Firstly, we all know about the banksters, the cartel, the evil empire, Blythe the witch! I was wondering about the audacity of us bloggers and the PM sheep (at times myself included) to get caught up in fighting a fight we have no chance of winning. We are in a war of attrition and these guys have unlimited funds, they have an uncle we don't have (Ben). They are too big to fail and they can take all the risks (I know I can't).
So here is the plan. I don't want to call them names and cry about manipulation and what so on and so forth. We all know this already so time to move on. I figure you cant beat em join em. What I mean is, short the metals along with them based on the COT reports and other factors and buy when they are less short (why are they never long, no one ever asks that), I know the info comes in a bit late and we may miss a day here or there but I won't get hammered.
I lost a ton on this latest bear raid but a friend just said why don't you just get out and I did sell 66% of my paper silver the day of twist and the rest the following day and I bought back 1/3 on the big hammer print day at 28. Just made another buy this morning. 10% Increase paper Silver.
Current market condition (Stocks and Metals)
Many of the markets especially silver and gold are at extreme oversold level and the sentiment is extremely bearish, I will put up charts in a few. There is a huge position on short USD and long EUR by commercial banks and this would imply that they are expecting the euro to survive by way of bailouts and for money printing to resume first in Europe and then the US. Remember these guys are in tight with the government just look around the govt is full of former wall street guys. If you want to make money follow the commercial banks. They are always accumulating early before any announcement, they can't do it too fast cause its too much money and they are playing poker and don't want to give up their hand.
Global meltdown is under way, Ben did the twist and shake (no QE), monetary system that was on crack is now simply in DT's (at least the financials that are not too big to fail). There are rumors that MS will go under as well as BAC (Uncle Warren, not worried) and a number of French and other small european banks will go under and they are puking everything up including Gold. Tremors and shaking and blood pressure rising from stress no doubt and fear thus metals come out of the weaker players (trying to survive).
ITS A KINDA MAGIC (how do you think we held 1100) So mysterious, not really, Ben is no dummy from morning to last hour of trade people loaded up on the short side thinking were headed to at least 1050 or even 900 (Yikes) and then boom Jamie, Loyd and the rest of you bozos here is a few billion we can't let this market go down and presto chango under the cover of the Belgian bank bailout the market goes up 40 points in a flash!
On a positive note the rydex money market fund inflows are going nuts and the $TYH or Treasury yield is at or near the 2009 March bottom, what ever it is we are close or getting close. If you go long without QE at your back youre nuts, if you wanna catch this falling knife you are gutsy and probably early. We will never get above 1200 on the SPX with out QE.
Back to metals according to the September 30th COT report majority of the speculative longs are gone. The commercials are at lowest short levels since 08 Lehman meltdown in terms of Gold and Silver, and so why do PM's keep going down, plain and simple lack of liquidity and deleveraging by banks especially European banks, the interesting thing is that stocks aren't as deeply oversold as the metals but the metals are going down and the stocks staged a late day huge short covering rally.
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| Courtesy of clivemaund.com |
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