Has this ever happened to you? Your spouse or "significant other" tells you something like "let's not spend money on each other this year". Let's just get "one or or two small presents" and spend money on other stuff, instead. Then you wake up on 12/23 and find all sorts of presents with your name on them under the tree and realize that, instead of relaxing, you'd better get your arse back to the mall...fast! That's where I'm headed today but first, this quick update.
Here are your updated hourly charts. You can clearly see that both gold and silver have found some price stability in their current trading ranges. Frankly, after last week, we all could use some price stability, regardless of where that price is. Now, having found a bottom, we need prices to break out of these ranges to the upside. For gold, that means a move through 1650. Silver needs to get back above 30. They both need to hold these breakouts and then move higher. At that point, another "Turd's Bottom" will be officially stamped and we can begin to move forward on 2012. Lastly, note that lease rates have moved decidedly higher and are officially back into a "neutral" area. Since we first remembered the correlation 16 days ago, the one-month rate has moved back up from -0.57% to today's -0.24%. This shows us that the overwhelming selling pressure of last week has abated.
OK, four items to help you pass the time today. First, this letter from Jackass Jim Willie. This is a very interesting and important read and you need to take the time to contemplate it.
Next, our buddy Gonzalo has written a new piece on LTRO and the ECB. Ole Gonzo's got this whole European mess dialed in pretty well so when he writes something new, you have to read it.
Two items from Eric King's site have gotten a lot of attention in the last 24 hours. First, Eric posted another brief note from his "London trader". Granted, this "source" hasn't always been 100% accurate but he's been accurate enough over the years to merit your attention. In this case, what he says echoes in large part what The Jackass was stating above.
Eric also has an insightful audio interview of Santa.
Oh, and one last thing. Sadly, peace on earth and goodwill amongst men continues on shaky ground in the MENA. You might want to keep an eye on this over the weekend:
Well, that's all for now. I recorded a fun, new podcast yesterday and I will be posting it later this afternoon so please check back over the weekend and give it a listen. I'm off to fight the mall crowds. Pray for me. TF
p.s. wtf is this? Anyone have any thoughts?