Select Stocks Send Signal

Fri, Aug 17, 2012 - 10:43am

Perhaps we have a new acronym on our hands? The SSSS. Yesterday, quite by chance, I noticed that several of the best mining stocks are making 6-month highs. Is this another signal that higher metals prices are right around the corner?

Yesterday afternoon, I opened an app on my phone that is programmed to follow the major indices as well as 15-20 miners. I only opened it to see how the overall stock market was faring (which is something I rarely do) and then I scrolled down to look at a few miners (which is something I do even less). A couple of them caught my eye. I saw GOLD (Rangold) first and noticed that it was pushing 100. Then I noticed AEM (AgNico Eagle) and thought it looked noticeably higher, too. I pulled up charts and saw that they are both at 6-month highs. Wait a minute here. Hold on just a second. Isn't it curious that two, top miners would be moving to new 6-month highs while the metals are still stuck in a trading range?

The last time GOLD was near 100 was last March when gold was near 1700. The last time AEM was $46 was last November, when gold was close to 1750. What does this mean? Beats the crap out of me! But seriously...this could be phenomena specific to these could be just another sign of the impending resurgence and rally in the price of the metals.

The next question should be: Do any of the other miners look like this? Well, not really. I did find two of our old favorites that are perking up a bit following recent earnings "disappointments" and need to be watched.

And the HUI itself is looking better. I can't give an ALL CLEAR yet but...if the HUI can keep rolling higher and post a few closes over 460...there may finally be reason for optimism in the mining sector.

And, of course, any mention if the term "HUI" here in Turdland comes with the obligatory posting of the SMOKING HOT Carrie Underwood singing about it. (Neo-turdites should know that, to my partially-deaf left ear, "undo it" sounds like "the hui".) (And I'll never understand what she sees in that meathead hockey player.)

Carrie Underwood - Undo It (Official Music Video)

OK, after I wipe off the cold sweat in which I suddenly find myself drenched, it's back to business. In an absolutely stunning development, the metals surged this morning at the open, only to be CAPPED ONCE AGAIN near 1620 and 28.25. Though I know many of you are getting sick of this crap and are dying to see the metals break out, you must remain patient. Fundamentally, gold and silver are extremely strong and, even when left to their own devices, are poised to eventually break out. ( But, screw that. I don't want to wait much longer so maybe we can begin forcing the issue next week. Until then, here are graphic representations of our current predicament.

And I'm not sure which of these two stories make me feel more nauseous. You'll likely read the NYT story before heading off to barf and then return to watch the video before getting sick again. First up, all of the conniving, criminal thieves at MFingGlobal are apparently set to walk free. Hmmm, I've got an idea. What do you say you and I start an investment firm where we take client money and use it to place huge, extremely risky trades. Then, when it all breaks down and the clients lose their money (which they were told was "safe" and "segregated"), we simply laugh it off as "porous risk controls" and walk away. How do you think that might work out for us? Maybe just a bit differently than it has for the criminal Corzine and his merry band of politically-connected, reprehensible outlaws? And don't forget that just last week, your Seventh Circuit Court of Appeals established as precedent that the theft of client funds is now completely legal. God Bless the U.S.A.!

And then there's this. I found this video on ZH last night. It is a time-lapse progression of the ownership makeup of the U.S. treasury market. Note that, in 2003, the Fed had a nearly even ownership across the curve. Watch then how this progresses. Now, the Fed is nearly out of short-term treasuries but they have come to completely dominate everything with a maturity of 3 years to 30 years where they own as much as 70% of the market! Simply amazing. And disgusting! This is America, land of the free and home of the brave where capitalism and free markets create productivity by equitably deciding who wins and who loses. NOT!!!

Fed vs. Private Sector Treasury Holdings

Listen up, you witch. Your days are numbered. We're onto you and soon you and all of your monkeys will be sent scurrying into exile. Perhaps you will be lucky and be allowed the fate of that goon, Corzine. Perhaps not. In the end, it matters little. All that does matter is that the game is ending and you are going to lose.

Drago: You Will Lose


About the Author

tfmetalsreport [at] gmail [dot] com ()


Short Stack
Aug 17, 2012 - 10:35pm

Speaking for myself

If and when I have a twenty of fiat to spare I think I might just start buying some copper bars, 1 lb. each.

NW VIEWCalifornia Lawyer
Aug 17, 2012 - 10:34pm

@ California Lawyer

Well we are back to this same note and deed of trust problem. "Show me the note" and "who received the fiat on past notes that were paid off?" This will stay in a mess until the courts have a solid direction on how to deal with a lack of an honest paper trail. jmo

Aug 17, 2012 - 10:33pm

@Mr. Fix

It's not all that hard. We left CA for NV 5 years ago. Went from 9.9% state income tax to none. Instant pay raise.

Mr. Fix
Aug 17, 2012 - 10:25pm


That is a very pretty map of the United States that you have there.

I started reading the numbers inside the states,

and came to the inescapable conclusion

that my taxes will go up more than anybody else's.

(Yes, I live in New York)

Would somebody like to explain to me why the highest taxed state in the union will also have the biggest tax increase?

Maybe I need to move.


Oops upon a closer examination of that map,

I just noticed that Connecticut has a slightly higher number.

I feel much better now.

Mr. Fix
Aug 17, 2012 - 10:20pm

@ Bam

Thank you for your reply,

I tend to agree that the powers that be have been working a plan to destroy this country for nearly a century now.

Every administration has kick the can down the road that so the next guy would have to deal with the problems created.

This has been going on for my entire life.

Nobody has ever fixed anything.

This time it is different.

Every single decision that has been made in the past four years has been designed to inflict as much damage as possible to this country, and to make it virtually impossible for any successor to pick up the pieces.

Even on the outside chance that Obama could achieve a victory in the next election,

the country would be far too weak to pick up the pieces.

And he wouldn't even try.

That is why I say that Obama will be the last US president.

And the powers that be will crash this economy this fall.

And just to be relevant, gold and silver will then have their blastoff.

Not before.

Edit :

at least with the last six presidents I always had the distinct impression that I could always vote the bums out of office.

(Although I actually liked Ronald Reagan)

This will be the most irrelevant election in the history of the world,

if we actually get to November.

And this time we have a president that will do everything in his power to make sure that never happens.

Aug 17, 2012 - 10:20pm


I would certainly like to think that and that's what I'd prefer overall. Pure gold and everything on the up and up.

However, I see these same people manipulating and steering everything just right to keep up on appearances and keep it all glued together. When Govt.'s and TBTF's have no problem bundling up propped up and mark to money asset valuations and securities of all types that are questionable from a collateral point is when I think their capable of anything. Many large firms and wealth funds devoured these things at times knowing and hoping they could dish them off and keep the hot potato moving forward. They did all of that massive derivative/CDO creation with just paper.

Imagine what they might do with semi-solid gold bars that they could fractionalize for appearance sakes and to bolster their gold reserves by getting two to four to who knows how many bars from just one big bar. I think they're capable of anything at this point because they need to be. They like to fractionalize things.

How is a pallet of money more valuable then a pallet of gold bars, even if they're not sure that they're real or actually know they aren't solid bars,but yet they could easily just keep using and swapping them around in the same magical belief that the fiat or other paper securities instruments are and have been for decades?

It's not what you or I hope for (for integrity sake) that matters. It's what they are prone to do and might need to and be perfectly ok with it among themselves that'll matter. They look at all of this far differently then any of us. Quite the opposite as a matter of fact so trying consider what they wouldn't do based on our principles of integrity and decency and truthful disclosure is out the window.

Sad but true. I want super valuable gold as much as the next person but I'm trying to think what they might do because they have total control over everything and how it works or doesn't. I believe that there is no way they peg gold to $50,000+ anytime soon for whatever reason or method that they need it not to.

$50K gold works for me and you, but not them. Can anyone imagine the U.S. valuing their gold from the $44 (46?) per oz it is now to $50K given what we've witnessed and know to this point? I can imagine it, but is it likely? I see the sovereigns doing whatever it is they need to do because they can do so.

Gold going up 1,000% works for me if that's what it tops out at. Same with silver. I'm cool with 1,000%

How much would bread be at $55K gold? Just wondering. $100 a loaf was a high guess on my part but apparently low or high?

Aug 17, 2012 - 10:11pm

Big Buffalo

Barrick Africa Talks Signal Start of Austerity: Corporate

By Liezel Hill - Aug 17, 2012 4:28 PM ET

Barrick Gold Corp. (ABX) Chief Executive Officer Jamie Sokalsky is starting an austerity drive by seeking to sell the company’s African unit to China National Gold Group Corp.

The state-owned Chinese company is in discussions about Toronto-based Barrick’s 74 percent stake in African Barrick Gold Plc, the Canadian company said yesterday. The shareholding is valued at about 1.30 billion pounds ($2.03 billion), based on African Barrick’s closing price in London today.

A sale would be Barrick’s biggest after it spent more than $28 billion over 18 years on acquisitions to become the largest gold miner, with 2011 output of 7.68 million ounces. Sokalsky, 55, who took over as CEO in June after his predecessor Aaron Regent was fired, has said he’s reviewing assets in an effort to improve returns and cash flow as costs soar. Gold company shares have dropped to their lowest relative to bullion in 28 years.

“A rationalization of Barrick’s portfolio of mines may be overdue,” Greg Barnes, an analyst at TD Securities Inc. in Toronto, said in a note yesterday. “It has clearly become very difficult for the company to expand production above 8 million ounces per year and effectively managing a company of the size and scale of Barrick has been a challenge.......

Aug 17, 2012 - 10:01pm


LOL! Not that he's some beacon of truth or light, it just good to hear him addressing an audience that may not be exposed to or have an understand the evils of Central banking and their grip on power.

Aug 17, 2012 - 9:56pm
Aug 17, 2012 - 9:54pm


Agreed BO is simply a talking head hired to deliver the real power-mongers' messages.

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