Jack Crooks Is Scaring Me
My friend Jack Crooks, a veteran currency trader, sent me this chart this morning ...
As Jack says: "Nominal Dow vs. the Dow in Gold Terms…a big divergence. If the Nominal Dow plays catch up, this could get ugly."
I do think gold could go a bit lower -- the front-month contract has support around $848, and I may add new positions at that level. But the broad indices could tumble a lot harder and faster than that.
I'm adding hedges in Red-Hot Canadian Small-Caps and Red-Hot Global Small-Caps today. The plan is to send the issues out AFTER the open (look for them around 10:30) to avoid the immediate volatility. The Fed is stirring the pot with its 75-basis point cut, and that only makes it more dangerous for both bulls and bears.
Now, I have to go catch a plane. It's unnerving to be on a plane when the market is experiencing this volatility, but I have to travel sometime, and the days ahead could be even more volatile.
As Jack says: "Nominal Dow vs. the Dow in Gold Terms…a big divergence. If the Nominal Dow plays catch up, this could get ugly."
I do think gold could go a bit lower -- the front-month contract has support around $848, and I may add new positions at that level. But the broad indices could tumble a lot harder and faster than that.
I'm adding hedges in Red-Hot Canadian Small-Caps and Red-Hot Global Small-Caps today. The plan is to send the issues out AFTER the open (look for them around 10:30) to avoid the immediate volatility. The Fed is stirring the pot with its 75-basis point cut, and that only makes it more dangerous for both bulls and bears.
Now, I have to go catch a plane. It's unnerving to be on a plane when the market is experiencing this volatility, but I have to travel sometime, and the days ahead could be even more volatile.
Labels: gold, US economy
Check out my new gold and energy blog at MoneyAndMarkets.com
posted by Sean Brodrick @ 9:10 AM
<< Home