In 2011, when the commodity and ‘inflation’ trades blew out, the Federal Reserve was completely discredited, with gold bugs out front poking them in the eye with taunts of “Helicopter Ben”. Markets rebelled against the Fed by sending silver to $50 and commodities in general to an all-time high.

Today, we have come 180° as market participants the world over have been conditioned to revere policy made from on high. Herds being what they are, every utterance from the jawbones of these former buffoons is respected in the form of instantaneous market movement. It’s as if everyone believes the Fed is in total control.

One indicator that this confidence is coming unwound would be a breakdown in the banks. They are right at key… as in critical… as in bull market… support. Not surprisingly, gold has taken on an inverse stance to the Pigs. This should be interesting.

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By Gary Tanashian

http://biiwii.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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