Algos In Charge

Looks like the WOPRs have the run of the place today ahead of the BLSBS tomorrow. Let's see...what else can we talk about?

Well, we should start with the metals, of course. There doesn't seem to be much happening today as most participants (with actual human intelligence) have learned to be wary ahead of the monthly BLSBS. This leaves price to the machinations of the machines and we're left with a tightly rangebound but volatile market. The 200-day MA in the Apr13 is right below $1670 and the 50-day in the Mar13 silver is at $31.90. Expect the trade to center around and bounce off of these levels for most of the day. Any sustained dip/raid that suddenly drops price toward $1660 and/or $31.60 would present a pretty good trading opportunity as London physical demand remains very robust and those levels would bring a lot of buying. This, in turn, would cause The Cartel banks to buy futures to hedge and the paper market would/should recover. Be vigilant and patient.

How about crude? It's down today with most everything else in spite of the flare-up in tensions vis-a-vis Israel/Syria/Hezbollah/Iran. See this: http://www.jpost.com/MiddleEast/Article.aspx?id=301670 and this: http://www.debka.com/article/22724/Russia-slams-Israeli-attack-on-Syria-US-forces-in-Jordan-on-alert. Price has reached and exceeded our long-standing target of $98. Even with the "tensions", I'd still be looking to ring the register a bit here and wait for a pullback. Below are two charts I posted into the comments of yesterday's thread.

OK, how about some reading material?

Our good pal, Trader Dan, was all over the web yesterday and you'll definitely want to read both of these. First, there's this terrific piece on his own site where he discusses the long-forgotten (it seems) Euro-Yen cross. http://www.traderdannorcini.blogspot.com/2013/01/euro-yen-cross-continues-streaking.html And then he showed up over at KWN where Eric has inked him to exclusive analysis. This is a very good read, too. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/30_Norcini_-_Silver_Now_Very_Close_To_A_Major_Short_Squeeze.html

Another friend of Turdvile is The Crazy Canuck, Jeff Nielson. Here Jeff discusses the prospects for "global growth" in 2013. http://www.bullionbullscanada.com/intl-commentary/26053-the-2013-economic-reality-check

Alasdair Macleod has been writing some fantastic stuff lately at the GoldMoney website. Seems like 2 or 3 times per week. Keep an eye on that site or you might miss something, like I nearly missed this: http://www.goldmoney.com/gold-research/alasdair-macleod/bank-of-england-gold-the-doubts-remain.html

Here's a link that somebody sent me by email. I haven't had the chance to fully review the site yet but it looks interesting. Maybe some industrious Turdite (with some time on his/her hands) could peruse the site and see if it is something valuable. http://about.ag/slv/

More and more talk about the renminbi/yuan becoming a/the new world reserve currency. As you know, I am convinced of this eventuality...I'm just not convinced of the timing. So, I try very hard to not paint myself into a corner regarding it. However, I can't help but get the felling that this is looking more likely sooner than later. Maybe as soon as the next 1-3 years? Maybe? Just keep watching these stories and collecting these links. All of the signs are there. http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20130118000075&cid=1102

And fresh off of his overexposure at CNBS yesterday, Squeaky is out with a new missive this morning. I'd suggest you read the entire thing and you can find it here: http://www.zerohedge.com/news/2013-01-31/bill-gross-credit-supernova. To save you time, however, here's a C&P of his conclusions:

Speed Read for Credit Supernova
1) Why is our credit market running out of heat or fuel?
a) As it expands at a rate of trillions per year, real growth in the economy has failed to respond. More credit goes to pay interest than future investment.
 b) Zero-based interest rates, which are the result of QE and credit creation, have negative as well as positive effects. Historic business models may be negatively affected and investment spending may be dampened.
 c)  Look to the Japanese historical example.

2) What options should an investor consider?
a) Seek inflation protection in credit market assets/ shorten durations.
 b) Increase real assets/commodities/stable cash flow equities at the margin.
 c) Accept lower future returns in portfolio planning.
William H. Gross
Managing Director

As I go to close, I see that a headline of a Chicago PMI beat has caused the algos to pound the metals lower. Let's see...outright QE∞ and a negative Q4 GDP were only good for $13 yesterday. A "surprising" Chicago PMI rips it all back out. What a freaking joke. Just btfd.

TF

 

371 Comments

Zoltan's picture

First?

Apologies to the first haters.

Z

Hondo's picture

Avatar test!

.......

Island Guy's picture

Top Ten?

Am I in the top ten?  This has never happened before.  Must be my lucky day!

babaganoush2307's picture

(Top Ten?) So...

…I no longer try to convince people that a collapse is coming (don’t do any good) but I did (use) to post articles regarding the current situation up on facebook.  Out of around 1000 “friends” I had about 5 people that consistently liked and commented on my statuses.  We are all on the same page and always had very insightful conversations regarding what is about to happen, how to protect ourselves and how to fix the problem.  Everyone else never said a damn thing and just sat on the side lines.  The only people who engaged were the ones who cared.  We had these conversations for months and they were truly fantastic, it made me really happy to know that not everyone outside of turdville is a complete and utter dumbass.

So yesterday, I did the usual and posted something up that I thought was interesting.  My usual handful of awake people liked it and we briefly started a discussion.  Suddenly, ONE person commented something along the lines of “what does you bitching about the problem over facebook accomplish?  All your post are fucking annoying and do nothing but make the problem sound messier than it actually is, stop littering my news feed with this shit”

The second after that comment appeared, literally within ten minutes, over ten other people joined in on the bashing and commented with similar things such as “your fucking annoying” “Nobody cares about this shit” “I am deleting you because….” “you just sound like a dumbass” etc. etc.  Seeing this made me feel like I do now regarding the government, everyone is pissed and just waiting for the first shot to be fired.  Once it is fired, everyone else joins in…this comment is a perfect example.

So upon reading these comments, I decided to first and foremost do a “facebook friends cleanse” in which I deleted every single person that I do not give two shits about, who do not give two shits about me, and those who refuse to open their minds to other possibilities other than what they want to hear.  After that, I decided that I am no longer going to post ANYTHING regarding the situation outside of Turdville, even just articles.  My handful of awake people know what is going on and I guess in a nutshell they don’t need to keep hearing it from me.  They will do just fine and everyone else can go fuck themselves.  Wish granted, no more rants from me but when the shit hits the fan, you’re going to have a Glock in your face if you come crying and running to me for help.   I tried helping and you shot me down because what I was saying you didn’t want to hear, so in the near (disastrous) future if they need help then they can ask my 9mm who will then act as the ultimate judge.

So sad it has come to this, the majority really don’t care about this country anymore…

Urban Roman's picture

Woohoo top ten

Shenanigans in Houston ... 

Squeaky Squawky has new missive ...

Looks like it's time to throw in the towel and yank the 41K and close all paper positions. Wasn't working all that well anyway. 

"Houstonians", OK, I'll remember that. Did you know "Austinite" is a phase in the iron alloy diagram. Some metallurgist's name, I guess. 

OTOH, Bitcoin just regained the $20 handle. I wonder how long until it passes Ag? 

( in other words I got nothin' )

StevenBHorse's picture

Credit Supernova

Respect the Stache.

Mudsharkbytes's picture

In the top ten…

…with my new avatar.

And my new "Slave Queen":

img4371w.jpg

Ordered some Freedom Girls yesterday.  Wish I'd purchased the first two medallions when I had the chance, they're carrying a hefty premium on eBay now.

DayStar's picture

Honduras

Honduras is having a government collapse because they are broke.  Sounds a lot like what is coming to the USA. 

http://www.tfmetalsreport.com/comment/265623#comment-265623

DayStar

curly80's picture

Sell

I don't believe this silver shortsqueeze  anymore. I'm waiting for almost two years now. 

I have had it with all those stories about massive shortages etc..this is all hoping and smells like gambling...

I am going to sell all my pm positions and physical. With normal stocks there is more money to earn with less risk. Don't fight a war you can't win.

Yooper Rick's picture

Re: Facebook

baba....a better facebook cleanse (this is what I did) is to delete your account.

edit: that's right curly, keep your savings in frns in a nice safe ira account.

StevenBHorse's picture

Curly80

Don't let the door hit you in the ass on your way out.

You don't understand this game and never will.

Have fun in CD's, and T-bills, which is totally not gambling.

One more weak hand gone.....many more left.

Urban Roman's picture

MDB, is that you?

Response to: Sell

Planters's picture

ha

fanboy-ing in either direction makes you look silly.

ClinkinKY's picture

From the DailySheeple.com ( a new website I just found)...

...and I coulda' been a contenda' (First) if I hadn't been reading this, not that I care about being in the "top ten" (did I make itwink)

Just noticed that the article was linked from SHTF.com I'm not affiliated with same but I plan to sue them for infringement and buy another half billion with my settlement:)

------------------------------------------------------------

 

Rush To Safety: Americans Buy Nearly Half a Billion Dollars Of Gold and Silver In January

Mac Slavo
www.SHTFplan.com
January 30th, 2013
 

 

While public officials may be ignoring the continued deterioration of our economy, job losses to the tune of hundreds of thousands of people weekly, and the unprecedented demand for government emergency support services like unemployment insurance and food assistance, Americans who sense uncertainty in the air are flocking to the safety of physical resources.

Our first point of interest is a recent report from the Federal Reserve that indicates some $114 billion dollars in cash was withdrawn from the nation’s largest banks in the last thirty days. Those holding their money at bailed out financial institutions are understandably concerned because the government’s $250,000 deposit insurance guarantee program, originally implemented to restore confidence in the wake of the 2008 financial crisis, expired at the end of 2012. That and the US fiscal situation has never been worse, with one Obama official recently having said the solution to the country’s woes is to simply kill the dollar.

This suggests investors and cash savers are no longer confident in the purported safety of the country’s “too-big-to-fail” institutions.

The next obvious question then is, “where did this money go?”

Part of the mystery may have been unraveled when the US Mint released its latest sales and inventory report.

According to the mint, investors purchased nearly half a billion dollars in gold and silver in the last 30 days. There was, in fact, so much money shifting into physical precious metals in January that the mint was actually forced to cease operations because they couldn’t meet demand.

Read more:http://www.thedailysheeple.com/

Zoltan's picture

LCS/LGS Report for Winnipeg, Manitoba

Popped in to see Sheldon at Collectibles Canada (on McPhillips).  Lots of the shiny on display.  Maples $35 Canadian cash and carry.  Premiums higher on the wildlife series and on Eagles.  He said he had not experienced any drop in supply from the Mint.

Cabellos had full shelves of ammo and racks of rifles.  No shortage here.

Z

TreeTop Dweller's picture

270 Million year old Turd- Happy Birthday!

Check out this beautiful, red and black, 270 million-year-old fossil. It’s a shark turd. No, seriously, it’s fossilized shark poop. I wonder how you go about finding fossilized shark fecal matter. Even though the fossil is 270 million years old, do you need use hand sanitizer after touching it?

shark-poo

Sorry about the this post but it is just too good to pass. On a day that algos run the show, time for some diversion. Junior JPMorgan ancestors found inside!

http://www.slashgear.com/fossilized-shark-poo-hides-270-million-year-old-tapeworm-eggs-31267574/

brokerk22's picture

@Curly60

Scram and good riddance.  Hopefully you will be holding all these over inflated dow garbage when they all tank!  You and your family will hate you when silver hits a $100 and the market is crashing.  But we need weak hands like you to sell.

tpbeta's picture

@curly80

Not an irrational position, if you believed the shortage stories have a relevance to price in the first place. Which would itself be irrational, given the evidence that the price is driven by paper and sentiment.

babaganoush2307's picture

@ Yooper Rick

Seriously considering it, I went on year hiatus last year because the drama was just to much for me.  I do honestly enjoy facebook for some things like keeping up on family and "real friends" who are a distance from me.  Outside of that though, facebook is more like the bad girls club than a social network.  Everyday I just get bombarded with more and more bullshit...

You know what they say...fighting the issue with the sheeple is like fighting zombies, no brains and they just keep on comin'

babaganoush2307's picture

I bet...

...curly80 hat tipped himself.

Have fun and don't forget to bring toilet paper (that's what my mom used to tell me when I was little and would "run away" from a situation that I didn't like)wink

Oh yeah and of course, don't let the door hit you in the ass on the way out

brokerk22's picture

@Turd

We all know this currency move from China is coming soon (1-3 years).  Surely, the metals will move well in advance of this move.  Am I interpreting this correctly that Sinclair believes that within the next 30-60 days the algos will be switched to long metals?  And surely this will blow silver over the $35-$36 resistance and gold over $1800.  Right?

Turd Ferguson's picture

Ahhhhhh.....

MODERATOR

I love the smell of capitulation in the morning....

Response to: Sell
Planters's picture

the independent media

I love how I see / read articles from "independent media sources". Can you trust them or is it just more PM pushing...Fear Mongering, and then asking you to pay 15$ to watch a video on how the system collapses. I dunno anymore. I used to read all these articles and they would make sense but now it is the same ol shit and the collapse is just around the corner and blah blah blah. Everyone has a book for you to buy, or a t shirt, or a sticker, right on or off I cant tell the bad guys from the good anymore. I suggest you read it all both the red and blue kool aid boxes and see what shoe fits, don't trust either side. Jamie Dimon wants to make more money and Jim Sinclair wants the Price of gold to go up. I have my doubts about everything I read here now from everyone and everything. I suggest you do too.  No offense Turd, But the lines get blurred for me.

Groaner's picture

SLW and AG are green

silver looks stronger than gold at the moment.

I see double bottoms in the metals here

Here's one for ya.,, Senate to vote on suspending debt limit ceiling.. 

http://www.marketwatch.com/story/senate-to-vote-on-suspending-debt-limit-2013-01-31?link=MW_home_latest_news

ag1969's picture

curly80

please PM me what you have for physical that you are selling today.  I would be more than happy to disgorge you of the only real money you have ever owned.  I will be more than happy to give you crisp paper dollars and a fair exchange.  Thank you in advance.

Mudsharkbytes's picture

Didn't take much of a drop to bring out the trolls today

Wow Curley, you've made a total of two whole posts on TFMR, which includes todays well written diatribe "Sell".

What's the expression? 

Curly_Howard_1.jpg 

If it has webbed fee, a bill, swims in water and quacks must be a troll?

Sad-descent's picture

Re: Ahhhhhh

I think one can really pick the turning point when Nadler starts to get even more smug in his articles.

Swineflogger's picture

Sorry - I could not resist . . . . . .

Pining 4 the Fjords's picture

Baba- that HT was me

It pleases me to no end when weak hands GTFO...   Sell, Mortimer, SELL!!!

Now if we could just broker a deal to get his phizz to a Turdite, that would be perfect.  

One more weak link gone, the chain is now stronger.

50sQuiff's picture

Heh

Curly80's only previous post was almost exactly on silver's dead lows at the end of June 2012. It was also written in that unmistakable Dupe/Douche/Disinformation Agent style. 

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