Aug

26

gold bugAUTUMN IN NEW YORK
Howard S. Katz
August 23, 2010

Being gold bug's lots of fun.
We've got the bad guys on the run.
The autumn season does behoove
For price of gold to make its move.

Al Abelson, he was a fool.
He sold his gold and broke the rule.
He sold his gold, what do you know
At price that was the very low.

Gold is, in fact, at its typical juncture of later years– where it has again moved up throughout the entire calendar month of August, silencing the skeptics and allaying the fears of the cautious!

This time: throw in spice into the mix: Silver, which was mired in unprecedented tight range for roughly half-year, has been on Bullish rampage this week. The kind of move that is almost guaranteed to fleece hapless Shorts, pre-Labor Day weekend.

Here is what I will be watching:

1. Expect Silver to dominate, putting a smoke screen around Gold– which is getting progressively overbought, to begin with.

2. At first sign of US Treasury market finally reversing to tighter course– end will be all but near to remarkable Bullish performance in non-yielding holdings such as the Yen, and Gold.

3. Have Gold bulls plan for contingency? I mean being Bullish and Long around the record highs may somehow feel comfortable to most Bulls– but would a move later in the year to below $1160.00 turn them into all-out Bears?

Rocky Humbert shares:

It is an ancient Trader
He's stopped out three of three.
"By thy margin clerk and glittering screen,
Now wherefore trades for me?"

"The Fed Vaults doors are opened wide,
And they are long of gold;
The public's met, the feast is set:
May'st hear the merry din."

The Trader raises his skinny hand,
"I am short," quoth he.
"Hold off! Unhand me, you gold-short loon!"
Eftsoons his hand dropt he.

Higher and higher every day,
Till over 1260 at noon-
The bullish public here beat their breast,
Ignoring Trader and bearish buffoons.

And when the GOLD CRASH came, and Trader
should have been tyrannous and strong;
He was instead bankrupt
because he had turned long.

Value, Value, everywhere,
And while good stocks would sink;
Value, Value, everywhere,
But Trader chose not to drink.

My inspiration came from here.

Kim Zussman adds:

Being a bull is lots of fun
When we come out the bears will run
Coming soon - our day in the sun
Fedmodel extrema (that's no pun)

Uncle Ben did everything fix
Hidden it is in daily ticks
Mr Gross still up to tricks
Allah Erian us to no sticks

The blowing blimps are good for us
Nattering nabobs we always suss
Better get on the leaving bus
Or wind up like an old fat Zuss

and while I'm at it, here's another on charts:

Charts! Charts!
Good for your smarts!

The more you look
The faster you fade

The more you fade
The better they feel

Read some charts it helps them steal!


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