Gold

[Daytr]

Go Aussie gold! Circa A$1420 ��. The biggest growth in employment in Australia through the GFC was the health sector as Labor poured money into various programs. Combine that with the mining sector, both now are in decline for various reasons. Expect the job situation to get a lot worse in Australia. No rate rise imo for quite some time.

[Daytr]

This is starting to sound a hit monotonous, but share markets were again in the red, hey but get used to it, because it could be the same story for a while yet, with what I expect to be around a 20% correction. Some indices more than others & its the likes of the Russell 2000 I expect to feel the most pain. Mostly I have been talking about the main US indices as they were at record levels bar the NASDAQ which still hasn't recovered the levels of the Dotcom crash. However its the European markets that have been suffering the most particularly that of mainland Europe & even more precisely that of Portugal & Spain, however the DAX has also been hit hard. Europe is sick, very sick & there is a concern that it will become a generational thing as youth unemployment has been ridiculously high for years. On US markets I think its important to note that the S&P broke below the 100 DMA, a key technical level. Gold was initially sold, only to bounce as equities did the opposite & it now appears that gold has broken free & benefiting from the decline in equities, despite a strong USD. And there is no better example of this than what Aussie gold has done in the last 48 hours up A$35.

[Daytr]

I just received my TA report that analyses the DJI & SPI futures & virtually all indicators have turned negative. If correct we should now see the correction pick up steam as momentum traders strap on shorts.

[Daytr]

Obama is talking about airstrikes in Iraq & the UN is calling for global action also. All the ugly ingredients of humanity on display, should see gold pop in the next 24 hours. Its already ticked up $4 since he spoke. Aussie is also down about 20bps. Meanwhile Asian markets are being smashed.

[Daytr]

Nikkei is down 2.6%! Allords down 1.2%, however goldies up as gold trucks higher & Aussie sinks. Its going to get messy on Wall Street tonight!

[Skol]

Resident gold 'expert' Daytr's prediction of 13700 Dow seems to have fallen on deaf ears. Up 177 and still going at 16,545. Only 2,800 out. Could be worse I suppose.

[Skol]

SPDR GLD down 5 tonnes to 795.

[Daytr]

Markets did a complete backflip in US trading Friday with equities closing just over 1% higher & gold giving up $12 to close basically flat after at one stage trading $1322. So what's changed from earlier in that same global trading day saw the Nikkei down 3% ? Actually not a lot other than Putin withdrew troops from the Ukrainian boarder which to be honest I thought was overplayed in the media anyway. The US has also commenced airstrikes in Iraq. Other than that the fundamentals of the market haven't changed a jot, with P.E. ratios still high considering the economic backdrop & the telling stat for mine being the employment participation rate at 30 year lows & the QE pump being turned off. The S&P didn't hold below the 100 DMA for the requisite 24 hours for a technical confirmation & the market may take heart from this. However my own thoughts are that the market was getting a bit ahead of itself & combine with the Russian withdrawal & I suspect there was a bit of short covering in equities & long liquidation in gold prior to the weekend. I don't think it will be long before we resume the correction in equities & gold is again sitting above $1320.

[Daytr]

I thought this was interesting from the BNZ's economist. Finally an economist calling it how it is.

http://www.nzherald.co.nz/taxation/n...ectid=11306890

[Daytr]

Equities bounced hard particularly in Asia & Europe & that of the Nikkei & DAX the indices hardest hit, however the rebound faded somewhat in US trading with the DOW basically flat, S&P up smalls & NASDAQ up 0.7%. Apparently there is a lull in global tensions, hence equity markets get some relief. However what that doesn't solve is valuation & that is why there is so much cash on the sidelines. Plain & simple valuations are too high considering the economic backdrop. Gold was slightly down but IMO is sitting well poised to have another crack at $1320 this week & equities IMO will resume their slide, perhaps as early as today/tonight. It seems more & more mainstream commentators are saying asset valuations such as equities are stretched & others calling for gold to start gaining traction. Gartman has made another call for gold to run amount others & the likes of the BNZ economist & Indian Finance minister basically saying their is a global asset bubble.