Gold Charts. Silver Charts. Too Many To Count.

Thu, Feb 16, 2012 - 10:33am

It's 10:00 a.m. EST and I'm just starting to type. What took so long, you ask? Frankly, I printed off way too many charts. This old Officejet is smokin'! After winnowing the list down to 9, I think I'm ready to get started.

As you might have expected, we're going to start again with The Pig and, again, this disclaimer:

  • I realize that, year-over-year, the Dollar Index is flat while the metals are up considerably. However, in the day-to-day trade, movements in the POSX are very significant. Why? Because the only market participants left post-MFG are The Cartels and The WOPRs. Everyone knows that weakness in the POSX causes WOPR to buy. However, strength in the POSX is even worse. WOPR sells and the Pig strength encourages The Cartel to punch the gas, too, giving POSX strength twice the impact as POSX weakness.
  • OK, that said, take a look at these charts. Pigatha has broken out of her pen and is rolling higher. Look for this to continue, probably all the way to 80.50 or even 81.

    The clear breakout of The Pig has inspired The Cartels to finally put on the full-court press that they've been itching to apply for the past couple of weeks. It was "on" this morning right at the opening bell, as you can see on the charts below. On the bright side, The Forces of Darkness must be somewhat discouraged by the FUBMs that are forming on the charts. The Pig has since dropped back some, too, which is serving to flip a few WOPRs back into the "buy" position. Regardless, do not be surprised if The Evil Ones soon throw a temper tantrum and attempt to soundly break support. Maybe they'll wait for the Globex or the overnight session. We'll see.

    So, taking all of this into consideration:

    1. What appears to be an ongoing bounce/rally in The Pig.
    2. The hard cap maintained by The Cartels for almost 3 weeks at $1750 and $34.
    3. The dramatically increased Cartel net short position of the past 2 CoT reports.
    4. A 1-month silver lease rate at -0.36%.
    5. The immediate hammering of the PMs right at the Comex opening bell today.

    We've got to expect more downside to come. Again, in the end, this is all perfectly fine. Gold rallied 15% from late December to late January. You would expect it to give about 1/3 of that back in a small "correction". This gives us a target near $1680. Silver rallied almost 30% over the same time period. A similar 1/3 giveback would take silver back to $31.50 or so. When either or both of those levels are reached, I'm buying with both hands.



    Just one reading assignment for you today. Please take time to read both of these discussions of MFingGlobal mess and the ongoing repercussions.

    OK, that's all for now. Keep a close eye on things today and don't get an itchy trigger finger. Patience.


    About the Author

    turd [at] tfmetalsreport [dot] com ()


    Feb 16, 2012 - 10:35am



    Feb 16, 2012 - 10:40am

    starting a nice little rally here

    markets looked dead until the phonie numbers came out.. hard for the crooks to keep the metals down with the US peso going down now

    Feb 16, 2012 - 10:40am

    No money, no problem

    I don't think the Cartel is worried at all. I am of the opinion that they now have 100% control over the market. The only reason they aren't crashing it is because they want to keep up the APPEARANCE of a market.

    It looks like we remain on track for a flat month of unusual precision. Tmosley is looking forward to wearing two yellow hats, one on top of the other ;)

    Feb 16, 2012 - 10:41am


    Must admit the EE takedown today was masterful. Flat POSX (at top of channel) and EUR/USD flat.

    Force price down when it was obvious POSX was going to decline and Euro increase which otherwise would have been positive for metals. Probably would have seen us at $34+ again had there been no intervention. Instead, the dipping POSX will take us back to yestarday's trading range.

    Nice to see we clawed back to $33. Could we be lucky enough to see an ORD today?

    Dr G
    Feb 16, 2012 - 10:42am

    Yay for bellyacre!

    Yay for bellyacre!

    Turd, thanks for the reminder about patience. I'm terrible with it. I'm trying to learn to trust the charts and your expertise, but half the time I don't know what I'm doing when it comes to trading. Still learning, but it's kinda fun.

    I didn't take advantage of the lows we had this morning to buy some more physical. I'll never have patience with that. Looks like a small FUBM is in place, but I would expect it to roll over and head back down south again.

    And how strange is it that the Cartel just can't get any traction going against gold?

    EDIT: I think tmosley below nailed it. They are in complete control and don't want it to go below 1700 at this point. Seems plausible.

    Feb 16, 2012 - 10:42am

    Good morning

    Thanks for the update.

    I just heard something on TV about Russia and Iran doing some type of big wheat deal and using rubles for the transaction. The plot thickens as the USD is bypassed more and more.

    I'm looking for the rest of the story online.

    Be Prepared
    Feb 16, 2012 - 10:44am

    The 99 Weeker Chart

    The Number of People eligible to receive Long Term Benefits is decreasing as they fall off the roles.... and you can get a sense of how the 99 Weeks has already started effecting people....

    Feb 16, 2012 - 10:45am


    In agreement with Dr G above.

    Feb 16, 2012 - 10:47am

    The crooks did a .50 bombing

    at the comex open.. in silver. they were probably hoping for more. I dont know how they can keep the metals down while the market is up.. They cant let the fraud stocks go down, ever..especially now.. its the only game left to fool the sheeple

    Feb 16, 2012 - 10:50am

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    US lawmakers reach agreement on payroll tax cut, jobless benefits

    Last Updated: 8:56 AM, February 16, 2012

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