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 - 1:30am

Historic Summer

2/3 over and TF is giddy. Markets ripping. GOOG and AAPL ripping. Turd must have sleepless nights. Gold collapse anytime.

RE:Open Season on Turd.

Shut it down. The archive machines are fired up. 1-2 years pump and maybe new highs and

the bag holder gold bugs dont sell because they fell in love with the story all the way down.

Turd vanishes. Poof. Baggie Be prepared.

Aug 18, 2012 - 1:24am

Price control would not work

(Response to the discussion by DPH, ancientM, Dagney and Fix)

In the long run, PC can neither suppress the price (b/c it creates shortages as FIX points out) nor prop the price up (like what we have seen in the housing market) away from its market force decided reasonable zone.

If government were to bid the gold price up to 55K they'd have to print a truck load of money to do it. This massive load of money would then enter the market to create a flooding effect and drive certain asset prices up. So which particular asset will benefit then?

Well think of this like operating a dam. If I lift the floodgate at the upstream, water will rush out toward the downstream. There's high land and low land in the downstream. Obviously the low land will be flooded more as it receives more water.

In the market there's high land and low land as well. High land consists of assets that have already been driven up too high such as real estate, MBS, Treasury and so on. Low land consists stuff whose price is either suppressed or ignored such as commodity, farming land and so on. When a flood of printed currency is unleashed, the low land will get the bigger share and thus the sharper move upward, which is why I believe the bread price will go up quite a bit from its current level in the coming years.

Aug 18, 2012 - 1:11am

Truth or lies? Hard to know anymore

Obscure federal agencies triggered a firestorm of conspiracy theories this week after they put out orders for thousands of rounds of deadly hollow-point bullets.

But the agencies, most recently the Social Security Administration, are trying to put a damper on the speculation -- noting the ammunition is "standard issue" and simply used for mandatory federal training sessions.

Mr. Fix
Aug 18, 2012 - 12:56am


Concerning switching to plain text editor, apparently that just makes the print smaller.



Aug 18, 2012 - 12:55am


Farrakhan is to clever by half, he always knows more than he's sayin

Mr. Fix
Aug 18, 2012 - 12:46am

@ Silver Wealth

I've never trusted banks,

and don't have any money in one now.

I listened to that interview before,

and realize that the rest of the world was about to figure out what I've known all along.

If you can't put your hands on it, you don't own it!


Darn, now my dictate is putting out those teeny tiny little letters again.

And I don't even seem to be able to type without the copy and paste again.

I'm sure my daughter will be able to figure it out.

Mr. Fix
Aug 18, 2012 - 12:43am

Price controls used to create massive shortages.

Then again, I have no idea why in this totally manipulated market, shortages have not already popped up everywhere.

Seems to me there should have been a shortage in silver years ago,

except for people thinking that they own silver when they really have a piece of paper,

there is no saying when it will run out.

But if the dollar collapses, I don't think price controls will be much of a solution for a very long.

The producers will simply stop producing.

Dagney Taggart
Aug 18, 2012 - 12:40am


Thanks for reminding me about the Fox News whitewash: No mention of the 175,000,000 rounds of .223 or 450,000,000 of .40 purchased. Just the little NOAA and SSA buys and the opportunity to bash CFers as CTists.


Aug 18, 2012 - 12:36am

re: Perth Mint ads

The US Mint has sent me some "nice" materials as well. ;-(

Some are somewhat discrete, but the large mint logo in the return address?

I've had people raid my NetFlix mail before.

Sometime I think even my Ron Paul stickers might be a tip off. Are criminals that smart???

Dagney Taggart
Aug 18, 2012 - 12:35am

Regarding Repriced Gold and it's effect on Bread

I'm too lazy right now to find the reference to 55K gold = 100 Bread. I think you were discussing it, DPH and somebody commented. Can't remember. Anyway, I don't think this happens because of the number of people who have no gold. There would be no demand at 100. Price controls on fuel and staples would probably be implemented before the revaluation to prevent mass starvation. Then, we would see the greatest wealth transfer in human history.

If the goldless were all in prison camps and the only people with any freedom had gold, that's another story.

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