Next Week's Interventionals: Turbulent Tuesday (FOMC Meeting 2:15PM)

This week's precious metal price movement is working out as forecast last week although the hit started a bit earlier than expected (6:30AM Monday instead of 8:30AM Monday). The treasury auctions consistently result in a harsh down move in the price of gold (the main competitor of long-dated treasury bonds for the preservation of wealth).

The big event for next week is the Federal Reserve FOMC meeting announcement. Its a strategic one being the anniversery of last year's Quantitative Easing (QE) announcement and being the time when the FED forecast the ending of QE. I'm expecting weasel wording making it sound like QE is coming to an end without any actual commitment.

I'm planning on going long gold futures tomorrow around 11AM (when the 30-year auction has completed) and staying long at least until Monday morning. I'm going long in order to ride the bounce back from this week's suppression. They are still buying in India and I'm expecting a bounce Thursday thru Friday and probably Sunday night. I'm not sure whether I'll hold thru Tuesday's expected turbulence.

Here's my view of next week's scheduled market events (BOLD CAPs for events which the Gold Cartel traditionally uses as an excuse hit the price of gold).

• Mon, 9:15, Industrial Production - a gauge of the strength of the economy.
• Tues, 8:30, Housing Starts - this is a week point in the economy. I'm currently thinking about finding the right tool to short the housing market for the next six months or so.
• Tues, 2:15, FOMC Announce - who knows what they'll say or what will happen (besides Gov'ment Sachs and F.R. Morgan).
• Wed, 8:30, Producer-Price Index
  
• Thu, 8:30, Consumer Price Index - expect some gold suppression for this.
• Thu, 8:30, Federal Reserve Bank President's speak. 
• Fri, 8:30, Quadruple Witching Options Expiration - leave me a comment if you have any insight on how these usually affect the price of gold.

Leave me a comment if I'm missing something or if there are better data sources that you know of for this kind of thing.

MontyHigh, www.worldofwallstreet.us

Sources: I like Bloomberg's economic calendar (click here) and little better than yahoo's (click here) because it covers the treasury auctions. The best one I've found for international is here, but I usually don't have the time to follow it.The next options expiration date is: 3/25/2010. Here's a link to a good 2010 calendar (click here).

• Mon, 9:15, Industrial Production - a gauge of the strength of the economy.
• Tues, 8:30, Housing Starts - this is a week point in the economy. I'm currently thinking about finding the right tool to short the housing market for the next six months or so.
• Tues, 2:15, FOMC Announce - who knows what they'll say or what will happen (besides Gov'ment Sachs and F.R. Morgan).
• Wed, 8:30, Producer-Price Index
  
• Thu, 8:30, Consumer Price Index - expect some gold suppression for this.
• Thu, 8:30, Federal Reserve Bank President's speak. 
• Fri, 8:30, Quadruple Witching Options Expiration - leave me a comment if you have any insight on how these usually affect the price of gold.

Leave me a comment if I'm missing something or if there are better data sources that you know of for this kind of thing.

MontyHigh, www.worldofwallstreet.us

Sources: I like Bloomberg's economic calendar (click here) and little better than yahoo's (click here) because it covers the treasury auctions. The best one I've found for international is here, but I usually don't have the time to follow it.The next options expiration date is: 3/25/2010. Here's a link to a good 2010 calendar (click here).

Comments

[Ruud]

Hi,

I appreciate your information and your insights(weekly reports for the coming week) and i hope you can continue to do so.

Keep them coming!!

I highly appreciate it and find them very useful.

Kind Regards, Ruud from Holland