Schizo

182
Tue, Apr 3, 2012 - 4:38pm

schiz·o·phre·ni·a

[skit-suh-free-nee-uh, -freen-yuh] noun
1. Psychiatry . Also called dementia praecox. a severe mental disorder characterized by some, but not necessarily all, of the following features: emotional blunting, intellectual deterioration, social isolation, disorganized speech and behavior, delusions, and hallucinations.
2. a state characterized by the coexistence of contradictory or incompatible elements.
Whaddayagonnado? The Bernank giveth and The Bernank taketh away. Just a short 6 trading/business days ago, we were greeted with this:
Gold rallied over $23 last Monday, following upon a $20 UP day the previous Friday. Pretty impressive.
Today, gold had been threatening critical moving average, technical and Fibonacci resistance near 1680 and silver had finally looked like it was gaining a significant toe-hold above $33. Unfortunately, the latest FOMC minutes were released after the Comex close and lookee here:
"Now, wait a second", you must be saying. "Hold on just a minute", you must be mumbling. "Just last week, The Bernank mentioned more QE was on the way and now today it's not. Did things change overnight? Huh?"
Of course not! Welcome to the land of limitless SPIN and MOPE. Up is down. Left is right. Inside is outside. It doesn't matter. Everything matters. And notice that much of the reported "enthusiasm" and "optimism" is based upon the disturbingly faulty and manipulated BLSBS data from January and February.
Look, if you actually believe that The Fed is no longer going to be creating new money to fund the continual trillions in debt and deficit for the U.S. government, you're even dumber than I am. And, if based upon this belief, you wish to sell your physical gold and silver, knock yourself out. I'm sure there are lots of folks around this site that will gladly take it off your hands. I, for one, don't believe any of it and you shouldn't, either.
If you haven't yet, perhaps you should take 10 minutes and read this:
and this:
Besides, none of this nonsense should surprise you. We were warned of this "reaction" earlier:
And already, some are discounting the MOPE:
In the end, please try not to get too stressed out over this. Could I be wrong and "Turd's Bottom" in gold fail? Of course! However, as the chart re-print below shows, it is extremely unlikely that gold will drop to and through 1600. Maybe, in a wild bit of downward momentum, gold could trade there for a day or two. But, in the absence of real, significant change to the fundamentals, gold will not and cannot go down a whole lot farther.
Here are some updated charts. First, here are the 1-minute charts showing the drop in all its glory. By the way, keep in mind that today is Tuesday. This means that this entire episode occurred after the CoT survey. The timing was perfect for naked Cartel shorting as any new positions have a full week to be covered before evidence will be shown. Additionally, I just saw the OI numbers from yesterday. Gold rallied $8 yesterday and gold OI jumped by nearly 4,700 contracts. Oooops. All those new longs just got their guts ripped out this afternoon. Again, when the only entities trading are Cartel monkeys and WOPRs, the WOPRs are going to get fleeced time and again. It is also important to note that silver has not fallen this afternoon at the same percentage rate as gold. This is just another sign (the stable OI is another) that the current Comex silver longs are resolute and strong. Another, very encouraging long term development.
And here are the 12-hour charts. The "smiles" have definitely faded but no lasting damage has been done...yet. Note that silver looks just fine, thank you, at 32.50 and gold found bids again near 1640. Unless the Forces of Darkness are able to mount another raid overnight or early tomorrow, I suspect we'll begin to see a rebound as we head toward the BLSBS on Friday.

Anyway, that's all for now. Hang in there and relax. Smile and be happy. SPIN and MOPE cannot work to infinity. One day soon, truth will once again see the light of day and facts will prevail. Have faith. TF

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6/25 10:00 ET UMich Consumer Sentiment

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