Dan Feidt's log on Minnesota, Information Operations, spinstorms and latent contradictions.
I ran into this weird info via Cosmic Iguana and had to dig into it further. A professional metals trader named Jim Sinclair now sees strange actions in the U.S. dollar, which he can't pin down on anything normal. He thinks there may be a pattern marking it as similar to the mysterious stock market manipulations just prior to 9/11.
This guy clearly seems pretty eccentric, but if my job was to track the most notoriously silly market in the world, the gold market, I would probably be batty too.
Sinclair believes this pattern immediately emerged after the assassination of HAMAS spiritual leader Sheik Yassin. Gold community heads up, March 26:
In conversation with Kenny this morning, we both noted that gold is in what I call "the technician’s nightmare" which is not that infrequent once a long trend is underway.All internals are now full-bore positive, well overbought and therefore screaming for a correction. A failure to see a relatively short-lived, but possibly sharp correction is what concerns me as I look at new market trading relationships and fish for the cause.
Al Qaeda is both a financial and military organization. My question is simple: Are we looking at the al Qaeda footprint in the market?
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You know that there was significant, unexplained -either fundamentally or technically- buying of Puts and selling calls in the airlines' stocks just before 9/11. This has never been defined or investigated.Here is what bothers me. I see a footprint in the US dollar that is not the Exchange Stabilization Fund. It is not the German Blitz-Market. It is not the Swiss Stair Ladder. It is not Pinky Green and his pal. It is the footprint I showed you last night and one that I have never seen before.
If I were Interpol, the CIA or the NSA, I would reacquisition the chart of the options on airline trading for 90 days before 9/11 and see if the footprint now in the dollar, which is unique, matched the footprint on the buy of the airline Puts and the sell of the airline Calls just before those exact airlines hit the WTC.
There is a scary combination taking place which is a skewing of relationships caused by a huge interest in the market muscling new market trading relationships between items by their execution. Please consider the following:
1. Asian currencies are strong on balance.
2. The US dollar has been accumulated over the past 7 days in a unique footprint.
3. The euro is weak on balance
4. Gold is strong, period.
5. The stock market, although it should be near a technical bounce, lost its bull appearance and has gone to neutral.
6. Commodities are quite strong, most certainly traditional war commodities.
7. We have a price crisis but not a supply crisis in energy.What fundamentally would make the relationship above come into the markets? If my little friend in Kenya, the Seer, Mahendra Sharma, gets it right, what would be the reason? Well, it is an unthinkable event in the Middle East that causes concern that Euroland is the next target because its security is lax compared to the USA which has become a thinly veiled police state. Would that not do the following?:
1. Launch gold into the stratosphere?
2. Strengthen the US dollar by default because the short side is simply ENORMOUS.
3. Cause mixed events in equity markets.
4. Put the price of oil to at least $60 if not higher.
5. If it was serious enough in light of this scenario, could it possibly postpone the November US elections?The evidence that such an event is possible is in the marketplace. This need not happen but should be thought about. If it occurs, the motivating factor that could go down in history as the modern version of the killing of Arch Duke Ferdinand is the recent elimination of the Hamas martial cleric.
Interest rates will rise this year and my wager is that the rise will occur before the election, most likely in late spring or early summer. That event will injur gold slightly for a very short time after which the price will appreciate into the election.I will refine the timing as we approach that event so broadly discussed but so meaningless. Just remember this: Once inflation bites, which it’s doing now as evidenced by the commodity price rise, inflation, the shark-like predator that it is, locks its jaws. Remember this well!
Assuming that gas prices climb to the $3 per gallon level, the American public will go BALLISTIC. After that happens, any claims by the Federal Reserve that inflation does not exist will fall on deaf ears AND PERMANENTLY DISCREDIT THE FED INTERNATIONALLY. I suspect that a significant amount of the participants at our recent Florida G7conferrence stopped by Salim Gillani’s Chevron station prior to the meeting.
Turkey knows the significance of this incident even if most Westerners don’t fully appreciate the danger. Turkey is maneuvering to get out of harm’s way. This is serious and when a government moves in such a significant way it has to tell you that the elimination of the leader of Hamas has widespread implications. The following is from my intelligence service Stratfor.com.
Turkish-Israeli Relations: An Axial Shift?
Summary
Turkey has condemned Israel's assassination of Hamas founder Sheikh Ahmed Yassin as an act of "terrorism." This is the first time a Turkish government has criticized Israel for a position since the two states enhanced their military relationship in the mid-1990s. The mildly Islamist Justice and Development Party (AKP) in Ankara could not afford to remain neutral on this issue, especially because many Turkish citizens have been arrested on suspicion of ties to al Qaeda. The development could signal an initial AKP bid to realign with the Arab and Muslim world; Turkey and Israel have had diplomatic relations since 1949.Analysis
Turkey has condemned Israel's targeted assassination of Hamas founder Sheikh Ahmed Yassin as an act of terrorism. In an interview with Turkish daily Hurriyet on March 25, Prime Minister Recep Tayyip Erdogan stressed that the international community must examine this kind of act, adding that there can be no peace in the Middle East unless Israel gives up its strong-arm tactics. Erdogan said Israel's actions have seriously derailed any role Turkey could have played in mediations between Israelis and Palestinians, and he hinted that he might cancel a visit to Israel in April if the current atmosphere does not change.
This is an unprecedented criticism of Israel from Ankara. The mildly Islamist Adalet ve Kalkinma Partisi (Justice and Development Party), or AKP, is taking advantage of international outrage over the killing of Yassin to try to undo Turkey's image as a pro-Israeli state. Ankara hopes this will stave off criticism from certain parts of the populace and the Muslim world. We should note that Hamas and the AKP trace their roots back to the Muslim Brotherhood organization of Egypt.
It’s a dangerous world out there that is getting even worse. That’s good for gold but for unfortunate reasons. The US simply doesn’t have any more properly trained troops to engage in Afghanistan in the manner required to meet the challenge. With this happening and the war for the minds and hearts of Iraqi citizens a disaster, where is plan B?
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Increasingly, Alan Greenspan's reign as Chairman of the Federal Reserve is being reviewed more critically in the media. With over-the-counter derivatives out of control, householders being encouraged to borrow on their homes to finance consumer purchases, gas prices at record highs, and no indications of inflation anywhere, what can I say other than pass the Malox please.
The water of hatred is boiling all over the world but press reports are muted and seek reasons always to maintain social order.This is the most dangerous time we have faced in our lifetime. I have lived a good part of my 63 years in areas with high Islamic populations and frankly you have no idea of the hatred that is building out there every day. Nor do you appreciate the dedication that is associated with that hatred.
You do not appreciate that many more people than you can imagine are willing to die and pass along to their families the mission that this hated engenders. We do not appreciate or respect the beliefs of other cultures and that will be what history points to as the underlining cause of World War III which started long before 9/11.
Finally on April Fool's Day he posts "Rumor Control" and a bunch of Al-Qaeda news clippings when he feels that things are still afoot.
There is a high probability that what we are experiencing this morning is a very temporary blowout in the gold price from its march to the upside.Shorts are gunning for $423 on the close. Any close under $428 will encourage the short sellers. The long funds - or about 45,000 new long contracts purchased at an apparent average of $413.50 - have likely not participated in this morning's selling and will in all probability have mental stops at $423.
All this adds up to one hell of a bear trap being set up next week. The only thing I believe can prevent a temporary and healthy decline here is a significant geopolitical event. No sane person would wish for that.
There are still strange footprints in the dollar that have yet to be defined. However, the hunt is on and they will be identified. The supply of gold between $430 and $435 will be overcome but that might take some consolidation first. Markets get stretched out when they have one way runs.Gold is up over $40 since we called the bottom. That is a stretch that can only continue if the driver is a geopolitical event in the making. The crisis in energy prices continues as the falsification of economic indicators reaches a point of total absurdity.
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Should gold persist under $428 into tomorrow’s opening, that would call for a push to $423. At $423, the bulls will make their stand so be prepared for another shoot out at the Comex corral tomorrow.The rub is that every day the world is moving towards some sort of military/terrorist catharsis and the solutions being applied do not seems to be easing that progression.