More good news on US housing, it now looks a very solid base,...

More good news on US housing, it now looks a very solid base, manufacturing surprisingly strong too. Goldman called a short on SPX, trying to force Bernanke's hand after they called it wrong on QE3. But imo there will be even less reasons to ease at the next FOMC, Goldman doesn't have quite the same influence in the real economy. Agree EU still problematic (though Cyprus with population < 1m not exactly big bikkies) hence EURUSD should keep falling, but expect they will continue to reject any major cash injection.

CME gold chart shows selling off on high volume, bounces on low volume. Technical bounce off 1560 support, plus options expiry games enough to explain. Remains bearish on longer time frames, though not expecting any breakout short term.