Second that. Miners strengthened SIGNIFICANTLY versus gold today. Friday's action was a big Sicilian Gesture in the Fed'd face. Today's seems to be also. Fed not in control. Dipped a foot back in. MarkM has half position on. With confirmation I will fill it out.

Years ago I would get angry when the fed intervened in the markets - usually because the intervention went against my positions :-(

Then I just accepted it as another risk that we can coin; "fed intervention risk".

Now, I try to anticipate fed actions in an attempt to turn those lemons into lemonade.

For example, with the recent bond selloff and the increased risk in real estate due to the increase in interest rates, a trader may think that the fed may be looking to squeeze the bond shorts in order to keep the bond market under control. If this does occur, that trader needs to be on his game for a quick gain. That's just one example of possible future fed actions in the market that could go against many traders that were "right".

One thing I have learned in trading the gold market is that a monkey would do better than most traders - if that monkey understood simple trendlines and fibonacci support/resistance levels. That monkey would now be waiting for the selloff to end, then the downtrend would be broken to the upside and the monkey would initiate the long position. If the selling happened to stop at a fib retracement level (support), the monkey would feel better about making more bananas with the trade.

Got bananas?

Bill

one of the bubble days stars is on fire again.

Ballard power bld-tsx. up 50% in a week.

not! a recommendation

Andrew

"One thing I have learned in trading the gold market is that a monkey would do better than most traders - if that monkey understood simple trendlines and fibonacci support/resistance levels. That monkey would now be waiting for the selloff to end, then the downtrend would be broken to the upside and the monkey would initiate the long position. If the selling happened to stop at a fib retracement level (support), the monkey would feel better about making more bananas with the trade."

Well, well. Look who just got called a monkey's uncle!

Go down to "M3 is Back"

http://www.nowandfutures.com/key_stats.html

not my website, but I've followed this guy for a while now and I've found him to be trust worthy and a provider good analysis.

Bill,

Allow me to weigh in on why margin requirements have been suddenly increased sharply. The presidents of the planet's two most powerful nations meet this week and behind this is an expected significant re-valuation of the yuan. The stage is set for an explosive round of currency speculation which has ramifications on commodities markets. Market overseers are attempting to dampen this by increasing margins. I would expect a minimum upward re-valuation of 10% from China, and then let the fireworks begin!

Nailed it. Gold up $9. For subscriptions to my newsletter "How to Clearly See What's Happening But Trade Poorly Despite Your Knowledge" send a self-addressed stamped envelope and $5 to..... :)

If the last few days of trading are any indication, the bucking bronco is getting saddled up about now.

Gold's reaction to a Tehran/Khartoum combination and Mr. Muggs trading style. ;)

C.Note-

I see LYO is acting okay for you!

Miners acting poorly again. :( The copper margin raise (tomorrow) may have something to do with it OR they are just looking across the room at bonds and Dow OR they see that gold is becoming overbought again. I'd look for some volatility tomorrow.

MarkM:
My basket of MINERS closed the exact opposite of the market +0.48%.

We always would like more but with all the 'stuff' going on out there, I'll take this and run to the mattress.

Market Update 4:53PM

DJIA 11,283.25 -53.07(-0.47%)
NASDAQ 2,330.30 -3.08(-0.13%)
S&P 500 1,301.74 -6.37(-0.49%)
Rus. 3000 761.54 -3.42(-0.45%)
Wil. 5000 13,215.06 -56.89(-0.43%)
Nikk. 225 16,970.29 55.89(0.33%)

Bill-

The book "Bull!" by M. Mahar revealed from Fed Minutes for 1996 that Greenspan had an answer for what he saw as a "bubbly" market. He said they could always raise margin requirements as a "clear signal of their concern" for stock prices. However, he failed to do so. It seems Mr. Bernanke is set on not repeating what was perceived as a mistake by the former Fed chief.

If seen this way by traders, they then know that further interventions are likely and that AT LEAST IN THE SHORT TERM, extreme losses are possible. That will tend to depress enthusiasm. Where will this lead? As you have stated, the market is bigger than the Fed. But it will take more than a few of the specs out of the bullish equation.

Bill-

So some other exchange becomes pre-eminent? How long would that take? Years I would presume. Fed intervention has been going on FOREVER it seems and we have tolerated it thus far. I doubt that there would be a revolt because COMMODITY prices got taken to the woodshed. They are the red-headed stepchild of the markets. Would Goldman complain? Bear Stearns? Citibank? Not in my humble opinion. They know who butters their bread these days. My read only.

C.Note-

One takes risks and wants a commensurate reward. The miners have an implied volatility that you hope serves you when gold rises. It works against you when it falls. Here again today they did not advance relatively when gold was up a percent and a half. You want to see your miners up 2,3,4 and 5 percent. Not the weak performance given today and really, 4 out of the last 5 days.

To me it signals something is wrong. Is gold going to correct? Are the juniors taking away the market? Something.