I've been carrying a lot more cash than I usually do (22%) and am wondering when to reenter.
Obviously down there with gold in the $1150s would have been good.
But, here we are with gold at $1195 and two looming interventionals coming up:
(a) Tomorrow's unemployment report - a classic for takedowns. I've been planning to put that cash to work near the close tomorrow, but...
(b) Looming even larger is the Tuesday Aug 10'th Federal Reserve FOMC announcement - the stock market keeps going up while the economic news gets worse and worse confirming another economic contraction (IMHO). So what is keeping the stock market up? Its got to be everyone expecting some kind of QE2 announcement to come out of this meeting. That means, with all these expectations, that next Tuesday is shaping up to be quite an interventional day.
But..., 10 year treasury bonds (Wed) and 30 year treasury bonds (Thur) have to be sold immediately after meeting, so the FOMC reading can't promise big time QE2 or no one will buy those bonds. Seems like the Federal Reserve (and allies) are in a tighter spot than usual, which calls for more gold intervention that usual.
With this in mind, I'm planning on keeping that cash as cash until next Tuesday at the earliest and probably until next Thursday.
Could you comment on whether you are expecting an interventional takedown in the short term?