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Monday, March 22, 2010

Futures-Forced Upside In the Markets

Currently the US markets are up a few points. You can see that this has been the result of two big futures related trades in the morning. These trades look like forced upside moves more than anything else. Do not forget to consider this when you are making short term or long term decisions. This points to one big conclusion however. There is a huge empty space between fundamentals and where stocks are due to complacency and forced upside trough futures and when the markets forcefully start selling we will see that huge space collapse. This bubble will burst pretty heftily and it will hurt those players of musical chairs when there will be not even one chair to sit on.

In a similar fashion, gold is under attack again to bring under $1100 psychological level. This, too, looks very suspicious and is setting up an explosive upside situation when it becomes apparent that we are in a horrendous situation worse than the start of this mayhem in 2007-2008 and 2009 and the only safe asset you can rush into is gold. Once you add to that people's realization that there is not enough physical gold to go around and Comex is a house of cards as is GLD that so many people have been buying as well as the Fed's role in pushing gold prices down, gold will be unstoppable. Bracing yourself for these unavoidable finales is very important. Do not be the greatest fool holding a bunch of valueless paper assets, money, and stocks.

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