The Assault Continues
Seemingly not content with the havoc they wrought on the Globex yesterday, The Cartel continued their evil ways overnight.
Silver was actually trading around 39.30-40 at around 4:00 am EDT but then The Monkeys began to arrive for their morning shift on the desk and, just like yesterday, down she went, reaching a low of 38.32 by 5:20. Nice work, boys. Gold was hammered, too, but global demand is creating a "compressed spring" look to the gold chart. As gold approaches 1580, the amount of bids increase and it gets more and more difficult for the Forces of Evil to drive it lower. Crude and copper both look fine, too, which is further complicating matters for them. Look for this to continue. If it doesn't, we'll have a problem. Until then, so long as gold stays above 1576-78 and silver stays above 38, all we have is a protracted Cartel raid that will run its course in due time.
Now, here are a few other items to help you kill time while the storm passes. First up...I found this last night while flipping through the channels, trying to fall asleep. Recall yesterday that the cover used by The Cartel to begin their raid was the "deficit deal" proposed by the "Gang of Criminals" in the Senate. As you recall from civics class and Schoolhouse Rock, a bill must be drawn up and passed by both houses of Congress before it can be sent to the president for signature. Watch this clip of Congressman Ryan of Wisconsin and ask yourself if passage of both houses sounds likely:
Just for fun, I lifted this chart from an article on ZH this morning. Pretty much says it all:
Ambrose Evans-Pritchard is back from and better than ever. You'll enjoy this:
Lastly, my buddy Gonzalo in Argentina has typed up an excellent summary of the current state of decline. None of this is any fun and it is certainly disturbing but the truth hurts. We are where we are.
He asked that I add this, too. An invite to his free webinar:
OK, that's it. Hang in there and keep your chin up. Watch those levels closely and have a great day! TF