Global Macro Commentary

I think market sentiment/expectation has gone to irrational extremes. Stock market has rallied based on (i) potentially decelerating negative economic data, (ii) bullshit promises from G20 (seriously, G20?!), (iii) FASB mark-to-FRAUD and (iv) fabricated/misleading bank earnings. The true fundamentals (I’m tired of listing them out) have been completely ignored…ENOUGH IS FUCKING ENOUGH! I’m not going to lie, gold has been a frustrating trade (i.e. I LOST A SHIT LOAD OF MONEY) this past month, especially after the QE announcement. Personally, the bearish sentiment for gold hit its extreme yesterday when I wrote a post about shorting gold and actually shorted it (but flipped back to long and shamefully deleted the post!); I think my mistake here is a sign that gold has hit the bottom. The powers that be have done a dandy job of orchestrating a recovery, but prices can only deviate so far from the underlying fundamentals.

Stocks: 7-month (it’s going to take some serious BS to break the resistance level; also note the flat RSI and decreasing volume)