Or, how about the Evelyn Wood (speed reading) traders?

On release of the statement, the djia was up 50 pts before anyone could have read the whole thing and determined what to do. wtf.

It's clear that Bill loves the market and, contrary to a lot of folks, it's like air for him...at least to a point.

As for mkt corruption, please continue to keep us informed about the mouth that roared. I'm thinking he'll spin his way out of it, the reformed sinner, like who else can be better now at helping home owners than a former thief. If it was left to me, i think i might become guilty of mob mentality.

ALOHA !!

The FED is all bark and even the bark is getting old ...

Yes Bill ... it goes back to the old bumper sticker from the 1970s ... "QUESTION AUTHORITY"! Too bad the SEC works for HB&B ...

Speaking of HB&B stooges ... Whats this I hear that Barrick Gold had no booth at the PDAC? Bill, Jake & Jock ... any truth to that rumor?

Way back in 2005 the Blanchard lawsuit was dismissed against Barrick and JP Morgan based on the grounds that they were "agents" for the US government and therefore, immune from prosecution. A-G-E-N-T-S??? You mean like 007?

Is Barrick the FEDs "deep storage"? If so it seems Barrick is getting their "storage" a little too "deep" due to their hedgebook which they claim they plan to "clean up"! Does this mean they plan to "de-hedge" by buying "unhedged" producers like NovaGold? Maybe all of the above is a good reason to stay away from PDAC? Beimg a FED "agent" is not conducive to "open public meetings" where the light of day can really make your image look hagard!

Since the market divorced with the deteriorating conditions of the economy some time last fall, the Big Boyz have used the same modus operandi to push the market higher around key resistances and Bernanke speak/Fed announcements. One strong buying burst (usually futures) slightly above the resistance (Nov. break above the May high) and/or at the exact time of the press release (Jan. Fed meeting, Bernanke’s testimony to Congress with the 9:59a push in the futures, Mar. Fed meeting) sends the shorts to cover and begets pile-on momentum from other players.

I almost suspect now that a couple of the strongest black box players set their clock to match the embargo release and attract the me-too engines. In my view, this let’s melt-it-up strategy will continue to work as long as liquidity keeps flooding all markets. Because it has consistently suffered for nine months (except for three/four days in the last month), the short side is (and will remain) very risk averse until it has a tangible example of failure of this long strategy. I suspect that shorts would offer a worthy counterpoint to these attempted moves if the market bounces quite rapidly in a set range for the next couple of months with true volatility or if the indices near a 10% correction that everybody has been waiting for.

I fully expect that (not too long from now) an up-push like today will fail because (1) a less powerful black box will try to jump the gun and push before the big player has fired first, (2) momentum will have carried the game beyond exhaustion or into the hand of large institutionals happy to lock their quarter/year’s profits, or (3) the ensuing news is so bad that no amount of spin can put lipstick on the true problems that plague the economy.

JML

There's been a huge , smart money (as in, not obvious, but you know its there), bid under stocks for the last two days.

As another poster mentioned, I found the reaction to the announcement a bit too fast and enthusiastic for it to be a 'surprise'.

How much were they willing to buy , pretty much nonstop, after a 15 second analysis?

Seems like they were willing to buy since Monday, and just wanted to finish the program quickly before mere mortals figured out what was up.

Bill, first I'd like to thank you for all your efforts on this important web site. Hope you return to health as soon as possible.

Gold was up only slight today and seems oddly contained verses the dollar's decline. To what extent can these manipulators affect the gold market? WoW!! To prevent the rise of gold to this extent seems almost unbelievable! This is extremely disproportionate from my point of view and if they can manipulate it to this extent then what hope do we have? This is very discouraging and frightening. Am I reading this wrong? I fear taking any position now. Can anyone advise me...

Hey Bill,

This reminds me of a post of yours from the summertime.

http://www.billcara.com/archives/2006/06/217_point_sucke.html

Nice post Bill !

Regarding margin gold trading, beware of algorithmic stops running and other tricks , btw , gold trading is my blog topic.

ALOHA !!

Gold trading seems to be a popular topic of late. Volatility scares people ... too much and they just run for the sidelines, of course if you want to manipulate an outcome then volatility is one of your best tools!

Today I noticed a huge run up in practically every major currency except those tied to the US Dollar(like the Yuan). Currency traders ran out of the US dollar to other debt vehicles with more tread on their tires! Paper is debt ... When you hold a US dollar in your wallet or your Forex account you hold a proxy for US government debt that is maintained by inflation.

What is missing from this equation is what "money" is really suppose to be. Printed on every US dollar is a phrase that talks about what this piece of paper is good for ... essentially paying debt or as I like to say "trading debt". Money has another purpose that has been long forgotten ... "A STORE OF VALUE". None of the international currencies meet that criteria. Much like the big Wall Street banks package CDOs and "trade debt" so too are currencies traded on the Forex. The USDX is a mix of other "indebted" country's paper, like a currency CDO. So there is no real "STORE OF VALUE" in any currency. Only gold and silver have ever had a monetary "STORE OF VALUE".

As I read the above listed posts, like onlineaces, it becomes apparent that Wall Street and the FED have done their job well. If you disseminate enough false data and lies people will get so confused they will believe anything you tell them. If you are confused about what to do I guess the sidelines is the best place to be, yet even the sidelines will not save you from the ravages of "inflation". Just ask any retiree ...

Jim Sinclair puts out some very valuable info. I believe he sees the BIG picture like Bill does. Here is his latest take on the USDX and gold ...

The Real Subject
Author: Jim Sinclair

“Today’s major event is not just gold breaking above the Platform, but the dollar setting up for the two touches of USDX .8057 with the third being a breakdown.

Gold is headed to $682 and then on to $761, followed by a reaction and then on to $887.50 in terms of the active trading month.”

The spotlight is directly on gold while the real story today is the dire condition of the US dollar. In terms of becoming the currency of the people, gold replaces the US dollar, euro, and the yen. For this to happen the US dollar, as well as other currencies, must fail to meet the definition of money.

Money is a medium of exchange, a measure and storehouse of value. The major failure like credit starts is at the end of the chain. In currency that is the failure of paper to function as a storehouse of value. Money is supposed to store the value of your life’s work. All the spin in the world cannot contain a breakdown of the .8057 level. This may not be in the cards right here and now, but will be on the third touch.

There is a subjective mind of the market which you may deny, but that will not make it go away. The breakdown of this level was inherent with the breakdown of the huge, dangerous and terminal head and shoulders shown to you in tonight’s chart review.

The subjective mind of the market will snap as the US dollar breaks down these terminal levels. Be assured the relationship now assumed to be with general equities will follow the dollar in an inverse relationship because gold ascends to its currency form by replacing paper as the STOREHOUSE of value. Gold is clearly a medium of exchange and a measure of value.

The action of the dollar with support now at .8057 in terms of the USDX elects gold to the position of the “ONLY HONEST MONEY” anywhere on the planet.

Russia is helping move this transition along by today requiring all transactions to be in rubles, not dollar or euros. You can expect this to spread, particularly as the dollar is concerned.

You may recall a while ago when I reported to you on the trial for the murder of Daniel Pearl in Pakistan. The convicted murderer, when being taken out of the court building, blurted out at the top of his lungs “The dollar is dead!”

This is an economic war we are engaged with both Iraq and Iran; an aspect that actually might be beyond the comprehension of our revered leaders.

To read the entire article go to this link ...
http://www.jsmineset.com

Thank you kaimu.

I am young in understanding the markets and your post really, realy, really helps. I was heavily shorting the markets and this "2nd" melt up took me by surprise, I must admit.

It has been very hard for me to accept that our government is outright lying to its public. With the CPI/PPI numbers last week showing that inflation is headed higher, plus all the other information that points to a weak economy, I assumed that the FED would act at least somewhat accordingly and, it did not. In fact it reversed itself completely. It was like we forgot everything. Inflation, sub-prime, credit bubble, etc, etc, etc. All of this just wiped out of our memories. A sinking/plunging dollar doesn't even make the headlines! I guess this will let the few "friends & family", that need to rotate out of their current positions, are now being given that chance. I guess like Bill has said, you need to learn to "dance" with the market.

I am curious though, can you reveal what percentage of your assets are in bullion (gold,siver, or otherwise). I am about 10% vested in gold bullion, but from what I am understanding, that may not be enough.

kaimu -
Jim Sinclair has huge vested interest in gold so I would not call his blog unbiased even though I read it myself from time to time, especially on bad days for gold ;-)

ALOHA !!

occam_razor ... First I never said Jim Sinclair was "unbiased". Set aside biases and please look at Mr. Sinclair's extensive background and expertise as every "teacher" or "guru" or "expert" or "salesman" has a bias!

From Sinclair Website:
"OUR MOTTO -“Quis custodiet ipsos custodies qui-tacet consentit(Who is guarding the guards?)

Our Mission
We are a service orientated teaching forum that uses the daily market as its text and blackboard. We comment, but every commentary carries a lesson. The Spin really does stop here.

Jim Sinclair
Jim Sinclair is primarily a precious metals specialist and a commodities and foreign currency trader. He founded the Sinclair Group of Companies (1977), which offered full brokerage services in stocks, bonds, and other investment vehicles. The companies, which operated branches in New York , Kansas City, Toronto , Chicago , London and Geneva , were sold in 1983."

Link: http://www.jsmineset.com/Aboutus.html

Perhaps he has a bias towards gold because he knows thats where the end game is. You have to decipher the truth yourself. Pres. Bush has a huge bias toward winning Iraq and telling us all the economy is GREAT. Does that mean he is right? The NASDAQ has a huge bias to promote tech stocks. Banks have a huge bias to sell you loans and credit cards. Car companies want you to buy cars instead of Harleys. Turn on CNBC and see how many times they mention "gold" versus the word "DOW", yet both gold and silver have outperformed the DOW on average for the last five years straight and silver has outperformed gold. Biases are everywhere ... Which bias are you going to go with?

kaimu -
I did not mean to offend anyone and I am also long gold as part of my portfolio. All I am saying that as a CEO of a PM exploration company he is inevitably biased. However I agree that he has a lot of experience in PM.

Who to trust? Who has more credibility?
When someone heavily invested in PMs says buy PMs, is he less credible because of his personal stake? I think not. I think he would be less credible if he was telling everybody to do something he wasn't doing himself. It's prudent to acknowledge the bias of someone like Jim Sinclair, but it wouldn't make sense to dismiss his opinion because of it. Rather, it's a matter of digging deeper and assessing his reasoning.

Perhaps it's fair to say that investors will be analyzing the economic arguments and positioning themselves in accordance with what their economic models forecast. Meanwhile, traders will analyze what investors are doing and position themselves for "the dance".

To some extent, the media is the message, (to quote a noted Canadian). It's of considerable value to pay attention to "the story". The media will glom onto populist ideas and a snowball will develop. To extend and possibly abuse a metaphor, we can trade with the snowball as it rolls down the hill and get the heck out after it's grown and is approaching the trees.

I'm thinking in line with Bill, and gold will be the story of the next few months - - the snowball to trade with.

ALOHA !!

occam_razor ... I did not take offense. All I was pointing out is why would someone with Sinclair's history and influence sell out a stock and bonds(paper assets) company and jump into PM and commodities(hard assets)and end up with a PM website and a Tanzanian Royalty Company(TRE:AMEX)? All of which he has funded using his own funds. I have to wonder what he sees and why he "jumped ship" on paper?

Is he right? So far he is ... Only time will tell about the rest.

...At some point, all of you will see what I am seeing; the Fed and the Perma-Bulls are doing you no favors.

A $500,000 house that sells for $1 million just brings higher selling commissions and higher property taxes...

THANK YOU Bill! I have been trying to tell people that for the past few years.

You should see how many articles have been out with angry homeowners who have be "re-assessed". You couldn't give local govs a better excuse to spend.