jessescrossroadscafe.blogspot.ca / By Jesse / September 26, 2012
In addition to the end of quarter mark to market boogie woogie, which I think is responsible for quite a bit of the stock market action, there are also a few key things happening in the gold and silver futures markets this week that also provide the occasion for some ‘technical trading.’
Harvey Organ reminds us that the metals often get ‘hit’ as an active month rolls over, to discourage speculators from taking delivery on their contracts. This is often marked by the ‘first notice day.’
In the short term the markets are a bit treacherous because of the lack of enforcement of the basic rules that govern healthy markets. In the longer term these things tend to become just noise.
Pick whatever time frames you wish, but know the character of the markets in which you choose to participate.
Also bear in mind that during times of excessive market speculation because of hot money and lax regulation, information sources are often used and even co-opted to help to shape ‘perceptions.’
This may even be unconscious if the information provider does not view certain stories that are offered at certain times with a skeptical eye. A little truth broadly embellished and assigned is the most reliable sort of lie.