An Interesting Day Awaits

Well, what an interesting day we have ahead of us. The markets are once again in "risk off" mode as the S&P and commodities are down while gold is up. We've also got this Merkel/Sarkozy luncheon date taking place. Don't stray too far from your computer today as the action will be significant.

Here are some updated charts for you. I've moved the scale to two hours so that we can see the pop and rise off of the downgrade reaction last weekend. Both metals are in a very interesting position this morning. Gold looks primed to challenge the 1800 level again but it first needs to close above 1775. Silver is once again driving everyone crazy. Is it a commodity (down) or is it money (up)? I know what you and I think but that doesn't really matter at this point. If silver is going to move higher in the short term, it must break through and close above $40 first. It then must break through and close above the 8/7 evening highs of 40.40.

paper_8-16amgold.jpgpaper_8-16amsilv.jpg

A couple of other things. Lots and lots of ridiculous talk these days about gold being in a "bubble". I think I refuted that pretty well back on Sunday but here are a couple of other items for your consideration. First, a guy named Brent sent me this 10-minute presentation that he's crafted for his firm. I don't know who "Baker Ave Asset Mgmt" is and I certainly don't have any connection to them. However, this presentation is pretty well done and all they ask for is your first name when you sign up to play it. Pay particular attention to the final 4 minutes or so where Brent shows the value of gold versus the U.S. money supply. It's pretty compelling stuff.

http://play.goldmail.com/6qf6njp9w5hb

Along the same lines, ZH posted this morning the latest missive from one of my favorite "analysts", Egon von Greyerz. This guy really gets it. He writes very well and, unlike the author of the article I posted yesterday, he does it in an easy-to-understand manner. I highly recommend you take the time to read this.

http://www.zerohedge.com/news/egon-von-greyerz-too-late-jump-goldwagon

That's all for now. I've got lasts of 1780 and 39.65. Let's go get em!  TF

177 Comments

jrobb316's picture

FIRST!!

FIRST!!

Shill's picture

Interesting indeed Turd

brad_pitts_betterlooking_brother's picture

and at the bell...

and at the bell the EE lands a haymaker to Silver.

down goes silver.

it struggles to its feet and gets the standing eight count.

luckily its early in the bout and silver still has it's legs underneath.

now circling and jabbing...  staying clear of another roundhouse...

SilverTree's picture

One Ring

 

"One Ring to rule them all, One Ring to find them,
One Ring to bring them all and in the darkness bind them."

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Shill's picture

Look at them pound miners in

Look at them pound miners in the futures as well. This has become all to predictable.

Great theater for sure, I look at it as a desperate man at the end of his  rope.

Check it out

http://www.marketwatch.com/investing/fund/gdx

sevin's picture

Thanks TF! I posted this last

Thanks TF! I posted this last night, but it was caught at the end of a page and not many saw it. Any advice would be greatly appreciated. My grandma recently received a decent amount of money from my great grandmother when she passed away recently. She gets her social security check and annuity of $500 a month. This mostly covers her expenses except for taking me to eat on occasion. What do I say to convince her to get gold and silver as the older generation seems harder to convince to get PM's?? What percentage should she put into Au/Ag if I can convince her to?  Idk if i can convince her to go "all-in" I highly doubt, but would love for her to do so. High dividend paying stocks maybe??  Any advice would be very much appreciated. This community is an awesome one and I have learned so much.

Eric Original's picture

Don't really want an interesting day

Busy on the home front today.  Going to be go go go all day starting shortly.  Would really prefer a quiet day in the markets instead.  Probably ain't going to happen...

silvergoldsilver's picture

Haymaker

sustained thus far

brad_pitts_betterlooking_brother's picture

and silver fights back near

and silver fights back near the end of the first round.

bobbing, weaving and counter-punching,  silver takes advantage of the EE's arm weariness to score some points before the bell.

or is the EE just reserving strength for the next onslaught?

it's shaping up to be a great bout, but the old champion EE won't be going down easily. 

silver will need to continue to press forward in order to go from contender to champion.  And it won't want the decision going to the judges - rumors are they are in the EE's pocket.

off the stools for round two...

cpnscarlet's picture

Ron Paul - SOOO Conflicted

We all know that Ron Paul has alot (not everything) of what this country needs right now. And we're all mighty PO'd by the way the press ignores him (beng mistreated would be a step up!), but I still can't stop thinking about his other campaigns. His supporters were always energetic and on-the-spot in those straw polls and caucuses. BUT...when push came to shove and the primaries got rolling, where were the votes?

I'm not optimistic about the future simply because I remember that those of us on forums like this feel all nice and warm and "powerful" when we chat, but we are such a small group relative to the size of the unwashed ignoramuses that pass for average America. I'm ready to put up some Ron Paul signs and vote for him if he's on a ballot, but I'm really wondering about keeping my powder dry for the next (far from) best thing. Unfortunately, since Cain looks like he can't draw flies to syrup, I don't know if that candidate exists.

¤'s picture

Thanks TF

Interesting days ahead for sure.

I think some of the biggest decisions effecting all of mankind in the short term are being discussed now and a schedule for making "the" announcement about currency rebalancing will happen with 2-3 months.

The central bank monetary policies are effecting everyone I think it's safe to say.

We haven't seen anything yet, but change is coming and a radical departure from the way things used to be seems likely and necessary.

cpnscarlet's picture

Silver Haymaker????

@brad_pitt...   If that's what you call a haymaker, you have a very short memory. We've seen much worse in the past two weeks alone. This is a "normal" day.

brad_pitts_betterlooking_brother's picture

both combatants have eased

both combatants have eased back a little and are now feeling each other out here in round two.  each probably assessing their plans of attack from here... looking for the other to drop their guard.

while the challenger silver has the large crowd behind it urging it on, the EE still has Blythe Masters in it's corner, and she's been known to put cement in the gloves on occasion...

p.s.  just go with it scarlett...

Jexy's picture

Gold as a European Standard

Worth a look Jim Rickards Video interview and G20. It is not conclusive but, it does raise some interesting points.

http://www.youtube.com/watch?feature=player_embedded&v=y0b2bEY8_iw

¤'s picture

No SLW craziness this a.m.....

....to report in the call options that i watch.

@shill......it's a bit stunning to see the miners get hammered and the options etc. get tamped right down and decay backwards.

The market seems to be changing almost on a daily/weekly basis in the way things are reacting lately. It concerns me.

I've said it before on here in a long version, but it seems if TPTB want to control commodities (gold/oil etc.) and the broader markets that they would make investing in the markets so lopsided and illogical that most individual investors will just stay out of them.

That would seem to play right into TPTB hands. Eventually, they then would be able to amass physical commodities of all types (land,water also) and control the valuation of them if they controlled the markets also.

It seems like that's where we are headed as they are tampering with the price of everything  on a daily basis or so it appears.

Doesn't this seem to be underway right now?

Maybe that seems far-fetched, but if your them you need to control the very things that seem to be so important that they are willing to do whatever it takes to effect the commodities and equity prices everyday in a huge mutli-billion dollar way......everyday. I think it's already happening.

brad_pitts_betterlooking_brother's picture

and silver comes storming back!

uppercut to the jaw!

EE backpeddling to begin round three!

margaritatime's picture

Ag

Seems as if Ag is just hanging in there. Looking at the volumes I can almost imagine all the dips being bought out, slowly and predictably - but not enough flow to really boost the price. The longer it stays at this line the more consolidation that it is building. I wonder how many are taking gold profits and turning them to silver? Seems to be the curve right now. IMO silver is becoming the big white elephant in the room.

Edit: p.s. I am seeing a possibility of 40 today.

¤'s picture

brad pitt bett

Love the boxing call aspect of it.

Rolling with the punches everyday is what we do and see.

The EE vs. Me (and all of you)

Josephj36's picture

The Fed found a good use for their machines

Jexy's picture

CFTC, Do they have the resources needed to fightback for us?

Worth a look. Learned something new about the funding issue.

If you were told there is enough gold in the rocks for your lifetime and it could be seen with X-rays but, you kept from the tools to extract it; of what value is it to you or others that are also kept from the extraction tools?

margaritatime's picture

40

Just caught a bid at 40

Shill's picture

Gold, Silver and miners

Gold, Silver and miners catching some nice early action.

Looks good so far.

brad_pitts_betterlooking_brother's picture

Huge round three in the books

Huge round three in the books for the challenger!  EE looked slow, plodding, and old in this round.   Silver scored many straight jabs and a few crosses, hoping for death by a thousand cuts.

Up off their stools for round four and WHAMMO!  EE is reeling back!

The crowd is on its feet!

p.s.  TY DPH.  something different

Tesla's picture

F I N A L L Y !!!

404040.jpg

Monedas's picture

Let me save you some time, Turd !

Hoarders have more fun ! Monedas 2011 Learn it, live it, love it !

jimijon's picture

When to sell Gold.

Ok -

Here is my thinking..

1) When the banks present honest balance sheets.

2) After Dec 21, 2012. Then I will look to move it to real estate.

So, I won't be till the end of 2012 I am afraid, or happy.

- j-

http://www.mundogold.com

http://bartercalcpro.com (add a business that accepts barter!)

cpnscarlet's picture

I'll Try to Chill

@brad_pitt - Sorry...always ready to be too serious.

Tom L's picture

Serious Algo Work

in the XAU at 212.4.  Same level as yesterday.  They have to break through that or the shares are going nowhere today.  580 on the HUI.

C'mon you bastiches... get out the way.  Daddy needs a new barn!

Ta,

margaritatime's picture

ZSL

Anyone here playing it?

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