Objectives Met

Wed, Aug 3, 2011 - 2:41pm

As you know, I've been looking for a short-term peak in Dec gold, somewhere around 1680. I've also been looking for Sep silver to trade to a peak between 42 and 42.50. You may have noticed that this morning I simply split the difference and called for 42.25. I have intraday highs of $1675.90 in the December gold and $42.06 in the September silver. That's definitely close enough!

It looks to me like The Cartel has had enough for now. Combine that with an overall desire to lock in some gains and you've got a recipe for a small selloff. The Cartel my have tipped their hand a bit by whacking gold for $6 in one minute, just three minutes after the Comex close. It's hard to say for sure but history suggests that they will come back for more later this afternoon and overnight. The key now is to find points where we can buy back in for a short-term trade. The charts below should help.

If you're interested, here's my strategy:

Earlier today, I sold my spreads of Dec 1600 vs Dec 1700 calls. I rolled into new spreads of Dec 1700 vs Dec 1800. I'm still "long" but this freed up quite a bit of cash. I also changed around my silver spreads. You may recall that I was long the Dec 45s and short the Dec 50s against them. Again, to raise some trading cash, I sold my 45s and bought some 48s. So, my new spread is Dec 48 vs Dec 50.

Now, with my liquidity "issue" solved, I'm going to be looking to buy the dip I expect to see between now and this time tomorrow. Even though I expect a "modest positive surprise" in the BLSBS report Friday, I'd still like to do some buying before the report comes out, just in case I'm wrong and the report shows something like -50,000 payrolls! If I get the opportunity, I'd like to buy some October gold calls as well as some September silver. Keep an eye on the numbers I've given you and I'll let you know if I make any moves.

Have a great evening! TF


Just wanted to go ahead and get "on the record" here. I do not at all like the unusual action on the Globex this afternoon. The entire thing stinks of an upcoming raid, probably overnight and into tomorrow. Additionally, we know that The Cartel likes to raid the metals on the day before the BLSBS report, too. Combine that with this ugly, 5-minute chart and I think its safe to predict the raid I suspected earlier.

Let's watch and see. I've got a last on Dec gold at 1663. As mentioned above, a preliminary target for a selloff tonight and tomorrow would be 1635-45. Be prepared. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 4, 2011 - 6:48pm

@Blackhawk Who run

@Blackhawk Who run Bartertown?

Aug 4, 2011 - 10:56am


re: Raid On Silver Starting

Sorry if you've been asked this already... I'm not on that often... What charts do you use that show volume?

Thanks in advance... :)

Aug 4, 2011 - 10:41am

DPH, the Global Asset Strippers

Have been around since the days of the British East India Company. They got organized, and went global. It is fascinating history to follow.

The true story of the opium trade and how it was used to force China open to western produced goods is a great example of the MO and one that would blow your doors off. The EE of that day just hated that most of the China trade was one way, in the favor of China. Chinese had little use or desire for most western goods. Well the EE took care of that. They even fought 2 wars to make China stay an addicted cripple that could be exploited at their pleasure. This is what we are dealing with.

The fact is, the fortunes of many of the wealthiest British and American families wielding extreme wealth and power today were founded on the back of the global narcotics trade. Many of the most prestigious British banks, as well as American Express, were founded in Hong Kong as money launderers of the proceeds from the "China Trade". They don't sue anyone for saying that. Because they know from whence they came.

Today, many of the same families and financial organizations continue to run behind the scenes what many in the know call the biggest, oldest, most lucrative trade in world history. Now it's heroin and cocaine, and the world is their marketplace. Funny how we wound up in Afghanistan isn't it?. They only produce 90% of the world's poppy crop. The Taliban? Fact is, they put a major dent in Poppy production and became very bad for business. You know the rest. There's nothing new under the sun.

MisesFanTom L
Aug 4, 2011 - 10:40am

Rothbard is pure genius.....

and easier to read than Mises, IMO.

I highly recommend "A History of Money and Banking in the United States".


He also wrote articles under the pen-name "Aubrey Herbert"

Aug 4, 2011 - 10:37am


Need price of gold yesterday at 6:30pm and also at 11:00pm last night...can't find where to get this info...PLEASE HELP!

Tom Ldaveyboy
Aug 4, 2011 - 10:31am


Government is absolutely a parasite. Gov't created the corporation to be able to pick winners and losers in the marketplace where it had no direct influence under a hard currency standard.

To say that corporations hikacked government is to betray collectivist and progressive notions about the potential for philosopher kings to no more about your life than you do. It's endemic to the argument. The corporation, as presently constituted, is the problem, not because government could work if it were free of their influence but because they are a violation of the concept of rights, which government does not have the power to grant, but do so to arrogate power to both sides of the relationship. It's Hamilton's American System writ large to excompass more than just the banking sector.


Aug 4, 2011 - 10:31am

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Tom L
Aug 4, 2011 - 10:26am


Rothbard should absolutely be considered along with Mises and Hayek.

I recommend highly:

The Ethics of Liberty (essential reading)

What Gov't Has Done to Our Money

The Mystery of Banking

It was Rothbard who connected the ethical and moral arguments to Austrian Business Cycle Theory and, by extension, launched the modern libertarian movement, honestly. It was Rothbard that helped found Cato and told the Koch's to go fuck themselves when they sold out to gain more influence in D.C. I have not read Man, Economy and State but I've read the above two books and dozens of articles and listened to some of his lectures at Mises.Org. Rothbard's influence is reflected in the this generation's Austrians like Wenzel, Woods and Murphy.


Aug 4, 2011 - 10:25am

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