“dont fire until you see the whites of their eyes”
In regards to Egypt you can now see how a seemingly modern government in a modern society with modern technology such as internet, electricity etc can simply be shut off by the government to aid in the silencing of protestors yelling across the sea’s. A line from ZeroHedge’s post on Egypt’s tensions summed up what would happen if this were to take place in the U”
“merely a shutdown of Facebook and Twitter (and possibly cable) and 300 million well-armed American will promptly go apeshit.”
Yes Zero is right. SWHTF in the US if China dumps our treasury’s and 70% of states go belly up slashing budgets including police spending, hell chicago is operating every day 2300 officers short of full operating force. Think about the US as a whole.. Can local, state and federal governments handle massive political unrest? I doubt it. Communication is so fast in our current society governments may have no choice but to simple turn off data and voice networks to prevent the spread of instability.
Anyway, gold lost its pants again
today, they are about halfway around golds ass, ala Ice Cube in Friday. Perhaps tomorrow and tonight
we could see more gold carnage if the 1300 level is breached, this surely will keep the ever elusive S&P 1300 hiding in the shadows of dark pools…”
As for tonight gold took a smacking down below the 1310 level which is still no mans land. Equites do not like this, though dollar bulls do. Session low for spot gold is 1309.10…. The DX contract is showing resilience keeping her nose above water which is the 77.80-78 level, anything below bears start to sweat anything above 78 and bulls start to quiver.
Seems like these trades are as crowded as a NYC subway at 8 AM… What rises must come down, commodities as a whole will all trade down together in tandem if the S&Ps start chasing gold down like a bat out of hell…An interesting article on “hedge fund herding” sheds light on the anomaly brought on by the decline in listings of US companies which exacerbates correlation.. i believe the herding situations do have a very large influence on large and crowded trades like long gold/short dollar/long equities and the violence of their unwinding. Herds act together….
Clearly AMZN and MSFT did nothing for the bulls, kinda funny how low levels on the vix and overbought levels in commodities line up with technical resistance levels in equities. Our current market situation similar to that of the Battle of Bunker Hill... “dont fire until you see the whites of their eyes”…. Someone has to make the move, i am willing to wait patiently till someone does..
SPOOZ 1 minute chart below.. check it..