Silver Update: Downside Target Reached

Do you remember I put this up last week (May 25th post, here is the LINK), and it had played out just like I told you.  Yesterday they raided silver in the Globex and beat it down so if the SLV was live it would have traced a low below my actual target. I think they are done selling and we go back up to the recent high of 37.5. No position in SLV.

So they printed a reversal at the 50 like I mentioned in previous posts, were are still in an uptrend, excellent support at 36.5, picked up some physical yesterday.

The red line shows you what these SOB's do when volume is low and they can cheaply  and quickly take Silver down.  You'll notice they took it down to 36.5, why not lower you ask because there are a ton of buyers sitting there!  Bottom line Silver needs to hold 36.5 or we go to 34. On the up side we could go to 38.50 by Tuesday, the real test will be building a base higher than 36.5. Today is an important day for bulls and bears in Silver.

SPX Recap: Beatdown

So much for four days of gains. The SPX was hammered losing 30 points after China's economy cooled, poor ISM and ADP data. The US economy id falling off a cliff and there is no end in site. That coupled with the expectation that QE will end June 30th the algo's were selling everything. The selling was orderly and without panic, only two ticks greater than a 1000. 

Volume was heavy during the sell phase of todays session

The advance decline line is still in an uptrend, only 13 issues advanced while 465 were down!

Bottom end of range while the Mac O is top end of range hence up down up down craziness if you take out the computers and news and fundamentals, madness!

dollar sold off then reversed, confused?

Futures are up a little today, SPX has to hold the trendline line or look out below. Market is telling the FED it need more crack QE.

Silver Target Reached: Another Gold and Silver Heist

As I mentioned this morning (LINK) that we have weak support at 37.70 and that broke in the Globex session, funny how they wait till the volume is at its low. It drove the price to as low as 36.50 just as I promised. Picked up a little physical had to pay 1.50 over the price. Hopefully we can start moving back up overnight and close out the week above 38. In less serious news the economy has fallen off the cliff.  

Silver Update

Look at the dollar, and then look at the PM's. They should be screaming higher. Are they? Nope. This is just utter  garbage the way the CME group is allowed to manipulate this particular market. If you don't know by know why they manipulating the metals by now, I suggest you go to you tube and check out the bears video on silver manipulation. Bottom line is that JPM and three other large banks have made huge bets against silver (short) they can't possibly cover or they would go under, so they keep putting off delivery to future months. Their goal is to cause a rollover in the metals, they recently drove silver off of a cliff (down 35% in 10 days) causing the late comers and hedge funds to run away. Enough rant!

You see the rapid decent whether it be in the red, blue or green charts, the selling stopped around  37.8 over the last three sessions. Prior to that we had a massive overnight raid which got support around 36.5. So you have minimal support at the former level, hoping that hold but if it doesn't and we get a gift I'll be sure to add physical at 36.5. 

Please also note: We are right up against the 50dma, and they (Bully Banks, Banksters, whatever you want to call them) are doing all they can to hold the 50 to make it look like a failed bounce. I'm expecting a move back to 36.5 today or tomorrow early morning and then another push to the 50 by Monday or Tuesday.

Tuesday Market Recap

Not a lot of time this morning so quickly: bottom line is that the market is telling you that the FED will do whatever it can keep rates low and whether they call it QE or something else dollar debasement will continue. The risk trade is now officially back on. The dollar is being dropped like it has Leprosy  and everything expect Gold and Silver are rallying. Why, they are the most heavily manipulated markets thats why. 

The the ADX is screaming higher, SPX broke out of a short-term downward channel, SPX's MACD is about to breakout. MSI is turning up and spiking higher only bit of conflict is MO which is already at the top of its range it will be interesting to see how this plays out.

Headed for the recent lows, price action suggests that more easing coming

This is obviously the most curious and bullish development. An advancing ADX in the midst of a down move and now taking out the april highs before the SPX is extremely bullish for stocks.

SLV Hit Target

See post I wrote last tuesday (Link)

SLV printed 37.43 in the pre-market, this is a good spot to take profits if you are trading the paper.

S&P Recap: 5/27/11

Good morning futures are up over 11 points this morning, the EUR is up .75% against the USD on the the bailout of Greece and a report of decreased eurozone inflation and there is a 3.2Billion dollar deal announced as well as Asland is buying a chemical producer.

On Friday the mood was good as well due to news that EU banks may be able to avoid part of the new capital requirements. But Fitch's had downgraded Japan's credit outlook and that was keeping a lid on futures. Econimic data came out at 830am showing personal Incomes rose by +0.4% in April, which was in line with the consensus expectations for an increase of +0.4%. The March level was revised lower to +0.4%. Personal Consumption for the month rose by +0.4%, which was a tenth below the expectations of +0.5% and also below the March revised reading of +0.5% The Core PCE (inflation) came in up +0.2%, which was above expectations for +0.1%.

Friday's session began with an upward gap and proceeded to move up but reversed at 10:00 am to test the morning lows. After a quick successful test, the SPX moved higher and put the high of the day on the chart at 11:23 am. Traders seemed to leave for the weekend as the rest of the session drifted slightly lower. It was a tight range low volume session but the indices held their overnight gains.

So we have had the fourth consecutive down week for the SPX but the total losses when all said and done were minor, SPX only losing 32.51 points and th the total losses for the past three weeks have been a paltry 9.10 points. The Advance/Decline Line has increased by 2,688 over the last three weeks! Breadth is advancing while the market is declining; this is often a bullish sign.

MSI still at the bottom end of range

Volume Friday was among the lowest of the year; even lighter than Thursday. While the intraday volume pattern Friday shows increases in volume on the market down moves it is difficult to place much of a value (significance) due to the dearth in volume. Looking at the Breadth Indicators once again they show mixed bag, which may be due to the choppiness we have had. Its is strange though that the MO (McClellan Oscillator) has managed to climb three quarters of the way up in its range while the MSI has done nothing, don't know what to make of this.

USD and Related Issues

Something is happening to the dollar, as I told you three days ago when there was an inside down day printed it ran into resistance 76.25-76.5 and now right at the 50dma. Sure looks like the money printing will continue in one form or another.  

The gold chart looks amazingly bullish, tested 1515 intra-day and then just took off. 1545-1510 next target.

Previously this has had no trouble clearing the 150dma, it should be above it early on Tuesday. Everything is lining up nice, with gold strong, dollar weak we should have a nice week when  the market reopens.

CCI broke out of its trading range and closed at the high of the session.  Next hurdle is the 50dma. RSI and MACD are bullish as well. With the fed Bullard's recent dovish comments CCI gaining momentum. 

I'm surprised oil isn't spiking up with the movement in the dollar.  Traders seem to be leery of the politicians  and further margin hikes. 

Copper chart looks very bullish as well, just getting through the trading range up against two major averages, if it clears those

 

Saved by the Fed again and again. Thats why you can't short this beast. I had been try since the summer of 2010 and losing. Thats why I gave up. This will rise along with inflation.