from my point of view one word from FED "moderate" change the market sentiment coupled with Greece deal pushing through and the CDS worked out market breath a sigh of relief and suddenly found confidence and decide to take risk
and many that took gold as hedge quickly abandoned their position and follow all the analysts for "riskier" equities
thats what I hear from the market and pog reacting is a healthy sign for me
at least the herd mentality is still going strong (of which I used as contrarian and guidance for social mood) this is what the bots use this is what we can use the bot use
yet I am happier than ever
because this confirm my paradigm and theory
its abit late to write too long and I am somewhat surprise anyone read my post at all yet I hope those who read may benefit in any way you can use it
im going very simplify and short here need to hug me bed soon pls forgive my incompleteness if any
when Lehman strike the financial world meltdown and FED swing into action printing money and was hail as hero europe soon when into boohoo and timmy G when to europe several trips to convince them US knows best and they bought it and now they are in boohoo and china is now in boohoo but china refuse to play USA-imitated so they buy gold and assets around the world
so far we agree?
the problem started in US was deflation and FED came in to ... say control it and the market temporarily went back to inflation (may need Infose to correct me here)
inflation is good for gold deflation is bad for everything
all this short position and hedge position on gold did spike the price somewhat but as far as I can see inflation is a bigger problem now not smaller
after all i am looking for central bank to buy gold to protect sovereign position not just mere market i am look too world gold council data as well cb is still the biggest buyer on gold market p/s read the gold posting on HC here - very interesting stuff there
how soon do you think market will snap and switch back to gold? when they realized inflation is getting sky high? and printing money is bad idea?
FED is being use as crutch (my view) and by one word the world is going to change?
also pog we refer to in comex future fml has many days still to make adjustment where needed fml is cash positive hypothetically they stop work for a month what would happen then?
also gold has strange effects I am still very hopeful pog will come back my timing was off as I didnt take into account of FED's one word yet 1700 and climbing 1800 and 2300 is still my firm LT view
this is no more than market pms people are so wired still on 2007 high they think their glory day are still alive or trying to keep it alive by whatever means and often then could mean jumping to which ever boat that promise quick return hence volatility and distorted charts and data
now that the dust is settling and the global financial market bought some time all assest class including gold can be more properly valued the volume to buy gold has been increasing I dont see it reversed
question: name one country that is no tackling high inflation?
im glad deflation is contained somewhat by central banks by injecting massive liquidity now politicians need to step up and fix inflation btw i am still punting for QE3 in 4th Q
but this is good for goldies there is always the possibility still gold standard may come back to play
anyhow that my 2 cent mumble jumble probably contain many error so pls pick whatever that is useful to you
Oh as for fml sp now that the world seems more stable the big fish may feel more comfortable to take large position big fish have capital but they hate volatility and uncertainty once they work out their position against the world they will buy growth assets we may see sp more north notice there are several large off-market XT started already - what do they see?
kinda reverse psychology stuff
all i hope to share here is some data and indicators so some of us can take and lock in our position before the market gets swipe off thats means we need to get in early take some risk and abit more patience which should come to an end soon - payday
:)
after all if you are not the herd you are likely the herd handler you control your destiny
:)
***PLS DYOR again my brain is not clear atm need sleep so pls DYOR seriously
good lick to all
FML Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
(20min delay)