Bending the Third Rail
Because We Should, We Can, We Do
Thursday, April 12, 2007
Golden
Some of the more conspiratorial thinking among us have suggested that the markets are really controlled to a large extent by "the big boys". I found an example of this phenomena today that is interesting. First, here's last night chart for gold:

The chart maker suggests that we're in for a "smackdown" of gold. There are no shortage of government monetary people who really would rather gold not go wild and the speculation is that they are keeping it trading in a narrow range (the blue box above). Now let's take a look at today's interday chart for gold:

My my. Down boy. Stay in the box!

That's some major hair cut about midday. Wonder what happened to make gold drop $6 dollars like that?

The point is that if you're a little guy investing, make sure you understand the agenda's of the big boys before buying/trading. If you don't follow the movement of the big boys closely, find someone who does and let them swim with the sharks.
Written at 9:22 AM by Greyhair.
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