qe taper is coming!, page-18

Gotta luv it. Gold miners are producing buy signals all over the scanners. Job numbers:job schnumbers. It's all about bond rates. Even gold is throwing out a buy signal.

A high US jobs number tonight is likely to signal an end to QE in the minds of many investors including bond holders. In that scenario, bond rates to respond by yields rising in anticipation of tapering. Fed cannot allow that to happen and so... will not taper. The story was cemented 4 years ago when the US did not take their 'wack' in the GFC.

Add to this the reality that the manipulators are about out of ammunition. They have spent their share like a greedy kid in a candy store and are about to find out about the downside of a sugar high.

Alternatively, the jobs number is poor. That means less chance of tapering, and while that should signal more QE and hyperinflation, investors will realise that exorbitantly high PE ratios for stocks and an already low bond yield leaves them baffled as to where to put their easy earned. Hmmm? Gold and its miners oversold? JPM net long paper gold? Chinese importing physical like a greedy kid? All data manipulation ideas used? EU broke? Debt to GDP off the scales?

Last but not least, an average jobs number (let's say 170,000). More of the same for a few more weeks and a ho ho ho it's Christmas! The world enters 2014 wondering where we go from here. Reminds me of the Brisbane Floods. A full dam and a forecast of torrential rain?

At the end of the day, the charts tell the story. Place your bets.

Stockist