Quick Update

Thursday, May 3, 2012 at 10:28 am

Here comes a stream of consciousness. Probably not a good idea but here goes.

I think this is all a big setup. However, this time, it's an opposite setup to what we're used to.

The action this week seems to be a coordinated effort to suck in and trap as many spec shorts as possible ahead of tomorrow.

Every headline this week that could possibly be used to raid the gold market has been utilized.

Today is the latest example but note that the dollar was declining and silver was flat.

The decline after the claims number was released was on less than 2000 contracts. The Cartel pulled their bids and allowed the WOPRs to quickly drop price through some sell stops at 1640. This process has continued to this moment as gold has now made a low near 1635.

This final drop was worked in around the London PM fix and now gold will likely trade sideways to higher the rest of the day as WOPR positions are squared before the close.

The stage is now set for a massive short squeeze tomorrow. Look, I have no idea what the BLSBS will be. How could I know? Maybe we'll get 7.9%, 250,000 jobs and $100 down in gold. I have no idea. What I do know, however, is this: Today reeks of a final suck-in of shorts ahead of the number. Does The Cartel know what the number will be? Maybe. I can tell you this: The likelihood of them knowing ahead of time is infinitely higher than the likelihood of me knowing.

With so many weak handed longs stopped out this week, there are really none left. And now, all of the weak hands are on the short side. They look ripe to be squeezed. 

A spike tomorrow, post the BLSBS, looks likely. Just as how The EE allowed the final silver spec longs to be drawn in on Feb 28 ahead of The Leap Day Beatdown, The Gold Cartel has allowed the final gold spec shorts to be drawn in today.

A spike tomorrow will cause extreme pressure on the gold shorts. A move back toward 1660 and beyond will cause them to cover. London is closed on Monday. This may cause additional shorts to cover. Would you want to be short over the weekend if NFP comes in at under 100,000?

Our pal Andy just sent me an email informing me that Shanghai silver traded with a premium to futures of $1.26 overnight! $1.26!. There is serious to extreme physical demand near $30 for silver. The paper market for silver is a joke and is being made obsolete. Anyone short silver is playing with fire.

Andy also told me of huge sovereign and central bank orders for physical at 1635 and 1625, though we were both surprised at the willingness to fill the orders at 1645. Every time The Cartel takes paper gold down, they lose more physical metal out the back door. This cannot continue much longer. It simply cannot.

Uncle Ted kicks ass. Here's an excerpt from his latest:

"In silver, the price action has been so poor that every day the phrase “the beatings will continue until morale improves” plays in my mind. Taken with everything discussed above, I’m left with the impression that the commercials are deliberately making silver look so bad in order to extract every last drop of blood from the speculative selling stone. At least the beatings are keeping the price below the moving averages, so this week’s reports should indicate a further reduction in the total net commercial short position in silver. Given the motive behind the poor silver price action, my guess is that JPM has reduced its concentrated short position by a bunch.
 I’m sensing that JPMorgan is now down to 14,000 contracts net short in COMEX silver futures. That’s down from the 16,000 contracts at the last COT cut-off and down a whopping 5,000 contracts from the 19,000 contracts JPM was short in the last Bank Participation Report, as of April 3. There has been a noticeable determination on JPMorgan’s part to get its silver short position down. Clearly, if there is intent behind the rotten price action, it is for JPMorgan to buy back as many of its silver shorts as possible.  I’d rather the whole thing blow up in their crooked faces, but the next best thing is for them to cover as they have done."
God bless Uncle Ted.
 
I still can't post charts. Everybody else can but not me. Seriously. But The Tech Team is working on it so I hope to be able to post them again later today.
 
I know you're sick of hearing me say this but the key word is "PATIENCE". Silver isn't going to $20. It's not going to $25, either. The domination and manipulation of silver by The Evil Empire is ending, whether they want to admit it or not. 
 
That said, only experienced traders with money to lose should be playing in the actual casino. The manipulation can surely outlast your trading account and, absent a clear trend higher, traders will be whipsawed to death. Join the central banks, large institutions and wealthy individuals worldwide. Buy physical metal and take delivery. Hold it in your own vault or safe. To paraphrase WOPR: "A strange game. The only winning move is to take delivery."
 
Keep the faith. TF
 
 

Comments

Big Buffalo's picture

Everyone's getting one of these. . .

Submitted by Big Buffalo on May 3, 2012 - 2:21pm.

AAPL, BAC, gold, silver, oil, everyone.

The only problem with a sale, is that I just spent all my money (trading accounts) today. Saving my fiat, cash money to add to the stack. So, tomorrow I get one of two things. I either get to buy physical at a cheaper cost than today, or I make a bunch of fiat in my trading accounts. Now, that's a win win folks.

Ferd Torgerson's picture

Sorry, bbacq

Submitted by Ferd Torgerson on May 3, 2012 - 2:22pm.

That second term is the one that I use to describe my miners nowadays.

recaptureamerica's picture

Canadian Mint's last penny

Submitted by recaptureamerica on May 3, 2012 - 2:22pm.

Canadian Mint's last penny produced tomorrow
http://www.cbc.ca/news/canada/manitoba/story/2012/05/03/mb-last-penny-mi...

I got a box of US nickels the other day..prepping for when this year will be last year, IMO, for the way they are made with the % of metals that they are comprised of.
Costs the mint 11 cents to make a nickel..worth right now .053
From www.coinflation.com
1946-2012 Nickel
$0.05
$0.0527904
105.58%

Lightning's picture

Turd Please

Submitted by Lightning on May 3, 2012 - 2:34pm.

Please let us know a few hours before you are thinking about going to Sam's Club again.  :)

Duke's picture

Fourth Page!

Submitted by Duke on May 3, 2012 - 2:35pm.

Fourth Page!

recaptureamerica's picture

Big uh oh...What friggin year am I in?

Submitted by recaptureamerica on May 3, 2012 - 2:40pm.

Russia threatens to strike NATO missile defense sites
http://p.washingtontimes.com/news/2012/may/3/russia-threatens-strike-nat...

Urban Roman's picture

Xty,

Submitted by Urban Roman on May 3, 2012 - 2:42pm.

"people will seek a sound currency"

​I'm just sayin' ... you can see what looks like an intervention in POSX at 8:15 this morning on the chart on TF's front page. The POSX has similarities to Au and Ag that way. And in many quarters the $ is still considered sound currency. As is the CHF -- not so much the € any more. 

​Not that it won't eventually succumb, but that will take a little longer ...

sevin's picture

Photo Removed

Submitted by sevin on May 3, 2012 - 2:45pm.

GPS in phone started beeping. Feds are on to me. Luckily for me I'm only a trader. No stacking for this guy. *wink

silverdick's picture

wait till tomorrow?

Submitted by silverdick on May 3, 2012 - 2:47pm.

I'm new to the stacking game... should I be buying right now or waiting till tomorrow? Ready to buy 200 ounces right now if it looks like it's gonna spike tomorrow...

recaptureamerica's picture

Wow.. IMF says India is now #3 overtaking Japan in PPP

Submitted by recaptureamerica on May 3, 2012 - 2:49pm.

Inviting economic suicide?

By KEVIN RAFFERTY
Special to The Japan Times
HONG KONG — The International Monetary Fund has just reported that India has overtaken Japan as the world's third biggest economy in purchasing power parity (PPP) — the measure of the amount of money needed to purchase the same goods and services.

http://www.japantimes.co.jp/text/eo20120502a1.html

Stack-A-Lackin? Keep on Movin'

NW VIEW's picture

REALITY CHECK

Submitted by NW VIEW on May 3, 2012 - 2:51pm.

The dollar is at 79.21 and most writers have said for months to get rid of all the green fiat.  Yes we have a 10% inflation rate but if we had stacked fiat,  as silver has dropped 38%, those fiat bucks would look pretty good today.  Hard lessons to learn for all.   jmo

Vermilion's picture

Price manipulation

Submitted by Vermilion on May 3, 2012 - 2:52pm. 



I have been lurking here for a while, and thoroughly enjoy the high standard of (most) posts.


I've also listened (for what seems like several years) to the theories posted here and elsewhere re. PM price manipulation,and find a lot of the arguments attractive.


However, the fact remains that non-paper buyers of gold have never failed to locate and purchase gold - whether the buyers are industrial, mint, stackers, private, corporate, I've never heard of anyone failing to source physical gold, and take delivery of it.


And they are successfully buying it at the 'manipulated' market price.


If the price of gold was manipulated, there would be a disconnect between physical and paper gold prices, with physical sellers asking for a premium over paper price. This is not happening.


It is postulated that this is ABOUT to happen. And it has been about to happen for more than 4 years.... Really?



 

     
      

  

 


    

      

     






  

  
  

  recaptureamerica's picture


  
    
  
Sorry, stuff I buy ain't included in the CPI, including food! 

  

    Submitted by recaptureamerica on May 3, 2012 - 2:54pm.  


    
  

     
Pressure on Consumers to Prevent Another ‘Spring Stall’ for U.S. Economy

http://finance.yahoo.com/blogs/daily-ticker/pressure-consumers-prevent-a...

     
      

  

 


    

      

     






  

  
  

  Keg's picture


  
    
  
@exbroker

  

    Submitted by Keg on May 3, 2012 - 2:55pm.  


    
  

     
I had to reply to this statement by exbroker:




 I'll take your gold with my weapon. Why would I spend my time buying Gold when I can take it from you. Now you know how soldiers think.


Your plan to take from others is repulsive. 


Let me tell you how a Christian thinks.  And maybe a lot of non Christians that care for their fellow man.  


At one time I had similar thoughts in regards to food.  I had plenty of guns and ammo but no food storage.  Then it occurred to me that not only did I not want to have to take from someone else, I had a responsibility to take care of my family (some that will not be prepared) and help others as much as I can.  So I started stocking up on food.  And PMs.


If we do get into an apocalyptic situation and you come to me and try to steal, you will at least suffer some damage for your effort.  If you come with something positive like a needed skill or some goods to trade, we might be able to help each other.


And if we do not get into the apocalyptic situation, gold will still be a good way to store and preserve wealth.








 


 





     
      

  

 


    

      

     






  

  
  

  Apples's picture


  
    
  
Bullion Spam Emails

  

    Submitted by Apples on May 3, 2012 - 2:56pm.  


    
  

     
I've ordered from most of the big online bullion dealers at some point over the past few years.  And I find it interesting right now that there's a decisive uptick in email newsletters/promotions/advertising/spam.  And not just from one or two dealers, but across the board.  


It makes me think that dealers must be experiencing low sales volume and are getting aggressive about luring in customers.  And if that assumption is right, that implies for me that we're in a very negative psychological pattern for the marketplace.  For some dealers, I've gotten more email this past 30 days than in my prior years of relationship.  Its definitely a new data point as far as I'm concerned.

     
      

  

 


    

      

     






  

  
  

  Keg's picture


  
    
  
Don't hit save twice!

  

    Submitted by Keg on May 3, 2012 - 2:56pm.  


    
  

     
Don't hit save twice!

     
      

  

 


    

      

     






  

  
  

  Ferd Torgerson's picture


  
    
  
@ recaptureamerica

  

    Submitted by Ferd Torgerson on May 3, 2012 - 2:58pm.  


    
  

     
Was thinking about posting the same article but you beat me to it.


So, if we are to understand:


Russia has some offensive missiles as does Iran.


We have some missiles capable of knocking down Iranian missiles.


Russia says they'll send missiles to destroy our anti-missile missiles if we don't agree to discard them.


Wonder what they think we'd do with our anti-missile missiles if they decided to launch their offensive missiles?  And, that doesn't even take into account our follow-on payback which would be a real MF Global, so to speak.


Seems to me Ivan got into a bad batch of vodka.  Russia's missile technology borrows heavily from Saddam Hussein's missile technology, which consisted mostly of circuitry from first generation Sony Play Stations and East German war surplus.

     
      

  

 


    

      

     






  

  
  

  Big Buffalo's picture


  
    
  
Todays action brought to you by the letter "K"

  

    Submitted by Big Buffalo on May 3, 2012 - 3:01pm.  


    
  

     
Knives


Kids, how many times have I told you not to catch the falling knife? (I'm so guilty, very very guilty).




That would be silver, gold, oil, apple.

     
      

  

 


    

      

     






  

  
  

  boil_in_the_bag_rice's picture


  
    
  
Sevin

  

    Submitted by boil_in_the_bag_rice on May 3, 2012 - 3:01pm.  


    
  

     
I'd remove the screenshot just to be sure... Your "name" and location is visible. You never know what can happen these days bud.

     
      

  

 


    

      

     






  

  
  

  recaptureamerica's picture


  
    
  
The Poor are Getting Poorer.

  

    Submitted by recaptureamerica on May 3, 2012 - 3:01pm.  


    
  

     
The Poor are Getting Poorer. Is It Time to Raise the Minimum Wage?

http://finance.yahoo.com/news/poor-getting-poorer-time-raise-162522224.html

     
      

  

 


    

      

     






  

  
  

  OrangeAlert's picture


  
    
  
Sam's Club

  

    Submitted by OrangeAlert on May 3, 2012 - 3:10pm.  


    
  

     
I'm trying to catch up, but Turd...start going on Saturday's when the market is closed for heaven's sake!


Although it did give me an opportunity to make the stack bigger.  So I am grateful for that.

     
      

  

 


    

      

     






  

  
  

  opticsguy's picture


  
    
  
poor getting poorer

  

    Submitted by opticsguy on May 3, 2012 - 3:15pm.  


    
  

     
The productivity gains reported this morning were not a result of making stuff more efficiently, but a 4% DROP in manufacturing wages last month (over 1% YoY).  Deflation in wages (all the Bernank cares about) and  inflation in everything else.  Surely this will end well.

     
      

  

 


    

      

     






  

  
  

  Eric Original's picture


  
    
  
If miners and metals were favored

  

    Submitted by Eric Original on May 3, 2012 - 3:29pm.  


    
  

     
If miners and metals were favored by TPTB, then CNBC would be leading every half hour with "Miners and metals are off their lows in late trading!"   But, no, that's not something you'll ever hear.  


Though you hear it in regards to the Dow and the S&P pretty much every day.  bastards...


FFS!! even as I was typing this Maria let me know that stocks were "off their lows!"   yee haw...  :D

     
      

  

 


    

      

     






  

  
  

  silverstax's picture


  
    
  
Silver Chart is Screaming Buy Buy Buy!

  

    Submitted by silverstax on May 3, 2012 - 3:30pm.  


    
  

     
Downside - $4? Upside - who knows! And $26 is pretty unlikely IMHO.



     
      

  

 


    

      

     






  

  
  

  Kenscott's picture


  
    
  
Hope The Turd Is Right ...

  

    Submitted by Kenscott on May 3, 2012 - 3:39pm.  


    
  

     
I hope the Turd is correct this time.


It is a bit much to see the continued manipulation and know there seems to be nothing to stop it. Almost makes me wonder why I keep my physical sometimes. That being said, most of mine is Sterling I purchased well  below spot.


I would like to see around $32 before selling it and moving the funds into some junk halves or possibly some Canadian Maple Leafs.


Hold tight and keep the fight all.


Kenscott

     
      

  

 


    

      

     






  

  
  

  printmemoney's picture


  
    
  
Santa

  

    Submitted by printmemoney on May 3, 2012 - 3:47pm.  


    
  

     
I absolutely love Sinclair's responses today.  Shame on those that attack his credibility on short-term calls when he has done so much for the gold community for so long.




Dear Jim,


Is this capitulation in the gold markets today?


CIGA Kevin


Dear Kevin,


No, it is blatant manipulation. It is interesting as it took two days since Alf said the bottom was in on here on JSMineset. It is by the way.


Normally when I say a similar thing they come in the next day to try and discredit me. Something or somebody changed the physical cash market for gold.


Jim


Hi Jim,


Do you recommend gold stocks any longer? I’m holding some and with today’s action think I should sell 25 percent at a loss.

Thanks,

Bob A


Bob,


I am fully invested 100% in my own company. I am tired of repeating myself so if you wish to sell your shares to the shorts please go ahead.

Regards,

Jim


Hi Jim,


In light of recent developments do you still believe that “QE3“ will be announced in June?


Regards,

CIGA Tonko


Dear Tonko,


In light of what developments, business turning sharply lower internationally or denials that QE will occur? You will have 10,000 denials as QE goes to infinity.


You questions and hundreds like it today make me sad. Sad because filthy MOPE via degraded MSM has your ear. Shame on you.


Jim



     
      

  

 


    

      

     






  

  
  

  York Rite's picture


  
    
  
Santa's grumpy today

  

    Submitted by York Rite on May 3, 2012 - 3:47pm.  


    
  

     
His bullishness on Monday didn't last long. His 'You [sic] questions and hundreds like it today make me sad. Sad because filthy MOPE via degraded MSM has your ear. Shame on you' response to one polite query suggests he's taken receipt of another sackful of less than complimentary letters.


 


However, he remains confident that Mr Field's low of $1,612 will hold.


 


http://www.jsmineset.com/

     
      

  

 


    

      

     






  

  
  

  Big Buffalo's picture


  
    
  
Glad today's over. . .

  

    Submitted by Big Buffalo on May 3, 2012 - 3:54pm.  


    
  

     
my ass really hurts.



     
      

  

 


    

      

     






  

  
  

  Xty's picture


  
    
  
Santa is so right

  

    Submitted by Xty on May 3, 2012 - 3:56pm.  


    
  

     
I hate those stupid kinds of questions too.


Some people are not going to like their stockings next year.

     
      

  

 


    

      

     






  

  
  

  Eric Original's picture


  
    
  
Good for Santa  

  

    Submitted by Eric Original on May 3, 2012 - 3:56pm.  


    
  

     
Good for Santa  

     
      

  

 


    

      

     




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