Relax And Enjoy Your Weekend

View the original post at jsmineset.com...
November 12, 2010 11:59 AM

Dear Friends,

How many times in the past five years have you heard China’s growth is finished, and that would tank commodities hard?

Goldman Sachs, now Gold Sachs forecasting $1600 today, gave a warning on investing in China.

The media was going wild on Ireland. That should mean the bottom on the euro is in.

Algorithms had a coronary calling on the hedge funds to sell all long commodities which is by definition an order to shift the position to the short side in the same amount as long.

Gold actually did better than copper on a percentage basis.

QE fell on its rear in the bond market as rates increased after the QE exercise which indicated that the size of QE has to be larger to hold even short rates down. It looks like the $900 billion will have to be increased.

The net result was to murder the highly leveraged public futures traders that always seem to have a death wish.

I have seen people go broke on the long side in the gold bull market of the 70s. Guess what? They are doing it again.

Shut down your computer, have a stiff drink if that is your thing, and enjoy your weekend. We have seen this happen a million times and will see it happen a million more times before this story finishes.

Gold will trade at and above $1650. Relax.

Regards,
Jim