While nothing new to regular billcara readers this Jim Jubak article seems pretty objective on the discussion on M3

Fed kills a key inflation gauge
The Fed wants you to think it's fighting inflation. So why did it kill an important measure of the money-supply boom that feeds rising prices?

http://moneycentral.msn.com/content/P146592.asp

Bonds getting trashed again. $USD up. Gold rocketing. Oil up big time. Dow up a hondo, S&P 10. Can anyone out there make sense of this for me please? I see irrationality everywhere I turn.

The next article that will be posted shortly will read - Asian Markets Take Huge Nose Dives.

I'm staying extremely far away from the "BUY" button on GOLD, OIL, DOW, NAZ, the works.

Nothing is a deal and I don't buy when there isn't a deal.

I could care less if Zinc and Gold are in short supply but to have their stocks up by 5-8% daily means - I'm letting you buy.

Let us review - It hurts twice as much to buy at the top and get stuck with the bag then to scope a deal out on a broken stock which nobody wants and to have it slide further south.

I'm about 30x more keen to buy more JNJ for example than to buy a Zinc stock and "POSSIBLY" have it up 5% tomorrow. I don't mind stalled out money but I refuse to have lost money.

If the USD is up and Gold is UP, combined with OIL up - That should say - We have people buying on where things should be in the future and not where they should be now.

Please go ahead, please buy all you want. You will only validate a great entry point for me because Wall Street is notorious for pointing out the boom as well as the bust. Soon they'll be out saying "Gold is over extended", "Oil wont stay at $67", "Nasdaq probably at 2006 high" and so on.

Wall Street has a nasty habit of entertaining and making the story look more rosy than it really is.

Stocks up 8% on no news? - Sure there is news , it just hasn't hit the media yet and the reason for that is probably its all pure rumor based drivel which isn't probably newsworthy.

Stories are for the ultra rich, EPS analysis for the rest of us.

I heard a tiny voice say Gold could rise to $1500 and then on that mania rise to $2000, but thats when I'll be out -> Go on take the bait as you normally do. I'm here sipping on my Java

/d

Ho ho! Now $USD DOWN, bonds UP. All is right with the world again. The traders now have their stories straight and we can all now make money safely and securely.

dinov,

you seem to be smarter than all of us (and proud of that as well), maybe it's you who should have a blog? BTW, what is it that "goeth before the fall?"

JB - I'm not sure what to make of that comment. I can tell you this:

I'm here to add value. I told you exactly whats going on before it happens. I stated so with total confidence.

Since then:

Gold has been selling off but still remains positive

The Nasdaq has just melted away and all the hype you see around you of a "Massive explosive new quarter" is showing signs of the talking heads losing steam

Now looking ahead - There are tons of metals that still are at the highs of the day, some up 11% on news that they're doing well (Well is this new to you?) That resource prices are extremely high and they're actively looking for synergies and acquisition trails -----> Does this command a 11% move on a $10 stock ?

Look for a massive correction and then I'll have five names for you to do your homework on.

By the way - Political issues in Brazil are a thing of the past. Caution is thrown to the wind, so if you want to scalp, feel free. I'm going to be more comfy with preservation or playing other markets.

Here is an exceprt from Bloomberg
"``People are piling in'' for gold, said Duncan Cruickshank, an analyst at Commodity Warrants Australia Pty in Sydney. ``People will make money even if they buy at these levels.'' He predicted the precious metal will reach $600 this week. "

-----> People piling in? Gold will reach $600 this week? Gold is up $100 or more since November. At this pace we should have $100 increases every three months and why not start up an open pit mine for $500 million and as easily venture into Billion dollar underground mines when your cost of production would average $290

I wish I could cripple the left mouse button of people buying on speculation. The ones with discipline will have to pay for their greed when the whole system falls through to correct.

Come on - The Dow "JUST" lost 100 points since I sipped my coffee this morning. Mere 100, You guys will make that up when Wall Street takes GOLD up $8 again tomorrow.

/D

Lay off the "D-man". I rather enjoy his posts. I have had my hand off the left side button quite a bit here lately myself.

dinov: "I'm not sure what to make of that comment."

I'd blame the java then.

MarkM - JB seems to be playing around and seems to be fully enjoying himself. Glad I can provide some entertainment once in a while.

Things are steady this morning - lets get your TA on golds support. I'd like to see if we come to a meeting of the minds.

/d

d/-

First level of support would be around old March high of 571 for $GOLD(EOD). If ever gets oversold on daily may reach 555 area of support which was mid-March area of topping action (that fooled the hell out of me and why I view this breakout with great suspicion). After that it's low 540s that provided great support before. Some very hard bounces there.

Thanks Mark. $571 sounds more viable due to heavy demand and glorious speculation. Would be smart to bite there and bite again if your scenarios play out as such.

/d

d/

Number of new longs is increasing, yes, (+20K)but still 20-25% off the peak season (last October-Dec.). Argues for more volatility. Would need some help from oil, like today, in order to come off. They've been moving in tandem lately.