Thursday 1 December 2011

Market Manipulation & Other Nonsense.

Gold is at the top of the weekly channel. I do not expect much more upside from here. Ichimoku cloud actually gave sell signal yesterday. We have to see how it goes with gold but now may not be the time to be cute.

Wednesday, November 30, 2011 was a major accumulation day and so was Monday, November 28, 2011. Two major accumulation days within 5 trading days normally mean more high ahead. As I have said before, I expect the “first of the month” effect to play out. That would mean an intermediate top between now and December 5, 2011. By the way, if you care to look, most of the gains have gone to TPTB (The power that be) as on both the days the markets gaped up and were up huge overnight. And you though the market moves on fundamentals! How silly.

We know what is coming next week after the top. Another created crisis and market will be going down to kill the bulls.

Zerohedge seems to agree with GS that 2012 is not looking good. This is a classic example where our bias clouds our ability to think logically. I know for certain that if I do opposite of what GS says publicly, I profit. For e.g. sometime back GS advised its client to go long euro above 1.35 with a limit of 1.40. What I interpreted is that, GS would sell euro till it reaches 1.35. Accordingly I was short euro till it closed below 1.35. 

By that same token, I reckon that if GS is advising its clients that 2012 will be bad, then I better go long equities. It also means GS expects QE3 sometimes in 2012 and they would like to scare away people before that. But don’t rush to buy yet.

The “buy and hold” investment strategy now appears to be dead. Market is conditioning everyone to be a trader. Get in and get out in a flash and take your profit quickly.

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