Revenge of the Masters: Cyber Meltdown - Gold above 1200 TNR.v, GRC.to, BVG.v. BVA.v, KTN.v, EPZ.v, RVM.v, ASM.v, BTT.v, GBN.v, HUI, XAU, GDX, GG, NEM

Whether it is a revenge of Government Sachs or "just" a Quant Cyber Glitch is not so important - we have another the most important message today: Gold has officially became the New Reserve Currency of choice. With melting down market, when nobody was sure what was happening, Gold stood Long and Strong. In a sharp contrast to 2008 panic, when everything was sold for the run to safety of US Treasuries, this time Gold finally became the safe heaven.

Rise of the Machines multiplied by Greece fear have send another important message - if somebody want a strong US Dollar they should be ready for the chart above. Strong dollar is the Deadly Deflation Spiral - it is Spring 2009 all over again in a fifteen minutes of trading day. Yesterday's pictures of social unrest in Greece and today's "Fat Finger Cyber Glitch" will leave strong memories and Inflation will the most welcome outcome. Another important point - it is easy to be done and QE will be all over again.

Please note that all markets: FX, Stocks and Bonds have been contaminated with panic from Cyber Glitch in U.S. but TSX has much less dramatic move and Gold stock were strongly up by the end of the day.

Please be sure that troops are ready and money flood will be open again, it does not mean that the market will not have a correction, but it means that monetary base will be expended again even to a greater extend and this means only one: Inflation - Gold was screaming today about, Commodities, Oil and Energy Metals: Lithium and REE to follow. Trend to diversify from ALL Paper Fiat currencies into the real things started by Chinese will be accelerated.

Cyber Meltdown: Dow is down almost 1000 to 9900 in fifteen minutes. Somebody for a Strong Dollar? Deflation Spiral is back - wait for Ben and Helicopters...This time Gold is not fooled around and retakes 1200 again. Next week will be crucial for Gold: will it be a Double Top or break out to the upside?

VIX Panic is still here, but not about everything any more. DIA, GDX, DXY, TSX, CDNX, FXI.

Panic is subsiding, fearful investors in financial sector are swinging around everything is lost and we are going to double from here and distorting the real picture, accumulation is well under way in healthy sectors including materials. Just have a look on all capital raising in Gold Miners and Basic commodities. Next greed assault will be to push VIX below MA200 and greatest Irrational Delusion of US dollar as a safe heaven will be a history with chasing performance back in place.

Panic Indicator VIX is signaling Greed. DIA, SPY, QQQQ, TSX, GDX, CDNX, CZX.v, TNR.v, SST.v, MGN, RMK.v.

Watered down by Trillions of freshly printed money Fear is ready to be replaced by Greed again. Please notice that this recent spike in Panic is nowhere near as dramatic as during the last year's lows. While general markets were retesting the lows, Gold broke higher and Gold shares are in breaking Up mode, VIX has made a modest by recent standards move up. Now it looks like making a rolling Top below MA50 and STO is pointing to a move down. Players are not ready to pay excessive premiums on PUT protections and are liquidating their Short positions. Markets are ready for a Push up from Here with any Obama's announcement.

Panic VIX - even panicking could be tiring. DIA, SPY, QQQQ, GDX, TSX, CDNX.

Very good chance that Mr Market is getting more Greedy then fearful, money Flow from Treasuries will find its way into bargains in equities. One percent of new money coming into Gold means 100% increase in Demand.

Panic and VIX is going down - time for Irrational delusion is Over. GDX, GLD, SLV, TNR.v, SST.v, MGN, OK.v.

Panic is receding, Irrational Delusion when all world seems to be collapsing and US Dollar looks like "Safe Heaven" will be a history as well. Time is for fundamentals to come into play. Shift from life preservation mode and into chasing gains available in the markets with massive reinflation effort will allow incredible gains resulted in Flow dislocated billions of dollars searching for value. Just one percent of money Flow into Gold will rise investment demand by 100% according to McEwen founder of Gold Corp GG in my previous post. Silver is much smaller market and Junior mining being the most risky of all was just obliterated by panic selling and naked shorting. It is already up 30-40% from low and fireworks to follow with decisive move down in US Dollar.