EurAnalysis

Jim Kramer on CNBC is suggesting that the deal the European leaders are working on may include Euro printing and that would explain the gold rally.
Hmmmm. He may be on to something.
Comments anyone?

If gold is going up then why is euro not going down if they are going to print more euro's?

US stock markets ARE open today, Bonds, energy and most futures markets closed today, banks closed today.

Canada also a bank holiday.

Hehe everything going well, when the big boys buy it, we will buy it as well Mark-up phase, buy the pullback, guys. 4 hours chart show resistance though but still no weakness yet.

Ahh thanks for that. Didn't realize
Cheers:

Well if the big boys start bidding up the equity indices, we can chuck this possible bat out the window and let it fly away.

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Good question. For the answer to that one would have to have a crytal ball. Maybe we can ask Jim Kramer for his. LOL

I got this in my email so there is no link.

Daily Analysis - 10.10.2011


Wall Street closed on Friday a positive trading-week on the background of surprising non-farm payrolls change. About 103 thousand jobs were created in the American economy during September, which was twice than analysts' estimations.
NASDAQ reached on the beginning of the week, to the strong support at 2050 points, but could not break it. That caused a strong short-squeeze and the index rose 3.7%. S&P 500 and Dow broke their important supports they had on their daily charts, buy they corrected too and closed a green week. It is important to understand that this sharp correction should have came anyways, and it does not mean that a new bullish trend has started. Friday's closing levels are potentially for reversing down and a strong break down of Friday's lows can bring the panics back to the market.
News
The main events on the following weeks are the ECB press conference on Tuesday and the FOMC meeting minutes on Wednesday. Additional events: manufacturing production in Britain, housing starts in Canada, home loans and unemployment rate in Australia. The week will end with retails sales, unemployment claims & consumer confidence in the US.
EUR/USD
The correction in Wall Street supported the Euro and the continuation of its bullish momentum depends mostly on the US stock market. Last week we demonstrated the channel in which the EUR has been sliding for several weeks. On Friday, it got the resistance of the upper boundary at 1.35, which was excepted in technical analysis terms. If the EUR falls under Friday's low, it might start a new declines session towards the lower boundary at 1.31. However, if the momentum continues and the Euro strongly breaks through 1.35, it might jump to 1.37.

Who or what is the source of this analysis HolyGrail?

Here is how it goes. By solving the problem short term they print money out of thin air. However short term the markets think that all is well even though it is not. The lemmings come in and the markets go up and so does the Euro and other Asset classes. However Gold increases in value because of debasement of the currency so when Gold goes up for real reasons on fundamentals other Asset classes go up on false PERCEPTIONS that all is well.

I hope that answered your question.

http://www.sunbirdfx.com/

http://www.sunbirdfx.com/daily-analysis

I try to be very careful posting links since some information that I get in my emails are commercial sites and I am not endorsing or promoting anything on Forex Factory or especially this thread. The email I get from this site is free and I get it every day. I get hundred's of emails each day which allow me to form my own consensus on things. I also just heard on CNBC as was just posted here that the US Bond markets are closed today.

The Dow is up big time however that is good. The EUR/USD has not really moved with it.

Another trade secret or fact I would like to share with everyone here is the 10:00 AM time frame since that is when in the currency market options expire and this is important to know and follow as prices on both sides try to get to their levels.

If the Dow were to sell off some I would look for price action or weakness in EUR/USD.

Thanks for the replies back. Look foward to learning alot more from you guy's.

It answered mine. Thanks

No problem HolyGrail. As long as you put a little disclaimer, post as many links as you like.

I strongly recommend everyone reads this to further your education.

http://mises.org/daily/5700/Fiat-Mon...he-Euro-Crisis

These are very knowledgeable people and I get emails from them on all new topics. It is a free service.

Snippet:

Debt Rules and Fiat Currency

When the euro was first introduced, people were aware of this very danger. That's why the Maastricht Treaty contained rules on countries wishing to join the euro currency union. Specifically, government budget deficits were not to exceed 3 percent of GDP, and total government debt was not to exceed 60 percent of GDP.
Obviously the Maastricht Treaty's rules were as binding as the Bill of Rights in the United States. Partly aided by shenanigans involving currency swaps designed by Goldman Sachs, the Greek government flouted the limits of deficits for years. Thus here we are, in the very nightmare scenario about which some economists (such as Milton Friedman) warned at the euro's inception.
Lost in all the analysis of the theory of "optimal currency area," the possibilities for a structured default, the consequences of a collapse of the euro, etc., are two simple questions: Why does the behavior of the Greek government have anything to do with taxpayers in Germany? Why did the original Maastricht Treaty have rules about fiscal policy as part of the criteria for monetary union?
The answer is that the euro is a fiat currency, and as such it will always provide rulers with the temptation to monetize fiscal deficits. That's why the citizens of traditionally hawkish Germany — who grew up with horror stories of hyperinflation — would be very wary of joining a currency union with people who elect spendthrift governments and have central bankers who are doves on inflation.
I tried to illustrate the point to my Slovakian audiences with a thought experiment: Suppose that instead of the fiat approach, the euro from day one had been backed 100 percent by gold reserves. In this arrangement, an organization in Brussels would have a printing press and a giant vault. Anybody around the world — whether private citizens or foreign central banks — could order up euros, so long as they deposited the fixed weight of gold in the vault. Thus, at any given time, every single euro in circulation would be backed up by the corresponding gold in the vault in Brussels.

http://www.doctorhousingbubble.com/a...+Love+SoCal%29

This website is an excellent one. It is also a free service and the author does an excellent job explaining the housing situation in the USA even with mortage rates extremely low.

Snippet:

This week the 30 year fixed rate mortgage entered into supernatural territory breaking the 3 percent barrier. The Federal Reserve is getting its desired result of pushing mortgage rates into the absurd. Yet rates have been low throughout the entire housing crisis and for most of the last decade. Access to cheap debt is not some kind of Holy Grail of housing. This year we have seen mortgage rates break records almost on a weekly basis. So why is the housing market not reviving? In spite of all this cheap debt households in large measures have lost their insatiable appetite for housing but more importantly, with consumer debt. Some are simply trying to make ends meet. For the past five years the obsession has been on banking policy and forcing mortgage rates low. The only true winners with this policy move are the banks who continue to hoard millions of properties in the shadow inventory so they can inflate their gluttonous balance sheets. Housing is likely to experience weak performance deep into 2015 for a variety of reasons. Let us lay the case out and you be the judge.

Enjoy !!!

http://www.forexfactory.com/news.php?do=news&id=319411

then again, who cares??

Great article. However it is very clear that we have already gone beyond the point of no return on this... unless we completely debase the value of gold to match the amount of currency in circulation including the leveraged funds.
An improbable achievement

and here's a non-official story about it...

http://www.businessinsider.com/fitch...to-aa--2011-10

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http://www.gata.org/node/9363

I have no direct involvement with GATA however I have met their founder Bill Murphy once at a gold show in Montreal. They really understand the Gold market and their daily emails keep me well informed on what is happening that you rarely see in the mainstream press.

http://www.gata.org/taxonomy/term/2

Snippet:

Lars Schall: Germany should end the secrecy and bring its gold home


Submitted by cpowell on Mon, 2011-10-10 13:13. Section: Daily Dispatches By Lars Schall
Monday, October 10, 2011
The last duty of a central banker is to tell the public the truth.
-- Alan Blinder, vice chairman of the U.S. Federal Reserve, on the PBS "Nightly Business Report," 1994.
In recent months I have written to the Deutsche Bundesbank, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System in Washington to ask questions about the gold reserves of Germany.
A critical problem with Germany's gold reserves, the second largest gold holdings in the world, is noted by Peter Boehringer of the German Precious Metals Society: "The bulk of Germany´s national gold is not in Germany and has not been since the 1960s, when Germany earned most of the gold through its trade surpluses, but is kept in New York and London and a little bit in Paris too. Even the Bundesbank itself has confirmed this part of the story several times -- and defended that storage policy with 'reasons of trading convenience and historical storage custom.'"
In fact, when asked about it, the Bundesbank has stated that it "needs to hold gold at the various trading centers in order to conduct its gold activities." (See http://www.gata.org/node/7713.)
After the Bundesbank brushed off some specific questions of mine (see
http://www.gata.org/node/9363) and refused to communicate with me any further when I replied that its way of answering was largely a recycling of old phrases that had very little to do with my questions, I also endured silence from the Fed (see
http://www.larsschall.com/2011/05/02...-from-the-fed/). Thus I did the last two things that were left for me to do in this matter: I wrote to the Bank of England and to the U.S. Treasury.
Let's see if my questions were legitimate.
But first let me tell you why Germany should have its gold at its own disposal on German soil. The reason is two-fold and involves a time frame of the present to 2025:
-- The future of Germany lies in eastern Eurasia. (Whether we like it or not is irrelevant.) Take a look at the energy situation from a German perspective and you'll see. Among the G20 nations, export powerhouse Germany should be one of the biggest energy-deficit nations, enormously dependent on ever-increasing imports of Russian energy. But Russia as an energy exporter will focus more on the Pacific region in the years to come (especially via the East Siberia-Pacific Ocean pipeline and the ultramodern Kozmino oil terminal). By doing so, Russia can demonstrate both its growing independence from Europe and its growing ability to use its oil and natural gas muscle in a way that soon won't be a bluff anymore. My friend Max Keiser described the context well: "To fight the currency war the Germans will have to buy physical gold in the open market or strike deals with countries like China, Russia, and Iran."
Keep in mind here not only that the region of the members of the Shanghai Cooperation Organization (SCO) and the Association of Southeast Asian Nations (ASEAN) "account for a significant share of global gold production," as Vienna-based commodities analyst Ronald Stoeferle points out, (see Footnote 1) but also that the central banks of Russia and China are big buyers of gold, while Western central banks are not, even though the latter are selling less gold these days. And the members of SCO and ASEAN won't pay forever for what Peter Dale Scott calls the "American war machine." (See Footnote 2.)