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 ()


    Be Prepared
    Feb 16, 2012 - 10:54am

    Look at the Difference between Housing Starts vs. Completions

    Why in the world would we need more housing starts in an already saturated market? Makes complete sense to me....

    Feb 16, 2012 - 11:00am

    Turd's recommended read

    I'll try again. Yesterday Turd recommended the link pasted below: I've read it but do not understand it.​Can someone please try and answer:

    1. What's in it for the central banks that would induce them to "give away" their gold for someone else to sell. It doesn't seem like the CBs get anything other than a promise to repay in return. Why?

    2. What's in it for the miners who do the borrowing? If they just sell it on, surely they are just depressing the price of what they are mining. Which they've then got to do (mine) just to repay the gold they bought and sold so cheap. (At least this would make sense to me while mining shares do so badly!)

    3. The bullion banks - as middlemen - would appear to be just earning a middleman's commission. So, who is profiting from all this?

    Any insight would be appreciated.

    "Since you just joined 14 minutes ago, you probably didn't see this on Monday:

    You should take time to read it"

    Talky Tina
    Feb 16, 2012 - 11:10am

    options expiration tomorrow

    Hi all,

    To add to Turd's assessment, options expiration is also tomorrow. EE might try to beat down value before then.

    Feb 16, 2012 - 11:11am

    It does seem all too easy for

    It does seem all too easy for them to contrive waterfalls when they want. But if they are in control, surely they would have broken the main trend line the last couple of times it was tested? (hope I'm not too early in the belief they can't!!)

    I'm presuming they're just minions and their sole purpose is to stop the canary in the mine from alerting the workers? If they're on their own and just looking to rinse and repeat then I suppose it's not in their interests to crush the bull?

    Talky Tina
    Feb 16, 2012 - 11:12am

    options link...

    Sorry, here's a link for clarification.


    Feb 16, 2012 - 11:13am

    Ted knows his stuff

    However he should forget about ever seeing any sort of justice done now.. Its over.. The Kleptocracy is in full speed ahead steele mode.. There has been a huge money grab going on, and all those Liars, (politicans, the elite) know it..

    This system is toast...turn the lights out..

    Full anarchy coming to roost right here very very soon..

    Feb 16, 2012 - 11:18am

    This is a must watch when you have the time

    Nader and Fine describing why Bush and Obama should be impeached.. and how we are 2 terrorist incidents from a POLICE STATE... Thats what is in the plan.. NO KIDDING>> and its all for your protection.. hahahaa.

    Feb 16, 2012 - 11:22am

    Gold buying in 2011

    According to the council, global demand for gold reached 4,067.1 tonnes last year, the highest tonnage since 1997, due in large part to a nearly 5% rise in investment demand, which hit a record 1,640.7 tonnes.

    In the final three months of 2011, China consumed 190.9 tonnes of gold, compared with India's 173.0 tonnes, ranking China top in terms of consumption.

    Total demand for gold in China in 2011 rose 20% to 769.8 tonnes, driven by jewelry and investment demand, compared with a 7% fall in demand in India to 933.4 tonnes as a result of volatile gold prices and a weak rupee.

    The WGC also reported that European demand for the precious metal rose by more than a quarter year-on-year to 374.8 tonnes in 2011, as investors turned to the metal as the region’s debt crisis lingered.

    According to the data, Germany and Switzerland were the main drivers of growth in demand in the region.

    Central banks were avid buyers of gold, with 439.7 tonnes' worth of purchases in 2011, more metal than at any time since the end of the gold standard in 1971, compared with a modest 77 tonnes in 2010.

    The above found here:

    Feb 16, 2012 - 11:23am

    BUying on the dips

    Seems like there's buying on these dips. Trader Dan indicated this as well on one of his blogs in recent days. I would assume a dip down to 1680 would be met with strong hands buying. The question is as more buyers are coming in how much can they keep pushing down. One day I have to think that this thing could go volatile on the upside? It seems to me, also, that if rickards, sinclair et all who are calling for $4500/5000 gold in the next few years this thing needs to get moving a little quicker? Unless we are just going to start to get bigger moves on the up next round up?

    Feb 16, 2012 - 11:26am

    The day will come...

    The day will come when the dollar rallies and gold rallies more. When that happens hold onto your stash and your big yellow hats cause it will be off to the races. Until then just keep stacking. My 2 silver pennies.

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