A Significant Day For Silver

Tue, Jul 3, 2012 - 12:12pm

Just a few things before I take some time away.

Tomorrow is Independence Day here in America. The markets will all be closed. I will be traveling and out of action until mid-day on Thursday. With that, here are a few things to ponder.

Today's move in silver is potentially quite significant. On the surface, it's just a 3% short squeeze. However, take a look at these long-term charts. Silver has been following the downtrend line from the Leap Day highs for over 4 months. Today, it broke out. Do you recall a few days ago when I mentioned that you should beware of "descending triangles"? They are a bit of an optical illusion as the diagonal line always seems to look more powerful than the horizontal line. In this case, though, the horizontal line connects multiple bottoms and goes back over 9 months, or about twice the duration of the diagonal line. The idea that price would break UP and not down should NOT be surprising. Now, before we get excited, it's only one day. Silver needs to confirm the breakout by not only holding its gains but advancing further. A move through $29 would be great and set up a move back toward $29.50. Then, IF we can get a lousy NFP number on Friday, the stage will be set for a run at $30 and the buy stops set above there.

Of course, silver is getting a shove, too, from some powerful action in the grains and in crude. Keep an eye on crude, by the way. Tensions are heating up again in The Gulf and a move through 88 and then 90 would likely signal a run back toward 100.

The gold chart looks solid, too. I expected some Cartel capping above 1620 and we got it today. That's OK. It is what it is. Let's see what we can do tomorrow without Comex interference. Thursday will be a setup day for Friday and Friday, IF THE BLSBS IS LOUSY, could be a tremendously significant day.

A couple more things. First, if you haven't yet done so, take some time over the holiday to listen to this BBC radio piece regarding a return to "the gold standard". A very interesting discussion.


I did an interview yesterday with The Doc at SilverDoctors. He hasn't posted it yet but I suppose he will over the next few hours. You'll be able to find it here: https://www.silverdoctors.com/ though I imagine someone will also post a link into the comments section of this thread.

Lastly, our good pal "Fortinbras" informed us today of the death of one of his good friends earlier this week in Afghanistan. As you celebrate and relax over the next 2 days, you might send out a prayer for "Dids" and his family. Below is a picture of him, relaxing with a cold one, taken about two years ago. We here at TFMR are always grateful to those willing to make the ultimate sacrifice and, clearly, this one hits pretty close to home.

I hope everyone has a safe and relaxing, mid-week vacation. See you Thursday.


About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 5, 2012 - 7:11pm

@ Number 47

Thanks for replying, can't argue with what you said. I don't fly so it's just an abstraction with me. Peace officers here have gone from "Andy of Mayberry" types to riot squads and that makes me feel uncomfortable but times being what they are maybe someday I'll be glad they have the wherewithall to deal with "girls gone wild".

Jul 5, 2012 - 7:05pm


It's always been my position that if someone wants to feel my pecker they should at least let me buy em dinner! I think you are right it's not an evil government it is made up of the stupid, bad and incompetent that you describe. Just for the record there are many good people also just trying to make a living. But someone or something has targeted our Constitution for destruction. That someone or something I think is evil. An assault on the Constitution is an act of war against the american people. At that point "they" would be considered enemy combatants and enjoy all the privileges afforded them by Patriot 1&2.

I'm not a real conspiracy nut so on the twin towers, Ok City, grassy knoll, Hoffa, global warming things I just think a person would have to be a blithering idiot to not consider the possibility. I'm reminded of a Charlie Manson comment. "Use to be, being crazy meant something!"

Number 47
Jul 5, 2012 - 6:48pm


I agree, foreign policy has caused this situation. Until it changes I'm happy to be lose some privacy in exchange for some protection against a fiery plummeting death from high in the sky.

Privacy has its place IMO.

Airport security doesn't impact my quality of life at all. Maybe I don't expect too much. It is a fairly common viewpoint over here in Europe. We have had security like this in airports for as long as I can remember.

Jul 5, 2012 - 6:25pm

@ Number 47

"Grow up"

I may grow older but I refuse to grow up. (and hell, I'm 'bout always ready to get my pecker felt, especially at my age)

but to trade privacy for "safety", no thanks. I'd rather see national policy changes that lessen the reaction of other psychopaths (other than the ones that govern the US and other nations). I think that in some way we bring on ourselves these incidents. Just can't push a stick into a hornets nest and not expect to get stung.

More security won't make us safer, it will just lower the quality of our lives. IMHO

Jul 5, 2012 - 6:06pm


Thanks for further explaining what I was getting at. You did it better then I could've and with more context and insight it seems.

Yep....we've all been brainwashed to a certain extent with a barrage of media graffiti from branding of all sorts. Not just products and services, but political, religious, personal and material lifestyle choices that don't pertain equally to all socio-economic classes. It's a skewed version to start with. How many commercials do you see with struggling families making consumer decisions? Everyone on TV/movies (for the most part) has a wicked looking house or lives in a nice neighborhood with a nice car.

Slanted imagery is a powerful thing. So is the consistency of the messaging from early childhood and through school.

Number 47
Jul 5, 2012 - 5:54pm

Mr Grey

I can assure you sir. brain dead sheep I am not. I'm not the one bleating MARXISM everytime I see something I don't like.

Now, I'm aware some of you believe 9/11 was perpetrated by the government. Possibly the shoe bomber too, maybe the underpants guy was also working for the CIA? Perhaps the july 7th bombers in London were MI6?

Talk about paranoid? the people who ask for security so they don't have to fight knife or bomb wielding maniacs while they are 30,000 ft in the air. Are they the paranoid ones? Or is it in fact the ones who BLEAT the loudest and think the evil gubbirmint somehow makes all this shit happen?

Get fucking real you guys, the terrorists have to be right only once. The TSA must be right every time. So they gave some woman a hard time, like I said. It is one side of the story. And they are only human. Do I really have to believe that they are ALL rapists and peadophiles as is so constantly pointed out on these boards. Wake up! Smell the fucking coffee and realise that the world is FULL of incompetent people, bad people and stupid people.

This idea that you are giving up your freedoms, how about the 3000 people who died on 9/11? Would you rather it happened again because you are too scared to get your pecker felt?

Grow up.

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Jul 5, 2012 - 4:41pm

TSA and Their Scanners

Just a quick note from memory. The scanner technology has the unfortunate side effect of putting the DNA into resonance. Independent lab tests (memory, no sources handy) determined this can (not will) break the DNA helix. It may or may not go back together properly. I would not want any pregnant women to be test subjects to this procedure (and another reason I no longer fly). And in the just desserts category, TSA agents are exposed to this scanner emission at low levels all day long. They are not doing their health any good. But the government actually protecting people dropped off the priority list awhile back. It will make for more lawyer ads in the future like all those ones on TV now which say; If you have taken X and developed Y then call us to handle your case.

Jul 5, 2012 - 4:21pm

TSA video

I watched it and it was a good thing that I had two more pages of comments to read so I have cooled off a bit.We can say this is tsa and they ain't nobody but they are homeland security and I think its time the motherfuckers understand they work for us or they don't work! I don't like to flame on turds site but 47 your attitude is part of the fukin problem. Not yours per se but too many brain dead sheep that bleat the same crap. There is no fix to this system. My solution you ask? A functional Guillitine at every exit of dc. Yall have a nice day now, hear!

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