Today was the first day of the month. Usually it is a good day for stocks. The word was that the trend was continuing because pay rolls were hitting mutual funds and then the cash dispersed into equity. Today we went against that trend. Why?
I think the Black Box Algorythem machines know the drill and wanted to get a jump on the fund managers, so the Algo Machines from Hell lowered prices while the managers were left footing the bill. If I am right we should see a big day tomorrow, as the Algorythems make their play with their fresh fiat. If not a few weeks of huge up moves, it will be a few days for sure. The moves in gold means the system has had to massively leverage itself, and why will it not go for broke?
Gold stole the show today, and the scene has just started. Bernanke may have been blind sided by corporate equity, but it will be the dollar that ends dead. This is not the end of the play, but there is about to be a climax. It is straight up from here.