George,
I am using your post to present something that may be of interest. While I am pounding the table that a $50 move up in gold is probably in the works, nobody cares. The performance of the gold stocks today was a pathetic response to a $5 move. It appears to us that most participants in this sector are dead, therefore, no response. Dead people can do nothing with good news. This make the set up for a big move even more likely.
Not to boast, but I do not know of anyone else that made the Yen call that Frank Veneroso made, and did it in advance to all of our clients. And most important, he gave the logic of why it should occur.
On TV today and in all the printed reports we received, I could not find one "analyst or commentator that said what was done today would last. Pablem response about intervention and Tokyo has to x, y, and z. It was VERY CLEAR that everyone was taken by such surprise that they were talking their own book and positions. The hedge funds and big Wall Street trading houses had not had time to assess this surprise development, and did not want to talk publicly against their own positions ( the massive deflationary trade of short commodities, long bonds, short gold, short yen etc). This is a big deal. The response of the stock market says our people like this. Asia likes this. Europe likes . BIg trading houses and the hedge fund wolves are caught going the wrong way. The do not like this.
I hope I am right, but gold could fly. Today's volume was mediocre, no panic by the massive spec shorts. With the big central bank selling
over, or coming to an end, what looks like a big central bank buyer taking on the spec shorts, and with shorts in complacent abundance, we have a set up for some fireworks.
Good night,
Bill |
