Gold and Silver in Dullsville

So much for the expected volatility. After all the wailing and grinding of teeth over Greece, the market impact was negligible. U.S. stocks and bonds have been in a quiet, tight range all day. Yawn. However, the lack of buying enthusiasm allowed The Cartels to press their advantage in the PMs and down they went.

Really, it seemed that the only things moving today were crude, gold and silver. I guess I can kind of see a scenario where one might sell both crude and gold but silver, too?? It just wreaks of the continued, repressive and nasty manipulation scheme we are all sick of. If gold and silver were simply left to trade freely, today might have held the same boring, flat trading that we saw in stocks. Instead, when crude sold off, The Cartels attacked and tried to shove both metals down and away from the resistance levels against which they were beginning to press up. Fortunately for us, both metals eventually found some significant buying support and now those levels should serve to contain further Cartel advances later tonight.

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With today behind us, the question becomes: What will the rest of the week hold? Well, keep in mind how rarely the metals trade in the same direction all week. If Monday and Tuesday are UP days, Wed-Fri usually feel some pressure and vice versa. Last week was your latest example. Today, the metals we pressed lower BUT they both found solid buying support. This should make the remainder of the week set up favorably. I'm still highly confident that the lows for this "manufactured correction" are in at 1680 and 32.80 but, clearly, in this post-Greece environment, anything remains possible so we must remain on guard.

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Only one news item for you and it is linked below. Again, all the talk about resumption of overt QE is just simply nonsense. QE is ongoing and infinite as the U.S. government ran a $232B deficit in February alone!

http://www.zerohedge.com/news/us-rakes-largest-monthly-deficit-history-2012-tax-revenues-net-refunds-trail-2011

That's it for now. Today was so boring that I simply don't have the enthusiasm to continue. More later if conditions warrant but I'll most likely file another update in the morning.   TF

389 Comments

bellyacre's picture

FIRST

FIRST

Dr G's picture

Good on ya, bellyacre!

Good on ya, bellyacre! No movement today, seems like everybody is sitting on the sidelines. Waiting for the FOMC meeting tomorrow? Who knows.

Crude sold today, but I think the long-term chart is ultra bullish. Big moves coming in crude.

garrylindsay's picture

AAPL up another 1.25%...

....all is well in Ponzi land!

joehappen's picture

Number 5, earliest for me yet!

Cool, number 5. Im waiting to see if I will ever be 1.

TA makes my head spin and all the other stuff I read day in and day out.  Now back to reading... and waiting to get my head above water even after buying all the dips, so sad.

Michael's picture

The "Sucker Punch"

One cannot deliver a sucker punch if the victim is expecting it.  The most effective way would be to lull the target with thoughts of calm and joy, rising stock prices, and little problem with those pesky Greek defaulters.  After all, CDS's didn't mean a thing and we cleaned up well behind AIG, right?
 
Most of you won't be fooled into complacency, but that does appear to be the order of the day.

"...paper is paper and money is money." - Thomas Paine

Dr G's picture

Yeah, except AAPL is THE most

Yeah, except AAPL is THE most undervalued company out there. The P/E ratio is ridiculous. In reality the stock should be over 700.

They make products that people want. People line up for days to purchase their products. We all have their products and use them on a daily basis. So many people want their products that they can't make them fast enough! I don't get the bashing. They provide employment, and their products have bettered my life. 

My new iPad will be at my house on Friday, and I will thoroughly enjoy using it. My kids will love using it. It will be a blast.

I'm all for hacking on the worldwide ponzi scheme, but Apple isn't a part of that for me. I'll rip on BAC and financials all day long. AAPL isn't destroying our world.

EDIT: on February 2 some Turdites were discussing shorting AAPL. I told them they would be crazy to do so. I hope they didn't do it.

sevin's picture

AAPL

Dr. G:  AAPL should easily be over 700 a share. I think Apple TV has a chance to push the company to a $1 Trillion Market Cap.

iceman321_2k2's picture

Bulls Still Strong

"According to Bloomberg, hedge funds decreased bets on higher commodity prices for the first time in seven weeks.  This comes shortly after China cut its official economic growth forecast to 7.5 percent this year, the lowest since 2004.  While money managers slashed bets on copper by the most in two months, demand for precious metals remains strong.

Data from EPFR Global, which provides fund flows and asset allocation data to financial institutions around the world, shows that investors placed more than $200 million into commodities in the week ending March 7.  However, investors placed $404 million into gold and precious metals funds."

http://wallstcheatsheet.com/investing/are-investors-still-bullish-on-gold.html/

I agree with Dr. G on AAPL, far worse companies out there than Apple.  At least the consumers know what they are getting with Apple.  Bank of America customers have no idea what's going on. lol

ClinkinKY's picture

@ Dr G--Yeah, except AAPL is THE most...

I wish I'd listened to my son last year. He buys the "fruit". I buy the metals.

tmosley's picture

This isn't a market, it's a

This isn't a market, it's a kid's game of monopoly.  The real buying and selling is happening directly between the producers and the users at this point.

Unfortunately, there is no price discovery there.  Just a bunch of individual transactions with limited data transmitted to either producers or users.

This is not a sustainable system.  It will collapse, or industrial society will.

Kcap's picture

Dr. G and AAPL

With all due respect. (This does not apply to 1985 AAPL)

(2012) AAPL is a disgrace to humankind.  The stock, suckering people in for the drop, and the company.

Why?

They have indeed created a product everyone loves and relies on.  Do I use one?  NEVER.  I won't fall for it.

Fall for what?

The fact that your relatively inexpensive enjoyment of a product that many rely on comes with great sacrifice by a group of humans that you have no contact with or any emotional ties to.  Therefore, it is out of sight, out of mind to you.  These special people are probably wonderfully creative and uniquely special in many of their own ways.  But they will never be recognized for those traits.

Why?

Because FoxConn has them lined up as servants and slaves to the AAPL master.  They work for pennies on the dollar, sometimes up to 14 hour days and 6-7 days a week, doing the same monotonous, redundant, brain killing work over and over and over again.  They threaten with mass suicide as they have woken up and understand their conditions of employment are a death sentence.  But, ultimately I think they know they are worth more and don't follow through.  Change in coming to them.  And its coming soon.

Don't short AAPL?

Please.  You are showing complete ignorance now.  What because everything looks all rosy and the P/E says don't sell?  Seriously.....have you learned nothing of history?  Is "its always darkest before the dawn" the only side of that realization you know?  Flip it around and tell me that doesn't apply today.

Just for the very simple reason of humanitarianism only, you should NEVER use AAPL products.  Yet, you just simply may not care one iota about what I have to say.  In that case, you reap what you sow.

If you do...think twice about doing anything with AAPL.  Their day of reckoning is fast approaching.

Kcap

HeNateMe's picture

@ Kcap

I think you may have just kicked a hornet's nest with your response.

I don't agree with you and find your response to lack any substance.  However, it is full of a lot of dramatic phraseology. 

My brother is an Apple employee and is treated quite well.  His job provides food and shelter for him and his family.  Obviously he is out of sight and out of mind for you and for all others who want to destroy AAPL.

HeNateMe

Number 47's picture

Foxconn employees don't just

Foxconn employees don't just threaten suicide. 18 have so far thrown themselves to their deaths from the roofs of that disgrace of a workplace. The deaths may have stopped but this has more to do with the safety nets that now make sure if you jump you won't die. Same kind of technology they use in prisons and mental hospitals.

Apple and it's customers should take a long hard look at themselves, for every fashion accessory bought there is a multitude of suffering behind it.

Technology is great, making it into a fashionable toy and paying over the odds for the brand is something I will never understand. I don't have bells and whistles on my hammer, it's just a tool. I guess I'm lucky, advertising and marketing doesn't affect me the way it does others. It affects me more like this.

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Kcap's picture

Henateme

I don't want to destroy AAPL.  I don't need to.  They will destroy themselves.

I do in fact care about your brother, especially if he was treated like any FoxConn employee.  But he isn't.  Does he work in China?  No he doesn't.  How do I know?  Because if he did, you wouldn't say he was treated well.

Allow the hornets to swarm my good fellow human.  Light should be cast on this.  Perhaps one day it will shine into the dark caverns that keep you unenlightened.

Kcap

ClinkinKY's picture

@ Kcap--Dr. G and AAPL

How are you enjoying your Volt? Geeze man, lighten up.

sdstacker's picture

AAPL

While the Foxconn conditions are pretty sad deplorable, that's legal in China.  As far as I can tell with Apple, I haven't seen them (or Steve Jobs) connected with the global conspiracy - someone please correct me if I'm wrong.  Sure they are greedy scumbag assholes , but at least they haven't been secretly poisoning our land, sea, and air, in an effort to reduce global population.  I remember when when corporations were all about maximizing profits, and not trying to kill us.

Kcap's picture

Lithium

It is warm and sunny across much of the nation.

I would expect this denial and lightheartedness about such a serious issue today.

I am sure the chemtrails are laced with something special this week, help keep the sheep in line.  They are flying a mile a minute today.  Look up folks, look up.

Sigh.

Kcap

Kcap's picture

sdstacker

You're right.  24 hours/day being attached to media and radio frequency running through our brains full steam along with constant distraction from what is important and vital to a virtuous life is healthy.  I forgot.

Kcap

ps. Wow, we are degrading quicker than I thought.

ClinkinKY's picture

@ Kcap--AAPL

Who do you think assembled the computer that you just posted your response on? AAPL gets the attention from your ilk because they're "successful". Last time I checked, this was a good thing.

tmosley's picture

Kcap: If you are using, well,

Kcap:

If you are using, well, anything, you are likely using Foxconn labor.  All the computer manufacturers use them.  

Preferentially avoiding Apple products for other things that are made by the same manufacturer won't do anything.  You are better off owning some of their superior products and complaining to them via email, calls, and faxes.  Boycott their high margin products (ie the Ap Store, iTunes, etc), and let them know why.

Apple is a big enough customer to Foxconn that they can force them to change.  Simply dithering from one Foxconn customer to another won't do a thing.

Dr Jerome's picture

More on Keynes (pun intended)

Thanks for that link this morning Daystar. It got me to digging around here on spring break when I do not have to grade papers and meet with students in my office. I noticed that someone else posted the entire article earlier today. The article does its best to slam Keynes, heaping sin upon criminal sin. But even if his personal life was as they say, that does not make a strong argument to reject his teachings. His ideas can be condemned on their own merit. One just has to read what he wrote.

That opening quote intrigued me. Did Keynes really say that? Did he really understand the ramifications of his financial theory? So I looked it up! In deed he did say that…and more, much more. Everyone ought to read his whole book. Click here for an online copy.  

I thought I would share the entire passage below. Keynes is not recommending that a government do this in 1920, but the context is where Keynes shows us what Lenin understood about how to ruin capitalism. Keynes is not endorsing Lenin or communism, per se, but simply explaining what happens when you de-link a currency from something of real value, like gold. But the process that Keynes describes is precisely what we talk about happening here and now. Keynes understood precisely what his system would do to an economy. Today’s economists would do well to read his work for themselves rather than a biased interpretation from a textbook or stodgy old professor!

Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealthy of their citizens. By this method they not only confiscate, but the confiscate arbitrarily; and. While the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfall, beyond their deserts and even beyond their expectations or desires, become “profiteers,” who are the object of the hatred of the bourgeoisie, whom the inflation has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month. All permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose. (pp 235-236).

But by 1944, I suspect Keynes had changed and did recommend Lenin's methods to US leaders. He knew exactly what he was teaching and what it would do to the US. He was NOT just wrong about economics. He was correct and achieved the result they wanted! Pictured is Keynes (right) with US Treasury Secretary Henry Morgenthau Jr. at Bretton Woods in 1944. I wonder what they talked about. 

Are you an economist? A professor of economics? Part of a financial think tank? And that includes you, Krugman! If you understands Keynes, then defend him, you enabler of thieves!  If not, then quit your job, you incompetent foolBehind every sociopathic would-be world ruler, there stands a genius mastermind explaining how to achieve it!

John Maynard Keynes (1920) The Economic Consequences of the Peace. New York: Harcourt, Brace and Howe.

Dr G's picture

@kcap, if you'd like to make

@kcap, if you'd like to make a rational argument against the AAPL stock, I'm all for hearing it.

Your statements about FoxConn, however, are in my opinion very ignorant. FoxConn makes products for MOST electronics corporations. They manufacturer the Kindle, Wii, Playstation 3 and XBox 360. They make products for Acer, Amazon, Apple, Cisco, Dell, HP, Intel, Microsoft, Motorola, Nintendo, Nokia, Samsung, Sony, Toshiba, and Vizio, to name a few. So given that, what exactly are you typing on right now?  Less than 15% of their workforce makes Apple products. 

People line up for hours to get employed by FoxConn. The wages paid there are much higher than other workers in China make. The suicide rate at FoxConn is lower than the rate in China in general (see http://www.economist.com/node/16231588)

So your argument is really that China is in the dumps and therefore people shouldn't buy Apple products--that Chinese labor workers should be paid the same as US labor workers. That simply is NOT how economics works. 

So setting aside your humanitarian argument (which is wrong and was aptly demonstrated as such on a recent Dateline episode), please show me how the financials are skewed and Apple should be shorted. Apple is an extremely healthy corporation.

FoxConn links:

Migrants elbow for FoxConn jobs

iPad plants are better than sweatshops

And finally, if you are really taking a humanitarian hard line stance, you probably shouldn't purchase any bullion. Have you seen mining conditions in 3rd world countries? Makes FoxConn look like heaven. Nothing like being stuck it a pit all day working a shovel in the sun so some white guy in Connecticut can purchase another gold bar to protect his family from the impending financial disaster.

HeNateMe's picture

@ Kcap

I'm sorry, but AAPL's "day of reckoning" has nothing to do with enlightenment.

What a second, is this Bill Gates?

HeNateMe 

Fred Hayek's picture

In light of the way Foxconn workers are treated

I've taken to replacing the "i" preface to all Apples products with the word "slave".

How do you like your new SlavePad, Bob?

That SlavePod sure did shake up the music industry didn't it, Sue?

The apple idolatrists I know *really* don't like it.  Kinda spurs me on to keep saying it.  Half the appeal of Apple's crap is the moronic interest in the status of each little gadget.  I wonder if they'd still have quite that same status if everyone (except the members of the apple cult, of course) started referring to them as the SlavePhone and the SlavePad and the SlavePod.  Kinda dulls that old doin' well at keeping up with the Joneses luster, doesn't it?

Try it with your friends and co-workers.

And maybe throw in some of that info from Dr. G.  They make everybody's crap.  You're not special apple user.

Dr G's picture

Fred, how are Foxconn workers

Fred, how are Foxconn workers treated poorly? Please do share. I find it absurd that you think working in a clean factory and being paid a wage (while having access to educational classes, showers, etc.) is somehow worse than being illiterate and living in a hut working a field.

The Chinese people overwhelmingly disagree with you. Please see:

http://micgadget.com/21420/thousands-line-up-for-foxconns-jobs-in-zhengzhou/

http://www.chicagotribune.com/business/ct-biz-0307-bf-foxconn-20120307,0,7695215.story

http://www.cultofmac.com/143672/thousands-of-hopefuls-line-up-for-foxconn-jobs-in-china-as-factory-ramps-up-iphone-production/

http://articles.businessinsider.com/2012-02-23/tech/31090176_1_foxconn-jobs-wages

http://pogue.blogs.nytimes.com/2012/02/23/what-cameras-inside-foxconn-found/

The list goes on and on.

Fred Hayek's picture

Denninger, over at Market Ticker told a story about Foxconn

employees being rousted from their beds at 4 a.m. and ordered back to the assembly line to re-tool it for one apple product for which management had decided it wanted to install a different screen.  In order to still meet a relatively arbitrary rollout deadline with the new screen the Foxconn employees had to put in massive overtime starting in the middle of that night.

Titus Andronicus's picture

Thanks, Turd.

Thanks, Turd.

Ubergrinch's picture

FOMC

What will be choreographed to happen when Bernanke opens his mouth tomorrow? Stay tuned to find out.

Fred Hayek's picture

Is it possible to be something less than a free person in a

clean office as much as it is in a field?  I think so.

You're really missing the point, Dr. G, and ironically, you eroded the distinction that the apple idolatrists want so desperately to preserve by noting that the same company makes devices for lots of other companies. 

The apple idolatrists act as though there's somehow status, as though they're somehow better people for buying gadget X instead of gadget Y.  Do they even realize that apple essentially copied the minimalist design principles of the german company Braun?  Their deceased paragon, Jobs, at least once showed all the cheap greed of a JP Morgan exec, getting stock options back dated so that it made more money for him.  And if he was really a genius and not just an obnoxious little snob he'd have figured out how to build things in the U.S.  But Apple desperately needed those last 5-10% of pure profit per device, didn't they?     

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