Monday, June 4, 2012

Gold Spikes higher as NFP falls Way Short

Last Friday's plethora of financial data was a big catalyst for some risk off moves globally.  Euro PMI's were clearly bearish and US non farm payrolls were way below expectations at 69k v. 140k expected.  Gold spikes on this announcement as the traders are now positioning themselves in the expectation of some sort of stimulus from the Fed this week.

I think we are close to a point where we are lining up for a reflexive rally, but this is dependent on whether or not Europe, well mainly Germany can be sufficiently scared into going for a fiscal union or eurobonds or some sort of combination of both.  Since it's unconstitutional for them to actually back this type of financial arrangement, there seems to be a need for a separate political entity created to allow such an arrangement.  Soros comes on record, giving Europe a shotclock of '90 days' - probably to the benefit of his own holdings.  

Some gold related holdings I have now are QAU, GDX, AG.

I'm protecting my overall portfolio with LULU short equities and long puts going into LULU earnings this week.