Somebody somewhere needed to raise cash.
You couldn't help buy take note of the overnight move to push the market up today. Futures were strong by 6:00 am ET and the market popped for 100 points on the DOW. PPT or foreign hedge fund? Who knows, but there are rumors -- lot'sa rumors floating around. Those who know, aren't talking.
Anyway, from 100 up to 80 down is a considerable drop again. The manipulation didn't work or the player didn't have enough support to keep it going. We might explain it as simply gold being sold to buy dollars, but I have a feeling that this is a move that didn't work out as planned and someone took a hard hit.
I have a bad feeling about tomorrow because of todays failed rally and the investigation of JPM and C. It could get ugly. . . but that's just my opinion.
Richard W.
Thanks, Richard. My first impression was that someone was profit taking from their gold, but why would they sell it down so much. There was certainly a considerable amount of metal (or paper metal) dumped on the market. Somebody that is in so deep that they have to tank the gold market to keep their margins is way overextended.
You stand a good chance of being correct, but I'll wait a day or two to see. I could predict a couple of other patterns developing here, though I don't think they are as likely. Remember that 8000 is a milestone. Could be the combination of someone taking gold profits to take a new position in the market along with some people shifting from short positions to neutral. Considering the amount of movement oin gold though, I suspect that you are closer to right on this one.
To Big to Fail and Too Big to Bail
Richard W.