After some thinking about this past week, I think we may be seeing the affect of the carry trade as it gets unwound. "Cheap Money" and extra leverage have created at least part of the liquidity that has driven the market for the past 12 months.
Perhaps, but the affects of such an unwind, if that is indeed what we are seeing, will take time to play out, but may be violent if we get a sharp upward movement in rates. Certainly the selling in the semis has been sharp and sustained for the past 2 weeks, but this week in particular:
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AMS,
I'm sure I'm well in the minority here, but I don't think AG is going to to raise rates this coming week even though the bond market is doing it's best to force his hand to do so.
To do so now, imo, could potentially unleash some unknown, but assuredly unwanted dynamics that would be as damaging to his image as his putting a .44 in his mouth and pulling the
trigger.
Prioritywise, it's my belief that he puts himself and his place in history well in front of the common good of his country and as a consequence would prefer to continue dancing with the devil he knows rather than the ones he doesn't.
That, and the lessening of the OI in the COMEX gold futures throughout the week were two of my reasons for my buying the PM's in decent numbers the past two days.... <gg>
Btw, I thought this afternoon's gold CoT report was as friendly to the bulls as I had hoped it would be in that the small bullish specs ran for the hills in a goodly number.
Kindly excuse the rant..... I just don't like that man at all.
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