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?
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