thursday brainstorming

1. yesterday the markets trading in perfect accordance to astrology as the Euro reached our  1,30 target and the SPX the 1210 level. the stress will be on for another week but starting tomorrow the x-mas bulls will fight back briefly at least for the sake of triple witching on Friday and taking the bears out of momentum for the short term puts.

amazing still that  the VIX stays relatively low  weekly basis  despite we are  down, wıth a severe drop in market. that does not make sense and rumor is that Greece could go bankrupt the next days, which makes sense as the next bond payment is due and the bankers would not agree on a haircut.

that would make the perfect scenario for a sell-off next week for an expected event so not a steep drop as losses should be written off on Greece bonds mostly only the ECB and Chinese would suffer in such a case and the CDS would be back in game hurting a total different set of banks.

Saturn in square to Pluto is usually the worst possible thing for stocks and USA is grabing back the spotlight soon as the payroll taxcut is about to got be stopped by the Senat.

Gold is acting as expected as well as we are in an ABC correction in the C part down which should go as low as 1450-1500. The inevitable QE3 announcement by the FED very soon will trigger the final rally to 2000 but those fantasy numbers produced by Citi have no solid ground as only global war and anarchy could produce such figures and that would not be a market price you can trade anyway.

excerpt

Citi Predicts Gold At $3400 In “The Next Two Years”, Potential For Move As High As $6000

Submitted by Tyler Durden on 12/14/2011 – 15:49Afghanistan Price Action

Following today’s margin call anticipating, liquidation-driven rout in gold, the weak hands are, as the saying goes, puking up blood. Which may not be a bad thing – after all, sometimes a catharsis is needed to get people away from potentially toxic paper exposure which very likely has been hypothecated repeatedly via the same channels we discussed last week when exposing the MF Global-HSBC “commingled gold” lawsuit. But what about the future? Well, nobody can ever predict it, but at least we can sometimes look at charts in an attempt to glean a pattern. Which is why we present the just released slide deck from Citi’s FX Technicals group titled “The 12 Chart of Christmas” which has some blockbuster predictions about the coming year, chief among them is without doubt the firm’s outlook on gold which they see at $2400 in the second half of 2012, and moving “toward $3400 over the next 2 years or so.” So for those looking at today’s price action, consider it an opportunity to roll out of paper exposure and into gold, because the more deflationary the environment gets, the more eager the central planning cabal will be to add a zero (which in our day and age of primarily electronic money can be done with the flip of a switch) to the end of every worthless piece of monetary equivalent paper in circulation. And that’s a 100% certainty.

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~ by behindthematrix on December 15, 2011.

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