Comments From Far And Wide
Author: Jim Sinclair
[OK, I know its Sinclairs site, but what is wrong with this info? sounds about right to me...pb]
jsmineset.com
Fellow trader and Gold Warrior in the pits, Dan N out of Houston, hit the nail on the head with his fax to me today which I am presenting below in its entirety.
“Jim, I want to share with you a few of my thoughts on the Jobs Report which was the tool utilized to run the stops and therefore to attack gold today.
We both know that anything coming out of Washington today is suspect. However, out of respect for the office of the President, let us suppose these new jobs were actually created.
Where and in what industries were they created? Was it in manufacturing where 2,700,000 jobs have left the United States? Did that icon of the old West, Levi Strauss, hire these workers? Was it the service industries that provided these new positions of employment? You can be sure that the increase in employment was not in the professional sector, not in the manufacturing sector, but rather in the retail sector.
I have two friends who both work for a major computer builder and have positions high enough to be quite knowledgeable of corporate moves. This company will make known to their employees that another 2000 will be let go next week.
The category of employee to be let go is significantly up the corporate ladder so the local headhunters will have another wave of unemployed knocking on doors. Just look at the news of how many companies are announcing layoffs. Have you looked at the public figures on employer want advertisements which have broken down sharply from a major top formation technically and project significant new lows coming?
When firings occur as I am witnessing here there are no positions available that offer comparable employment. The only alternative for people with obligations to pay and families to support is positions at Wal-Mart, Lowes, Home Depot and the local fast food outfits. These men and women are taking menial positions at substandard pay in an attempt to make ends meet. Their jobs have been outsourced to India & China and may well never return. The government counts these positions as new jobs and points toward today’s, in reality, sad statistic as heralding the new beginning of an economic recovery for the US economy.
I am surprised that any public having seen so much alteration of truth in public statements accepts today’s statistics as heralding anything except more of the same. I will wager you that there will be a downward revision of this figure next month as is common.
My take on all this can be expressed in the following terms. Nothing whatsoever has changed in relation to the current economic climate. The triple US Deficit is growing. The Bernanke Federal Reserve Electronic Money Creating Machine is on full blast and is going to remain on.
All 16 reasons you review for us the John Embry presented that substantiates gold at much higher prices remain unchanged by the retail industry job figures. The five golden keys you spoke of in the recent interview you gave the Northern Miner are underpinning a major long term bull market for gold and technically gold’s downside objective for such an occurrence as this was the mid- $360’s and it got almost there intra-day today.
I, like you, stepped into the fray and made my commitments. I still have fire power and will not hesitate to step in again if some loonies really buy into this electioneering occurring in the economic figures. This is nothing more than a technical reaction extended in size and compressed in time by the understandable advantage being taken by the bleeding shorts hoping against hope to break the back of the bulls.
My back is fine. I know yours is and we are both itching for the battle Monday morning. I see $360 - $363 as the absolute bottom if we have not already seen it today. I would not be surprised in the least to see gold turn on a dime and rocket back up as fast as it fell or faster.
From one ‘not so old war horse’ to Jimmy, ‘older than dirt,’ see you Sunday night when Down Under and HK open and lets bag’em and tag’em, the second we see advantage swinging back to our side.
Best,
Dan”
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Dear Dan:
Right on every word. Proud to know you! Prouder to call you a friend! May good fortune support your every trade.
Your Fellow Traveler,
Jim
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