Friday, May 30, 2014


It's clear the Fed is protecting this market while it continues tapering. I'm wondering if they aren't going to manufacture a runaway move that could last through most of the year and then crash near the end of the tapering (all runaway moves end in a crash). 


  1. What did I is on its way to 1050-1100. Its pretty clear that there is tons of time over the next month or so to crash gold down there. Once we broker 1280 it was clear that the next big collapse was coming. There are still way too many gold bugs out there..we need to see the hard core gold bugs turn negative then we will have the big rally. IMO that will be the back up the truck moment. Dont bet against Jim Rogers..he has been saying for over a year that gold will drop to 1000 as there are too many gold mystics out there.

    1. I doubt it. We are close to the bottom and may have gotten it today. Notice how the miners have started to diverge.

  2. I wish you are wrong!!! :) Fed says something and algorithms sells the Gold.

  3. The 2007 chart showing the runaway SPX move - was that Fed induced or is there another explanation?

  4. I think that was just a normal move coming toward the end of a bull market as everyone started to believe. and out of a hard correction in 2006.

  5. Does anyone know a way to 'prove' that the Fed is intervening in the stock market to keep it rising?

    We can use their website to somewhat verify that they are tapering each month. But what other
    information is publicly available to suggest they are 'buying the market' on critical days when we
    have seen miraculous saves at the bell?

  6. Without being able to audit the fed probably not. We didn't find out till months later that during the crisis the Fed loaned trillions to Europe in the form of swaps.

    Basically the Fed would loan money to the primary dealers with instructions to buy S&P futures.


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