FUSS

Monday, May 21, 2012 at 11:00 am

Looks like it's time to add a new acronym.

As discussed here ad nauseam for the past several weeks, our current battle is against the spec shorts, both large and small. These momentum-following, bandwagon-jumping leeches were the primary culprits in driving price all the way down to $1528 and $27. After the initial squeeze on Thursday, the heat was turned up even higher on Friday. Overnight and earlier today, these HFTers tried to push things back down but have since been stymied on the Comex. Let's hope this continues but don't expect them to give up easily.

Over the weekend, Trader Dan pointed out that gold had moved back above its 10-day moving average. This is step one in alleviating the pressure and flipping the WOPRs to "buy" from "sell". Step two will be getting above the 20-day near 1615. He's right about this. Remember, many WOPRs are programmed to run off of technical signals so moving back above key moving averages will help to halt the barrage of sell orders generated by the downside momentum. http://www.traderdannorcini.blogspot.com/2012/05/gold-continues-its-bounce.html

I'm seeing chart resistance in that general area, too. Gold held support quite nicely earlier today near $1585 and has since rebounded nearly $10. I suspect that we'll continue to drift around here between 1585 and 1600 for a while, maybe into tomorrow or even Wednesday. I suspect, though, that another surge is coming that will drive price through resistance of 1600-1605 and take it up near the 20-day that Dan mentioned, near 1615. Chart resistance will enter again near 1625.

In silver, price has clearly broken out of the nasty and brutal downtrend channel that had contained it for days. Now, it just needs a spark to begin spooking the weak-handed shorts. It may simply be that gold strength will spill over into silver and drag it higher. Regardless, I firmly believe that the recovery process has begun and I expect silver to begin basing between 29 and 30 very soon. From that "staging area", silver will eventually mount a breakout move toward Battle Royale II.

That's it for now as it's almost 11:00 am EDT. You need a new thread and I've got a bunch of other stuff to do. We are about a week away from launching the new, subscription podcast site. I'm really excited about how it is turning out and I can't wait to offer it to you. Besides near-daily podcasts from yours truly, the site will also offer webinars and conference calls with some of the biggest names in metals. There will be plenty of in-depth interviews, too, where members will be able to submit questions. (That should be fun ) Anyway, I'll have more details as we get closer to launch and I hope you'll consider supporting the site. Revenues generated there will allow me to keep TFMR completely as is (FREE) and they will also help fund a possible "Turdapalooza".

Have a great day!! TF

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Comments

first

Submitted by BrentLawrence on May 21, 2012 - 11:02am.

Looking at a lot of metal sites this last downward pressure was kicking lots of people out, i.e. they were selling their physical just because the price was stagnant and dropping for so long. They just got beat down. I have seen these runs before and holding steady seems like the way to go. We haven't hit the really big moves of a collapsing economy yet. THAT would be the time to sell.

Seconds away...from being first

Submitted by Colonel Angus on May 21, 2012 - 11:02am.

After the big FUTF of the past week, we need to raise a little FUSS. Before it is over, we might even need a FUBM. And if that happens, everyone around here might be getting FUBAR with a few drinks of choice.

First

Submitted by tpbeta on May 21, 2012 - 11:02am.

My arse. Third 8-(

Thanks again

Submitted by squib on May 21, 2012 - 11:07am.

Thank s for all you do for people Turd.

Keep up the good work.

fuss?

Submitted by murphy on May 21, 2012 - 11:10am.

would that be f** you short squeezers?

I was thinking...

Submitted by Turd Ferguson on May 21, 2012 - 11:11am.

MODERATOR

Spec

Shorts

Response to: fuss?

Ha

Submitted by murphy on May 21, 2012 - 11:13am.

I tried to edit it but my access was denied.

There Will Be Reversal

Submitted by SV on May 21, 2012 - 11:14am.

Gold stalled on Monday as did silver, unable to early on confirm the reversal from Thursday and Friday of last week. The news which might have signaled the turn around was a decline in the Philly Fed Index as well as the minutes of the recent FOMC meeting, which have stoked to flame of Quantitative Easing incoming. This week we should keep an eye on U.S. durable goods numbers, China's manufacturing PMI, U.S. new and existing home sales, Japan's trade balance and the German business climate. Greece and Spain also will likely be in the news, if all hell is blown loose with an introduction of Quantitative Easing in Iceland.

http://silvervigilante.com

Turdapalooza sounds fun.

Submitted by Dr G on May 21, 2012 - 11:14am.

Turdapalooza sounds fun.

LOL @ FACEBOOK

Submitted by bernank on May 21, 2012 - 11:18am.

anyone who bought this stock is a shill.... ZuckerBerg is a farce of a CEO... he should not be running a public company. Not to say he is not an incredibly talented, visionary human being-- but let's face the facts. Zuckerberg invented Synapse (kind of like iTunes Genius... but a decade ago) as a senior in high school. Microsoft offered him $1 million for it, and what did Zuckerman (as my father would say) do? He uploaded it to the net and gave it away for free.

I actually used Synapse back in the day, it was great. It was a plugin for WinAMP (the itunes of the day). You would turn it on, listen to a bunch of your music, and Synapse would monitor your preferences of genre/artist in succession, and then if you wanted to hear a new song that would go well with what you're currently listing to... wazam, Synapse chose a new song for you. All in all a great tool, and clearly laid the groundwork for iTunes Genius software today.

in other news, we have our usual suspects trying to gap us lower--- like grinding teeth.

US Dollar Chart Setup Warns of Pullback Before Rally Resumes

Submitted by BUDDHA PRINCESS on May 21, 2012 - 11:19am.

Commodity prices are on the upswing to start the trading week as risk sentiment mounts a cautious recovery after three consecutive weeks of aggressive selling. In the absence of top-tier economic data or significant Eurozone-linked news flow, the catalyst appears to have come by way of supportive overnight comments from Chinese Premier Wen Jiaobao, who said Beijing will maintain an active fiscal policy focused on stabilizing economic growth. The remarksstoked hopes that China will undertake stimulus measures to boost its own performance and by extension that of the global economy at large.

Looking ahead, the absence of major scheduled event risk through the end of US trading hours suggests the corrective advance is likely to continue. Indeed, S&P 500 stock index futures are pointing firmly higher ahead of the opening bell on Wall Street, arguing for a near-term upside scenario for growth-geared crude oil andcopper prices. Gold and silver likewise stand to gain if the rebound in the risk space dents safe-haven demand for the US Dollar. With that in mind, disappointment in the largely fruitless G8 summit over the weekend is likely to keep a lid on the festivities considering none of the headwinds battering risky assetsrecently have materially changed.

S&P 500 – Prices are finding intraday support above 61.8% Fibonacci retracement support at 1286.60, with a bounce from here seeing initial resistance at 1313.00 marked by the 50% boundary. Alternatively, a break lower exposes the 76.4% level at 1253.90.

US_Dollar_Chart_Setup_Warns_of_Pullback_Before_Rally_Resumes_body_Picture_5.png, US Dollar Chart Setup Warns of Pullback Before Rally Resumes