Killing Time

One look at these updated charts and you'll see why there's really not much to discuss this morning.

I mean, seriously, what else is there to say this morning? When not even the ECBQ€ stuff can budge price out of these corners, you know just how carefully these pennants are being painted. Please click the gold chart in the left and look at how precise this is. Absolutely remarkable!

So, really, the only thing I'd like to discuss this morning is the clip below. Perhaps, before you watch it, you should go back and read Part Two of the essay series that Jim Quinn published last week:

Not only is a 7-year auto loan a bad idea, a 7-year auto loan where you roll the amount you're "underwater" into your new loan is a even worse idea. To then have these loans packaged together and sold off in tranches as AAA-rated collateralized debt obligations is a nightmare we've seen before and a truly horrific idea.

And now comes this...a discussion on CNBS as to whether someone should take out an extended car loan and use the extra debt assumed to dabble in the stock market, all because a "diversified portfolio should return in excess of 3-4% over time". And to think, I'm the one vilified and despised in some corners of the internet because I've had the audacity to suggest that folks continue to add physical metal while prices have declined these past three years...

Anyway, this is a sure sign of an impending stock market collapse. How can I say this? Because this is the exact same type of discussions that dominated the financial press in late 1999 and early 2000! Back then it was "take out a home equity loan" and/or "get a cash advance on your credit card" and buy tech stocks. Don't you realize that the NASDAQ was up 80% last year? This is easy and anyone with just a few extra minutes of time per day should be able to double their money really quick and then pay back all of the fresh debt. Just buy a good diversified portfolio with names like Lucent, Level 3, Worldcom, InfoSpace and JDS Uniphase.


As I go to close, I see that price has suddenly popped $5 and it is slightly outside of the pennant. While this is certainly not a bad thing, don't go getting all excited about a positive resolution just yet. There will be all sorts of false breakouts and breakdowns today and overnight as the pennant closes to zero. Nothing is permanent until 8:30 tomorrow.



CPE's picture

Banksters on the Run

They don't have any Au, paper gold yes, Au not so much! Check this out:

Ned Naylor-Leyland @NedNL

Ok, why are #HSBC closing ALL 7 of their London Gold vaults with just 2 months notice?! Fact, not rumour. I bet the ETF vaults stay open!

4:07 AM - 5 Mar 2015

Ned Naylor-Leyland @NedNL 

#HSBC told my bullion dealer it was a 'Business decision' as there isn't enough profit in custody...twilight zone stuff....

5:10 AM - 5 Mar 2015

All the mopers around here need to understand that we are IN the end-game.  Appearances will be kept, they will try to make it not look so, but the dots keep appearing.  The tweets above, Investigations of the banks for appearances not prosecution, replacement of Gold fix with another corrupt fix, Repatriations, Central Banks buying, the Queen taking selfies in the BoE vault for confidence sake, Banker Nailgunning, 100% mortgages again, 7 year car loans w/ over 100% LTV's, out in the open manipulation, stolen Sovereign gold, GOFO disappearance, Ken Hoffman interview, GLD halving "inventory", Rickards apologist letter about why China has us by the balls, War Mongering, all "Developed" markets printing like crazy, Propping the dollar up with nothing but hope of a rate hike so we can tell ourselves that everything is awesome, etc.

Stackable's picture


Looks like we just broke out!

Age Zilverstra's picture


can turn quickly...

tmosley's picture

Broke out of the pennant?

Broke out of the pennant?

indiana rod's picture

& Year Auto Loans

Don't worry about those loans. They help the wonderful GDP report. BTW, you never hear about the Chevy Volt, the $42,000 electric car that traveled 30-35 miles between charges.

indiana rod's picture

7 Year Auto Loans.


Mr. Fix's picture

These breakouts are becoming quite predictable…

How many “bull traps” can they set before no one will play anymore?

I think it's just background noise within the illusion of a market.

I stand by my assertion once again, “gold and silver are range bound until the system implodes”.

The first clue to this  implosion will be a “collapse” in prices, not a rise.

When it does finally rise, the system by which we are measuring it, will no longer exist.

AIJ's picture

Watch out for wrong footing

...They have created a monster.

...People are wise to their games and hedging both ways

...heads or tails, they lose.  LOL

Marchas45's picture

Not Again?

LOL Sorry Silver66

I'm ready to buy again but I'm holding off to see what happens and it's driving me crazy as I'm going against what I usually do and that is: Keep Stacking no matter what. Lol

Turd Ferguson's picture

And this is just incredible


I mean, think about this. Rates are already extraordinarily low..but to move by 25% in minutes? Incredible!

Imagine the chaos if the 10-year note suddenly plunged from 2% to 1.5% intraday. Even the once-in-a-thousand-year move last Oct 15 wasn't that large.

Dingo's picture

Pennant flag ? = distress signal

I might be accused of over-thinking this one. However, Turd has often mentioned little signals that the London Monkeys give to the market like smashing the miners a little before a big raid on gold. I wonder that all of these little Pennant (obvious to a non-chartist like myself) formations could be a sign of distress ie " Mayday Mayday - the ship's going to the bottom". I do believe that Pennant flags are naval in origin. I don't know their meanings though.

DeaconBenjamin's picture

Gold has worked for Indians, says Thomas Kaplan

Kaplan said gold has historically been a very good way to store wealth for India. He pointed out that China is encouraging its people to buy gold. 

NEW DELHI: Telling Indians not to buy gold is like asking Americans not to consume liquor, billionaire investor Thomas Kaplan has said.

Appreciating Indians' appetite for gold, Kaplan said the precious metal has historically been a very good way to store wealth for India and pointed out that China is "specifically and overtly" encouraging its people to buy gold.

India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year.

"I think trying to ban gold or to ban gold imports, you know, would have about as much success as trying to tell Americans not to drink alcohol. And prohibition did not work and eventually someone had to accept the reality," he told PTI on the sidelines of a CII event when asked whether India's efforts to curb gold imports would work.

Finance Minister Arun Jaitley in Budget 2015-16 had proposed three schemes, including redeemable gold bonds and monetisation scheme, to curb gold imports and monetise large stocks of the precious metal lying idle in the country.

"The price of gold have shown that those Indians who purchased these metals over the years can look back and they can say, you know what, it worked. So, that's what known as positive reinforcement.

"If you tell people, particularly really smart people like Indians that they can't do something that has given them gratification for a very, very long time. They will find another way to get what they want," Kaplan, widely known as gold evangelist, said.

Referring in China, another huge consumer of precious metals, Kaplan said: "I was is Beijing a couple of weeks ago. The Chinese government, specifically and overtly, is encouraging its people to buy gold. They want to buy gold. China is importing almost as much gold as the world's annual production and they like India are sucking it out of West."

Turd Ferguson's picture

Btw, as mentioned at the


Btw, as mentioned at the bottom of this post...DO NOT get excited by this early, little breakout. Already, the sell-the-rally algos are working it over and price is back down to $1205 from $1209. There will likely be breakdowns overnight, too, all the while price likely finishes at 8:30 tomorrow morning right near $1200.

Turd Ferguson's picture

One of the things that ZH


One of the things that ZH consistently claims is that most Chinese gold demand is due to collateral demands for Chinese debt financing. Koos absolutely destroys that idea here:

Hmmm. I wonder if ZH will publish it...

CPE's picture

Andy agrees with Blythesshrink

 ·  8m 8 minutes ago

Footprints in noted yesterday had hallmarks of official supply.Foreshadow a miss?Time for COT's to rinse a few naked short momo's

silver66's picture

Marchas45 I need to reevaluate

my game plan, this damn working for a living is getting to be a problem...LOL


Stack till it

DeaconBenjamin's picture

The forgotten fact concerning the Civil War

The forgotten fact that you should begin with concerning the Civil War is this: the future of North from 1860 to 1865 was dependent on the Illinois Central Railroad. Lincoln was a lawyer with that railroad. Stephen A. Douglas was a lawyer with that railroad. In senior management was George McClellan, who oversaw both of them. So, in the election of 1860, the Presidency was going to be won by an Illinois Central lawyer. In the election of 1864, the election was going to be won by an employee of the Illinois Central Railroad. Anybody who thinks this was random is the kind of person who believes that it was random in 2004, when a member of Yale’s Skull and Bones was going to be elected President. This is an organization that selects 15 people a year. Out of all the people in the United States, the only candidates who made it to the top were Skull and Bones members in 2004, neither of whom was allowed, or is allowed, by the secret oath of the organization to discuss the organization. Similarly, historians of the Civil War rarely bother to talk about the centrality of the Illinois Central Railroad.

CPE's picture


And all this time I thought the civil war was about Trayvon Martin.  Excellent update.

Turd Ferguson's picture

I think this is a really


I think this is a really interesting story and I've been following it now for a couple of weeks.

DeaconBenjamin's picture

Can Russia's new Turkish gas project work?

Barfly's picture


Sounds like a big political push for drone control is on the way. Of course, once there are designs available to 3d print them, its all over.

Turd Ferguson's picture

Jet skids of runway at snowy LGA

Pseudozero's picture

what utter nonsense in that clip.

this is really the twilight zone.

what does sub-prime student debt look like? cause that's got to be next. sub-prime department store credit, how long till my 'retail' visa goes NIRP?

hey everybody...underwater on your house? borrowed against your car to play stocks and lost it all? well take this new obama-loan, and help yourself...and the country borrow it's way to prosperity!!! 50 years at -15% PLUS guaranteed debasement. act now.

or by then will it be HIL-LOAN-ARY?

Kansascrude's picture

Good Stuff Turd

The ratcheted up price mgmt. is just astounding. I wish Hedge would keep their economy report misses tally front and center with daily updates. I may need to see a Jaw Specialist as mine appears to locked in a gapping open position due to the managed level of these markets. Had to chuckle when I saw you had bookmarked the CNBS car vid. I had sent it out to comrades in the never ending manipulation watch. IF that doesn't wake people up what will...can you imagine any self respecting money manager making that tripe filled recco even 3 years ago? OMG!

That every economy miss announcement is another nail that must be driven down into gold market irrelevancy has me truly awestruck. The BRICS must be smacking their lips as they watch the USD continue to gain strength no matter what and the gold price down/flat. Talk about getting more for your worthless Treasury paper. I never in my wildest dreams expected what we are now seeing and the complacency of the sheep truly astounding. To Turdville I hope you are making some progress every day in what is going to be one massive shitstorm.

Best to all

Pseudozero's picture

@kansas crude

well said.

and i'm bugging out of the city in 22 days!

shitstorm is right!

G-Rod's picture

Remember how the markets shook

When the Swiss depegged from the Euro, and how the Swiss manufacturers cried blue murder,

Well, it's only early March and already the price of the Swiss Franc is back to what it was in mid December.


It's a case of "so what" - the Swiss CB makes a move that is (or will be) totally wiped out in less that 3 months.

Turd Ferguson's picture

And the euro continues to plummet


As discussed yesterday...and this is just a guess...the next support doesn't look to come in until 1.07 or 1.08. Tomorrow is a critical day for this, as well.

usk's picture

Good call again

Gold and Silver are fading. Same bullshit. Note that Euro is failing faster than Gold this time.

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