Sunday Evening Post & Morning Audibles

Good Evening Capitalists*,

The focus this weekend was on the Gold Market. I wish there were some great trading ideas there, but I could not find one. While the overall pattern looks like a bearish rising wedge with continued RSI divergence on the both the Monthly and Weekly scale, it's difficult to advocate a big bearish trade just yet. It looks to be in a technical "no man's land" for the next several weeks. I would much rather jump on the short train when this market first displays some sort of "impulsion" lower or can break below some supports. Otherwise, it just feels like you're fighting a band of lunatics who are convinced that Gold is the second reserve currency of the world and the only true hedge in a world that has gone mad, mad, mad.

The Dollar witnessed some bottoming action last week but now needs to explode higher. First and second levels of support are 82.40 and 81.41 for this week. We would be a dip buyer this week looking to use those levels as "stop points" on new length. A close below 81.41 would take us out of all DXY length.

The S&P 500 looks a bit toppy heading into the weekend. I'm expecting a pullback this week but think that 1065 should be support on the Cash S&P 500. Any break below 1040 should send all length to the sideline. We remain 20% of a Max Short position, looking to add to shorts on a break above 1130 or a break below 1040.

*Did you know that the word capitalism has taken on such a negative connotation that some conservative Texan educators have decided to drop the word from textbooks in favor of the more palatable term "Free Enterprise?"

The board removed the word "capitalism" from the standards, mandating that the term for that economic system be called "free enterprise" throughout the standards. Board members such as Terri Leo and Ken Mercer charged that "capitalism" is a negative term used by "liberal professors in academia."

I'm not sure what the greater "issue" is there: the fact that there some Texas crazies who get to monkey around with Social Studies textbooks; or, the idea that "Capitalism" is perceived to be a "naughty" word.

Interesting times....

Football Thought: How about them Texans?

Gold Report 12 Sep 2010

Market Update 12 Sep 10


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I'm only going to add, this morning, that YES - It's a Mad Mad Mad Mad World... (and to think, back in the day, they were all actually "searching" for the BIG "W" to end their woes)...

Now we have the BIG "O" (same as it ever was)...