Little change after world events this weekend

The markets didn't seem to really flinch after events. The Dow , Gold, USD, Euro, all less than 1 % change with 2 hrs left in trading, although the Dow may do it by then. I can't wait to see the new bullionistas newsletters on this.

 

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Yeah, we will see what happens if these cowards(hitting innocent civilians instead of military targets) do something else.

 

I really don't think the Bullionists would sink so low as to use such a tragic event for the sole purpose of peddling their goods so they can aquire a little fiat.....

Oh wait I forgot, what was I thinking?????? They would lie, cheat and steal and worse to get their hands on the green stuff

 

Wow...really? You print this and expect anybody to believe that the "bullionists" are the only sales persons that would use this? Come on man....

 

Actually there was a huge shift last night and it was quelled by this morning. Someone and/or something re-tuned the markets. Gold popped to $1099 last night and the Dow futures showed -235. Whatever happened in the late hours re-adjusted the market. The news was "tuned"

 

Just because there are other low-lives, that makes it OK??????? I don't recall ever saying they are the only scum on the planet!!!!

 

I have been waiting for prices to rise so I can sell silver and a little gold.
And honestly I don't know what it would take to make this happen.
Terrorism is so common place now.

 

Maybe it's fear of interest rates that keeps PM down? Don't forget The Zombie Fulfillment Center's upcoming Really Really Big 25bps "Lift-Off." Ha-ha Verrrrroooom LIFT-OFF! oh man pulling 25bps big bad g-load.

Uh-oh something's wrong.

Ground control to Major Zomb commencing countdown engines off. Take your zombie drool and wait another year...

 

At least be honest with yourself then and don't act like only the bullion pumpers do this. Basically every scummy sales person uses fear as a closing tool.

There is an old saying, if you want to sell somebody life insurance you need to kill them...basically stating you need to paint that picture of what they're doing to their family without them and their income/support...it's scummy, but it's truth

 

This is the reason it's going nowhere. You and everyone else is waiting to sell immediately. That's a buyer's market. It may be a long wait.

 

What are you talking about, I only bring up bullion pumpers, because................ This is a Bullion forum, duh. Yes, I have a strong dislike for the Ted Butlers, and Jim Willies, of the World and this is the place to discuss them. I also have a strong dislike for the Bernie Madoffs, Jeff Skillings, and Bernie Ebbers of the World, but this forum is NOT the place to discuss them.

BTW not all "sales folks" are the same. I seriously doubt the marketing department of Smith and Wesson, and Colt are going to use this tragedy to promote their goods.

 

Brett-in-Sacto: It ain't a buyers market here if I'm not selling. You think you know my strategy?

 

Over the weekend I was also wondering how the markets would react. Not at all surprised to see the markets absorb the news without much change from the norm. The markets in the last 10 years don't tend to react like they did previous to that. I believe there are several reasons for this.

First and foremost an overwhelming majority of trades are now fully automated without any human input or regard for news. The algorithms in these high speed trading computers can pretty much handle any reaction. They have been optimized to such a high degree that they are self operating money-making machines. Much of the times they work to fill small gaps (as little as fractions of a cent) almost instantaneously (fractions of a second). Since the trades are so quick the volume has been increased dramatically. As a result of the higher trade volume, you no longer get the volatility there once use to be.

The last several times we've seen major volatility has been a result of erroneous human input (when updating the algorithm) or the algorithm itself having an error which finally gets executed.

I'm becoming more and more convinced that a nuclear war could break out and as long as none of these machines go offline (or humans don't interject and set the algos into some sort of crisis mode) the markets will remain stable as the world burns around them.

Aside from that, people's attention span when it comes to news is shorter. Yesterday's big news story is nowhere to be found today. People in general are too busy on social media talking about what's happening NOW (while also posting selfies). So traditional brokerage firms are no longer pressed to make moves with their clientele's money like they used to be.

 

Today's big winners were the stocks of defense contractors. That, and the jump in oil prices, fueled a lot of the Dow's gain.

Most recent rallies have been like that recently. Such sectors as retail, restaurants and manufacturing are hurting. Commodity producers are swirling in the bowl.

 

Why would it affect the market any? What's different today than it was last week? Are the big corps not making as much money today as they were Friday?

 

Yes Victor. You posted your strategy in a public forum. We *all* know your strategy now. Don't get so defensive!

There are plenty of others that *are* selling now. Trying to re-coup investment to pay off debtors, miners that are able to squeak out a small profit, and investors that have lost love for metals.

It's the short term speculator's de facto answer. "I am waiting for prices to rise so I can sell." I see tons of people speculating with money they really don't have to burn trying this strategy thinking that gold is going to "pop" after some single event like the one in France. At which point they will "unload" and make massive profits. Unfortunately they will sell into a flooded market which will keep the supply plentiful and demand low resulting in price stability.

That means there's ample supply as prices rise to quell the market and sustain current price points without seeing an increase. Plenty of supply as demand starts to increase = price stability.

Add to that the people that really can't afford to hold the PM or have to sell and you have the ability to buy "under spot" which is what most places are doing - buying at 20% under spot (cash for gold).

The truth is that I'm a long term buyer. I have been buying the dips for the last few years and reducing my DCA when I find deals.

Sure, if gold popped to $1500 an ounce I'd sell off a small portion and leverage some cash - but I don't plan to sell anything until closer to retirement - when I will start to time the market and look for an exit point. That's in 20 years.

I still believe we are going to see turmoil and instability through the next year's election and depending on the outcome there will be a big turn in investment strategy. But it will be the pivot point for a new direction - it won't peak the new direction.

Gold's a slow mover historically - a hedge against the faster markets. Caveat Emptor!

 

If it's not, why do you stock/equities pimpers always bring them up?

Yet there are plenty of scumbags that use those tragedies to promote their agendas.

 

Well I don't, look back at all my posts, I do not bring up equities unless someone, usually a stacker, brings them up first. Before you argue with that, try to find a single post of mine when I was the one who brought up equities first. You won't find it.

Aaaand back to the beginning, already asked and answered, no matter how many times you repeat it, the answer is the same. Just becasue others are slime balls, does not make it OK.

 

The stock market largely operates on what investors think of the future and not last Friday. And the stock action in too many sectors is reading negative. Averages are being propped up by a disproportionately small number of high flyers.

 

Agreed, how does that dispute my point though? The tragedy in France is not going to affect very many corporations bottom line going forward, which is the reason the stock market is not down.

I wasn't referring to the health of the economy in general, just whether or not the happenings in France should have any impact on the stock market.