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 3, 2011 - 3:44pm

A note from Santa to cap off our day

Two Major Chapters In Growth Of Gold To Reserve Currency Complete

August 3, 2011, at 12:26 pm by Jim Sinclair in the category General Editorial | Print This Post | Email This Post

My Dear Friends,

I am on the road again. This time it is to speak at the GATA conference in London Friday afternoon.

The key concept in the gold market is that it has in no way performed like a classic blow-off hyperbolic top.

The price travel between $1600 and $1764 is fraught with points of resistance. The price journey in the next chapter founded by the fundamental reasons by Alf Fields and Martin Armstrong will soon be shown as correct. They will be the predictors of merit.

There is no reason to drop or reduce your gold hedges.

There is as always good reason not to carry any margin in a protective gold spread. Gold will only gain in volatility that will frustrate the greed driven mad margin trader.

Two major chapters in the growth of gold to reserve currency of the people’s choice are completed.

The last chapter is still coming going into 2015 and will be spectacular.

I will be in touch with you from the airport and hotel. I hope to see you at the conference.


Aug 3, 2011 - 3:46pm

@ Silver Monkey

Silver Monkey,

Welkome to fascist Amerika. That is but example of many in which this once great "beacon on the hill" is turning into a third world fascist state. Here is another example that Trader Dan posted on his site:


Or where a young girl had here lemonade stand shut down because she didn't have a permit from the county.

For more "fine" examples of examples of what a fascist police state looks like, take a look at End of Liberty at:https://inflation.us/videos.html

It breaks my heart to see this unfold in front of my eyes .


Violent Rhetoric
Aug 3, 2011 - 3:54pm

It breaks my heart to see

It breaks my heart to see this unfold in front of my eyes.

I was there too a while back. Now I'm just getting ready for the inevitable breakdown when (1) the entitlement checks don't go out or (2) won't cover the cost of food & shelter or (3) worst case scenario... reality shows on cable TV are interrupted for a couple of weeks.

Aug 3, 2011 - 3:58pm

Gold back at low of the day

mini raid at 1:31pm

follow up raid at 3:55pm

EE bombs to drop tomorrow or Friday?????????????


Aug 3, 2011 - 3:59pm

@ Panda Liberator


Kudos to you. You are doing the right thing in protecting yourself from the economic madness wrought on us (We The People) by the sociopathic oligarchs (e.g., bankster class). I wish my older friends could see the light (shiny silver light that is) that you have.


Aug 3, 2011 - 4:00pm
Aug 3, 2011 - 4:00pm


I was just about to comment on this.


I take this as a sure sign that a raid in gold is coming. You can see it on a 5-minute chart, too. I'm pretty sure I'm going to get my 1635-40 tomorrow.

Aug 3, 2011 - 4:11pm

post updated

Please refresh and check it out.

Aug 3, 2011 - 4:20pm

Turd ?

That's what they've always done ! They let the horse run free and see where it goes on it's own.....then they slam it as it runs out of mo ! We always think maybe this time.....this time will be different ? I can't remember when the DOW got slammed and Gold soared ! Usually, if the DOW gets slammed......Gold is punished, so that no one makes the connection that Gold is actually a safe haven ! The DOW hasn't rebounded and Gold hasn't taken a turd for the worse ? Maybe this time, maybe this time, Gold is here to stay ! Monedas 2011 White comedian and market commentator !

Aug 3, 2011 - 4:21pm

Turd it's to the point where it's like we have a trusted Turdite

in the Control Room of the Gang That Couldn't Rig Straight. Many times lately it feels like we know what they'll think of before they do...

As always, Thank You for your excellent leadership and insights at this unique time in the history of money, and of this country.

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