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 ()


Aug 18, 2012 - 8:47am

Bill Cooper wrote

Bill Cooper wrote in his book

Jonathan May attempted to free us from the shackles of the Federal Reserve by
creating an alternate banking system with instruments backed by land, raw
materials, mineral deposits, oil, coal, timber, and other wilderness holdings.
Jonathan aided Governor Connolly and the Hunt brothers in their effort to
corner the silver market. The silver would have been used to create a "Bank of
Texas" issue of "real" money. This would have destroyed the Federal Reserve
had the Hunts been successful. When the world bankers realized what was
happening, they destroyed Connolly, the Hunt brothers, Jonathan May, and
The federal Reserve entrapped Mr. May by intentionally routing his credit
instruments through the Federal Reserve, against the terms clearly stated
upon those instruments, instead of through Mr. May's alternate system.
Jonathan May was illegally arrested, illegally tried, and illegally imprisoned
in the Federal Prison at Terre Haute, Indiana. The world power structure has
stolen Mr. May's idea, which will be used as the banking system of the New
World Order and is known as the World Conservation Bank. Jonathan has
served four years of a fifteen-year sentence.

Telling Time: July 27, 1990

El Gordo
Aug 18, 2012 - 8:20am

Dr. J

You say Rev F message was about taking responsibility for change instead of depending on the US Govt., etc. Yet in your previous post you pointed out

Early on the NOI wanted the American government to set aside land in Illinois and Wisconsin for the NOI where they would be sovereign

Is that not the same as asking for a handout from the govt?

El Gordo
Aug 18, 2012 - 8:16am

What changed?

What happened here? I see a few names over and over and over again, and I don't see a lot of names that used to pop up periodically. What happened? Has the site been hijacked, or did everyone just go on vacation right before school starts. I was having a lot of fun here and learning too, but something seems different these days. Just wondering.

Aug 18, 2012 - 8:15am


Yeah, you are right about Rev F and the Jews. Not a happy mix. My respect was in the "man up" part of his message in the late 90s, taking responsibility for change instead of depending on the US gov and social programs.

Aug 18, 2012 - 8:08am

HUI Index components and weighting

does anybody know where/website to obtain current HUI components and weighting? TIA

Aug 18, 2012 - 8:02am

Sorry Dr. J but Farrakhan is really far from me.

I don't think the white race is the evil race. I don't blame the world's problems on Jews. I don't see racial segregation as an answer to our problems.

Unlike Farrakhan I believe there are evil people, not evil races.

Aug 18, 2012 - 8:01am
Aug 18, 2012 - 8:00am


That would be "racist"... in Farrakhan's view. Perhaps he assumes the cronyism. It is more about "institutional racism"--a social structure that will continue to exploit and oppress African Americans--than about individual racists. He doesn't often single out individuals or call specific people racists. He rails about oppression, the good ole boys club, but on an national or international scale. He is quite the conspiracy theorist. But of course, since I am white, I will not be counted as an expert or perceived to fully understand the issues, and honestly how could I?

I was invited for a job interview in 2000 to an elite technical university in Indiana that was under pressure to diversify their nearly all white faculty. You should have seen their surprise when Jerome from Memphis who studies Farrakhan, but who was not black, walked into the room. The hiring committee just went through the motions the rest of the day. I didn't get the job. I started putting my picture at the top of the resume since then.

Well I'm off to Arizona for a week of meetings to begin my new online teaching job. Not ignoring everyone here--just busy till I get home.

ClinkinKYDoctor J
Aug 18, 2012 - 7:44am

Hey Doc...

...sincere question.

...unshackled from the power of the...racist capitalists.

Was that supposed to be "crony" capitalists? And if not, please explain.


Aug 18, 2012 - 7:37am

Russian path to "democracy" and then expansion of ideas

This country is our neighbor and has occupied Latvia many times under different regimes. The pot of totalitarian state is brewing again:

In the endgame it will try to use the weakness of the West to expand Westwards again. The only thing that could keep them in check is a real Chinese threat in the resource full, practically uninhabited (20 million) Area East of Ural mountains. This area size wise is about 13 million sq km, which is bigger than Canada ( 33,4 million people, anshluss target for the USA in near future) , bigger than China, bigger than the US, bigger than Australia (another potential US target for incorporation) , Bigger than Brasil etc. Like during Mongol invasion in 13th-14th-early 15th centuries centuries when Europe could forget about Russia and Polish-Lithuanian state ruled Smolensk and Kiev, having no big problems with Russia. I hope Russia remembers it and understands that now is not the time to fight on two fronts, and the threat

from the East for them is formidable.

This is the balance what I would prefer from all historic ones, otherwise there is no need to stack-so that not we are a buffer between Russia and Germany, but Russia is a buffer between China, Islam and Europe ( we would hopefully belong to Europe in some relatively reasonable status): 250 years of subdued Russia (e.g from 1990-2240) would be fine with me.

I do not see actually how Russia is going to to solve this equation without going into full alliance with Europe. There is just no population in Russia (140 million) to persevere against growing Muslim and Chinese population/interest pressures . The USA is also building UP a pressure zone from Middle East into Central Asia.

One thing is clear to me-empire building/centralization is going on , accelerating. Its a law of nature this time. As free energy availability reduces, (Chaisson), its ability to maintain flow density through complex organized structures dwindles as well. These structures have to be simplified in order to keep the flow rate, and maintain the rulers on top. Independent states were just a luxury in complexity which was made affordable with new economic growth utilizing accumulated energy in coal , oil and gas . a slack. As were freedom during expansion of the USA into new territories during 18th-19th centuries. A luxury that is now becoming too expensive. Again, a slack based on availability of new energy inputs from rapidly expanded territories. Rapid expansion provides extra free energy, but on the Earth, there are limits to this way of getting it.

The usual trick to improve efficiency is by suppressing diversity, once other options are utilized. One that is needed to increase returns on increased complexity, or at least keep them stable in times of peak oil and increasing divergence between fractional banking money expansion and real economy. By the way, green movement by reducing available energy inputs forces reduction in human society complexity -> leads to empires.

Costs have to be cut somewhere, and if its not military ( no chance as there are many empires building up plus need to control population) , than it must be reduced complexity of society and increase in scale of the reach of governing structures over resources= Empires again, this time in a fossils/fractional banking/fiat based period of history.

I am still putting the big picture together, Tainter's " The Collapse of Complex societies" and Chaisson's " Cosmic evolution" being the cornerstones I try to get intuitive grasp of as the principles they promote are universal, and can be applied to many political/economical events when identified properly.

In Cosmic Evolution, the expansion of Universe provides the free energy for more and more complex structures that appear as if against the second law of thermodynamics locally, increasing order. This idea is immediately possible to use when analyzing the effects of geographic expansion into new territories or energetic expansion into new sources of energy, especially accumulated.

The question Chaisson does not answer is whether this expansion of Universe is unlimited ( open model) or limited (shrinking back to the point) - the second version leading of course to disappearance of all order and complex structures built during the life time of the Universe.

In human development, it is also important to discern if expansion in any given period of time and place under scrutiny into new territories, sciences, energies is unlimited - hence complexity may grow as well as well being- or limited (Tainter) , which leads to inevitable collapse of complex societies before new expansion direction becomes available.

To summarize both, its not inevitable that humans will be the ones that will achieve the greatest complexity Universe allows, while so far its difficult to argue it will be someone else. On other hand, even if its human destiny to do so, it comes NOT as continuous improvement, at least compared to individual human life length, but in accelerations and crashes. The crucial element for continuity at all is memory. If memory of former experiences can be totally erased, human development will be thrown back tens of thousands years . During the dark ages in Europe before 1000 AD, until Greek and Arab manuscripts did not reach Europe, it had no clue which way to develop, and it basically did not. Have these manuscripts been lost forever to humankind, we would not be typing these things here.

And only thought that is spoken is formed.

Chaisson: "All these culturally increasing Fm (essentially metabolism of a complex system-ivars) values—whether slow and ancestral such as for mastering fire and tilling land, or fast and contemporary as with the vaunted silicon chip that helps accelerate our 21st-century economy—were and are related to evolutionary events in which energy flow and cultural selection played significant roles. However, all of this progress, which has decidedly bettered the quality of human life as measured by health, education, and welfare, inevitably came—and continues to come—at the expense of greatly increased demand for more and enriched energy—to what end humanity on Earth cannot be certain."

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