Wallowing In The Mire

126
Wed, Aug 17, 2011 - 9:31am

What the true proverb says has happened to them: “The dog returns to its own vomit, and the sow, after washing herself, returns to wallow in the mire.” 2 Peter 2:22

Ole Turd ain't much of a biblical scholar but I'm pretty sure Saint Peter wasn't prophesying about the decline of the U.S. dollar when he wrote this. But...

Ole Pigatha sure is living up (down) to her name today. We are getting very close to a test of the lows from back in early May. IF those lows fail, the Pig will rapidly decline toward critical and final support around 72. If you're wondering, the all-time, spot low is 70.81, found back in March of 2008. Not coincidentally, this was when gold was breaking the $1000 level for the first time. If it heads back there again soon, and it looks like it might, it will likely correlate with gold tackling the $2000 level for the first time.

The PMs reached my short term objectives overnight. Yesterday, I told you to look for a test of the 1800 level and we got an early morning peak today of almost 1798. I also mentioned that silver would catch some EE-inspired resistance at 40.40. It reached 40.38. They both since tailed off and I'd expect that to continue.

Now, don't get me wrong. Nothing would make me happier than to see the metals catch a bid this morning and plow right through those levels. They might. Someday very soon, they will. I just don't think that today is the day. A typical advance from this type of technical position would be to pull back a little here. Gold could drop back toward 1770-75. It might even see 1760-65. From there, though, I look for the next advance that will carry it through 1800 and beyond. Silver is the same. The 40.40 level is all that stands between silver and a retest of the resistance near 42. It will take solid effort to get through there and I don't think that the momentum is there today to pull it off. Let's look for a pullback under 40, maybe to 39.75 or so. From there, silver should catapult forward and break the EE line at 40.40.

The general commodity rally we forecast last week is certainly in full swing. Crude is back up to 88.50 this morning and the December corn just made new contract highs yesterday. Expect this rally to continue for another 2-3 weeks.

Lastly, someone emailed me this link. Probably more than a few of you will find this interesting:

https://www.activistpost.com/2011/08/4-ways-to-break-silver-manipulation.html?utm_source=twitterfeed&utm_medium=twitter

Have a great day! TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  126 Comments

Bull
Aug 17, 2011 - 9:34am

GM

Good morning.

TexAsh
Aug 17, 2011 - 9:35am

Right on time

Thanks for the timely outlook, TF.

Tesla
Aug 17, 2011 - 9:39am

Morning Turd!

(NOT for the Dollar though - ouch!)

Thanks Man!

Shill
Aug 17, 2011 - 9:39am

Morning Turd

Thank you for the update.

Aug 17, 2011 - 9:40am

Hey Turd, Call me dense, but

Hey Turd,

Call me dense, but since reading Gonzalo Lira's post the other day I have been racking my brain trying to grasp how the collapse of France fits into the "domino theory" that could lead to big events here in the US. It is just not clear to me in a way that I can explain it to others. I would love it if you (or any of our other esteemed and savvy colleagues here) could comment on the relationships between the European Union-euro and the dollar-American banking system.

ScottJ
Aug 17, 2011 - 9:41am

The comments from the GATA

The comments from the GATA member talking about the sheer number of short volume on the major miners on 8/15 miners leads me to believe another raid is coming before we move higher ($HUI being capped at 580). Harvey Organ talked about it last night at the end of his report.

In other news - If you haven't seen Jon Stewart bash the MSM, then this is a great video about their lack of coverage for Ron Paul.

Video unavailable

--

And an added song :)

Video unavailable
Shill
Aug 17, 2011 - 9:43am

Target

looking for a target of $61.56 on the GDX today and waver from there.

We shall see.

eobet
Aug 17, 2011 - 9:50am

Commodities rally seems to be

Commodities rally seems to be in full swing, yes, but why is Cotton still treading water?

Any news I've missed?

Tom L
Aug 17, 2011 - 9:50am

@Turd

I'll agree with you but if the Miners close above their capped levels that could be the signal that the future is closer than we may think.

The XAU is now running towards 220 and the HUI has broken 580.

I have a print of $40.43 on Silver.

Ta,

brad_pitts_betterlooking_brother
Aug 17, 2011 - 9:50am

well well well

$40.40 hit.

now HOLD!

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

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Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

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