Jim Sinclair's Market Observations

Morning thought.

As the price of gold rises the battle around round numbers such as $1400 get wilder and wilder. Rhart is the summation of what you see going on now. Trader's views on gold now has come down to 30 seconds, maybe less.

Jim

At times I wonder if Jim is looking over my shoulder at my charts. He's good.

Jim,

The paper elephant (short), despite its true lack of mass, can still strike fear in the growing legion physical mice. A loud shriek accompanied by a few paper stomps still clears the room without much trouble. Price is an effective fear motivator over the short-term.

An astute investor also sees that the elephant is not as effective as it used to be. Inevitably, the mice return to occupy the room. Each time they return a little faster and in greater numbers.

Gold London P.M Fixed And Gold Diffusion Index (DI)



Also from the mailbox,

The boys may have built up their short position in the euro. Here come the destroyers

Jim

Euro (FXE) And Euro Diffusion Index (DI)


Headline: Moody's cuts Spain rating, cites higher bank costs

MADRID (Reuters) - Moody's downgraded Spain's sovereign debt rating by one notch on Thursday and warned of further cuts to come due to fears that bank restructuring will cost more than twice what the government expects.
"(Moody's) believes there is a meaningful risk that the eventual cost of the recapitalization effort could considerably exceed the government's current projections," the ratings agency said in a statement.

Source: reuters.com