Caution For Monday

142
Fri, Feb 3, 2012 - 4:37pm

Just a quick warning for early next week as I do not like the way things traded today.

Several things concern me for PM prices early next week.

  1. Gold and silver rose yesterday and broke through resistance on good volume and increased open interest.
  2. In light of today's action, this looks like a trap that was set by The Forces of Darkness.
  3. The PMs were pressured all day even though the POSX sold off all day and finished basically unchanged.
  4. Other "risk assets" such as stocks and copper traded higher all day
  5. Gold was then raided for $15 on the Friday afternoon Globex.
  6. Notice on the chart below that this raid occurred before a small Pig rally. Not during or after.
  7. After steps 1-6, does a Friday afternoon raid indicate that someone got word of a pending Cartel short-selling attack for Monday?

So, anyway, we'll see. DO NOT BE SURPRISED, though, if the metals take it in the shorts pretty good on Sunday night and Monday. IF they do, look for gold to drop to 1720 and potentially even 1705-1710. Silver will likely fall to 33 and even 32.80. At those points, both will present rather compelling buying opportunities.

At any rate, I hope I'm wrong and everything springs higher on Monday and all of next week. However, with both metals overdue for a little pullback and with the action we saw today, we should all be mentally prepared for some tough action early next week.

TF

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  142 Comments

tranquillity
Feb 3, 2012 - 4:40pm

Killing #1

Killing #1

FleetFeet
Feb 3, 2012 - 4:41pm

TEOTWAWKI

What most people don’t seem to realize is that there is just as much money to be made out of the wreckage of a civilization as from the upbuilding of one.

Margaret Mitchell

ink
Feb 3, 2012 - 4:41pm

This was the catalyst for gold and silver raid

https://www.telegraph.co.uk/finance/debt-crisis-live/9058264/Debt-crisis-live.html (see 19.39 entry) "James Bullard, president of the Federal Reserve Bank of St Louis, has said the US may need raise rates before 2014. He added that the surprising strength of the country weakens the case for more QE and unemployment may decline to 7pc by the end of 2013. He told Bloomberg: “The economic news and economic data, including today’s data, has been surprising to the upside. I need to see significant deterioration in the economy and some threat of deflation or inflation moving significantly below our inflation target before I would consider more QE. Inflation is coming down but at least for now it is above our inflation target [of 2pc]. We will see how things develop. But I am also more bullish on the economy as a whole. I do think we have momentum coming out of 2011." https://www.bloomberg.com/news/2012-02-03/fed-s-bullard-says-surprising-...

treefrog
Feb 3, 2012 - 4:42pm

grafitti

seen on a bathroom wall at a black run convenience store in a predominantly black neighborhood in perry fl today:

"Obama lies and your freedom dies."

is obummer losing his core support?

draft allen west for keynote speaker!

imagine hundreds of dems soiling their linen. thousands? millions?

RaRaRasputin
Feb 3, 2012 - 4:53pm

Rather compelling buying opportunities

Always looking for those kind of opportunities these days Turd as who knows how long they might continue?

If the dip happens I'll be BTFD for sure

Have a great w/end!

RaRa

averagejoe
Feb 3, 2012 - 5:00pm

Hey All

Kind of glad to hear a raid maybe coming. I want to BTFD.

JimmyTheHand
Feb 3, 2012 - 5:03pm

The Forces

The Forces of Darkness were out trolling around with their little HFT programs and "Get out of Jail Free" cards today.

Here is a little perspective though for the year:

Silver @ 33.63 is UP 16.78% YTD

Gold @ 1,725.55 is UP 7.98% YTD

s2man
Feb 3, 2012 - 5:08pm

I meant to warn you...

Today was my day to go to town and visit the LCS. I forgot to warn you. It always spikes just before I buy, or dips just after. I apologize for not notifying you all, so you could plan accordingly. TPTB must find my monthly buys a threat.

SilverHawk
Feb 3, 2012 - 5:11pm

Saturday

Regardless of what happened this week or what might happen on Monday, I'm still going to the local shop to stack tomorrow!

cpnscarlet
Feb 3, 2012 - 5:12pm

And What Avout Iran

And this is the action we get on a day where the news should be a slam-duck for PMs to rise. AS WC Fields said while spying a twisted pool cue, "Show me something is this place that ISN'T crooked!"

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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