Markets create spun reasons for financial reporting. Reasons given by financial reporting do not make markets. Financial reporting is the basis for frantic interlopers to talk their position

As the day wore on, Financial TV today decided gold was down because there was no longer any chance of serious debt problems for Greece, Spain, Italy, Portugal or Italy. Their reason was that the Spanish debt offerings went so well even in the face of potential rating agency downgrades announced yesterday.

The euro took out the $1.24 to $1.25 resistance in a short covering panic thereby busting the dollar in its mirror image.

The gold banks piled on the Comex paper exchange, therein scaring the hell out of the super leverage guys, taking gold down hard.

This gives us certain points to consider:

1. You can clearly see that in this mirror image Forex market the US dollar can trade as easily at $1.72 as the euro can go to $1.35 on a simple short squeeze. This is a pure casino and needs no other reason than a crowded short position on the euro and a crowded long position on the US dollar. After that it is as easy to return to a hammered euro and a mirror image strong dollar.

The hedge funds and the major international banks are having their way with these markets until their frantic greed destroys ever thing they touch, no exceptions.

2. I have traded tops in the gold market successfully and know well what they look like. Today was not a top in the gold market. That is fact.

3. Volatility is only going to get worse. I am sure you will see gold range $300 in a day and trade into Asia, as there is no close, near unchanged.

4. As it become impossible for business and governments to select the right currencies consistently in these huge frantic greed driven operations, gold becomes more attractive as the asset of last resort as it has always been in similar situations.

5. Gold being the final refuge asset of the financial rape of the Western world, it will eventually be the final and huge profit for the profiteers.

6. The Western world economies will be in shambles for decades to come.

7. Gold will certainly trade at $1650 and most likely much, much higher.

8. Stay focused and check your emotions at the door.

9. Review the reasons given early today why we are in gold. This will serve to keep you focused and not a plaything of the profiteers.

Respectfully,
Jim