And, in a stunning development...

We don't call it the BLSBS for nothing.

Magically, less than a month before the election, the U.S. unemployment rate falls an enormous 0.3% to come in at 7.8% and the lowest level of O'bottom's presidency. All you can do is laugh. Seriously. What a complete joke.

ZeroHedge has already deconstructed this entire fairytale and if you'd like to see some honest reporting, I suggest you click the following link:

http://www.zerohedge.com/news/2012-10-05/reason-todays-unemployment-rate-plunge-part-time-jobs-economic-reasons-surge-most-qe

And since there are no coincidences, check the math on this one and ponder the likelihood:

http://www.zerohedge.com/news/2012-10-05/odd-arima-x-12-statistical-aberration

So, whatever. They can say whatever they want. Just buy some more physical today. Hope for the best but prepare for the worst.

Of course the metals were savagely beaten on the "data". Take a look at the 1-minute charts below. A couple of things:

  1. This makes 4 days out of 5 this week that prices were raided in order to keep them below critical resistance levels above which deep fields of buy-stops lay.
  2. Gold initially fell right at 8:30 but then the real hammer fell at 8:43. This attempt at a cascade was repelled though with a low of 1774.50. Why is this important? We've been watching the 1775 level all week as there are apparently significant physical bids at that level in London. So, is it a coincidence that gold stopped and reversed right at 1775? Of course not.
  3. Notice the resilience in silver during the 8:43 raid. While gold fell $12 in 3 minutes, silver "only" fell 20c.

The real story today is the continued weakness in the POSX. You'd think that after such a glorious employment report, The Pig would rally. Nope. Hmmmm....maybe those super-smart Forex guys can see through the BS after all? Look at this textbook example of a head-and-shoulders top. It's almost symmetrical in time period, too. (Obviously I printed this chart about 90 minutes ago and it is since stale in that The Pig has already broken down.)

At any rate, given the steep drop in The Pig, it's no wonder that the metals have recovered. Unfortunately, there continues to be stiff Cartel resistance selling that is capping this market. I had hoped that a buying surge on a "disappointing" BLSBS would overrun their positions but it wasn't meant to be. So, for now, we just have to be patient and hope that the metals can hold on today without further damage. Quite a few weak longs got flushed this morning on the drop from 1798 to 1775. As price rebuilds next week, much of that money will come back in and, when faced with the inexorable physical demand, 35 and 1800 will finally fail.

To that end, I am still supremely confident of an impending explosive and historic move. Delays, which I should have anticipated, have pushed back the timeline. However, the fundamental reasons for my confidence are still in place and unwavering. Vindication will soon be ours. Just keep utilizing this time to prepare.

I'll have some comments later regarding what should be an interesting CoT. For the week (9/26 - 10/2), gold rose by about $9 but total OI actually fell by 8600 contracts. Clearly there was short covering but by whom? And silver rose 73c on an open interest increase of 6000. Clearly there was buying of fresh, unbacked paper but who was buying and who was providing the paper? We'll have some answers by 3:30 so please check back later. I'll likely have a fresh, Saturday post, too.

Have a great day!

TF

263 Comments

The Green Manalishi's picture

Stunning Development

Mr. Fix's picture

Ok, I'll be SECOND today.

Unlike some days,

Today I've got something on my mind.......

Yes folks,

"The end of the Great Keynesian Experiment is upon us."

Of this, there is certainly no doubt among us.
I just got back from the post office, and picked up four more sleeves of Silver Eagles.
They are looking very nice.
Now I will go back to stocking ammo, and food.

In the past few hours, several people here have posted links to articles that I have to say, I was in agreement with nearly 4 years ago.

That is to say, I do not believe that there will be an election in November,
or even if there is, its outcome is either rigged or will not matter.

Obama is here to stay.

I would agree wholeheartedly with Turd's assessment that a Romney victory would slow down the collapse of our system.
In the past, Republican victories have always slowed our rate of descent.

Those days are over.

The only rational explanation for why Obama's performance at the debate was so amazingly dismal while simultaneously arrogant,
is that he obviously has no intentions of honoring the outcome of any election.

Therefore I would argue the opposite of Turd's position:

If there were a hypothetical victory for Obama, he would have another four years to decimate our country,
however any objective look at the situation, confirms that in actuality he does not have that long.
Virtually every single market, and or measuring stick,
is rigged to implode before the end of this year.
It's not just money, Silver, or gold,
it's food, energy, foreign relations, and national security.
They are all being glued together with bubblegum and spit on until after the election.
Anyone that believes that Romney can put this back together is delusional at best.
The damage inflicted by our current administration is far too severe,
and it is not accidental.
This system is rigged to collapse, and probably within the next month,
maybe two at the very outside.
And don't forget,
even if Romney wins,
Obama is still president until January 20.
Dues anybody really expect him to just play nice and walk away?

It is not in his nature. (Here, I am being uncharacteristically polite)

This is of course MainStreet, and Turd would like to keep it clean.

For the past four years,
I have treated this particular month, as my outer limit in the time that I would have to prepare.
I am as ready as I will ever be.

Of course, we will all be sitting here waiting for the explosion in the price of gold and silver.
Mathematically, that is unavoidable.

But just remember, that explosion will also mark the collapse of our system,

And there will be some incredibly nasty consequences to that.
For those that have said “this will not end well”,
I belief that to be a massive understatement to say the least.

I am incredibly grateful to Turd for a establishing this particular safe haven of thought and companionship.
Many people with open minds have learned many important lessons here, including me.

Turd will be responsible for saving many lives, and I am not simply speaking financially.

Just my two cents worth,
carry-on.

Cordially, Mr. Fix.

Istack's picture

Will the tide turn today?

Jdawg's picture

3rd

wow  7.8

The Green Manalishi's picture

Jim Comiskey Metals "Unemployment Cooking Class"

Jim Comiskey Metals "Unemployment Cooking Class"

HeNateMe's picture

Confidence!

Wonderful Turd!  Glad to here that the explosive move is still forthcoming!  I am confident in the metals' fundamentals right now not even considering an explosive move so your confidence is the cherry on top.  Thanks for all your hard work.

HeNateMe

Nana's picture

Cartel Dumps 1.5 x US Annual Silver Production on Futures Market

http://www.silverdoctors.com/cartel-dumps-1-5-x-us-annual-silver-production-on-futures-market-in-5-minutes-on-nfp-release/

Cartel Dumps 1.5 x US Annual Silver Production on Futures Market in 5 Minutes on NFP Release

In an attempt to flash-smash silver and prevent a weekly close above the critical $35 level, the cartel dumped an estimated 51 MILLION OUNCES of paper silver on the futures market in only 5 minutes on this morning’s non-farm payrolls release between 8:30 and 8:35 AM EST.

Net Dania’s spot silver chart, which is not a precise futures volume measure but approximates the volume, indicates nearly 10,500 contracts were dumped in a span of merely 5 minutes, and half of those were dumped in a span of 2 minutes between 8:30 and 8:32am EST......

Mantis's picture

Historic moves

Feels like the cartel are hanging by their fingertips. Must . Not. Let. Silver. Rise..

Those metals really want to fly. 

Nana's picture

Don't Forget Extra Shoes, Socks and Undergarments

Take care of your feet and your feet will take care of you.

dropout's picture

What - EVER!

Right on Turd! What ever indeed.

The department of BLSBS was surely using all their imagination on this phoney report!

So, heres a song for them on this BS Friday.

SRSrocco's picture

TO KEEP IN THE THEME OF FAIRY-TALE NUMBERS...

OPEC BELIEVED TO OVERSTATE OIL RESERVES BY 70%

TORONTO (miningweekly.com) – Analysts at a New York-based research firm believe that the Organisation of the Petroleum Exporting Countries’ (Opec’s) global oil reserve statements could be inflated by as much as 70%

Oil, gas and mining analyst Rick Nariani said Opec’s stated reserves skyrocketed from 878-billion barrels to 1.2-trillion barrels throughout the 1980s and 1990s, without any new significant discoveries being made. With cumulative oil production of 449-billion, the true reserves for Opec could be as low as 428.94-billion, which would result in global price shocks by 2020.

----------------

Of course, this news is not new.  However, it reminds us how countries' governments can play with numbers to make something appear better than it really is.

The Green Manalishi's picture

Dominic Frisby on why our money is diseased

Dominic Frisby on why our money is diseased

and in need of reform

I think his book will be a very interesting read.

Istack's picture

BS indeed

Zoltan's picture

Lease Rate Spike

Well I guess I'm down to just over 300 on my batting average.

Lease rates didn't spike down as they  have on the sixth of the month in the past.

Gold Lease Rates

October 05, 2012
1 m -0.1815% +0.0067
2 m -0.1505% +0.0037
3 m -0.1107% +0.0053
6 m 0.1239% +0.0085
1 y 0.4245% +0.0013

On the other hand  look at Kitco's new temp.  She isn't very good with numbers, and can't type either, but hey, WHO CARES.  She may be to blame for S Roche's bad data feed theory.

Z

15.jpg

4th Dan's picture

New Longs Sucked In Before the Hammer Drops?

REPOSTED FROM YESTERDAY (THURSDAY)

Right, wrong, or indifferent... here's my opinion on today's price action and what's in store for us tomorrow. 

My assessment is actually based on recent observations from none other than Mr. TF himself.  In a recent post of his (maybe a month or so ago) TF observed that often times the day before a big news announcement was to be made, such as a jobs report, the price of silver and gold would rise in order to intice and suck in new longs just before they drop the hammer on the following day.

If the price of silver and gold fell the day before the news announcement, it could actually be a positive sign as the Cartel is attempting to dump some of their short positions because they know the price is going to rise when the news comes out the next day.

Okay, so POS and POG were both strong today, we know that the Cartel has accumulated massive short positions, and big news days are a great day to drop the hammer on us Muppets.  So if I had to make an educated guess, I am of the opinion that the hammer drops tomorrow. 

For us guys and gals who have been patient for many years, I hope that is not the case and that we stick it to these rats, but based on past experience, I am not overly optimistic about tomorrow's price action.

Turd Ferguson's picture

Pissed and frustrated

MODERATOR

I know many of you feel the same way.

Clearly the BLS data is a farce. Out of the blue the biggest jump since 1983?? Seriously??? And then the metals are smashed regardless of the drop in The Pig.

Do what I just did. I just bought a single, solitary 2012 Canadian gold Maple. That just reduced their future leverage by 1 contract (1 real ounce taken off the market = 100 ounces of paper. Just ask Jeff Christian. He'll tell you.)

You simply cannot let days like today distract you from your ultimate goal. The financial protection of you and your family from the ravages of what is to come.

Even if you can't afford a gold coin, go buy some silver today. You'll feel a lot better, trust me.

Nana's picture

Please Listen

tread_w_care's picture

Eagles or Maples?

Monster Box; caveat, very likely this cache would be used for resale into whatever fiat option happens to be de-rigeur at the time (short horizon 1-3 years).

Yes, it's a risky bet, and I'm leaning heavily to Eagles (this would be U.S., Flea-bay perhaps, local, depends).

What sayeth the Turd collective wisdom?

Mr. Fix's picture

That reminds me......

Pissed off and frustrated is how I felt when I was playing with leverage, and paper.
Especially the morning of May 1, 2011
I would agree wholeheartedly, I feel much better now that I simply stack.
When I see charts like this mornings,
it almost brings a smile to my face.
Trading this particular market, is just a way to lose all your money.
In fact those traders will be far less prepared for what is coming
then if they had never even tried.
Thanks Turd.

achmachat's picture

@Zoltan

Christina Hendricks works for Kitco now?!

Beastly Stack's picture

Turd & Stackers

I am sitting here watching the BS.I have been trading futures 12+ years.Once you understand that no matter how good of a trader you are,you can get wiped out on one single bad day,the better off you are!

Add to your stack and do not get caught up with all this BS!I was a little tiffed that I missed oil yesterday but I don't let it get the best of me-look at it today.Hey BagofGold your platform went crazy this week,Cheers to that!

For those traders who care-I am basically trading long only except for Bonds and YEN.If you think you can trade the metals both from the long side and short side you are doomed for failure!

These markets are wild and I believe we have not seen the wildest yet,BE CAREFUL and PATIENT.The markets will be here next week and we will all get opportunities from the other CRAZIES who trade the same markets!

I was not in any metals B4 the job report,I guess my experience told me to stay sidelined and watch.I did buy Gold at 1787 and exited at 1786 after about an hour.I am in cattle and corn and am going to buy more corn right now to the end the week.I look forward to watching how the Metals close and the BS they pull during GLOBEX.

Turd,your a great American.

Everybody else,add to your stack,heck I may sleep with some of mine this weekend!With the wife of course!

Good weekend to all!

Nana's picture

On Edge

Is raining here but the thunder is not normal, it's a deep rolling shaking thunder. Something is definitely not right here...cat is acting strange too...

Maximillion's picture

Doing my bit

Just bought 20 silver mexican libertats, can't afford gold:( but I care not about this bullshit Cartel paper shenanigans, especially as JPM will now have to find 200 more real silver ozs from someone else to deleverage my buy:)

Bollocks's picture

Could someone please explain to me...

... why other trader's "buy stops" can be seen by all?

Turd said "This makes 4 days out of 5 this week that prices were raided in order to keep them below critical resistance levels above which deep fields of buy-stops lay."

I'm not a trader and have only very limited knowledge about it, but I would have thought that if you can see at what prices others are looking to buy at (or sell at) it would make trading a complete joke, surely?

Or have I got something completely wrong here? (probably).

Ta for any input! smiley

SuperManny's picture

Actual Unemployment Rate

Look; they can spin this B[L]S any way they want, but the bottom line is that there are 314M* people in the US. Of those 314M only 141M* have jobs.

This means the unemployment rate is 55%, using simple math, i.e. before the #s are cooked.
Now of course not all those people are at a working age, but you can easily see approximately how many people are a working age. Looking at people you know, you'll notice that around half of the population are at a working age and seeking employment. This means the real unemployment rate is around 27%!
"Just the facts, ma'am, just the facts!"


*Approximately

ag1969's picture

I bought today

(1) 2013 Kookaburra

(1) 2 0z. Snake Coin

(2) 1/2 oz. snakes for the kids

(2) 1 0z. Provident Dragon Bars for the kids

That's it for today.  I have not bought much since we left the high 20's but it is better than nothing and all I could afford today after paying the fiat cartel their monthly dues.

And yes Turd, it does feel good even though it is not a gold eagle.

On a brighter note, I got my first two eggs from my chickens yesterday.  That feels pretty good too.  There is more than 1 way to skin a cat.

These days don't piss me off or frustrate me.  No matter what the dicks do, I still have a wife that loves me and two beautiful children that I get to spend a glorious, sunny, autumn weekend with before TSHTF.  The sun comes up, the sun goes down and you only see it so many times.  Don't let the dicks ruin your day or your weekend; there is fun to be had out there in the world, and kids don't care about Blythe and her criminal shenanigans.  They do, however, really like playing with their silver stacks.  So I ask you, who is winning today?  Me, or Blythe?  That bitch needs to spend the whole weekend plotting her next crime.  Cheers Turdville!  BTFD.

BagOfGold's picture

Beastly Stack...

You said...Hey BagofGold your platform went crazy this week,Cheers to that!

It's interesting that you noticed that!...Along with my pachinko trading platform...I have an amazing trading system you might want to check out!...All you have to do is...

Bag Of Gold

ballyale's picture

I'm not smart enough to play the PM Futures...

Which are short price movements x 10 one way or the other. I know that I couldn't possibly smarter or make money that way as I'm just an average J6P.

I think the way for us J6P to go is just stack or buy GDX if you think gold is going through to the moon or buy 2 or 3 individual PM stocks like HL or PAAS or SLW. I have those in different amounts and will continue to keep them regardless the ups and downs of the day to day fluctuations. The trends are up and the trend is your friend.

It really might be as simple as that. Buy and hold, while everyone else is sell and see their Fiat decline even more. PM's in a inflationary period generally do very well as at least a source of wealth store in terms of purchasing power.

We'll see.

Beastly Stack's picture

Thanks BAGOFGOLD

I'm smiling!

JackT's picture

long Tungsten

Peruvian tungsten miner has "big plans for the future"

There are some choice quotes in here:

"While the tungsten price is relatively good compared with where it was a few years ago when China was exporting to the West (it is now an importer)..."

Interesting. Why the sudden new demand, China? Let's read on.

"Tungsten has some remarkable qualities which make it a key metal for some applications...a very high density (similar to that of gold which has led to some counterfeiting of gold bars..."

LOL! "some applications", indeed.

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