Don't fight the Fed ( reposted at nobody's request because I damn well felt like it )

Note:

I was thinking about this today.  Everything that is happening has happened before.  There's nothing new under the sun.  The Fed does what it does.  It is amoral.  It doesn't care that what it's doing is right or wrong.  And get this:  it is working.  Yes, it is working.  The Fed is managing things and it is working.  Unfortunately, although the Fed is "working", the markets are not being allowed to work.  Even though this is true, and it isn't moral, you still can't fight the Fed.  If you fight the Fed, you lose.  You just need to know what side the Fed is on at the moment, and don't be on the wrong side of it.  Right now, it isn't on the side of the angels, if you catch my drift.  But the Fed can get the "right religion" at any time.  Then you can flip with the Fed.  It isn't moral and it isn't fair, but there it is.

The original post follows immediately....

That's one of the cardinal rules of trading.  It appears to me that the Fed is manipulating the markets now, so any trade that goes against that is violating the rule.

One of those trades is to go long on precious metals, like gold.  Gold took another beating yesterday.

But, nothing has convinced me though that the fundamentals have changed.  There's no effort to reign in the money printing.  All the Fed is doing is managing perceptions.  However, that's enough to move the markets.  So, if you are on the wrong side of that, you can get burned.

Sometimes, you have to take a little pain in order to get some gain.  In this case, if the management of perceptions fail at any point, the bull market will return with a vengeance.  So far, the Fed's perception manipulation is working.  Gold is taking a beating.  How much longer, well, who knows?