Tuesday, October 6, 2009

Hiho gold and silver

As Bernanke continues to slaughter the dollar Gold and Silver are rocketing higher...and why not?
Every asset class moves in tandem except the dollar , dollar weak everything strong - this madness has to stop. Gold cant be fooled - its saying paper currencies are a joke stick with me. Id have to agree, when the treasury secretary can put in place policies that allow the destruction of the worlds reserve currency of course Gold will look good. Why the stock jockeys hop in is another story that I dont have the answer for. 3.3% in 1.5 trading days...not to shabby - 1054.5 is where the SPUZ are hanging there hat right now - almost precisely where they broke down from the other day. In a normal trading world, you'd see some fade here but we will probably see an explosive move thru these levels b/c the dollar will be slaughtered again tomorrow oand the next day and the next.
Im so pissed rght now I cant see strait. My longs are underperforming my shorts.
Maybe people are excited b/c MOS missed its quarterly earnings number by 33% - that must be it. Or maybe just maybe its b/c insolvent companies like AIG, C, CIT can continue to trade hundreds of millions of shares a day forever. We got a nice selloff and now we have had a massive rally back - its time for this market to sitdown.

JB

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