Tuesday 8 Aug 2011 Market Wrap-Up

[68Camaro]

What a bizarre day, end of day.

1) The market rises slightly on hope, sits there for most of the day, waiting...
2) The Fed creates a non-statement saying that yep things are bad and yep we're not doing anything more except tell you how long we're keeping interest rates low (for banks) http://finance.yahoo.com/blogs/daniel-gross/fed-disappointing-no-exit-announcement-190023663.html;_ylt=AlZMu0sPRfClfXt.M_sr6oK7YWsA;_ylu=X3oDMTEzMmYwc2U1BHBvcwMyBHNlYwNicmVha2luZ05ld3MEc2xrA3JlYWRtb3Jl
3) Market plummets from +2% to -2% within 30 minutes
4) Market turns on a dime and reverses up at a 600 point per hour clip to close up 4% (5% for NASDAQ and S&P)

If this made sense I would believe it. It just doesn't make sense. Still staying out of market, except for PMs.

[68Camaro]

Further, gold plummets (momentarily) - as buyers become more scarce - but it lasts for only minutes, and then buyers show up again and price comes back up to the mid to upper 1730s.

Despite a market uptick (shorts covering?, or a true mini-rally?) - PEOPLE ARE STILL BUYING GOLD AT RECORD PRICES!!!

Why are they buying? Because they are afraid. They've seen the emperor and (as Sinclair has said), he has no clothes on!

[68Camaro]

On the rise at the end of the day, listening to various pundits, the only explanation I've heard which at least makes some sense is that defining the specific period of time that the Fed would keep interest rates down officially killed any remaining balance of the bond market for the next 2 years, and the bond market money fled to both stocks and gold. I haven't seen any specific evidence of that, yet.

[beauanderos]

Perhaps the Plunge Protection Team was in action behind the scenes? Attempting to "stabilize" the markets to avert further panic, instill a modicum of hope, and once again, advance their agenda of "business as usual?" I'm far more concerned tho, that the knuckehead punks over here get it into their heads that the ones in England are having a great time... and begin to imitate them. How long can it be? Not very, I would say

[68Camaro]

As a precursor to the start of Wed here, the Asian markets seem unconvinced. Nikkei started up modestly and stayed up, but after the start trended down all day. Hang Seng same thing. Straits started barely up, and trended down all day ending well down. Europe today has started moving wildly up and down.

Gold continued refining that symmetric triangle pattern over night, still waiting for "something" to trigger it one way or other. It's like a lit fuse waiting to go off.

Regardless what happens its going to be interesting the next three days.