I came in to the market with a bias heavily short, on a bet that the resistance on the charts would hold, and the wisequys were doing a classic pump and dump. And so they seem to be.
Gold and silver took a hit that looked like a correction more than anything else, and it provided an opportunity to round up some of the bullion positions while trimming off the shorts.
It is hard to predict the timing here. It is now like trying to forecast the actions of roving bands of looters, and which stores they will smash and grab next. Obviously Europe is a target of opportunity, with CDS and assets on the cheap as the payoffs.
What is happening to the customers of MF Global is an absolute disgrace. More than anything else, it is informing us that the system is in danger of going rogue on a much broader scale. That most are not discussing it, and instead are repeating the propaganda that the banks are blameless is a sign of increasing desperation and a holding on to a corrupt system that has rewarded them.
Big changes are coming. They may not come in the next twelve months, but they will come.
