Charts

Lots to talk about today but it's late, so, all you get are charts.

I've had a very busy morning. I had intended to write a bunch of stuff about silver demand but that's going to have to wait until tomorrow. Besides, the charts need your attention as Feb13 gold option expiration and First Notice Day is right around the corner and we need to stay alert.

So let's look at gold. First of all, you can clearly see on the daily and weekly charts that it is working itself into a corner. Normally, this would be fine as it might be just as apt to break out and UP than out and down.

However, option expiration for the Feb13 is next Monday, the 28th. Following closely behind, First Notice Day for delivery is next Wednesday, the 30th. As per usual, we must expect some Cartel shenanigans as they try to shake price and rattle/dissuade prospective "deliverees". Then throw this log on the fire...the daily chart with RSI. Note that the battle against 1700 resistance has sapped some of gold's momentum and the RSI (a measure of momentum) is actually turning lower, below the levels last seen in late November.

All of this means that the next 3-5 trading days in gold will likely hold more weakness than strength. All of us stackers should be looking to buy a dip that could take prices down to the $1660-1670 level. Paper traders, especially those with Feb13 contracts should be wary.

Though weakness in gold always spills over into the silver pit, the situation there doesn't look nearly as tenuous. Both the daily and weekly charts show plenty of wiggle room for silver to move without violating any of the current trends.

And the silver chart with RSI looks OK for now, too. The RSI has climbed significantly...that's what seven, consecutive UP days will do for you...but it's still trending higher and is not yet to the late November levels. At any rate, I like silver here and I might be looking to buy some March or May calls if weakness spills over from selling in gold.

Have a great day but, after the action this morning, be on the lookout for that nasty, little Globex gold algo again this afternoon.

TF

325 Comments

indosil's picture

Impressive...very impressive..so far

Impressive...very impressive..so far.......Silver's defence of $31.62..right at the median of Andrew's Pitchfork is holding pretty solidly....i guess Just as Turd Mentioned..their concentration today is on Gold....must.......hammer.......it.........down

benque's picture

Aero engines & banking

Thanks Puck for your posting on this subject.  When I saw that bloated windbag Dimon's comment yesterday, I thought the same.

In my view, the principles of operation of both turbine engines and banking are indeed simple.

The complexity in a turbine engine is in the control and regulation of manufacturing and materials, history and life limited part tracking, and most of all, fuel flow, air flow leakage (compressor efficiencies), and turbine temperatures.  All very highly complex, and in some cases I have seen, verging on absurdly convoluted.

Banking is much the same in concept, in that it is the control and regulation of the processes which are complex and vulnerable to breakdown, especially if tampered with by those ignorant of the multiple interdependancies of the controls.  Or by the just plain immoral and greedy.  Anyone come to mind?

On another somewhat related topic, I wonder if Boeing has considered upgrading to those batteries using silver instead of lithium?

Harald's picture

Jim Willie

Jim Willie cites SRSrocco for his outstanding work regarding peak oil and peak silver, although he does chide him a bit for publishing his work for free.

“Honestly, his work is too comprehensive, excellent, and free (sorry, Steve).”

MarketOracle is a free site so I’ll post the link.

Mickey's picture

so, when does PM sector

get the same short covering rally that NFLX just had?

just asking

(the sudden before you know it 35% up)

cpnscarlet's picture

Comfort in routine

Woke up this AM to another PM smash on BLS data and Turd posting charts. And I am also "feasting" on reports of "silver shortages" and "gold-backed Yuans", and more claims by James Turk.

Some things are as reliable as the sun coming up in the morning, but not as welcome.

We are still far out of control and dying at the hands of knaves and fools. I have had my fill of misguided soothsayers and corrupt officials. Praise the Lord and pass the...

Dr. Fix's picture

@ tyberious

That is beginning to look one heck of a lot like gun control to me.

ag1969's picture

Hey look, more rationing

Royal Canadian Mint starts rationing silver coins

|

January 24, 2013 - 8:13am

Dear Friend of GATA and Gold:

Jason Hamlin of Gold Stock Bull reports that, following the U.S. Mint, the Royal Canadian Mint has begun rationing its silver coin production:

http://www.goldstockbull.com/articles/royal-canadian-mint-hits-supply-sh...

It's not that silver isn't available. It seems to be that the mints don't want to buy the metal necessary to meet coin demand, lest they allow the price of silver to be pushed up to jeopardize the government-backstopped price suppression scheme.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

thurd aye's picture

Jamie Dimon ,the savior of

Jamie Dimon ,the savior of the human race and the goddamn planet.

Hey Jamie...............fujd...fubm...futptw

TreeTop Dweller's picture

SRSrocco/Jim Willie

Well,

We can take notice that that the St. Angelo is very fitting name for such an Angel Saint!

SRSrocco thank for your generous contributions!

It seems that not only are most of the Central Bankers embarking on modes of QE but now entire continents are working to discredit your work!

Australia is now going to be energy independent! Announced yesterday, free oil for everyone!

As is quoted in the article (see snippet below)

Mr Koutsantonis said: "We have seen the hugely positive impact shale projects like Bakken and Eagle Ford have had on the US economy."

Desperation is building as news sources spin abundant resources for the 7 billion inhabitants of this little sphere...

$20 trillion shale oil find surrounding Coober Pedy 'can fuel Australia'

  • Coober Pedy has between 3.5 billion and 233 billion barrels of oil
  • Australia could change from oil importer to exporter
  • The Wall Street Journal reported last week the US could pass Saudi Arabia as the world's largest oil producer this year, thanks to the shale oil explosion.

    Shale oil extraction involves using new technologies to drill vertically and then horizontally for distances of more than one kilometre through shale rocks that contain oil.

    The process was once prohibitively expensive but advances have created a new oil boom in the US.

    Mr Koutsantonis said: "We have seen the hugely positive impact shale projects like Bakken and Eagle Ford have had on the US economy.

    "There is still a long way to go, but investment in unconventional liquid projects in South Australia will accelerate as more and more companies such as Linc Energy and Altona prove up their resources."

 
mj12's picture

the intellectual insanity of political correctness

The greatest single problem in the US today? The increasing loss of the concept of justice within the hearts and minds of the American people. Legal plunder by the establishment and the TOLERANCE of that injustice.

The maze of Law that guards this plunder has grown so vast ....its now impossible to determine what's legal and what's not!

DayStar's picture

RE: What's Legal

"Legal" is whatever the authority says it is.  He's got the gun, the court and the jail.

DayStar

Mantis's picture

Shut down the internet?

Mr Fix,  how on earth will they shut down the internet? I'm curious. To me that seems like a more remote risk than the govt coming for your gold.

Don't want to seem argumentative but bitcoins are backed by nothing in the same way as gold is backed by nothing. All depend on faith, yes even gold and silver.

Dr. Fix's picture

What Recovery?

It's Official: Worst. Recovery. EVER

If there was any debate whether the Fed's policies have helped the economy or just the market (and specifically the Bernanke-targeted Russell 2000), the following two charts will end any and all debate. As the following chart from the St Louis Fed shows, as of the just completed quarter, US GDP "growth" since the "recovery" is now the worst in US history, having just dipped below the heretofore lowest on record.

http://www.zerohedge.com/news/2013-01-24/its-official-worst-recovery-ever

 
Chris P. Bacon's picture

@Tyberius, Fix et. al. re: Firearms 'shortage'

No doubt stuff is flying off the shelves due to activities in Washington D.C.

However, at least some significant part of the 'nothing on the shelf' phenomenon is that this is the time of year when new stock, new models, and new price structures are announced in the firearms industry. The Shot Show which just concluded in Las Vegas is where many of these deals are struck. Shelves should start filling up shortly.

Dr. Fix's picture

Reply to "Shut down the internet?" by Mantis

I do realize that we are looking at a worst-case scenario, 

but that being said, it was widely announced last year that the Obama administration was looking to wire up a “kill switch” for the Internet, and I understand that would create some massive technical difficulties, but when there is a will, there is a way.

In the event of something that resembles World War III, the options become considerably clearer.

A simple nuclear detonation high above the population, would create an electromagnetic pulse that would render all electronic equipment useless, while simultaneously crashing the power grid.

China and some other communist countries have successfully “blocked” various aspects of the Internet since its inception.

Just knowing that there are governments who are trying, or have succeeded in limiting Internet access to varying degrees,

create enough pause in me, not to make the Internet a necessary ingredient in my financial future.

Comparing physical gold and silver in my own possession,

(Combined with its 6000 year history as money),

to Bitcoins, is a bit of a stretch.

Groaner's picture

Everyone here is bellyaching about all the Injustice

that is done by all the governments and is getting worse day by day.

Since the day that Adam sinned and rejected Jehovah as his God, Satan the Devil became his god and all of Adams offspring. The Devil is blinding everyone minds to the truth and the propaganda that the governments use to cover up their miss deeds and lies is an extension of Satans ruler ship.

For 6000 years man has been living under this wicked ruler ship of Satan, a sadistic murderer, yet people dont seem to mind.. duhh.

Here is the solution..that was foretold immediately right after Adam sinned. Gen 3:15

If you have a better solution to the over whelming problems on this earth, let me know.

http://www.jw.org/en/bible-teachings/questions/what-is-gods-kingdom/

TJeffson's picture

re shutting down the internet

The Feds could shut down access to the internet in the US far easier than confiscation of gold, silver, guns or anything else.  They've already got their data mining hardware installed in all of the major hubs in America (we learned that years ago from a former AT&T worker).  They make a few calls to the ISPs and major hubs... it'll be shut down in a heartbeat.  

Bitcoin is just another scam like paper money.  If you can't hold it, you don't own it.  And eventually it will get hacked.  No system designed by man is hacker proof... if man designed it, man can hack it.  

Ten_of_Swords's picture

nothing new here

It seems that nothing will change for the better, but the administration will do their best to obfuscate the true intentions.

Case in point:

The president is going to announce that Mary Jo White will be the new chariman of the SEC.  Here is a little background info on Ms. White:

She is currently chair of the litigation department at Debevoise & Plimpton.

Of which lists the following as clients: Some of Debevoise's clients include: AIG, American Airlines, American Express, AXA, BNP Paribas, The Carlyle Group, Clayton, Dubilier & Rice, The Coca-Cola Company, CNN, Delta Air Lines, Deutsche Bank, Gap, Goldman Sachs, Hasbro, International Paper, JPMorgan Chase, Kelso & Company, MetLife, National Football League, National Hockey League, NBC, The New York Times Company, Providence Equity Partners, Prudential Financial, Polyus Gold, Siemens, Shell Oil Company, SONY, Universal Music Group, Verizon, Yahoo!.

The more things change, the more they stay the same

ag1969's picture

off topic but totally cool

tyberious's picture

Thanks

Kilroy! Looking for a new tactical 20 gage any suggestions?

Nana's picture

JP Morgan's Jamie Dimon Spurs Outrage in Davos

http://www.commondreams.org/headline/2013/01/23-6

JP Morgan's Jamie Dimon Spurs Outrage in Davos

'Remarks such as these, coming from the head of JPMorgan, are maddening'

Amid calls for stricter regulations of the banking industry, JP Morgan CEO Jamie Dimon came under fire Wednesday after telling corporate and political leaders at the World Economic Forum that banks had been wrongly "scapegoated" as the cause of the global economic crisis, and resisted calls for increased regulation of the financial industry.

Dimon's remarks on Wednesday—the first day of the WEF in Davos, Switzerland—came in response to comments by Min Zhu, deputy managing director of the IMF, who argued that the financial sector is too big and greater regulations—including of the "shadow banking" sector—are critical, The Guardian reports.

Sam Mamudi at Barrons writes, "This line of reasoning echoes that of Goldman Sachs CEO Lloyd Blankfein when he told the Times of London newspaper in late 2009 that his bank was 'doing God’s work.' It’s also nonsense, and it shows just how deeply inside their own bubble many bankers live these days."...

Read rest of article via link.

57Goldtop's picture

Mantis re: shutting down the internet

Respectfully, please share what you know.

I believe I could poll dozens of top experts on this (people who advise large enterprise on security strategy and tactics) and find nobody who assumes it's hard to shut down the internet.

Now, they all make a living at this so perhaps they're talking their book. They would cite many levels of vulnerability from DDOS to virus to corrupting DNS (who has a current list of IP addresses of all their favorite sites?). With so much centralized in the cloud, a few kill shots could remove a massive percentage of capability (who has their GMail backed up locally? Contacts? Hotmail? What if Exchange Sync synchronizes an empty record set to your mobile? Remember, it's PUSH.).

I only mean to put you on the spot if you know something that invalidates the experts. Otherwise, I'd suggest that the thing is a house of cards.

Do share.

Nana's picture

Royal Canadian Mint starts rationing silver coins

http://www.gata.org/node/12162

Royal Canadian Mint starts rationing silver coins

Dear Friend of GATA and Gold:

Jason Hamlin of Gold Stock Bull reports that, following the U.S. Mint, the Royal Canadian Mint has begun rationing its silver coin production:

http://www.goldstockbull.com/articles/royal-canadian-mint-hits-supply-sh...

It's not that silver isn't available. It seems to be that the mints don't want to buy the metal necessary to meet coin demand, lest they allow the price of silver to be pushed up to jeopardize the government-backstopped price suppression scheme.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

57Goldtop's picture

Fix

Fix, my man, you suppressed too much of your healthy paranoia in that last post. LOL.wink

The TPTB could stop the internet faster than the Grateful Dead could put the brakes on Row Jimmy.

Zoltan's picture

What is Canada doing in Mali? One Word _______

Dr. Fix's picture

Reply to Nana

Thank you for the work that you do here.

With national mints now in the business of rationing silver coins, a upward explosive movement in price is inevitable.

The heck with all of the charts and graphs, this single piece of news, which is being duplicated all over the place,

is a far more accurate measurement of where the market is headed.

To the moon.

Harald's picture

Mantis

You can use bitcoins if you wish, I choose not to.  I've looked at it, doesn't come close to passing the smell test.  The internet exists because TPTB choose to let it exist.  It's true that we derive great benefit from the net but so do TPTB.  For one thing, it makes it easier for us to spend money.  cool  It also makes it easier for the TPTB to track our lives.  Right now, TPTB (Much better term than "they.") feel the benefits outweigh the risks.  The Kill Switch is real and to paraphrase George Carlin:  "You don't have it." 

Dr. Fix's picture

@ 57Goldtop

"Healthy paranoia" is such a subjective term, that it goes right up there with "conspiracy theory".

Sometimes, I do try to tone it down, (believe it or not),

other times, I just let it rip!wink

It has a lot more to do with what mood I'm in, then any objective measurement of what I am talking about.

Mantis's picture

My opinion

Not saying I'm an expert but I know a bit. Its one thing to shut off access to the internet to countries or regions of the world, but quite another to switch the whole thing off entirely. The internet is so completely useful to the powers that be, that I find it hard to imagine any situation where they would decide they are better off without it. Why do you think they have that huge data centre for example.

Bitcoins runs completely decentralised so it can continue to run quite happily even if the USA gets blacked out. I'm not even sure that would really be doable.

If the USA did get blacked out, and you had a fortune stored in bitcoins you could take your wallet to some other location of the world on your memory key  (unless your passport is revoked, you are in a FEMA camp or something) to somewhere the internet  is still available, and spend them there, or switch it to another currency. There is a popular exhange where you can buy gold with bitcoins btw.

You are entitled to your opinion T.Jeffson but I personally do not view bitcoins as a scam. Bitcoins are only a ponzi, if Gold is a ponzi. It benefits you if more people buy gold, because the price and therefore the value rises. Does that make gold a ponzi scheme? My reasons for thinking bitcoins are not a scam is that they can be used anonymously (like cash or gold) and its quantity cannot be inflated (like gold or silver) and it cannot be controlled by central banks or governments.  Additionally there are no ETFs in bitcoins why would you get someone else to store your bitcoins when you can do it yourself. Therefor hard to make paper derivatives of them.

I consider the people in Precious Metals and the people in Bitcoins to be almost the same mindset, which is why i'm keen for them to be discussed in a forum on here,  but surprises me to find it isn't really. I think there is misunderstanding.

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