THIS IS THE QUESTION EVERYONE IS ASKING...
THE ANSWER IS TWO WORDS..."HEDGE FUNDS"
SINCE THIS IS AN "ANOMALY" ...DURING A "CRISIS" GOLD SHOULD RISE...
SO THERE MUST BE A TRADING OR TECHNICAL EXPLANATION... AND THERE IS...
CONSIDER:
THE HEDGE FUNDS ARE SMART GUYS...TOO SMART!
THEY KNEW THE DOLLAR WAS TOAST...
OK, HOW DO YOU TRADE THAT "COSMIC CERTAINTY...?"
REMEMBER HEDGIES NEVER DO THINGS "BY HALFS."
THEY LIKE TO MAKE MONEY ON BOTH SIDES OF ANY TRADE...COMING AND GOING...SINCE THEY ARE SO SMART...RIGHT?
HENCE THEIR MUCH TOUTED "SHORT STRATEGIES..."
HERE'S WHAT HAPPEN...
THE HEDGE FUNDS WENT MASSIVELY SHORT THE DOLLAR ....AND THEN LONG GOLD...
BUT REMEMBER....THE CURRENCY MARKET IS MASSIVE AND DEEP...
THE GOLD MARKET IS THIN AND SHALLOW...
STILL, THE HEDGE FUNDS WHERE IN UP TO THE NECKS IN BOTH TRADES!!
OK...THEN THE SHIT HITS THE FAN IN THE CREDIT MARKETS...
SUDDENLY EVERYONE IS SELLING EVERYTHING FOR WHATEVER THEY CAN GET...
AND ESPECIALLY THE HEDGE FUNDS WHO WERE MASSIVELY INTO THIS TRADE...AMONG OTHER THINGS.
SUDDENLY...! THE HEDGIES ARE "COVERING" THEIR SHORT DOLLAR POSITION...RUNNING UP THE DOLLAR HUGELY AND "WRONGLY!!" DURING THIS CRISIS!
AND ALSO...SELLING THEIR LONG GOLD POSITIONS...INTO ALREADY THIN GOLD MARKETS WHICH ARE NOWHERE NEAR AS DEEP AS THE CURRENCY MARKET!!
ERGO?
THE DOLLAR IS UP NICELY....ON THE SHORT SQUEEZE...
AND GOLD IS DOWN MASSIVELY ON THIN MARKET LIQUIDATION!!
ANY QUESTIONS....?
