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From last night:
"Why this resignation [by Berlusconi] without an heir apparent introduced 'certainty' eluded me somewhat.
I suspect that the Wall Street wiseguys are planning their own version of death by bunga bunga for the investing public."
Just another wash and rinse. Key support in the futures has held so far. Wax on, wax off.
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It was Risk ON as the markets rallied on news that the Italian PM Signor Berlusconi will be resigning after an austerity vote.
The rumours that he is being recruited as a Republican presidential candidate are probably mistaken, although he would blend.
Why this resignation without an heir apparent introduced 'certainty' eluded me somewhat.
I suspect that the Wall Street wiseguys are planning their own version of death by bunga bunga for the investing public.
It was definitely Risk ON as the markets rallied on news that Italy PM Berlusconi will resign after the austerity vote.
Why this is a rationale to take on more risk eludes me, and I tended to view today as what we call 'technical trade.'
The VIX did fall, but is still within a range.
The metals ripped higher, with gold tearing through key resistance at 1780 and running up to 1800 into the close.
Now that the bulls have stuck a close here, they need to hold it and post a weekly close in the 1780+ area.
If they can do this then the next big trial will come with the December option expirations, barring fresh headline jitters.
As noted on the chart, the last big smackdown was an exceptional buying opportunity. For those 'waiting on the sidelines' if you did not take that low price, then you should stop kidding yourselves. You are out of the metals market, and have joined the ranks of bystanders.
That is not to say that the road for the metals going forward is smooth and straight up. It most certainly will not. Big changes are coming, and the outcomes are difficult to handicap to say the least.
But all things considered, I would rather be prepared for what is probably coming and hope for something better, than to place all our hopes solely in the hands of politicians who so far have shown themselves to be dishonorable, duplicitous, and even cruel.
