As stocks continue to correlate with exactly nothing, and are once again lost in their own HFT dreamworld, which fools Atari in believing the toxic crap it is churning millions of times each second is worth something (and the exchanges gladly continue to pay liquidity rebates for said churn), the capital continues to quietly flow to safety. The EURCHF is now persistently hugging the 1.29 line, which a mere month ago would have sounded like suicide for the SNB, the 2s10s30s is unchanged on the day, as the treasury complex refuses to budge, and lastly, gold, which has surged from $1,234 to almost $1,250, as ever more money is put into safe assets. As usual, stocks (especially the high beta variety) are the last to get the memo. Once they do, the snapback will, as usual, be vicious.
The country’s foreign exchange reserves declined $4.56 billion to $282.79 billion for the week ended August 13 from $287.35 billion the previous week because of a heavy dent in foreign currency assets. Foreign currency assets tanked $4.49 billion to $256.59 billion from the previous week’s $261.07 billion, the RBI said in its weekly data. Gold remained unchanged at $19.27 billion, while special drawing rights and reserve position in the IMF slid marginally.
From all time high of $1166 it crashed to $1156 and now moving up up and up !!
What to expect from this level ?
$1237 & 1244 are Last Hurdles.
Once crosses and closes above $1244 for 3 consecutive days…………will take to NEW High $1266-1273 level.
Rising Channel indicates price level of $ 1310-1320
But Investors (Not Traders ) can offload and Book Profit between 1250-1270 level
Just waiting for one more confirmation on chart if selling starts from these 1250 level then it will be a severe fall.
Indian Traders (MCX )….If u need levels of GOLD ,SIlVER or Base Metals …Join us and get Daily Password to access the Blog and always any time u can talk to me.
Technically Yours
Yesterday after hitting a low of $ 73.83 closed at 75.42 level.
Weekly chart showing more weakness in coming days.
On Daily chart support area at $ 73
If breaks and closes below this level will see crack upto $ 71-69 level !!
Not breaking $73 may take Crude to $76.50-77 level.
(Minor Corrective rally on card )………MCX Traders ……What u will do ??
After calling the market top in late March, Elliott Wave’s Robert Prechter told BloombergTV yesterday that the Dow chart looks similar to the 1987 top We already experienced a stock market crash on May 6 at the head, is a right shoulder crash next? The chart does look vulnerable here with the potential head and shoulders setup. I’ll post Dow charts tomorrow on multiple time frames. Prechter is still bearish on the stock market and bullish on the US Dollar (in 100% cash) and thinks deflationary forces will drag down commodity prices, including gold.
He’s not a permabear folks, he uses wave patterns on charts and sentiment indicators for directional cues. When the ultimate bear market wave structure is complete (wave c?), he’ll report the first wave of the next bull market.
Already written in my last protected post that $ 1218 is Major Hurdle.Crossover and close above this level for Two consecutive days then only will show another round of rally.
-Support exist at $1196 level-
Once closes below this level then watch panic selling upto $1185-1182 level.
Every day receving more then 50 emails and everybody wants daily update on Gold ,Silver and Base Metals…….(My reply on’t trade in Gold ,Silver or in Base Metals on Daily basis..10% u will lose money )
Short Term Hurdles :
Above 18756 level….Will zoom to kiss 18877 ,18913
There after 19038-19078
Watch :18555 level.Break will create panic upto 18469-18408
& then will fall upto 18226-18165 level.
Again ,Iam writing apart from Chart many other factors will work while u trade in MCX.
Those observing the emperor’s lack of clothing are multiplying. Earlier today, someone opened their mouth, and remarked on the blatantly obvious. Next thing you know Hungarian CDS was 30% wider, Romanian bond auctions were failing, the euro was tumbling, the PPT was scrambling, US markets closed green with nobody trading, etc. Yet the “letting the genie out of the bottle” award of the day has to go to the head of IMF’s policy-steering committee, Youssef Boutros-Ghali who said that the IMF is essentially insolvent in its current form of being the go to backstop for a European bailout. “If we are going to start including funds made available to Europe, then the IMF is not properly resourced,” Youssef Boutros-Ghali told Reuters, adding that IMF members were talking of doubling the amount of SDRs. The means the IMF is $318 billion short of solvency. And what is the IMF long? Why gold…3,005 tonnes worth.
The IMF has to have more resources after the support for Greece and needs to “very significantly” increase the amount of special drawing rights, the head of the Fund’s policy-steering committee said on Friday.
What does this mean in English? The IMF currently has 204 billion in allocated SDR to member countries (or $318 billion). Boutros-Ghali has basically said that in order to preserve its front-man status as a world bailout force (just because the Fed knows that the political whiplash of it being the bailout provider of last resort would mean the end of it, thus needing a strawman such as the IMF), the IMF will need to raise another $318 billion. Where will the IMF get that money? Here’s an idea: the IMF holds 3,005 tons of Gold. At today’s fixing, this equates to just over $116 billion (and much more should the price of gold mysteriously skyrocket). Of course, any fiction that the SDR is backed by gold will then disappear, but it’s not as if anyone even remotely pretends that any fiat currency (and the SDR is no exception) has any value left whatsoever. And since the US will end up having to fund the bulk of the SDR allocation, at least US taxpayers would be on the hook for a far more manageable $200 billion that the IMF needs in order to fully bail out Greece and everyone else in Europe.
The country’s foreign exchange reserves declined $4.56 billion to $282.79 billion for the week ended August 13 from $287.35 billion the previous week because of a heavy dent in foreign currency assets. Foreign currency assets tanked $4.49 billion to $256.59 billion from the previous week’s $261.07 billion, the RBI said in its weekly data. Gold remained unchanged at $19.27 billion, while special drawing rights and reserve position in the IMF slid marginally.
on’t trade in Gold ,Silver or in Base Metals on Daily basis..10% u will lose money )
Those observing the emperor’s lack of clothing are multiplying. Earlier today, someone opened their mouth, and remarked on the blatantly obvious. Next thing you know Hungarian CDS was 30% wider, Romanian bond auctions were failing, the euro was tumbling, the PPT was scrambling, US markets closed green with nobody trading, etc. Yet the “letting the genie out of the bottle” award of the day has to go to the head of IMF’s policy-steering committee, Youssef Boutros-Ghali who said that the IMF is essentially insolvent in its current form of being the go to backstop for a European bailout. “If we are going to start including funds made available to Europe, then the IMF is not properly resourced,” Youssef Boutros-Ghali 
