Global Rally

Definitely "risk on" tonight as the world seems to have finally come to the conclusion that the printing press is the only real weapon available in the fight against financial meltdown. Whatever. Give it a few hours and I'm sure that "risk off" will be back in vogue.

For now, however, everything is flying. The euro is up 75 basis points. S&P futures are up 26. Crude is up $1.60. The grains are all up as is copper. Silver is up 70 cents and gold is up $22. Quantitative easing...and lots of it...is coming your way in 2012. Big time. For now, though, let's not get carried away. Could the metals have bottomed last week? Maybe. The charts below tell the tale. Let's see what the overnight brings. More in the U.S. a.m.  TF

paper_11-27gold.jpgpaper_11-27silver.jpg

71 Comments

darksmith's picture

warm up the press...

How is QE3, with the real potential for similar easing in the Eurozone, going to impact our lives in the next year?  Easing in America is one thing, but when we are looking at this on two, maybe even three, continents (Asia?), this could be a really bad thing...

Planters's picture

Digity !

Digity !

Blue Sky's picture

I'll be the first to

Dance if we stay up!

roadtoruin's picture

war you say? go long lockheed

war you say? go long lockheed martin!

Shill's picture

Evidently its risk on in

Evidently its risk on in Tampa as well....

As long as the checks keep arriving all is well.

bernard's picture

let us never forget that the

let us never forget that the US debt increases by nearly $60,000 per second. Rally on :)

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PaPaSpeed's picture

PM Rally!!

Wow, a good PM rally is just what the Doctor ordered to cure my indigestion. I've been eating turkey, stuffing, mashed potato's and gravy, baked corn, and cranberries for the past four days. I need something to settle my tummy, and a good sustained precious metal rally would be the cure.

Good luck to all!

Colonel Angus's picture

This doesn't end well...

...if everyone prints, then my Zimbabwe dollars and Reichsmarks start to have company with the big numbers...and people go hungry because of all those dollars/euros/kroner/rand sloshing around looking for something to be in. If they don't print we have terrible deflation and people go hungry for lack of jobs.

And if it is buy the rumor then sell once the rumor has been refuted...well, have some precautionary puts just in case. My guess is that my FAZ gets clobbered tomorrow. Oh well....

clueless one's picture

better get the Tums...

The EUR/USD is losing steam at 1.3317...

USD/CHF bottoming..

gap up, get short

gap down, get long

look out below!!

sixdollarsilver's picture

Anyone taken a good look at these lately? ...Bueller?

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au1980.gif

MonkeySmoke's picture

You can always tell...

When the criminal cabel is napping. PM's go up, as the Dow is going up.

HAVEFAITH's picture

WAR in Iran and Syria etc etc

It was all said years ago

May we all pray for PEACE.

Blessings

exiledbear's picture

Yeah, this week looks to be good

Not a $15 pop, but a $25 pop. Very decisive open.

Oh, the money printing has been baked into the cake for a while now, we've figured it out (some of us for a while now), the general public is slowly figuring it out.

I figured since it slammed into 1680 three times as I count it, that the bulls were going to take charge of the field sometime this week.

I dunno. I don't really care what the price of MFG gold is anymore, what I care about is the spread between MFG gold and the coin market. Things are bad now, but when that spread widens, they're going to get a lot worse.

Well, I suppose you could turn that frown upside down and make it a smile. Works for me, anyway.

cpnscarlet's picture

Looks a little too familiar!

@six$ag - OMG! Shades of Stargate: "It was in front of us the whole time."???

"Go ahead!"

pforth's picture

I'm missing it....

Where's the news that indicates QE3 is coming now?  Have I missed a news release or press conference or something?

crg's picture

"Risk On" because

Black Friday sales were great!!! AND a RUMOR of a BIIIIGGGG Bailout for Italy. Rumors are as good as the real thing these days. Bloomberg reported the "bailout" Just a rumor but darn it, BUYBUYBUY!!! CNBC will say "I told you so, recession is over!" Rally on Wayne, rally on Garth." Cramer will scream, "BUY BUY BUY!!!! Netflix, Apple, hit the BUY button"....

Okay, sarcasm over...this market is disturbing....very....disturbing.....

UPDATE: IMF denies bailout. Sell Mortimer, sell....on ZHedge....

Vince's picture

QE3

Where's the news that indicates QE3 is coming now? Have I missed a news release or press conference or something?

Other than the rumor (now denied) that the IMF will loan Italy 650 billion Euros, I don't see anything that would cause this spike, except maybe that last week was a bad week for equities and metals and people mentally want to change after the weekend.  Perhaps European leaders want a distraction Monday from all the bad news and floated the rumor. 

The story that  ICAP is testing trading in Drachmas, the European downgrades over the weekend, even tonight's Euro moves seem bearish for metals and the stock markets in the short term.  I am expecting tomorrow morning this rally will have faded during European trading hours, although it may spike again during US hours.

punchbowl's picture

Mr. Silver Sprout calls for....

redwood's picture

Sprott thinks QE is over, but

Sprott thinks QE is over, but it is not imo, its just delayed. Currently IMF is behaving like a QE equivalent with Europe. But the euro will come down anyway, followed by a subsequent Lehman style collapse, followed by market collapse.   Then everyone will scream for QE3 and that is when we'll get it.  Probably in the next 6 to 8 months.

Drifter's picture

@ punchbowl

uh oh

Patton's picture

Gap at the open

Any thoughts that such a large gap at the open will need to be retraced?

AlienEyes's picture

Whatever it is, gold is not

Whatever it is, gold is not reacting to deflation.

My guess is that Turd got it right when he said Syria/Persia/Israel/Egypt are all coming to a boil and that the bovine excrement is about to hit the helicopter rotor.  

AlienEyes's picture

Whatever it is, gold is not

Dang ! Another dupe.  angry

cpnscarlet's picture

QE, Qshmee ...

Money supply keeps going up. Someone's either printing or expanding debt - same difference. Everyone will notice eventually.

Dr Durden's picture

Forget the 'news"

Just watch the charts. 

Gold has battled the 150MA for two MONTHS and is still going. The last time we saw it was for about a week in Feb.

When Santa said $1764 would be a battle ground, you better believe it...cause we're headed straight for it just in time for 2012.

HAVEFAITH's picture

HATS OFF TO THE KIDS AT UC

VERY INSPIRING - TO BAD THE GROWNUPS DON"T HAVE THEIR COURAGE

Blessings

tyberious's picture

COMFORTABLY NUMB

As I observe the zombie like reactions of Americans to our catastrophic economic highway to collapse, the continued plundering and pillaging of the national treasury by criminal Wall Street bankers, non-enforcement of existing laws against those who committed the largest crime in history, and reaction to young people across the country getting beaten, bludgeoned, shot with tear gas and pepper sprayed by police, I can’t help but wonder whether there is anyone home. Why are most Americans so passively accepting of these calamitous conditions? How did we become so comfortably numb? I’ve concluded Americans have chosen willful ignorance over thoughtful critical thinking due to their own intellectual laziness and overpowering mind manipulation by the elite through their propaganda emitting media machines. Some people are awaking from their trance, but the vast majority is still slumbering or fuming at erroneous perpetrators.

Both the Tea Party movement and the Occupy Wall Street movement are a reflection of the mood change in the country, which is a result of government overreach, political corruption, dysfunctional economic policies, and a financial system designed to enrich the few while defrauding the many. The common theme is anger, frustration and disillusionment with a system so badly broken it appears unfixable through the existing supposedly democratic methods. The system has been captured by an oligarchy of moneyed interests from the financial industry, mega-corporations, and military industrial complex, protected by their captured puppets in Washington DC and sustained by the propaganda peddling corporate media. The differences in political parties are meaningless as they each advocate big government solutions to all social, economic, foreign relations, and monetary issues.

http://www.theburningplatform.com/?p=25234

clueless one's picture

EUR/USD

major support/resistance at 1.3303ish...

gonna be a slow, choppy day. 

stack phyz and hard assets...get your money out of the banks and out of the hands of the paper syndicate, and enjoy the civility while it lasts...cuz it ain't gonna last long. 

Louie's picture

@ AlienEyes- Syria/Persia/Israel/Egypt

And don't forget Yemen, Bahrain, and Pakistan! 

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