GU Dictator Jay At Play Alert
And so, the esteemed leader of the West’s most wondrous socialist institution, the Fed, just made his latest non-manipulation of markets action, chopping rates a quarter point, as was demanded as much as expected by the stock market price chasers and the “Gimme me more debt and gimme it now!” debt freaks in government, corporate, and consumer sectors.
The COMEX regulators clapped as the banksters did their latest short covering, the stock market wet noodled, and gold rallied as Bankster Jay poured a bit of cold water on both the debt freaks and the stock market price chasers.
Most recent Fed meets have featured gold declining ahead of the meet, rallying right after the release of the rate cut, and then the banksters moving in to push it lower into the close, while rallying the stock market. I don’t expect today will be much different, but that’s a current rule of thumb, not a stone tablet law.
The end of rate cuts favours gold more than the stock market at this point in time, and the World Gold Council today joins the safe-haven reality party, predicting that institutional money managers begin embracing gold more than bonds to counterbalance stock market risk.
The intermediate term picture that is most likely is both gold and the stock market rallying, with the miners rallying the most of all.
In other news, the global Gman clown show in Chile was cancelled, and all the extortionist clowns had to fly home.
Friday is jobs and slobs report day, so the banksters may have a bit more fun with gold before allowing more short-term upside action of size.
Some decent risk vs reward opportunities are opening up on a number of gold stocks and I’ll be going over that with the Swinger crew.
Indians are buying solid amounts of gold from your mines for Diwali, and maybe you should buy a bit, and celebrate YOUwali, but I would wait for a second touching of $1465, or $1385, or a move above $1566, before doing that, if you didn’t buy the first $1465 touching.
For Nov-Dec, I still don’t expect wild upside action for gold, and even with just baby “QE that is not QE” and no more rate chops until Trump throws his next “Rates must get chopped more and we need full QE!” tantrum:
Rates are low enough to keep the stock buybacks scam going, and combined with decent albeit fading earnings that’s enough force to overwhelm the sub 2% GDP growth and government size/debt ball and chain.
Gold is stable here. A global stock markets rally of modest size that stands on its own without more cocaine from Dictator Jay likely ushers in the next wave of gold/silver stock takeovers/buyouts…. Stay focused not on the next 10 minutes of gold quote machine action, but on March 2020 as your next champagne/mineral water celebration spot.
You don’t have to buy the major buy-side HSR zones or sell the major sell-side HSR zones, but you do need to understand that these are zones where gold tends to either change direction for awhile, or pause for some time.
Trying to predict gold in the “hot air” spots between those major HSR zones can produce significant investor frustration, and significant laughter for the banksters and me, as we watch the impaled idiots flail away trying to predict gold up and down at every point except where it should be predicted.
Simply put, gold is not at $1465, $1385, or $1566 so there isn’t any action to take, other than some scalp trades.