No. Really?

In a move designed to mollify and distract, the altruistic Barclays Bank was fined today for repeatedly "sending out bursts of sell orders aimed at moving the price of gold". Ya don't say...

If you haven't seen this story yet, you can read about it here (the original story is from the FT but summarized by ZH):

http://www.zerohedge.com/news/2014-05-23/barclays-fined-manipulating-price-gold-decade-sending-bursts-sell-orders

So what are we to make of this? It's quite simple, really. This is designed to deflect and quiet the inquistors:

"See! We found the problem. One rogue guy doing devious things. We fired him, though. That's just not how we do business here at Barclays. No, no. Everything is on the up and up. And don't think for a second that our co-conspirators DB, HSBC, Scoshe and JPM would even consider doing anything like this. Nope. Just this one guy. A bad apple. And we fired him. So there."

Look, you and I both know that this is only the very tip of the proverbial iceberg. The only interesting part of the story is that it's even a story at all. How and why the UK Financial Conduct Authority would sniff around enough to prompt this admission and firing is The Big Story. Could it be that some momentum against The Cartel may have finally begun?

And they (The Cartel) are crazy to think that this is the end of the story. Not a chance. Just like the admission via emails that they've been manipulating LIBOR was the "blood in the water" for all sorts of investigations, so will this admission be today. Today's announcement won't turn down the heat, it should only serve to increase it.

With all of this in mind, is it any shock that the metals declined over night (U.S.)? As mentioned in yesterday's podcast, the next move was going to be a drop to the bottom of the current pennant, and so it was. But price has quickly rebounded again and I have a last of $1293 as I type.

Wait a second, $1293 sounds familiar. Oh yes. We were stuck for over 12 hours in a $1.50 range back on Tuesday, only to see a quick drip to the bottom of the pennant on Wednesday. What happened on Thursday? After a trip to the top of the pennant, we were again held in a $2 range for over 12 hours. It looked like this:

Note the yellow box containing the nearly-identical action on the black chart above. Now note the yellow box showing the action since midnight last evening:

"Of course, gold manipulation was only done by one guy who worked at Barclays. But don't worry, we fired him."

Back to these "pennants". Just to remind you, we didn't just spot them being painted yesterday. Here's a chart from over two weeks ago:

I show you this to emphasize a point:

If you think this is accidental...that these points line up so clearly so that even Stevie Wonder can see the pennant...you're crazy! This is Chart Painting 101, my friend. These charts are being painted by The Manipulators. Why? Because they want the pennants to be abundantly clear to anyone who is watching. That way, WHEN the pennants are made to fail, there will be a plethora of Cartel water-carrying chartreaders out there to proclaim the bearishness of it all. Again, anytime the it's made to look this clear and obvious, you should know that something nefarious is afoot.

You might now be asking: "So, Turd, what is the right chart to watch? If this is all contrived, where is the real battle?" See below:

THESE are the charts to watch. Not the daily charts as they are so clearly being painted to deceive. Watch these weekly charts, instead. Recall that The Cartel has had ZERO success in breaking price down and through $1280 and $19 all on their own. What they are trying to do now by painting the pennants is draw in some extra Spec firepower.

IF they (The Cartel) can paint the pennants to completion and then force a break DOWN, the spec momos will board the short bandwagon again and hammer price. This is what The Forces of Darkness are hoping for and this is what the chart painting is all about.

Again, how am I so certain of this? Simply because the pennant are so blatantly obvious and clear to see. There is no way that this is being done by accident. It is purposeful and contrived with the intent to finally get price below $1280. By doing so, The Cartel will maintain their most important goal...crush and suppress western investment demand.

So, please, keep all of this in mind as you observe the action for the rest of the day and into next week and don't get too depressed. This could all backfire on them. Geo-political events could conspire against The Evil Ones and the pennants might accidentally break to the UPside. Wouldn't that be fun?!? More likely though, we'll soon see a downside failure of these recent pennants and we will then fall back to the much larger and far more important triangle patterns on the weekly charts.

Have a great holiday weekend and, if you know anyone, anywhere who is on active duty or a veteran, please give them a big thank you and a hug from Turd. They may have been pawns in the Evil Banker World Domination Scheme but that doesn't minimize their courage and willingness to serve others. They deserve our gratitude, respect and support. Always.

TF

81 Comments

CPE's picture

Pining is the man

Because it's FUBM day and I LOVE this pic!!! lmao

pforth's picture

It sorta feels like the gold price is a fish on a line...

They let us tire ourselves out against a static line (our cap) and wait for a moment of weakness (perhaps a piece of financial news that can be interpreted as gold bearish) at which point they reel it in a bit, then let us struggle against the new cap at a lower level.  Rinse and repeat.

We are waiting for the line to break and when it does, the difference in the chart will be night and day.

a

ggnewmex's picture

When the time comes

THey will have sufficient ammo to state. "It's the Russians and Chinese... blah blah blah"

One can quite easily see the manipulation of the media as well. They are only too willing to spew the theme of the day, without thought of accuracy.

I know I am not supposed to pull for the East, because they are communist and all, and indeed I am American.

But, to see the lies being told by all levels of government, and that likely goes to the East as well, it just gets

frustrating. What I do know is Who is really in charge of EVERYTHING. That gives me comfort. I also know that just like in the Old Testament times, it was necessary to discipline all the people when they got too self-serving, that same discipline WILL be good for us.

Happy  MEMORIAL day to all who served. I was not in the "sand", but rather stateside, and owe a debt to those who were actually there

Gg

StevenBHorse's picture

How to suck the most money out (Cartel edition)

Break the pennant downwards, and let all the spec money come flowing in.  Then reverse course, cover massively you own short positions, and leave the specs holding the bag.  Then the pennant will have a false breakdown followed by a sharp reversal to the upside.

Sound familiar?

AGAU's picture

"Barclays Fined For

"Barclays Fined For Manipulating Price Of Gold For A Decade; Sending "Bursts" Of Sell Orders" zero hedge

Trader Dan I know your lurking please put on your glasses get close to the screen and read this over a few times and tell us we are wrong regarding manipulation !,!,

I Would not provide a single click to log in to your site to send you this as I have stopped listening to your ravings a while back now, so Print it out and hang it over your keyboard and read again before you post any further lies ignoring the gross manipulation of these markets,!

murphy's picture

Hello all!

Just caught this April article from JC Collins. I have not been around here reading for quite some time so pardons if it's not news. It's an interesting counter argument to the metals ( which I don't entirely understand).

Does anyone know who Collins really is? Also, why is so much of his focus on Vietnam?

<snippet>

All gold, silver, oil, and other commodities and currencies will be pegged and anchored to the SDR.  As such, it is reasonable to expect that the prices which have been pushed upward to facilitate dollar debt creation will now be able to move back to a more balanced and workable range.

Unfortunately, both the mainstream media and alternative media are controlled by the same source and will ensure that the system is rigged to capture the full wealth transfer from the large disorganized massed to the small organized elite.

It can be fully expected that today China is allowing it citizens to purchase massive amounts of gold only so they can confiscate down the road under a pretext of debt and currency crisis.

Though currencies will ride the rough seas for awhile, once a full peg to SDR’s becomes a reality, many will see windfalls as exchange rates are adjusted to reflect the economic reality of production volumes and marketability.

Those who follow the mainstream news sources will take massive losses in the stock market and those who follow the alternative media will take massive losses in the precious metals and commodities markets.

It will be a full spectrum wealth transfer.  All peoples are being played in the greatest game their ever was.

And that game is setup to ensure the largest transfer of wealth in the history of the world and the introduction of a full on multilateral financial system.

Its been my contention all along that corruption is being wiped out of the old system before the new emerges for the same reason that the old sovereign debt has to be restructured, it simply cannot be allowed to function in the new system.  It would defeat the purpose of a true multilateral system.

We can only hope that the self-limiting of rent seeking which we are seeing in the BRICS countries, and other peripheral ones like Vietnam, will transfer into the new system so there is a balance between the bi-directional flow of wealth and capital between both disorganized masses and organized elite.

The last few weeks I have specifically and intentionally focused my posts on mans inward journey.  This is for a reason.  The new financial system will emerge as it is designed.  Nothing and no one can stop it.  Mere political factions in one or another country can barely delay it, much less stop it.

The old system was designed to feed on human greed and desire, as both are mandatory to support a debt based system.  I can’t say for sure, but I have reasoned that we are moving towards a production based system.

As such, man will require an adjustment to the attitudes and reference points from which he interacts with the world.  It is clear that the pattern of micro to macro which is taking place within the global financial system is also taking place across the spectrum of civilizations support pillars.

The religious, ideological, and economic paradigms are being determined for us, whether we like it or not.  This site is modestly attempting to encourage a journey of inward exploration for man so he is not lost to the world of the future.

It is often stated that you must determine your own future or someone else will determine it for you.  We must all become master craftsmen of the greatest game there ever was, which is the path of individual enlightenment.

http://philosophyofmetrics.com/2014/04/21/the-greatest-game/

StevenBHorse's picture

Nice

From zh article.

At the start of the 28 June 2012 Gold Fixing at 3:00 p.m., the Chairman proposed an opening price of USD1,562.00. However, the proposed price quickly dropped to USD1,556.00, following a drop in the price of August COMEX Gold Futures (which was caused by significant selling in the August COMEX Gold Futures market, independent of Barclays and Mr Plunkett). The proposed price in the 28 June 2012 Gold Fixing then rose, eventually fixing at USD1,558.50 at 3:10 p.m.

As noted by Turd, I'm sure that this fellow wasn't talking to other metals traders about his predicament. 

Couldn't be, not in metals, they are the only fair market in the universe.

CPE's picture

RE: The Greatest Game

that is the longest string of gobbledy gook I've ever read in one sitting.  What the hell does all that mean?  Is that guy saying he's going to sign up for the mark of the beast?

Let me summarize, everyone's wrong but this guy, we are all being played, nothing can stop it, so your screwed and you should prepare yourself in only one way, contemplate thy navel so as to not feel the raping. 

What do I win?

California Lawyer's picture

TF - Wow, Right There, Out in the Open!

I just poured a cup of coffee, getting ready for a deposition in a bit, and then I opened up the iPad Air.  Decisions, decisions, do I check email first, or open up the Opera browser?  Browser won.  More decisions to make.

I see five favorites from which to choose, which do I open?  ZH won this time, because I only have a half hour before I have to leave.  I click on zerohedge, it opens.

Then I see it!

It cannot be!  No way!

I read the headline, right there it is, displayed in cold, unemotional words on the screen.  I cannot believe what I'm reading.

Enough of that I say.

Quickly I click over to THE BEST SOURCE OF UNFILTERED TRUTH ON THE INTERNET, tfmetalsreport.

And what is the lead story, replete with expert analysis and commentary?  Why of course: Barclays busted for decade of gold futures manipulation, "banging the close," "puking" the price, options expiry, all there, explained, demonstrated, today just like every day for the past several years!

Thank you for all you do TF!

Maybe something big is afoot?

unwired's picture

Orange

I take a lot of what Harvey says with a pinch of salt... but don't get me wrong... I think he's a good guy and another one tirelessly shining the light on this corrupt 'market'.

If gold is being leased... then there has to be a price set at the time of the lease and some kind of hedging to mitigate a higher gold price when the lease is closed and the gold is returned. Of course... this is an opaque process inside a black hole in a parallel universe in another dimension..... so who knows.

If leases are expiring and gold is scarcely available to close transaction and return physical... and can kicking creates more hedging and new contracts to hold the whole mess in suspension... then who knows what is going on.

To me though... something seems wrong behind the scenes and they either putting up their last stand... or preparing some sort of new game.

bookers126's picture

What's Next

I love the silver chart.

Silver is SO compressed that any price break above $20 busts the silver chart trend line going back to 2011 (according to brotherjohnf).

The couple of crooked London silver price riggers that are still around must be a bit nervous, because now they really have to start rigging the price down down down.  

Think of it this way,  what are the odds the silver price riggers would rig the price above $20 at this point?  Oh, I know, zero.  In fact, I predict they will not rig the price of silver above $20 for the remainder of their crooked existence (August 14, 2014).

Let's see, the riggers got about 2.5 months to keep playing the game, so we probably got some more agony ahead, but probably some awesome buying opportunities too. 

unwired's picture

Friggin amazing

http://www.zerohedge.com/news/2014-05-23/putin-post-mortem-unipolar-model-world-over-give-us-our-money

But of course....

Dollar up.
US equities up.
Yields lower.
Oil up.
Gold lower.
Silver lower.

Nothing to see hear... move on.... the ONLY thing that matters are 'markets' when the USA bucket shops are open for biz.

jezfry's picture

To clarify

Turd - a week or two ago you were confident the pennants would resolve to the upside but now you expect the daily chart to resolve to the downside. Do you think this will effect the resolution of the weekly chart? In other words could the downward pressure from the daily chart break the weekly chart? If so, where do you see support?

metalsbyamile's picture

Do not ask the Madman

:Turd - a week or two ago you were confident the pennants would resolve to the upside but now you expect the daily chart to resolve to the downside. Do you think this will effect the resolution of the weekly chart? In other words could the downward pressure from the daily chart break the weekly chart? If so, where do you see support?:

He does not believe in moving markets, static  only please.

unwired's picture

This getting pretty absurd....

http://www.zerohedge.com/news/2014-05-23/russia-has-prepared-confidential-retaliation-document-ukraine-prepares-hold-nato-acc

I find it amazing that there is zero reaction to anything that appears to escalate tensions... although we still get reactions from false stories of Russian withdrawal from the Ukraine border.

And of course...gold is drifting lower.

litterbox's picture

confirming your thesis turd

gold triangle

CPE's picture

It looks like the 100 day crosses the 200 day on Monday/Tuesday

So obviously:

lol, where the hell is Beaks?

Clarki Stomias's picture

Holter thinks volatilty itself is being suppressed on purpose

Because to allow any market volatility at this point is to allow assets to be marked to market.  And if that happens, it reveals the systemic insolvency.  That may help explain the ever more pronounced flatlining in gold as well. Interesting theory.

http://blog.milesfranklin.com/a-big-week-recapped

"I know that you must be wondering what my point is exactly.  I believe that the volatility has dropped dramatically because it HAD to.  Do you remember how still methodical and quiet you had to be carrying a completely full glass so that you didn’t spill any?  Even more so if it was hot coffee or tea because it would burn you?  This is what I think we have today; I think we have banks that are so levered and “full” with derivatives that any volatility will make the cup spill.  The problem is that the cup is filled with the stuff that if spilled will blow up like nitroglycerin."

Turd Ferguson's picture

Yes, thanks for bringing this up

MODERATOR

I was confident about UPside resolution before the pennants became so unbelievably freaking obvious. At this point, it is very unlikely that such a perfectly painted chart will be allowed to resolve itself to the UPside.

Instead, lay low. Watch for support near $1280 and $19 and then see what happens next. 

Response to: To clarify
Coin Explorer's picture

Did we notice this tidbit from BaFin?

"concrete evidence" of currency manipulation:

BaFin, the German regulator, said it had found concrete evidence that traders attempted to manipulate the global currency market, making it the first financial watchdog to confirm that suspicions of wrongdoing have clear grounds.

Raimund Röseler, the head of banking supervision at BaFin, said it had found evidence that “multiple currencies” had been subject to attempted manipulation.

http://www.ft.com/intl/cms/s/0/86415c44-e00e-11e3-b709-00144feabdc0.html#axzz32YH2WNWY

Turd Ferguson's picture

Excellent

MODERATOR

Nice catch, Coin Explorer!

Turd Ferguson's picture

The longer-term charts are

MODERATOR

The longer-term charts are far more important due to the main overriding theme of 2014...control of western investment demand.

I DO THINK THAT SUPPORT WILL HOLD...THAT $19 SILVER HAS HELD FOR SO LONG FOR A REASON. GOLD MAY SEE $1260 ON A DIP BUT NOT MUCH LOWER.

We'll see.

Clarki Stomias's picture

Markets are closed on Monday

So it makes sense that they would blow up the pennant this Sunday night on the Globex.  Maybe I shouldn't have used the phrase "blow up", "take down" is more apt.

But maybe they are limited as to what they can do on the downside as well, per Holter's article above?  At any rate, something's gotta come to a head here shortly.  Interesting times we live in, interesting times.

rl999's picture

Pennants & Nitro

TF says that the pennants are to obvious to everyone at this point and we must be wary.

Bill Holter used the analogy of careful concentration to not spill a full cup.

Combine that with the fact that the PM & miners burst out of the gates on 1 January "surprising" "everyone", and are still beating all the markets this year.

I think that interest in the PM & miners WAS renewed and the obvious pennants must be cleared Either way before anyone will make anymore large buy orders.

Metals break down, well they were already on sale so buy more as soon as they have bounced / reconfirmed whatever support level they go to. Miners would go down with them, but same story, find support, buy there.

Metals break up, maybe some hop on the momentum, maybe some wait for a back-test after clearing 1300 / 1316, and buy from that support.

Maybe this makes sense to me because it is my plan.

It seems to me that breaking the 3 year down trend line in silver would be a huge deal - I am not sure if I am thinking objectively however. I tried to think of it as something other than silver (just some random stock) and it seems like that would be a pretty exciting day. OTOH it could also be anti climatic for a few days as everyone waits and digests the event.

Barfly's picture

So what then????

So if the pennant breaks down on Sunday night, what happens? We're already below the cost of production, so do silver miners just close up shop and go home? Is this the prelude to the long foretold & fabled "not available at any price" condition? I don't see TPTB have any other option but to force price down. But if they do, it's the straw that breaks the camels back. Hell of an exciting time.

Coin Explorer's picture

Elke at BaFin

Elke Konig, president of Bafin, is the one financial regulator who tied gold manipulation to forex manipulation in the public eye. We may end up sending this woman flowers:

She's better looking than Yellen, that's for sure!

Turd Ferguson's picture

Very exciting time!

MODERATOR

I just recorded a deal with Kerry Lutz that he will publish Tuesday. I used the analogy that the physical---paper connection has been stretched sinew thin and is about to snap.

Very exciting, indeed!

Response to: So what then????
Coin Explorer's picture

Pennents

If they do pop a cap in gold at the Asian open Tuesday morning/Monday night (good call, Clarki), we need to weave the Barclays story into this. We now have the first-ever concrete proof of gold fix manipulation, and circumstantial evidence that other banks are in on it ("hoping for a mini puke tomorrow" email.)

Cast this as "manipulators can't suppress the price much longer, now that it is out in the open and regulators are coming after them." (don't mention that we can't trust the SEC or CFTC - Elke will kick their ass on our behalf.)

CPE's picture

Very Exciting Time!

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