It's Monday morning of a U.S. holiday week. We should all relax. All should be well. Unfortunately, we can't and it's not. So, here we go.
As soon as London opened today, down went the metals. As I type, gold is only down $19. I say only because it was actually below 1700 for a while earlier. Silver is once again getting crushed. It is down over $1 and desperately trying to hold $31.
Regardless of the headlines and fundamentals, the trend continues from last week. We are clearly in a period of direct and active price suppression by the Fed and other centrals banks. There will again come a time when the long-term gold and silver bull markets in paper metal will re-assert themselves, until then, it is best to stay out of the way and let the Mississippi Leg Hounds do their business.
Here are your charts. First up, gold. If you look very closely at the weekly chart, you'll notice the length of the red candlestick from last week. Then, look back over that chart for other, similar-length red candlesticks. There are about 5 or 6 of them. Note that every time in the past five years, after similar bad weeks, gold has traded sideways to down for the next 8-10 weeks, sometimes even longer. Of course, there are always exceptions but, at this point, do not be surprised if gold now trades in a downward consolidation until early 2012, at the earliest.
Silver is no better. In fact, by the looks of this weekly chart, silver appears to be in an even longer-term consolidation pattern. Let's watch this pattern closely over the next few weeks. As first mentioned back in September, do not be surprised if silver ultimately falls all the way back to the primary trendline from 2008, currently near $24-25. I'm not sure I will take any new trading positions until/unless it does.
OK, onto the conspiracy section. If you haven't already, I urge you to take a moment to read this:
Very interesting stuff, huh? Let's see...withhold intervention just long enough to force out Silvio and replace him with your own "company man". From this vantage point, it certainly looks to have happened. Just another nail in freedom's coffin.
Lastly, I finally got a chance to visit with Jim Comiskey yesterday. The poor guy's head is still spinning and I ultimately had to cut him off after about 45 minutes. It's a rambling conversation that kind of drifts from detail to conjecture to personal point of view. Some of you will enjoy it. Some of you may find it maddening. Here it is anyway. Yours to listen to, if you choose.
OK. that's all for now. Don't expect any miracles today. Just sit back and watch the fireworks. TF