Gold: same level despite Dow surging 50%

[peilthetraveler]

Gold was 1,000 back when the dow was 12,000 too.

 

[krazykarl]

Quote from pulsescan:

yeah its called market manipulation.





EUR/JPY followed along just fine though. Again more market manipulation by the Fed via Goldman Sachs i.e. PPT etc etc.

Oh for fuck sakes stop it. Every time someone places a trade these days it's "market manipulation". Learn how to trade better and the market doesn't seem so manipulated.

 

[JamesVU2000]

Quote from Ivanovich:

Oddly enough, we're not seeing any of the FX carries going hog wild with the DOW like usual either. Something is awry.

Things went goofy in april and march and really messed people up. If you are a big fund what do you do with the bank stocks? Bad fundamentals and balance sheet, but a government who interferes with everything. When is the last time the stock markets went straight up like they have? there is no mean reversion going on during the day.

 

[JamesVU2000]

one more thing. all these crazy gaps with no fills.

 

[trefoil]

Quote from JamesVU2000:

Things went goofy in april and march and really messed people up. If you are a big fund what do you do with the bank stocks? Bad fundamentals and balance sheet, but a government who interferes with everything. When is the last time the stock markets went straight up like they have? there is no mean reversion going on during the day.

2003, last time we had the start of a new bull market.

 

[JamesVU2000]

True, but it was way way slower. although Im convinced that we are in a world with much greater extremes.

 

[Eight]

Volatility is the new frontier. Trade it and strip mine the economy.... Martin Armstrong posited that all the interventions serve only to increase the volatility. I'm sure he's right about that...

 

[slapshot]

Quote from Debaser82:

Gold:

03/09/2009 940.80 $
07/23/2009 949.1570 $

Dow:

03/09/2009 6547
07/23/2009 9000

How can this be?

Dow 6500 = End of the world is here

Dow +9000 = recession is easing if not ending

Still gold stays at the same level.

Gold has a history of exposing (economic) turmoil as monetary loosening yet it fails to show it's true direction so far.

Any idea on the (missing) correlation here?

I have an idea that is radically simple: supply and demand on Gold (and related issues) is at parity. It is a simple ABC.

A) Every time I turn on my TV, some new company is trying to sell gold to the public, telling them how much it has gone up in 10 years and how it COULD double again. In the past, this has been a very reliable indicator that Professional Distribution is taking place.

(The same thing was happening right before oil collapsed. The pitchmen on TV were saying that "NOW is the time to get involved in oil futures and options!" - this is when crude was over $100 to $140 per barrel. Again, Distribution to the poor sucker Public.)

B) The fact that the Pros are dumping gold to the Public at these high prices is offset by the fear in the markets (especially inflation/USD printing) and a lot of people (Pro and Public) are still buying gold as a hedge.

C) = Supply/Demand is fairly balanced. Hence prices not moving too much.

 

[Debaser82]

Quote from slapshot:



B) The fact that the Pros are dumping gold to the Public

So when a fatcat like John Paulson is buying billions worth of gold stocks he should be considered as a contrarian amongst his peers?

 

[slapshot]

Quote from Debaser82:

So when a fatcat like John Paulson is buying billions worth of gold stocks he should be considered as a contrarian amongst his peers?

I have no idea, my point was that obviously there is just about as much selling as their is buying, hence the tight range. His billions apparently are being absorbed pretty well . . .