Cure For Boredom

Not only is a "Storm Of The Century" ready to form and hit the U.S. east coast early next week, the "Storm Of The Century" is suddenly building again in Greece. Yikes!

Here are your salient links. First, the meteorological phenomenon. Hurricane Sandy is set to merge/combine with energy typical of a "Nor-easter" this weekend. The storm is then set to turn left and head toward the Jersey coast sometime on Monday or early Tuesday. See this:

http://www.bloomberg.com/news/2012-10-25/u-s-east-from-washington-to-nyc-at-risk-from-hurricane-sandy.html, this: http://www.weather.com/news/weather-hurricanes/tropics-scenarios-us-threat-20121022 and this: http://www.nhc.noaa.gov/storm_graphics/AT18/refresh/AL1812W5_NL+gif/204249W5_NL_sm.gif and this: http://www2.ucar.edu/atmosnews/opinion/8192/more-perfect-storm

Now, lest you think I've suddenly changed my name to "Turd Cantore", there's also a monetary phenomenon to worry about in Greece. This was supposed to have been papered over for a while...certainly until after the U.S. elections. Oops. See this:

http://online.wsj.com/article/SB10001424052970203937004578079070389572866.html, this: http://economictimes.indiatimes.com/news/international-business/greece-debt-extension-could-cost-up-to-30-bn-euros-source/articleshow/16966773.cms and this: http://www.zerohedge.com/news/2012-10-26/greek-deadline-sunday-evening

All of this means that we are likely entering into a period of significant volatility in the metals markets. The good news, for us, is that the metals are entering this phase after having already been pushed back to support levels that indicate an end to this current "correction". Of course, anything can happen and I may end up looking like a complete idiot (again), but all indications are that we have reached a bottom and have completed this mirror-image pullback to the QE2-rally pause of January 2011.

Let's start with silver where the technical picture is slightly more clear than gold. Look, first, at this 2-hour chart. You can plainly see the obvious support at $31.60 - $31.70. Four attempts have now been made this week to breach this level and each wave has been repulsed. Now, once silver trades back above $32.25 and then $32.50, the pressure on the recent shorts will begin to increase. Some will begin to cover, the rally will strengthen and, soon, the bottom will be clear to nearly everyone.

And you can clearly see the bottom forming on these next two charts. The 6-hour chart reveals the downtrend line from the highs on 10/4 and the daily chart shows that we have completed an almost perfect and "textbook" example of a 50% retracement.

The gold charts look pretty good, too, though not quite as clear as gold seems to be trading about 24-48 hours behind silver. This is a little odd in that gold usually leads the trade. Whatever. The gold chart also shows that a bottom is forming/has formed and a move higher next week will confirm the lows.

So, relax. Keep the faith, be happy and buy a little more physical today. If you live on the U.S. east coast, head out to Lowe's and Costco and prepare to hunker down. If you live in Greece, buy yourself a stock of gyros and ouzo and consider taking the next week off.

I'll be updating things throughout the day, including thoughts on the CoT when it's released, so please check back later and review all of the comments. Have a great day!

TF

391 Comments

rpboxster's picture

first?

still looking for comments on the plan for the end.

Kcap's picture

You know what happens when I post first!

Remember?

Kcap

edit:  close, perhaps it won't happen this time!

Big Buffalo's picture

Dang It!

Dang it, dang it.

dgstage's picture

Your Early Today

Thanks and have a great Friday! 

beinki's picture

No FRN's at BofA very funny, enjoy

jb's picture

Top ten, that's a first

Top ten, that's a first

Air Garcia's picture

silver will never trade above $36USD again.

There, I said it. Prove me wrong. 

sir's picture

Lift off

Turd posts, everyone gets re-assured and buys the bottom, silver goes up 60c, weekend is happier!

Turd Ferguson's picture

"Prove me wrong"

MODERATOR

I don't have to. The market will.

Just A Regular Guy's picture

@ beinki

Haha, genius! smiley

Groaner's picture

As soon as gold hit 1720 there was a spike in volume

downside of course..come on baby,, smack it.

silverace's picture

Well said!

I like your style.

Air Garcia's picture

It's just all bullshit...

Greece was to implode: Gold/Silver were going to explode

QE1 came: Gold/Silver were going to explode

QE2 came: Gold/Silver were going to explode

Op Twist came: Gold/Silver were going to explode

QEInfinity came:  Gold/Silver were going to explode (all the way to $36) then crushed

Greece is going to implode again: Gold/Silver are not going to explode

The elections are going to come and go:  And gold and silver are going to get CRUSHED

That's how I see it. Unfortunately, i'm a little pessimistic about all the BS in the system. They run it, they rule it, they own it and they won't let it get out of the bag again.  JPM and the Fed are bosom buddies.  We're like ticks that get squished on a hot summer day.  We're meaningless.  

¤'s picture

Massive Hurricane

Hopefully nothing even remotely close to Issac materializes.

Everyone stay safe and have a great weekend!

This feature-length special based on Erik Larson's book "Isaac's Storm", weather experts, historians, and survivors' descendants guide us through that horrific day that claimed over 6,000 lives which even compared to katrina and other storms, is till the nation's worst natural disaster.

September 8, 1900, began innocently in the seaside town of Galveston, Texas. Even Isaac Cline, resident meteorologist for the U.S. Weather Bureau failed to grasp the true meaning of the strange deep-sea swells and peculiar winds that greeted the city that morning. Mere hours later, Galveston found itself submerged in a monster hurricane that completely destroyed the town and killed over six thousand people in what remains the greatest natural disaster in American history.

Groaner's picture

Hey Air

That's exactly what the cartel wants to hear.. people like you giving up... thats their job

Air Garcia's picture

response to turd.

I've been hoping you're right for quite a while. And you have been.  Time is running out. The system will implode and THEN gold and silver will explode.  

¤'s picture

Just out

BREAKING NEWS:

Former Italian Premier Berlusconi Sentenced to Four Years for Tax Evasion

What a pompous idiot....

berlusconi2.jpg

Groaner's picture

I know I hit the Cartel where it hurts the most

I have taken lots of physical off the market, 

I have 3 gold caps on my teeth now.. 

Groaner's picture

Prosecuting the Elite?

I thought they are all untouchables.

Timmy didnt have to file taxes for years, big deal..

Monedas's picture

The Great Compromise !

Katie, your self-respect and honor are not for sale !  Send the tainted coins to Barack Obama to pay down the national debt .... or to fund the "School Breakfast, Lunch and Dinner" program .... he'll keep the money .... like Bill Clinton did !  You're so much better than that !         Monedas        1929         Comedy Jihad There I Fixed It For Ya World Tour    devil

mack's picture

stacking

look for the silver lining in your life and keep the faith

Battle Beagle's picture

Ned's and Andy's Silver Exchange

Turd,

Will Ned's and Andy's silver exchange become operational this year? I know they were talking by the end of the summer, but that never occurred. I was just wondering if there were any updates?

Thanks,

BB

Air Garcia's picture

btw, i didn't say the word 'turd'

In any of my posts so don't perceive them as an attack on you. You don't control the markets.

DayStar's picture

Air Garcia

Yes, the elites own the system and they whip it this way and that at their whim, but even they have to live in the real world, and the real world has only so much metal.  When it becomes obvious the real metal is gone and the manipulated prices are, well, manipulated, then the physical markets will go crazy whether the paper ones ever do or not.  If you are playing the paper game, you truly are going to get smashed, as the metal will not be there, and, yes, the value of paper WILL "get crushed".  However, if you hold your PMs in one hot, sweaty palm, and your .45 in your other hot, sweaty palm, you have much less to worry about.  If your PMs are in a vault somewhere "over the rainbow", well, good luck with that.  If you take possession of your PMs, we may be like ticks that get squished on a hot summer day to them, and we may be meaningless to them (but not the One that really counts), but it is the best shot you have of coming out with anything from this mess they have brought upon us.

DayStar

robov's picture

Obvious Capping

the last two days at 1717 level gold and 32.25 level silver. What's it going to take to break through these levels?

Dr G's picture

For any newbies, the Kitco

For any newbies, the Kitco 3-day chart (an easy one to look at) shows an excellent example of support and resistance. You'll note that yesterday silver tried to clear 32.20 roughly 30 times (literally). Then this morning you will see that silver cleared it, was knocked back down but stopped at 32.20, and moved up again.

What was resistance yesterday has become support today. Perfect example.

Live 24 hours silver chart [ Kitco Inc. ]

California Lawyer's picture

I Wonder . . .

From Drugde this am:

http://www.telegraph.co.uk/news/worldnews/europe/belgium/9634530/British-ExxonMobil-oil-chief-assassinated-in-Brussels-street.html

Too coincidental.  Brussels is full of sovereign types, politicians, real bad guys.  So why an ExxonMobil executive?

Two things:

(1) No doubt it is a professional hit.  But why him?  Is there anything about this that is related to gold swaps?

(2) Is this a "sending a message" type hit?  As in: "do what we say, or else you will end up like him" type hit?

Hmmmm?

P.S. Turd, fantastic post.  Great charts, once again, proving the value of technical analysis in a manipulated market.  Keep up the good work.  Thanks again.

achmachat's picture

Ned's and Andy's Silver Exchange....

... will be very very successful for the general public if people are interested in physical silver.

why is that? well, right now there's at least a few gold shops in every shopping street in China, and they're quite successful because in China people still see Gold as a stable way of savings. Each one of those shops also has a silver corner; but boy is silver expensive there! Everything silver is at least twice of spot price, which you figure out IF (BIG IF!) they finally let you weigh the silver item you're interested in...

Dr G's picture

"Silver will never trade

"Silver will never trade above $36 again".

Dumb prediction because it only has to happen once for you to be wrong. Never is a long time.

Dr G's picture

And I'll go on the record by

And I'll go on the record by saying I am too dumb to understand this Greece thing. They get bailed out, they go broke, they get bailed out, they go broke. I don't get it.

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