SP 500 Futures Intraday - Buy the Rumour Sell the News Pop n' Flop?

The bulls are having quite a bit of trouble with the pivotal area of 1550-1555.
Today makes the sixth try. Perhaps they can take it by the end of the day.

As you know our intermediate target has been 1565 to 1570 since mid-January.
Let's see if they can take that price level and hold it for more than a day.

If not they may have to back up to big support at 1525 to 1530.

IF a 'significant' event triggers a selloff then we are looking into the 1400's at least with a 'must hold' at 1450.  Look at the turmoil that a relatively symbolic event like Cyprus was able to stir.

This is what I would call a 'fluffy' market.

I would not bet on that just yet. The Fed continues to ply their cronies at the Banks and Funds with $80+ Billion of easy money per month.

It is a bubble, but bubbles are notorious bear-busters since they have an internal logic of their own.

I think gold is fundamentally undervalued relative to the financial and currency risks, but values are not very relevant to the kleptocracy at this time of papier-mâché economies, except as a rival to their control frauds and a reflection of their general perfidy.

In that sense Cyprus was a watershed event, despite its seeming insignificance, as the MF Global style confiscations of the oligarchs become official government policy.

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

Interesting outperformance of the Sprott Gold Fund albeit with razor thin margins on the others, with Sprott Silver showing a little life.

The Gold/Silver ratio is back above 55 as you will notice.

I did take the opportunity to buy some volatility on the initial exuberance for the Cyprus deal.

I have not yet gone into the miners, and hold bullion for the long term only here.

I do not care for these markets as they are quite artificial and more like a meringue, with the consistency of sugary whipped egg whites, than a foundation for future recovery and prosperity.

How the Banks Gambled Away Your Child's Future

For tickets for this event in Manchester see: How the Banks Gambled Away Your Child's Future

Also read what Rowan Bosworth-Davies has to say at Rowan's Blog.

It's Risk Back On as Sources Cite Draft Deal on Cyprus - Heavy Losses for Large Depositors

The futures are rallying on this news.

I find it interesting that gold is also higher with stocks.

Now that is a bit different.

It *could* just be a correlation with the euro rally.

Let's see if this lasts.

Postscript: Here are some details of the arrangement.

Reuters
Cyprus and EU agree on draft proposal to rescue banks
BRUSSELS | Sun Mar 24, 2013 8:05pm EDT

(Reuters) - Cyprus, the European Union and the International Monetary Fund have agreed a new plan to resolve the island's bank and finance a rescue of the country, an EU official said early on Monday.

The proposal, which will now be presented to euro zone finance ministers for discussion, will involve setting up a "good bank" and a "bad bank" and will mean that Popular Bank of Cyprus, known as Laiki, will effectively be shut down.

Deposits below 100,000 euros in Laiki will be transferred to Bank of Cyprus. Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debt. It remains unclear how large the writedown on those funds will be.

The EU spokesman said there would be no "levy" imposed on any Cypriot banks, with the package requiring a full "bail-in" of uninsured depositors, which is likely to mean heavy losses for those with large holdings in Laiki and potentially Bank of Cyprus, where many Russians hold bank accounts.

(Reporting by Annika Breidthardt and Jan Strupczewski; Writing by Luke Baker)