Another Happy Tuesday

first to say first?

http://www.marketwatch.com/story/will-the-europeans-have-to-sell-their-gold-2011-12-20

GDX up 3.5%, GDXJ up 5.2%.  There's life in these crappy pieces of paper yet!

Were the bars of silver uniquely identifiable? I ask this because I recall a bankruptcy case in Johannesburg many years ago. A company selling fridges went bust. A lot of people had placed deposits on fridges - were awaiting delivery - and figured that therefore they had some sort of title to a fridge. They were wrong; they were classed as ordinary creditors.  But one chap had placed a deposit on a fridge with damage -  it had a big scratch and he negotiated a discount. The judge reasoned that because this fridge was identifiable, the buyer had a lien on it. I was just wondering how it works in American law.

On a happier note, I see thinks are bucking up!

Happy Tuesday for sure. Glad I stacked last week.

Intereting to see price action in BAC. How long can the plunge protection Unit keep the price up. Uncle Warren can't be happy! But, hey, it's only paper right? Right?

Happy Tuesday indeed! It's always a good time to remember that the prices of the metals are 100% false. Once the system collapses, we will see the true value of that which we hold.

Bought some silver yesterday for $31.20 out the door, Maples, and it's been a while since I've paid that little for them. A truly great gift for me!

Gold in $ versus gold in £ Sterling

Spanish auction was surprisingly strong. 

Helps rally the markets. 

Rallying markets saves BAC . 

Wonder who was buying at the Spanish auction?

Last time it hit $5, BAC rallied to just shy of $6.  Ride the rally, then reinitiate the shorts/puts.  Same trade as three weeks ago.

$5,000,000,000

A week ago, we touched upon the likelihood that the recent gold sell-off was driven primarily due to a quirk in liquidity provisioning in which gold plays a key role via its "forward lease rates", or the Libor-GOFO differential. Specifically, in "As Negative Gold Lease Rates Collapse, The Gold Sell Off Is Likely Coming To An End" we said, "In a nutshell, negative lease rates mean one has to pay for the "privilege" of lending out one's gold as collateral - a prima facie collateral crunch. The lower the lease rate, the greater the use of gold as a source of liquidity - and since the indicator is public - it is all too easy for entities that do have liquidity to game the spread and force sell offs by those who are telegraphing they are in dire straits and will sell their gold at any price if forced, to prevent a liquidity collapse." .....

http://www.zerohedge.com/news/morgan-stanley-deconstructs-funding-crisis-heart-recent-gold-sell-and-why-surge-can-resume

None. The market rallied because of Euros being thrown about, not $.

In the past years we have seen piles of stocks sold before the end of the year.  When I look at my gains and losses over this year, I do not need any more losses.  With the lack of employment, lack of capitol gains from sales of property, lack of gains from small businesses, lack of state sales & B.&O. taxes, this government is going to be on life support when they count the small amount of revenue in April.  I think I can hear those presses even from four months distance. 

Your prediction of a rally was based on short covering. Is that not another way of describing the risk-on/risk-off narrative that drowns out all others at the moment.

Here the plan:
Monday - go short
Tuesday - go long
Wednesday - short
Thursday - long
Friday - short & out.

Diamond:

RR is pretty bad at seeing markets with less than a two year window.  He missed the entire equity move between 2003 and 2007, only getting bullish in 2007, then reversing in 2008.  He is a very macro guy, IMO.

I love him anyways.  His wisdom is fantastic.  How many folks have been in the markets since the 50's?  Flown bombers in WW2?

My own worthless, 2c on the miners is that they are either going to go ballistic, which should be obvious when the hui is at 700, within the next few months.....or their weakness really represents something bigger....nationalized mines....crazy oil prices....negative factors on miners.   Just cuz you have it in the ground doesn't mean you're rich.

Who knows how badly they have been damaged by the full-tard financial system we have that allows endless short selling of SLV and the mining stocks?  It is quite frustrating that we have a system which allows such brazen counterfeiting.......yet, no one cares.

This influence will end someday...and it will be obvious when that day arrives as the hui will be blasting out of this 500-600 base....

It is really frustrating to realize that over the course of the entire bull market you would have been miles and miles ahead if you just bought gold, no miners, and didn't turn on a computer, nor read a newspaper, nor tv....or read RR....think of what you could have done with that time?????

since $ have been diverted into ETFs. If/when etfs are exposed as shams $ will go back into miners?

$.o2 (=$.005 today)

A few more days like today and some of my miners may bring me back up to even!!

 Most miners popped this morning.....but Unlike last week's breakout moves, on High Volume...... today is showing low volumes  on most .   and the move up this morning is looking like a completion, call it follow thru,  better than nothin....but looks to me like a wave 5 completion of the First wave/first thrust up, rally started last week.....and as stocks hit their resistance ceilings   now or soon.....I would anticipate a whipsaw and reversal back down in the coming days.... or at least a sideways chop here for a few days. It might rhyme with gold hitting resistance here at 1620-1630 area and silver around 30 area.

I sense it is too soon to start dancing a christmas jig and calling this a big rally.   Its a start.   I'm learning to Always  expect  the PTB  to  attack  again when the time is right.

I'm preparing for a whipsaw reversal Down ..... soon.....maybe.  to retest the lows.

Its a big up day today for the miners, for sure,  ....But ..... not all miners are participating....and some of those not  participating are Important ones like Goldcorp. and Kinross.  important to recognize because these are some of the miners which sold off alot last week ,approaching low zones, are 'ripe' for a rally....so to see them NOT rallying today is  a weak sign.    Some of the highest poppers today are the junior explorers like Geologix (21%)  Minco Silver (13%) and  JINFF (china gold international) (11%).....but other juniors are not....like Inter-Citic, Silvermex, and Andina Minerals....these have also been down  for the last few weeks and to see them NOT rallying today is a weak sign, or a sign that   its not all blue skies for  the whole sector , yet.  

Dont  get too excited over today's pop in the miners.  Its just one day   in the green that looks and feels good.   giving us back  a few pennies after taking  away  fistfuls of dollars .

An honest opinion - Anyone over 80 still trying to do the same job he was doing at 60 is obsessed or brain-locked, not objective. And even my best friends in their 80s who are still "active" have memory problems and can not be trusted to handle small details.

Remember April '10 when RR said "you won't recognize America by December". At best, too early a call. At worst, the start of poor decision making.

I agree  cap'n. sometimes ya gotta let it go.

For those of you celebrating the Festival of Lights tonite.   

GDXJ up 7.25% so far today, I guess it make sense when everyone on a gold site hates gold mining stocks, the move begins!!