fed hit the panic button

"To sum up the day, there is no question that the Fed hit the panic button as the long bond fell to the 28 year up trend line. The reason the bonds came apart testing that level was the statement by Russia, China and Brazil that they wished to switch US Treasuries for IMF SDR bonds when, and if issued in size.

The Fed, in my opinion, bought the last 30 year auction, indicating to them the need to QE at a rate beyond your wildest imagination.

At the G8 yesterday it appears there was a request to attempt to reverse the Russian statement which was attempted by the Russian Finance minister. Actions however overcome statements. Russia, China and India reduced their purchases of US paper consistently in the past months of reporting.

June is historically a month of change. It appears the equity markets may have caught on to that. Gold will seek its low in this month, and the dollar its high. I suspect neither of those are far off in time or price...

Today is comical based on the senseless movement of algorithms and the now pushing of a non-concept that the US dollar is somehow going into a bull market and gold has had it.

The US dollar is going to .7200, .6200, and .5200. Gold is going to $1224 then to $1650 and onto Alf’s numbers.

This is a perfect setup for a June low in this reaction. Armstrong feels if this happens $5000 is set in cement.

Ignore the top callers. Understand trading these markets is reserved for the professional only. The pubic cannot trade for insurance. Understand the pull inside you to trade is that of the gambleholic’s emotional parade to destruction. Listen to Kenny Rogers "The Gambler."

Stay the course."

Jim Sinclair at http://jsmineset.com/