It should be fresh in everyone's mind how we see Gold as a measure of the "QE-Hopeful Crowd"sentiment. Here's but another example, but this time it also shows proof of another example I talked about Sunday night, "The F_E_D will give the market what it needs when it needs it" and what the market needs is strength to sell into. Bernie lately has been coming off as a bit of a QE hawk as far as that is possible for the man, so for him to be out there hinting at it would be very confusing to the market and his credibility regarding F-E_D transparency which along with using the US economy and all of our citizens as lab rats in his QE experiment which he argued against before he become chairman, his other seeming effort is to cement his legacy as the chairman that made the F_E_D transparent when compared to Alan Greenspan's "Green-speak" in which the man could talk for hours about policy and still no one had any idea of what he was thinking, Bernie is trying to be the anti-Greenspan.
So it is little wonder that we have their mouthpieces out in full force like Paul Krugman who is getting more air/press time this week than in a year and today Alan Greenspeak himself (who also said QE was useless), all out making the case.
Greenspan to Bloomberg...
- *GREENSPAN SAYS EQUITY STIMULUS IS HELPING TO DRIVE ECONOMY
- *GREENSPAN SAYS EQUITY STIMULUS IS UNDERESTIMATED
Just to confirm that gold is now the true sentiment indicator for the QE crowd, take a look...
Gold falls intraday on a solid ISM print (remember for the QE addicted crowd, bad economic news is QE positive, good economic news is QE/market negative as shown in gold which tends to benefit the most from QE). Then we see a slight bump in GLD, why? Just look at the quotes above from Greenspan.
GLD's correlation is finally confirmed-it is a measure of QE sentiment.
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