Monday, June 3, 2013

Is the JOKE on YOU?

What a Monday, the funny thing about the day is that  the Dow Jones closes up 138 points and I look at the headlines from the mass media and no where to be seen is a headline mentioning the horrible manufacturing number that was released this morning! ISM manufacturing contracted this past month, coming in at 49, the worst ISM number since June of 2009. So let me get this straight, stocks rallied with exuberance to start the week on what exactly? Oh, I get it, if the economy starts to falter the FED will be there to save the day! God help us all, this is lunacy at its best. All that talk of TAPERING QE is now a thing of the past, I guess. I called hogwash from the start and I will keep repeating myself, This will not end well, the FED will not taper or bring QE to a halt, if anything they will do more and more to protect the precious stock markets and prevent rising interest rates. If you are going to buy into this philosophy you are playing a FOOL'S GAME and you will get burned!

Take a look at Japan's Nikkei 225- they are printing money to the tune of the US FED and this is what is happening over there
Looks like fantasy land is having some problems! If we could all print our way to prosperity, it would have been done throughout the history of mankind.

Did you see the action in the currency markets today? Wow, I guess that 84 handle on the Dollar index may just be a thing of the past as well. The Euro just may be on its way to that 135+ I have been speaking of, it did trade over 131 today. The most impressive currency was the Aussie, popping for more than 200 pips today, even the Japanese Yen was up more than 150 pips. The Cad is back above 97! Now let's take a look at KING dollar
That chart looks promising for gains? All I can say is, I have been a bear on the dollar with good reason and I see no reason for it to be the currency of choice. Yes, you must be careful of the volatility but I will stick to my convictions that QE is here to stay! Long term the US dollar will head lower and GOLD will prove to be KING.

Later on this week, we will be treated to the US job number on Friday. I am sure we will have days when we get better than expected numbers and the TAPER talk will give the markets the yo-yo action, but I believe that those who prepare for the Stock Market and US Dollar TOPS, will be much better served. I am not going to make  predictions on the day to day fluctuations we will see this week, but I will certainly get a kick out of bringing you my commentary of the BS we are witnessing.
Be careful out there, the BIG CASINO in sky can HURT you, the markets are way to way too distorted from all these Central Banks meddling in them.

I could not wait to write this post and I look forward to seeing the job report this Friday. Gold is perched back above $1400 this evening, just remember how easy its gains can be taken away! If Gold can get above 1420, we may see a much larger move to the upside unfold! For now, I say good night and watch things closely.

Thanks for reading,
Martin

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