Monday, March 18, 2013

Move Along

Move along, nothing to see here.
For the average person, if you did not see the markets last night and only saw today, it just seemed like a normal day. A normal day, as of late, no way but we did have the second down day in a row for the US Equity markets. The chart above shows the INVISIBLE HAND at its best once again. Look how the Dow managed to salvage almost all of the losses from last night and Friday. The fool's game continues, move along, nothing to see here!

Even the Euro which dropped about 200 points last night, even traded back above 130 today. You have to wonder, who in their right mind would be buying the Euro on the Cyprus news? Gold did open strong last night but I did watch it drop to 1590 real quick, gee I wonder how that happened?
The downward move in Gold did not last and it managed to stay above 1600 all throughout the NY session. That is an accomplishment but I must say that with news of the bankruns in Cyprus and the threat of it carrying over to other European nations, Gold should have been up 50 dollars today in my opinion! If you are watching Silver, all I can say is- I would not be all that excited with its inability to gain much upside traction. The metals will excite me with a move through 1620 in Gold, that should ignite something in Silver as well. Remember, we do have the Fed meeting on Wednesday.

With this latest flare up in Europe, I do not think the Fed is going to threaten pulling back on their easing efforts any time soon. The problems in the whole global financial system are not going away, they have just been papered over with unlimited amounts of printed money. After seeing what is happening on the other side of the pond, do you think it may be prudent to question the stability of the financial system? Owning Gold sure is not a bad idea!

Thanks For Reading- Be Safe- Be Well
Martin

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