Thursday Gold Charts

Thu, May 24, 2012 - 1:24pm

With today being sort of a non-event because of gold option expiration, I've spent nearly the entire morning on the phone. All of a sudden it's 1:00 EDT and I realize that you need a new thread!

So, here you go. Again, though today looked promising for a while, it instead devolved into simple, algorithmic nonsense as the HFT trolled for stops and The Cartel painted the tape for minimum option pain. Let's see what tomorrow brings.

Speaking of boring, you've read here incessantly about the lack of volume and trading interest on the Comex post-MFG, particularly in silver. Well, check this out. Below is the change in price and change on total OI for silver for the past two weeks. Boring and strange at the same time. Instead of giving you my own interpretation of the data, I encourage you to place your own hypothesis in the comments.

Date Price Change Total OI

5/8/12 -0.66 to 29.46 113,549

5/9/12 -0.22 113,479

5/10/12 -0.06 112,558

5/11/12 -0.29 112,393

5/14/12 -0.54 113,546

5/15/12 -0.27 114,208

5/16/12 -0.88 113,663

5/17/12 +0.83 113,766

5/18/12 +0.69 112,914

5/21/12 -0.39 113,893

5/22/12 -0.14 to 28.18 113,647

Here are some charts. First up, look at gold. In the short term, the area around 1565 and the 10-day moving average is your center line of the range. Above there, and you've got a shot at 1600-1605 and a breakout. Below there, we must defend 1525-1530.

And these longer-term charts show you why I'm so confident that the low for gold is in.

In silver, though I'm confident that $26.50 will continue to function as support and a low, time still remains before we can get excited for a true breakout. In the words of Axl Rose, we need a little more patience.

Lastly, ZH has been emphatically recommending that we watch this "Frontline" video on MFingGlobal. I give it a big thumbs-up, too. It's about 20 minutes and it will piss you off. At the end, I found myself screaming at and cursing The Mullet for his inaction and his doofus-like, aw shucks attitude toward the whole affair. Ted Butler openly called for him, Gensler and all the rest to be fired yesterday. I wish I had the power to make it happen.

Watch Six Billion Dollar Bet on PBS. See more from FRONTLINE.

Watch Six Billion Dollar Bet on PBS. See more from FRONTLINE.

That's all for now. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


May 24, 2012 - 3:27pm

3:30 EST time for the daily

3:30 EST time for the daily PPT ramp high will they make it go?

May 24, 2012 - 3:31pm

@Groaner - USDx reverse in algos

It seems they did- for a moment:)

May 24, 2012 - 3:31pm

Google Trends Shows Why The

Google Trends Shows Why The Status Quo "Powers That Be" Should Be Scared. Very Scared

May 24, 2012 - 3:32pm
May 24, 2012 - 3:33pm
May 24, 2012 - 3:34pm

Rhodesia (vs) Greece

I"m not sure that you can compare Rhodesia (now Zimbabwe) to Greece in this context.

Rhodesia had (and still has) considerable natural resources including gold, copper, and coal, thanks to its unique geology. It holds some of the world's largest deposits of chromite. Its climate is conducive to growing a vast array of strategic crops for ethanol.

Greece does not. Greece is (geologically speaking) one of the poorest countries in the world, right up there with Sicily and Haiti. It has a bit of oil and petroleum in the Aegean but most other natural resources are woeful.

The ability of a country to be self sufficient depends a lot on its natural resources.

May 24, 2012 - 3:37pm

Corporate news blackout as

Corporate news blackout as Obama appoints John Brennan as the sole person in charge of designating people to be assassinated.

May 24, 2012 - 3:40pm

Re: Remember

I'm not spending my stink'in fiat until I see the panic event that the Fed needs to start QE again.

Has this strategy, putting all on one card, been a successful strategy for you?

May 24, 2012 - 3:40pm

To support my last aspersion

"You have to be insane to have ANY money in New York after MF Global."

- Martin A. Armstrong, 5/6/12.

May 24, 2012 - 3:44pm

Harsh but true

"If you are attempting to trade by yourself on this market, you are a complete idiot."

That's about the size of it. Although the difference between stacking and trading is purely one of time scales and margin. Does a physical purchase with no margin that you intend to sell again in 6 months or so- position trading I've heard it called - make you an idiot?

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