MARKET COMMENT
March 29, 2007
Let’s not be kidding around, today was a window dressing
exercise.
[Like the
image--not a great effort.]
Isn’t
that against the rules now?
Yes, but ask
Cramer about rules enforcement please.
The only surprise today was a fall in the gold prices which
had no logic.
Sure, more sellers than
buyers would be the simple answer.
But,
today’s action and similar activity from prior end of week smackdowns
gives credence to the idea that someone upstairs doesn’t want to see the metal
higher and is willing to act on that desire.
Some call it the Gold Cartel consisting of the IMF, the Exchange
Stabilization Fund, the Fed and the Bank of International Settlements.
Their agents in chief are large investment
banks [GS, JPM and so forth].
I’m not a conspiracy buff, but on days like today I’m more sympathetic
since today gold should have risen.
Now the
IMF did say it wanted to or was contemplating selling 400 tons of gold to cover
their expenses.
They’re not making loans
anywhere so there’s no fresh income to cover expenses.
Rather than cut expenses they’re doing just
what they advise their clients not to do--sell their assets for a living.
Finishing up commodities, let’s look at DBC which is the
commodity tracking index we prefer given its mix.
Economic news was good today with a
upward revision to GDP, but for the week as a whole the news sucked period.
Let’s look around the horn a little bit.
That about gives you enough to judge what’s going on.
Tomorrow the rough and tumble month of March
is over.
I was glad to see February and
January go as this just isn’t my favorite market time of year.
In fact subscribers know I wanted to take
January off and go tramping in Patagonia.
And, I should have and just stayed there for
awhile.
We start a new quarter and the markets may show their true
hand.
Then there’s the crazy little man
in Teheran to deal with so one never knows.
And, no, I don’t know why gold is repeating this end-of-week
smackdown.
You’ll
probably be hearing more conspiracy talk this coming week.
It may very well be that the IMF is following
thru on their previous suggestion that they’ll sell 400 tons of gold.
That’s as much gold as is in GLD!
Think about that.
Have a good weekend.
Disclaimer:
Among
other issues, the ETF Digest maintains positions in:
GLD, DBP, DBE, DBC, UDN, IEF, TTH, EWY, EWJ,
EEM, EFA, EWG, EWO, EWN, EWA and ILF.