Posted on 05/19/2010 7:24:35 AM PDT by Red Badger
Hang on, it's gonna be a bumpy ride!..............
(Excerpt) Read more at moneycentral.msn.com ...
Volume of trades above 25% of daily avg at time of post...
Question; Is the stock market going to go up? or down?
Answer; Yes
Wow—gold is really down, too.
I understand stocks down, but why gold?
I mean, there are some scuffles in Greece, which generate a few interesting pictures.
And there are some scuffles in Thailand, which generate a few intersting pictures.
And the US Stock Market goes up and down like it always does.
I think for most people, the idea that something big is going on is just not on their radar screen.
But.. but... Milk! Honey! Unicorns! Skittles! Hope! Change!...
If the May 6th “panic low” is violated on strong volume, we’re likely to go lower still....
Everyone should read and re-read Kindleberger’s classic about manias and panics. They all follow similar patterns. This one is different from the 30’s only in that central banks have labored mightily and in co-ordination to puff up the debt bubble to keep it from deflating.
But this can go on for only so long... because as the bank failures keep going on, it becomes obvious that it didn’t work.
This is a breakup of the dollar carry due to sustained dollar strength. I expect gold to come down temporarily.
Where is the PPT??? Maybe after lunch.
I'm guessing dollar strength.
Somebody’s getting skittish.....in a big way..............
Dollar is down today...UUP
Again....
I wrote on another thread last night that it looked like we were once again seeing people selling whatever they had in order to make margin calls on the stuff that REALLY tanked.
And of course there was Jim Cramer on Monday giving us his Six Reasons To Buy Gold Now, which is as reliable as a sell signal as you get.
I realize that doesn’t explain why gold and silver sold off all at once today instead of a slow steady sell-off.
Time for another bailout!
I agree with you.
This happened during the “first leg down” back in 2008. The answer is that investors are being forced to liquidate to pay their respective obligations. These investors could be individual, institutional, corporate or governmental. This drove commodities, even gold, down as the dollar declined then as well. It’s being repeated in the EU and possibly elsewhere.
Conditions in the EU are somewhat more dire than was/is the case in the United States by nearly every objective measure, so look to the recent past for guidance, but expect effects that are more serious. It’s not as if we’re completely off the hook on this ourselves. We’re not. We’re already feeling the repercussions, even though the epicenter is not here, this time. We’re still reeling from ‘08 and have held together thus far with an historic amount of government spending, very creatively distributed. What’s worse, we’re funding a fair percentage of the so-called “bailout” overseas ourselves.
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