I agree with his comments.
Mexico Mike with an encore...
smoke and mirrors
Hi Bill!
There is obviously no 1% rule in effect for gold on the way down. But I notice the mining stocks seem to be outperforming the metals going into the last hour of trading today so perhaps there is hope yet that we have seen the lows for this downside move. And for all those who are glued to their charts and think they know what is going to happen into the dog days of the summer, I forcast a flock of black swans headed this way. Nothing is off the table. It would not surprise me whatsoever if we end up with a solid breakout move from here that takes gold to new highs, and drags silver along for the ride. Considering that the downside appears baked in at this point, with trading volumes low, share values bouncing along the lows, and widespread predictions of slowdowns ahead - I will not be shocked at all if the PM sector explodes higher.
It almost looks to me like a set up the way markets have been allowed to fall, perhaps even encouraged to fall, as we approach the last days of QE2. This is a game of brinkmanship. The debate over raising the debt limit is following the same playbook. All is geared towards creating the right environment to announce the next round of money printing such that the market will embrace the move and go back to the phony recovery mode. There is no will to address the underlying issues. This is all about putting in place the conditions to support the mirage of a recovery for just a bit longer, and to grease the system with newly printed money ahead of the election. I notice even some of those who were steadfastly denying that any further stimulus was coming are now changing their tune.
Cheers!
