Gold rocketed $30 higher today, gaining back everything it lost on Monday, and then some.
This violent snapback rally lends itself to the theory that the smackdown of the past few days was designed to reduce the open interest in the August futures contracts.
It may also be significant that gold was pummeled down to its 50% Fibonacci retracement on the latest leg higher, but they could not make that stick— and got it stuffed back in their faces.
If gold can hold 1400 through the Non-Farm Payrolls nonsense, and make a higher high, this is very bullish action.
The spokesmodels were chortling when gold was smacked lower yesterday, and forecasting even lower prices down to $1350. But they were silent about its vicious snapback rally today. How unusual.
I find it a bit odd that with these price fluctuations there is zero activity being shown out of the Hong Kong comex gold warehouses. This is a dog that is failing to bark.
Rumors of a bullion bank being caught with its pants down have been making the rounds. I wonder if it involves a physical delivery.
Oil dumped today. This was particularly odd given the recent strong statements from the latest OPEC meeting. Well, they can reduce supply, but they cannot create demand.
Stocks caught a strong bid into the close. It looks like another blow off top is in the making. I am getting my bear claws ready.
They'll never learn. Why should they, when their paydays from this have been so personally fulfilling.
Someone is in trouble somewhare behind the scenes. Who or what it is, we do not yet know,
But it may very well involve a difficultly in meeting one's obligations.
Have a pleasant evening.
