One More Day

369
Thu, Aug 30, 2012 - 10:28am

Well, it's Thursday. This can only mean two things: 1) Just one more day until The JacksonHoleDown and 2) College football season begins tonight!

For all intents and purposes, here's the only thing that seems to matter right now:

8/31/12 Speech--Chairman Ben S. Bernank
Monetary Policy Since the Crisis
At the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming
10 a.m. EDT

I suppose I could wax philosophic and even poetic about momo algos and Cartel capping but what would be the point? For today, I'm confident that we will simply trade back and forth between 30.60 and 30.80 in silver and 1660 and 1670 in gold. <yawn>

Look, I don't have a crystal ball for Fed-speak. The only person who knows what The Bernank will mutter tomorrow is The Bernank, himself. (Well, and maybe his butt-boy, Hilsenrath.) However, I can tell you this:

  • The fundamentals for the metals are overwhelmingly positive
  • The charts look poised for another leg higher

Might I be wrong? Of course. However, I'm confident that any Cartel-inspired Fed gaming tomorrow will be met with considerable bids for physical metal at discounted prices. This unceasing physical demand will continue to provide a floor for paper price and, consequently, any dip tomorrow must be bought.

That said, they may not be a dip to buy. Look at these charts. First, here are the daily charts showing that, after the runup last week, prices are simply consolidating in the zone where you would expect them to:

But now look at these 4-hour charts that include the 4-hour Relative Strength Indices. Remember, RSI is simply a measurement that allows you to assess the degree to which a market may be "overbought" or "oversold", in the short-term. The sideways action this week, though enfeebling and frustrating, allowed us the time to work off some RSIs that had worked well into the short-term overbought area. Note that, on the charts below, the RSIs have now retrenched back to the levels last seen before the big blastoff two weeks ago. This is a very positive sign that the markets are poised to move higher again and I would expect that move to begin very soon.

Have a great day!

TF

About the Author

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  369 Comments

JackPutter
Aug 31, 2012 - 10:48am

Isn't it great?

Playing the Massive Multiplayer Monetary World Wide Online Role Playing Game?

MMMWWORPG

alphamorph
Aug 31, 2012 - 10:49am

Coota - you should have been here

instead of ZeroHedge. Nothing wrong with them but no one would have advised you to trade into this morning's action (or this week's for that matter) here in Turdville. I am sorry that you've suffered this loss but the EE aren't finished yet and you may still have an opportunity to buy back in. But if you do, don't sell out at the first panic again.

AC_Doctor
Aug 31, 2012 - 10:50am

Markets priced in QE3 and QE4

The markets have priced in QE3 and QE4 so the smart money knows the Dow and NDQ are overbought.

Smart money (hedgies) will see the unlimitless upside of PM's and start the ball rolling forward and when we break out of $31.50-$31.70 silver is going to $37.50 in a very short time.

QE will be announced coordinated with the FED, BOE, ECB and BOJ on Sunday night Sept. 16 to keep the EU from imploding from the German Courts ruling fogging the implementation of the ESM and EFSM funding.

AC

ancientmoney Louie
Aug 31, 2012 - 10:50am

ALouie

more accurately, insert the words, "is providing, and . . ."

before "will provide . . ."

So It Goes
Aug 31, 2012 - 10:56am

Too Bad

The WOPRs couldn't get the London close negative.

Too bad, so sad. :-)

Nya, nya, nya, nya........nya.

Bernank is positive for the metals - let's go!

Keep stacking.

BTW - was anyone able to buy that dip? Way too violent.

jaw777
Aug 31, 2012 - 10:57am

@watchingdogma

I got out of my September AGQ calls on Monday when things were looking toppy. I added an OCT call on the dip. And will add another if there is another dip. I don't generally give advice, but I would look to buy more time. September expiration is only 3 weeks away.

Jake.at.SSH
Aug 31, 2012 - 11:00am

Shills Are Now Dessiminating The QE3 Message

SHILLS ARE NOW DISSEMINATING THE MESSAGE!---THEY"RE SAYING LANDRU WILL EVENTUALLY IMPLEMENT QE3. I THOUGHT THIS WOULD HAPPEN---THE SPEECH WOULD APPEAR TO DISAPPOINT, BUT THE MESSAGE WOULD THEN BE SHILLED TO IMPLY THE "PERCEPTION" THAT QE3 IS STILL ALIVE AND WELL. THIS GETS THE BANKSTERS THROUGH THIS PERIOD BETWEEN NOW AND SEPT. 13th.

BLOOMBERG NOW SAYING, "WHAT IN THIS STATEMENT DOESN'T SAY THAT LANDRU WOULD IMPLEMENT QE3?"---"NOTHING", They Say!

We Have QE3 Without Any Actions Now!---The "TALK" Is All That Was Needed, As Long As The Shills Disseminate The Message As Landru Directs It...Landru Cancelled (I think)-the Question and answer session right after the speech...They Wanted To Just Send The QE3 Message And Get Back To Eating Their Free Lunch...UNREAL Arrogance Of These Elites!


Europe September Calendar Is Full Of Incredible Events That Will Require Bailouts And Decisions Regarding Greece And Spain Euro Currency Printing---and Monetization By Buying Their Own Bonds---Also, Implementation Of "Euro-Bond Programs" All Will Require Currency Buying (Euros), By The US FED. We Will Announce QE3 On Sept 13th IMO..
DOW SNAP BACK AFTER SHILL MESSAGE THAT LANDRU WILL IMPLEMENT QE3---SO FUNNY!

thesandbox
Aug 31, 2012 - 11:01am

just like that college football...

fake left, fake right, pull back, stepping up to pass, no...he's going for the run and...... he slips


Aug 31, 2012 - 11:01am

AG wearing an EE cap

I am not a buyer until I see AG move up through this 31.20 cap. They have stopped it in that area four times now. No coincidence that it stopped there today after the speech. I agree with those turds who are calling for an EE smackdown later today.

Well done MrGubochi

Coota alphamorph
Aug 31, 2012 - 11:01am

Thanks

Hi Alphamorph,

Thanks for the reply. It was only a small loss, so I'll chalk it up to a learning experience.

What bothers me is that today's move makes no sense (from what I read). No QE = lower silver prices or at a minimum a sideways movement. Instead we rally. WTF?

There was a time when I could pick these moves. I am pretty sure that there are no websites that have suggested a rally if Bernanke did not announce QE3.

Maybe I am going wrong by only reading the headline. Was there something in the entire speech that suggested QE3 was around the corner?

Oh well, at least my stack is safe.

Thanks again.

ivars
Aug 31, 2012 - 11:03am
MrC
Aug 31, 2012 - 11:03am

gold is on the move

gold is on the move

tobydaniel
Aug 31, 2012 - 11:04am

I will stick with death and taxes

...as being the only two guaranteed things in life. Successful FOMC raids are no longer on that list. Boy was I completely wrong!

stingbee30
Aug 31, 2012 - 11:09am

RE: My Comments from Yesterday

My comments from yesterday came to fruition...

I said look for Friday to be green...No major "Smack Downs''...the tape was indicating a solid consolidation in the 30s, and $30.25 providing major support...

A close of above $31.50 is in the cards....Which will trigger a quick move towards $32.50 (this could happen by Monday via our Asian and European friends)....Many shorts know that they better close their position because you have a holiday on Monday in States. By the time NY opens on Tuesday, we could be trading around $32.50...triggering more covering

Jake.at.SSH
Aug 31, 2012 - 11:11am

SHILL MESSAGES ALL OVER THE PLACE

SHILL SHILL SHILL MESSAGES

BLOOMBERG: GROSS TWEET---"QE3 Is Imminent"

JACKSON HOLE, WYO. (CNNMoney) -- Federal Reserve Chairman Ben Bernanke made his strongest case yet for more easing, during a high-profile speech in Jackson Hole, Wyo., Friday.

JackPutter Puck Smith
Aug 31, 2012 - 11:13am

@Puck - Confused

The algos and traders are trained to go after the highest percentage of stops (Which it would not surprise me to find that they can see any and all stops as bids or buys.) to the short side before letting the market cruise to the next set of levels.

indosil
Aug 31, 2012 - 11:14am

Hopium

Hilsenrath's Hopium.......expectations of the upcoming Sep 13th Fed meeting......i hate the fact that the markets are moving higher along with Gold & Silver....shldn't be that way...anyways i blv The Cartel is pressing the gas pedals full on...w/o the desired effect

Just Bought the F***** Dip

S Roche
Aug 31, 2012 - 11:15am
Louie ancientmoney
Aug 31, 2012 - 11:16am

@ ancientmoney- is providing and will continue to provide...

Correct. The Fed is what, 70% of the US Treasury market now? No need to announce a QE when you can hand money to banks with 0%, then pay them 1.6% to buy bonds with that money.

US Federal government spends $120,000,000,000.00 more each month than they receive in revenue. Those dollars have to come from somewhere.

Coota S Roche
Aug 31, 2012 - 11:19am

Thanks Roche

The Shills are out...what to believe??? Is this a setup?

I'll sit on the sideline for now.

Lumpy
Aug 31, 2012 - 11:19am

The last big up day and the day after.

Feb. 28 2012 & Feb. 29 2012

Open $35.53 High $37.30 Low $35.39 Close $36.93 Up $1.40

Open $36.98 High $37.58 Low $33.83 Close $34.82 Down $2.16

Don't get too excited.

Gold Dog
Aug 31, 2012 - 11:19am

re: So it goes

I have made a shitpot today on DEC futures...in and out four times.

Currently have a buy stop in two ticks above the high at 1681.9

I bought some Mercury dimes yesterday too.

Someone send me a bottle of Patron and a handfull of Xanax, my balls have been in my throat the last 90 minutes!

Dog...Proud Member of Turd's Army at Coghlan. They are combining both services into one on Tuesday. Metals Traders now get Andrew's scalps as well.

Happy Dog

stingbee30
Aug 31, 2012 - 11:20am

Re: WSJ article about JPM

https://online.wsj.com/article/SB100008723963904436186045776215616833435...

If anyone has access, please post the summary of the article. I'm assuming JPM might be reducing more risk....Is Silver covering part of the equation? Getting out of the Silver Futures Market? I'm just guessing, but it is not out of the question.

MrGuboci
Aug 31, 2012 - 11:20am

thats my boy! well done silver

I was long silver with avarage price of 27.5 , after the leg down today I doubled my bet at 30.3 and liquidated half my position on 31.1 after the jump . Pretty happy here , have a better position now ! :) And I believe we are going to have two more legs up after todays "correction" followed by brief corrections each . 38$ is a pretty near I think .

thesandbox
Aug 31, 2012 - 11:28am

2 for 1 ...such a deal

you can almost get 2 FB shares now for 1oz silver.... FB at new lows today.... Facebook [FB 18.359 -0.7295 (-3.82%) ] tumbled to a new all-time low after BMO Capital Markets cut its price target on the social-networking giant to $15 from $25.

gatortrader stingbee30
Aug 31, 2012 - 11:30am

31.20 cap and a beatdown

If the EE can still have their way, you better believe it will cap and crap the metals today. However, if they can't prevent a close below 31.20/1670, they can't stop what's coming. Having said that, I see silver in the mid 30.00s and Gold just above 1660 by close. Be safe.

Bollocks
Aug 31, 2012 - 11:30am

Great to see Farcebook shares tumble

What a joke. Serves the sheep right.

TreeTop Dweller
Aug 31, 2012 - 11:33am

The Real Reverse Robin Hood:

The Real Reverse Robin Hood: Ben Bernanke and his Merry Band of Thieves
August 31, 2012

Away from the stifling media crush, staid Ben Bernanke is dashing Reverse Robin Hood, lackey pawn of the Neofeudalist Financial Lords who shamelessly steals from the poor to give to the parasitic super-rich.

8. How has the average parasitic Neofeudalist Financial Lord benefited from the Fed's "rob the poor to give to the rich" policies? (Answer: Handsomely. The top 1%'s income and net worth has soared as Ben and his Merry Band of Thieves have stripmined interest income from the poor and pension funds and diverted it to the rich.)

10. How many of the nation's 14.5 million unemployed have gotten jobs as a result of Fed policies who would not have gotten a job if the Fed had been abolished in 2009? (Answer: unknown, but the best guess is 17, including Bennie the part-time janitor, with a statistical error of + or - 17.)

11. How does Ben the Reverse Robin Hood justify his thievery? (Answer: he doesn't. Officially sanctioned propaganda casts him in the role of selfless do-gooder, protecting saintly Neofeudalist Financial Lords from restless debt-serfs.)

Listen up, debt-serfs, you have it good here on the manor estate. You get three squares of greasy fast-food or heavily processed faux-food a day, and if Reverse Robin Hood and his Merry Band of Thieves is ripping you off it's for a good reason: the predatory Neofeudalist Financial Lords need the money more than you do, as they have a lot of political bribes to pay: it's an election year, and the bribes are getting increasingly costly. Poor things, we're sure you understand. Now go back to work or watching entertainment (or "news," heh) and leave the Lords alone.

https://www.oftwominds.com/blog.html


Aug 31, 2012 - 11:36am

Zerohedge has a perfect summary...

The headline says it all...

The Schizophrenic Market Update - Buy The Rumor, Sell The News, Then BTFD https://www.zerohedge.com/news/schizophrenic-market-update-buy-rumor-the...
bam stingbee30
Aug 31, 2012 - 11:41am

@stingbee RE JPM

Here's a tweet from Rickards:

says reviewing settlement risk . You do this when you expect defaults. What do they know that we don't?

-

-

-

Unrelated JR BONUS TWEET:

Here's a 20-yr chart of the S&P with ounces as numeraire. It's all right ma, there's no inflation

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