Week of Central Banks

I hope you all enjoyed the rest of the weekend and I do apologize for posting so late to start the week.China started out this week by announcing measures to tighten policy by enforcing stricter capital gains taxes as they are worried about rising home prices. Unfortunately this spooked the markets Sunday night and most importantly gave the ultra China sensitive- Aussie Dollar a reason to sell off and take out a major weekly support level. The Hang Seng Index suffered its worse one day loss in over a year and a half on fears of slowing growth and the US equity markets just keep rolling along, the equity futures were deep in the red Sunday, early Monday morning but they mysteriously recovered to finish up on the day, within 50 points of the all time high in the Dow. Hip-hip-hooray I say.

We have one Central Bank doing the right thing as far as policy goes, to curb rising prices, that being China of course and then we have the FED in the US promising more stimulus to keep several bubbles afloat. The illusion that things are fine goes on, move along and go about your business in fantasy land. I have mentioned in the past week or so, how I am sick to my stomach by what I see in these markets and I am sorry to say, I am growing sicker by the day. I guess that could be a good reason for me not writing as frequent, it is the same old stuff everyday as of late and it is getting old. At any minute the game could start to unravel and 90 percent of the people will not have a clue, I am trying my best to make that 90 number a whole lot smaller. The trainwreck is approaching, I see it but I am afraid so many do not!

Now, to the markets- So the Aussie took out stops and went all the way down to 10103 and has rebounded throughout the day following the US equity markets. We do have the RBA this evening and I do not think they are going to cut rates but it should be interesting to see how the Aussie Dollar reacts to what the bank says. If you got taken out of the Aussie, watch to see what happens this evening.The Cad had a negative reaction last night as well but it was not as bad as the Aussie. We do have the Bank of Canada interest rate decision on Wednesday morning. If you are wondering why I like the Cad & Aussie so much, it is very simple, I have traded them for years and out of the major Central Banks, they are two that have not participated in this ridiculous policy of QE. I see value from these levels but I must admit I am now growing leery because they have not really been going up with the equity markets and this has got me concerned!

On Thursday morning we will have the pleasantry of hearing from the Bank of England and the ECB.
On Friday we will be treated to the US unemployment number. Does any of this really matter anymore with all the manipulation right before your very eyes? Have Gold and Silver bottomed? I just got this feeling we will know soon and possibly by the end of this week as far as GOLD&SILVER are concerned.All we can do is be aware of what to look for and BE CAREFUL out there.

I promised to take some pictures of my own yesterday and share them with you. I will leave you with some beautiful views of Delray Beach from a cool, sunny March Sunday afternoon. I hope you enjoy the view.