Gold rallied and provided a minor weekly buy signal but has formidable resistance at the 1425 level while the gold promoters tout inflation, the Fed, war, and more hyperinflation. Their counterpart is of course CNBC in the stock market who will claim there really was no sell off only a buying opportunity as Bloomberg TV will take the contrarian view to whatever CNBC just said. Then there will be the traditional litany the various news agencies attributing things to the tensions in Ukraine and the Crimean peninsula at the WSJ, CNN to the missing Malaysian flight 370, Fox Business News most likely to Obamacare and Fox News to Gay Marriage, Yahoo Finance to just normal Russians creating chaos, Forbes will attribute it to taxes being too high and the Huffington Post will counter with taxes are too low and the pause in global warming.
So after all the fundamental explanations, there may have been just possibly more sellers than buyers as profit-taking infected US traders, Europeans fearing currency losses with the rising euro, and Russians running for the hills fearing US will freeze their money to put pressure on Putin. If it weren’t for all the confusion, life would get boring and too predictable. Bottom line – capital is contracting globally as it attempts to figure out which direction is up and for what. Nobody touts the BRICS anymore and they have been shocked to discover that China has not been in a bull market after all.
So somewhere between hyperinflation and only gold will survive to the pause in global warming and all stocks should be taxed so Obama can help Al Gore;s retirement fund, the trend keeps moving along.
