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| I wrote earlier about the oversold technicals I follow and so far so good. We put in a low of 33.20 and we did get close to re-testing that today. Now the test will be to hold 34.50 if we don't then I believe we get a test of the 33.20. I am way too nervous to talk about any upside yet, I'd love to see us grind around for a week or ten days to get some stability, in any case 37 is short-term resistance, if we take that out with volume we can recapture 40. One day at a time, right? Enjoy the weekend, we all deserve it after this hellish week! |
Friday, May 06, 2011
Silver: Stabilizing?
Silver needs to retest this mornings low
I covered my hedges as promised at the open. But I would not be adding new $ until Silver retests this am's lows. There is hope but don't get too excited, bottoming takes time, there will be a short covering rally, followed by back and filling (traditionally).
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| low of 33.2 |
Faux Jobs Number: Opposite Day
Well just as I thought a better than expected (bogus) jobs number is out. The S&P futures are rallying (after a 12 point decline yesterday) as is the dollar but not as much as expected. They claim employers added more than 200,000 jobs in April for the third straight month, the biggest hiring number in five years. But curiously the unemployment rate rose to 9 percent in part because some people resumed looking for work (seriously! thats what they said) you see if you don't look for work you are not counted as unemployed (Thats how they roll).
The Labor Department says the economy added 244,000 jobs last month. Private employers shrugged off high gas prices and created 268,000 jobs -- the most since February 2006.
The gains were seen in Retailers, factories, financial companies, education and health care and even construction companies all added jobs. Federal, state and local governments cut jobs.
Silver actually was down over 1.30 when the news came out it rallied, don't know what to make of that. Maybe its opposite day! Those with kids know what I'm talking about.
The Labor Department says the economy added 244,000 jobs last month. Private employers shrugged off high gas prices and created 268,000 jobs -- the most since February 2006.
The gains were seen in Retailers, factories, financial companies, education and health care and even construction companies all added jobs. Federal, state and local governments cut jobs.
Silver actually was down over 1.30 when the news came out it rallied, don't know what to make of that. Maybe its opposite day! Those with kids know what I'm talking about.
Collusion by Fed officials and Commodity Exchange heads has its intended effect
Collusion by Fed officials and Commodity Exchange heads has its intended effect, by Dan Norcini
I find it amazing how effectively these people can coordinate their policies with the heads of the commodity exchanges and their pals at the big banks who are perennial shorts in the markets and have now managed to pluck the money out of hundreds of thousands of commodity trading accounts enriching the big banks (government sponsored hedge funds) in the process. Nothing like a freely operating financial system where the playing field is completely level and no one has an advantage over the next guy!
By their continued hiking of silver margins, the exchange effectively removed the liquidity in the silver market that the smaller specs have been providing. That left the market vulnerable to severe drops in price as these specs exited due to financial constraints which then removed a source of potential bids under the market as the CFTC commitments report has shown the small specs to be good buyers in the silver market. Even the bigger hedge funds are impacted by such a sharp hike in margins as their losses in silver then precipitate even more losses across other assorted commodity markets due to the cascading effect of mounting paper losses and margin calls and the need to raise cash.
As the silver market tanked the exchange officials could then warn about Clearinghouse integrity and have more reasons to drive margins even higher as they point to the increased volatility, volatility which I might add, they created themselves by hiking margins to such an extreme degree.
I find it amazing how effectively these people can coordinate their policies with the heads of the commodity exchanges and their pals at the big banks who are perennial shorts in the markets and have now managed to pluck the money out of hundreds of thousands of commodity trading accounts enriching the big banks (government sponsored hedge funds) in the process. Nothing like a freely operating financial system where the playing field is completely level and no one has an advantage over the next guy!
By their continued hiking of silver margins, the exchange effectively removed the liquidity in the silver market that the smaller specs have been providing. That left the market vulnerable to severe drops in price as these specs exited due to financial constraints which then removed a source of potential bids under the market as the CFTC commitments report has shown the small specs to be good buyers in the silver market. Even the bigger hedge funds are impacted by such a sharp hike in margins as their losses in silver then precipitate even more losses across other assorted commodity markets due to the cascading effect of mounting paper losses and margin calls and the need to raise cash.
As the silver market tanked the exchange officials could then warn about Clearinghouse integrity and have more reasons to drive margins even higher as they point to the increased volatility, volatility which I might add, they created themselves by hiking margins to such an extreme degree.
Link to full article
We Are Now Buyers Of Physical Silver: Ben Davies
“As a firm we have covered all of our hedges on silver and we have started to accumulate physical silver. Let me add that this is the swiftest 30+% decline in this bull market. If you are a cash buyer of physical silver then you should now be accumulating silver. There is always a danger in catching a falling knife, but you have to remember that silver has intrinsic value.”
This is the start of a great opportunity to accumulate silver. All of the key fundamental issues in the world have not gone away nor those specific to silver such as the fact that it is under-owned and short of supply in the medium-term. All of those conditions are still in place for silver. KWN readers should remember that on corrections beyond 20% in a secular bull market you are supposed to be buying.”
This is the start of a great opportunity to accumulate silver. All of the key fundamental issues in the world have not gone away nor those specific to silver such as the fact that it is under-owned and short of supply in the medium-term. All of those conditions are still in place for silver. KWN readers should remember that on corrections beyond 20% in a secular bull market you are supposed to be buying.”
Silver Massacre: Why The Bottoming Process Starts Today
My experience leads me to believe that bottoming is a process and not a one day event. In my post on wed I wrote that the 50dma (Silver EOD contract) had to hold at 40 or we go to 34, I believe this is where the bottoming process will begin. Do I have any specific information to call a bottom, just metrics I use to make an educated guess. Call it years of charting experience.
I know all about the fundamentals but that doesn't matter when this type of selling starts and your emotions are running high and there is no end in sight, so maybe this will help to ease the discomfort .
Here are a few things that lead me to believe we are close to a bottom: Using the SLV for demonstration purpose only:
1. Biggest price drop of all occurred yesterday
2. Largest volume of all the sell off days, puking
3. RSI is as low as it was late January bottom
4. MACD extremely oversold, greater than January
So I hope to see a U shaped move here, lets see a sell off today followed by an afternoon rally, then some back and filling consolidation over the next four trading days or so. Selling the Hedges in am session.
I know all about the fundamentals but that doesn't matter when this type of selling starts and your emotions are running high and there is no end in sight, so maybe this will help to ease the discomfort .
Here are a few things that lead me to believe we are close to a bottom: Using the SLV for demonstration purpose only:
1. Biggest price drop of all occurred yesterday
2. Largest volume of all the sell off days, puking
3. RSI is as low as it was late January bottom
4. MACD extremely oversold, greater than January
So I hope to see a U shaped move here, lets see a sell off today followed by an afternoon rally, then some back and filling consolidation over the next four trading days or so. Selling the Hedges in am session.
Thursday, May 05, 2011
USD Dead Cat Bounce
USD is bouncing hard against the EUR by 2%, over GBP by 0.7% and 1.5% against the AUD
I had mentioned it was critical for them to defend that 72 level and its held so far. I expect the bounce to be short lived and no higher than 75.
Oil and the rest of the commodities are selling off, I'm tired of talking about the metals you all know whats happening there enough said.
Let's see what happens after that jobs report tomorrow. If its a good report than the dollar will rally further and there will be more pain in the metals and other commodities.
I had mentioned it was critical for them to defend that 72 level and its held so far. I expect the bounce to be short lived and no higher than 75.
Oil and the rest of the commodities are selling off, I'm tired of talking about the metals you all know whats happening there enough said.
Let's see what happens after that jobs report tomorrow. If its a good report than the dollar will rally further and there will be more pain in the metals and other commodities.
Silver Corrects: Whats Next
Inventory build must be worked through before we move higher through 50 (August or September)-Ben Davies
In April, Hinde Capital Advised its clients to sell (reduce) in May and re-enter in August
We have been spoiled, time to be patient.
Before you invest another dollar in Silver you must read this: LINK (Silver Criticality)
Research from Hinde Capital:
Interview with Ben Davies: from Kingworldnews
In April, Hinde Capital Advised its clients to sell (reduce) in May and re-enter in August
We have been spoiled, time to be patient.
Before you invest another dollar in Silver you must read this: LINK (Silver Criticality)
Research from Hinde Capital:
Interview with Ben Davies: from Kingworldnews
Silver will zig zag to a hundred
Especially after this week, I need lots of reassurance: So I hope this article bring your pulse rate down as well. From Minyanville.com
The silver market has been very interesting lately but what really rankles me is the various commentaries that have popped up from across the financial media world. It seems that as soon as silver gets near $50, all of a sudden the silver bears come out of the woodwork and even some usually bullish observers are leap-frogging over to the silver bear camp. What are silver investors and speculators to do?First of all, as we have known for years, silver in the short term can be very volatile and abrupt pullbacks can happen. The leading culprits for recent pullbacks (which resulted on April 26 and May 2) were the moments that the futures exchange raised the margin requirements. The first time was on Monday April 25 and then again on Friday April 29 (a whopping 75% increase). For those that were long in the silver futures market those were exasperating moments. Should we be concerned or pessimistic about silver’s future?
I think that many investors and speculators became very concerned as all the dire warnings of a silver top started being publicly presented, and it didn’t take much for a stampede for the exits to be triggered. What better trigger than the futures exchange pushing margin requirements much higher, practically forcing a sell-off?
I don’t blame folks for being concerned and a little panicky when they see financial experts (both real and alleged) warning about an impending collapse for silver. Have the prospects for silver changed that drastically in recent weeks (days!)? Did China and India suddenly float away from planet Earth? Did all of us stop using cell phones, Apple (AAPL) iPhones and iPads, medical technology, computer screens, etc etc?
I was recently quoted in an article that was ominously titled “The Silver Mania May Come to an Abrupt End." The piece even quoted a financial authority that I certainly respect that called himself a long-time “raging bull” on silver until it recently flirted with the $50 level and then…BAM…he became bearish and then recommended in his newsletter to sell all silver holdings. Some raging bull!
I think a better headline would have been:
"The Silver Mania May Come to an Abrupt…Pause."
Look, the fundamentals for silver are great and they get better everyday. Look at supply and demand:
Worldwide supply is tight: There is no huge silver mine out there that will come on line any time soon. Meanwhile, the threats to supply keep growing. Places like Ecuador and Bolivia keep rumbling above potential nationalization of silver mines. China’s ability to generate domestic supply has fallen to the point that China is no longer a silver exporter and has switched to being a major silver importer.
Demand is relentlessly rising: Investor demand for physical bullion continues at a record pace (just look at the sales data from the US Mint). In recent years, new innovations and uses in technology, health care, electronics and alternative energy have ensured steady demand in slow times and tremendous demand when the economy rebounds. Worldwide industrial demand will simply not go away -- certainly not in this century!
Will there be pullbacks and corrections? Absolutely…count on them! Will you see some of these experts (both real and alleged) crow about being right when silver plummets (which it invariably does)? Yes! Could silver plummet by 10, 20, 30 or possibly 40% in the short-term? YES! Count on it!
Why? Because it already has…many times! That is the nature of the silver market.
Here is a small sample of the “collapses” that have happened in silver since 2004:
April 2004: Silver falls from $8.25 to $5.50. A 33% correction.
May 2004: Silver falls from $6.10 to $5.40. A 12% correction in only four trading days.
Sept. 2004: Silver falls from $6.80 to $6.12. A 10% correction in only eight days.
Dec. 2004: Silver falls from $8.00 to $6.60. A 17.5% correction is only two weeks.
Jun-Jul 2005: Silver falls from $7.55 to $6.80. A 10% for the summer.
Apr. 2006: Silver falls from $14.25 to $12.10. A 15% correction only two days.
May 2006: Silver falls from $15.00 to $12.00. A 20% correction in only 10 days.
June 2006: Silver falls from $12.50 to $9.70. A 22% correction in only nine days.
July 2006: Silver falls from $11.75 to $10.50. A 11% correction in only seven days.
Sept. 2006: Silver falls from $13.25 to $10.75. A 19% correction in only 10 days.
Dec. 2006: Silver falls from $14.10 to $12.50. A 11% correction in only 14 days.
Mar. 2007: Silver falls from $14.30 to $12.50. A 13% correction in only four days.
Aug. 2007: Silver falls from $13.10 to $11.60. A 11.5% correction in only 10 days.
Mar. 2008: Silver falls from $21.00 to $17.50. A 17% correction in only three days.
Apr. 2008: Silver falls from $18.50 to $16.50. A 11% correction in only 13 days.
And then silver had a biggie…
July-Oct 2008: Silver falls from $19.40 to $8.85. A 54% correction in under three months.
And don’t forget…
Feb-Mar 2009: Silver falls from $14.50 to $12.70. A 12% correction in three weeks.
June 2009: Silver falls from $16.00 to $13.70. A 14% correction in 20 days.
Jan. 2010: Silver falls from $18.75 $16.25. A 13% correction in 18 days.
May 2010: Silver falls from $19.70 to $17.50. A 11% correction in only 11 days.
Please keep in mind that in between those periods there were plenty of declines of 5-9%.
If you look back to the headlines during the more severe corrections in the 20-54% range, you will find pundits that said silver’s bull market was over. You will find pundits that prematurely announced that silver was at death’s door or that a bear market was just about to start. I even recall one expert forecasting that silver would fall below $2. During the same time-frame I was forecasting $50 silver in my public seminars and in various internet venues (spot silver hit $49.82 on April 25…close enough!)
But…look at the bigger picture:
Jan. 2004 – May 2, 2011: Silver rises from $5.95 to about $43.50. A gain of 631%.
In my mind, $100 silver is not an “if”…it is a “when." Will it zigzag on the way up? Count on it!
Got silver?
When Will Silver Stop Going Down
When will the selling stop, this is the question on the minds of most. This is the best piece I have read so far, a must read from Casey Research
With silver dropping roughly 19% in the last three days, a correction is clearly under way. Let’s take a quick look at how far it might drop.
I’ve updated the “corrections” chart, which shows all major pullbacks in silver since our bull market began in 2001. The data measure any clearly visible drop in price greater than 10%, regardless of time length. As you’ll see, some drops occurred over short periods of time, while others were prolonged.
With silver dropping roughly 19% in the last three days, a correction is clearly under way. Let’s take a quick look at how far it might drop.
I’ve updated the “corrections” chart, which shows all major pullbacks in silver since our bull market began in 2001. The data measure any clearly visible drop in price greater than 10%, regardless of time length. As you’ll see, some drops occurred over short periods of time, while others were prolonged.
HEY BULLION BANKS!
Wont back down!
I Wont Back Down!
Times like these you just gotta get through the pain, no way around this fact.
SILVER MADNESS
Firstly, let me say I am in a lot of pain...
Monday thinking that would be a one day event, I went all in, sold my hedges. Boy was I WRONG!
We've had to withstand 4 margin hikes, now 60 plus percent increase in requirements at the Crimex. Why? Well they say, its to make the market more stable. Okay, but 4 hikes? Really?!? The fourth after a 25% drop. You wanted to slow the train down you put the brakes on, enough already!!!!
So now what happens when margin requirements reach 100%? The CME Group will have no means to restrain this market further. The market will become unstable (extreme volatility) Given the well known underlying fundamentals leading to demand such as massive inflation, debt, excess liquidity and industrial demand (limited supply) etc. Silver prices are set to explode and then what? How will they put the brakes on then. They have to and will make up laws to perhaps confiscate Silver. I don't know, this is getting and will get more bizarre as it plays out.
So now what happens when margin requirements reach 100%? The CME Group will have no means to restrain this market further. The market will become unstable (extreme volatility) Given the well known underlying fundamentals leading to demand such as massive inflation, debt, excess liquidity and industrial demand (limited supply) etc. Silver prices are set to explode and then what? How will they put the brakes on then. They have to and will make up laws to perhaps confiscate Silver. I don't know, this is getting and will get more bizarre as it plays out.
Its clear we are in a war, these guys are doing everything they can to buy time. They are in a fight for their survival. Read more.
For me those reasons are intact. Just take a look at recent headlines below. Fundementally nothing has changed. The only thing that is different is the price of the metal.
- US Debt Rating Should Be 'C': Independent Agency
- Dollar declining for 9th straight day after rally following news of bin Laden death fades
- Did they suddenly stop printing money? Has the job market improved significantly? Housing market no longer an issue? Have they announced any major budget changes? No, NOTHING HAS CHANGED.
- Silver production is falling, global stockpiles remain depleted, there is no decrease in demand for the metal in Healthcare, industrial, retail and many other applications.
Assessment: This is a shock and awe operation headed by the 4 big banks that hold more than 70% of all shorts working in concert with the Crimex, needed to print a top at 50. 50 is the line in the sand historically (Hunts Bro's all time high etc). They let the first 50 print slide and then printed the failed test. In technical analysis that is a sell sell sell signal. Then you add in the margin increases, now you have the TA guys and the weak holders out, you also take out the mo mo guys so this is gut check time. As for as the margin increases are concerned, there is nothing improper about making such a move, assuming it is motivated by a valid objective. Raising the margin requirements on contracts (which is equivalent to reducing leverage in the sector) is a move which is intended to “put the brakes” on a particular commodity market where “excessive speculation” (i.e. leverage) is perceived to exist. But 4 times in 7 days, that is seriously bullshit! The game is rigged. This is not a top, they are just making it look like one.
Conclusion: Stay long, or get more long or if you don't have any PM GET SOME TODAY. This is almost over. When will the sell off end? When JPM unwinds its massive short position and then goes long. Probable risk is a low of 34 and a high of 80 by year end (why 80 thats what 50 bucks was worth in 1972).
and I'll leave you with this rally song I Get Knock Down But I Get Up Again
Wednesday, May 04, 2011
S&P 500 Recap
S&P is down nine points this morning due to the weak jobs number and weaker than expected ISM. Yesterday we had a gap down of five points due to the latest batch of earnings reports were less than inspiring. And with the dollar rising overnight it looked like the bears retained possession as the open approached.
The session began with a significant gap lower, moving down a quick five points before bouncing. But at 10:00 am the bounce ended and the SPX spent the next hour in decline, testing the intraday lows. After a successful test, the index moved higher to test the highs of the day which held. But from noon through 3:00 the index steadily moved lower giving up ten points. The closing hour saw a significant bounce as the SPX reclaimed almost seven points to close at 60% of the eleven point range.
For the S&P Index there were 176 components advancing and 300 components declining. On the NYSE 3,157 issues were traded with 1,066 advancing issues and 1,974 retreating issues, a ratio of 1.85 to one declining. There were 141 new highs and 22 new lows. The five day moving average of New Highs is 297 while the five day moving average of New Lows is 14 and the ten day moving average of Net Advancing is 619. The Net Advancing data remains bullish. But the Mcllelan Oscillator and Summation Index are getting toppy.
The session began with a significant gap lower, moving down a quick five points before bouncing. But at 10:00 am the bounce ended and the SPX spent the next hour in decline, testing the intraday lows. After a successful test, the index moved higher to test the highs of the day which held. But from noon through 3:00 the index steadily moved lower giving up ten points. The closing hour saw a significant bounce as the SPX reclaimed almost seven points to close at 60% of the eleven point range.
For the S&P Index there were 176 components advancing and 300 components declining. On the NYSE 3,157 issues were traded with 1,066 advancing issues and 1,974 retreating issues, a ratio of 1.85 to one declining. There were 141 new highs and 22 new lows. The five day moving average of New Highs is 297 while the five day moving average of New Lows is 14 and the ten day moving average of Net Advancing is 619. The Net Advancing data remains bullish. But the Mcllelan Oscillator and Summation Index are getting toppy.
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| We usually get a test of the breakout so its normal, good point to re-enter, added to my BGU position this am at 87.76 |
Taking another beating at the open
Thank You Sir May I Have Another
what can you do but laugh at times like this when all goes horrible against you in the market world!
"Gonna dance with the girl I brought to the party as they say", sticking with the rules, with checklist in tact; this too shall pass!
what can you do but laugh at times like this when all goes horrible against you in the market world!
"Gonna dance with the girl I brought to the party as they say", sticking with the rules, with checklist in tact; this too shall pass!
AGQ (Silver): "Pigs Get Slaughtered"
Luckily for me my kids downloaded a virus on to my computer! Otherwise I would have been crying and whining the last 48 hours the beating I have been taking at the hands of the banksters. They can and will continue delivering more and more pain till all the little guys like me are out of the paper silver market.
They may want you out of the paper, you buy the PM and then they will tell you its illegal for private citizens to own PM's, something similar to executive order 6102. Who really knows to what extent they will carry this out.
We hit a low early morning of 40.22, right now we are at 40.68, the 50dma has only been violated once this year and you can see back in 2010 it hung around the fifty for many weeks, so lets see if that holds. If it doesn't we will go to 34 (thats if charting still matters, and this is where the bottoming will start). I have been buying puts to protect my longs. these sell off are so vicious and they start at the point of the day (London close) where there is the least liquidity so they can easily drive the price down.
"The bankers are waging a paper silver war on paper longs. This is why I urge all of you not to play the crooked comex. The comex is nothing but a paper game. Do not use leverage whatsoever. Just go and buy the physical silver from your local dealer or bank. This is what will kill the bankers game". Harvey Organ
"A number of high-profile investors remain huge holders of gold and silver, amid continuing concern about inflation and the dollar. Mr. Paulson, known for his lucrative bet against mortgages a few years ago, told investors he still has most of his personal money in gold-denominated funds operated by Paulson & Co. Mr. Paulson told investors Tuesday morning that gold prices could go as high as $4,000 an ounce over the next three to five years, as the U.S. and U.K. flood the money supply." WSJ
They may want you out of the paper, you buy the PM and then they will tell you its illegal for private citizens to own PM's, something similar to executive order 6102. Who really knows to what extent they will carry this out.
We hit a low early morning of 40.22, right now we are at 40.68, the 50dma has only been violated once this year and you can see back in 2010 it hung around the fifty for many weeks, so lets see if that holds. If it doesn't we will go to 34 (thats if charting still matters, and this is where the bottoming will start). I have been buying puts to protect my longs. these sell off are so vicious and they start at the point of the day (London close) where there is the least liquidity so they can easily drive the price down.
"The bankers are waging a paper silver war on paper longs. This is why I urge all of you not to play the crooked comex. The comex is nothing but a paper game. Do not use leverage whatsoever. Just go and buy the physical silver from your local dealer or bank. This is what will kill the bankers game". Harvey Organ
"A number of high-profile investors remain huge holders of gold and silver, amid continuing concern about inflation and the dollar. Mr. Paulson, known for his lucrative bet against mortgages a few years ago, told investors he still has most of his personal money in gold-denominated funds operated by Paulson & Co. Mr. Paulson told investors Tuesday morning that gold prices could go as high as $4,000 an ounce over the next three to five years, as the U.S. and U.K. flood the money supply." WSJ
Tuesday, May 03, 2011
Crimex Lies and Videotape
As you all know by now that Silver was trounced (15%) Sunday night as the banksters took advantage of the May Day Holiday (Light Volume) to scare people to sell out of there newly acquired positions. The session began with an amazing reversal of the selling and Silver actually was down a little more than a 1% when the news hit of another margin hike at the Crimex, the selling started all over again. This was the third such rate hike in 5 days, needless to say this is unprecedented. So why are they so desperate? My friends explain below:
Third Hike, Ain't it a Bitch
"This does not look like a market showing anything like classic buyer exhaustion. This is more like a speeding train, running higher in response to a short squeeze on a massive overhang of paper silver obligations that cannot be delivered at current prices. The exchange authorities are throwing everything but the kitchen sink at it to try and slow it down, to break its momentum. I obviously do not have a problem with that per se. But it would be nice to see the regulators and exchanges occasionally intervening on behalf of the broader class of investors, and not so exclusively for the benefit of their insiders".
"Ask yourself, why is it suddenly so vital to raise silver margins by 35%? Then ask yourself, why did the CME act in stages? They clearly knew that margin rates were going higher. These hikes were planned well in advance. Why did they not raise margins 35% last Monday and call it a day? I'll tell you why...because they knew that a one-time increase would be quickly shrugged off by silver longs and the hike would have no lasting impact. No, instead, they've chosen to raise in stages, thereby, holding longs at bay for fear of additional hikes at any time".
There are excellent posts by the bloggers I read and I implore you to read the links provided here before you put another dime in Silver or Gold.
"Make no mistake about it, what occurred last night right at the open of electronic futures trading in gold and silver was nothing more than a very aggressive attempt by the big Wall Street banks who are irrationally short paper silver to shake out weak hands in order to reduce the fraudulent short positions in paper silver. Anyone who thinks last night's action - as reported in the mainstream media - was connected to a feared slowdown in China or the Bin Laden thing or the Bolivian mining news is either hopelessly naive or pathetically ignorant of the facts".
Third Hike, Ain't it a Bitch
"This does not look like a market showing anything like classic buyer exhaustion. This is more like a speeding train, running higher in response to a short squeeze on a massive overhang of paper silver obligations that cannot be delivered at current prices. The exchange authorities are throwing everything but the kitchen sink at it to try and slow it down, to break its momentum. I obviously do not have a problem with that per se. But it would be nice to see the regulators and exchanges occasionally intervening on behalf of the broader class of investors, and not so exclusively for the benefit of their insiders".
There is really no point in doing any real analysis on Silver because the rules of the game are being changed while the game is being played. I mean whats the point, "fair is foul and foul is fair"!
All the brains, experience and charts in the world won't help you in this game, one day the world is round and then it's flat where do you go. I took an enormous beating yesterday and there will be more to come today. I went all in at the open, that was a huge mistake.
Where to go from here? I believe more hikes will come (they have already increased margins by 35% in a week), they will probably go up to a 100% and by now the players in this market get that so will prepare better.
The last step by the government will be to halt Silver trading all together and then ownership of the Gold and Silver by private citizens. Al in the name of the greater good, they will manufacture something.
This just tells you, you can't not prepare for whats to come. They won't let you.
Shorting Gold and Silver is in the interest of the government, they will keep JPM and HSBC and who ever else supplied with enough paper to keep prices down. They will change the laws to benefit the groups (banking cartels) involved.
Shorting Gold and Silver is in the interest of the government, they will keep JPM and HSBC and who ever else supplied with enough paper to keep prices down. They will change the laws to benefit the groups (banking cartels) involved.
Monday, May 02, 2011
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Dollar heads lower
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| Dollar Rally Fades, I had mentioned on last Friday that they (govt) will have to intervene on behalf of the dollar before the index went below the critical 72 support level. I didn't think it was going to be the news of UBL. I thought it would be a bogus jobs number on Friday. |
UBL KILLED : Silver Down 15% Overnight
Silver was taken down hard by the banksters overnight in a coordinated raid. The government leaked news of UBL's death and they all piled in. Weak holders were spooked and ran for the hills, volume was low and will be low today due to holiday in the UK. Silver hit a low of 44 over night and is now barely hanging on to the 45 level. Holding 45 is critical or we will go to 43. The STP (secular trends portfolio) will be down double digits at the open.
The reasons why people were buying gold and silver haven't changed (just because Usama is dead). On a day when I am down this big I have to go back to the checklist and stay the course. I have to remind myself, our problems haven't gone away. Nothing has changed (economically).
Is the government still spending borrowed money or printed money. We have to deal with real issues at hand which are leading to inflation and the debasement of the dollar, Usama's death is merely symbolic and we all know there are a lot more bad guys out there since 911.
Our economy didn't change overnight, the global inflation didn't go away, our troops aren't going to come home, military spending isn't going to go down, and labor markets will not recover because of this event.
Cartels are raiding on a low volume day and thats it. Stay the course!
We Don't Get Fooled Again!
The reasons why people were buying gold and silver haven't changed (just because Usama is dead). On a day when I am down this big I have to go back to the checklist and stay the course. I have to remind myself, our problems haven't gone away. Nothing has changed (economically).
Is the government still spending borrowed money or printed money. We have to deal with real issues at hand which are leading to inflation and the debasement of the dollar, Usama's death is merely symbolic and we all know there are a lot more bad guys out there since 911.
Our economy didn't change overnight, the global inflation didn't go away, our troops aren't going to come home, military spending isn't going to go down, and labor markets will not recover because of this event.
Cartels are raiding on a low volume day and thats it. Stay the course!
We Don't Get Fooled Again!
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