Let not forget Asia is a control market by all means and look how the pigs do fly!  All is majok though, and none exists but the real.  The rest are parlour tricks and pick up sticks.

Speaking of gambling, the dollar is showing major signs of topping again.  The only thing that could get it above its DXY 80 orbit is a Spain or Italy default.  It is one thing for Greece and Ireland to accept massive penalties by the IMF, it is another for the core to set ablaze.  Then again, if it gets that far, the game should be over, and besides, the US has California, New York, and Illinois to match.

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