*Federal Reserve says they want to quit printing money (yeah right lol)
*Goldman Sacks cuts expectations on gold (forcing a sell off)
*500 tons of paper gold dumped on Friday (more pressure for sell off)
*DHS insider says collapse will happen in spring after metals get slammed (he’s right so far)
*Another insider says planned collapse to happen on April 25
*Those mysterious 100,000 put options expire on April 20 & April 25
Today’s Homebuilder Confidence Miss Destroys One Of The Biggest Myths About The Fed
Money is tight. Not loose.
Homebuilder Confidence Misses Expectations, Falls To 42
Homebuilders blame credit conditions and construction costs.
Empire Fed Manufacturing Falls More Than Expected
7.00 expected after 9.24 last month.
Meanwhile, Oil Is Down 3.4%
GOLD GOES INTO TOTAL FREEFALL: Falls To $1363
What Happened The Last Time We Saw Gold Drop Like This?
The rapidity of gold’s drop is impressive, concerning, and disorderly. We have seen two other such instances of disorderly ‘hurried’ selling in the last five years. In July 2008, gold quickly dropped 21% – seemingly pre-empting the Lehman debacle and the collapse of the western banking system. In September 2011, gold fell 20% in a short period – as Europe’s risks exploded and stocks slumped prompting a globally co-ordinated central bank intervention the likes of which we have not seen before. Given the almost-record-breaking drop in gold in the last few days, we wonder what is coming?
This is what it looked like in Q3 2008…
Bloody! Everything Red Across The Board
Third “Eiffel Tower” in a row for S&P 500? Beware of “Look Alike Patterns!!!
CLICK ON CHART TO ENLARGE
An Eiffel Tower pattern formed in Apple (Apple Eiffel here) and Apple declines over $300 per share. Gold looks to have formed an Eiffel Tower pattern as it became the largest ETF on the planet! (Gold Eiffel here) Long Gold owners are feeling the brunt of that pattern the past few days.
A little bit before the top in 2011 and a 17% decline in the S&P 500 in 5 months, “look alike” patterns were taking place (See look alikes, Dominoes & Slipper slides)
Could the S&P 500 be forming a third Eiffel Tower pattern of the past 13 years in the chart above? Way too soon to tell.
Remember this…Its not the odds of a Pattern coming true that counts, its the impact if it does!!!