Send In The Clowns

414
Fri, Sep 7, 2012 - 10:59am

I guess now we know why the President looked so glum last night.

Yikes!! That was some lousy BLSBS data this morning. No way that The Coug, The Shill or LIESman could spin it any other way. That said, there will be A LOT of talk over the weekend about the stated "unemployment rate" and how it fell to "just 8.1%". If you choose to be a sheep, you can swallow this number and feel good that the economy is improving. If you choose to be educated and speak intelligently about what is really going on, I ask that you please take time to read the two links below:

https://www.zerohedge.com/news/reason-why-unemployment-rate-dropped-labor-participation-rate-fresh-31-year-lows

https://www.zerohedge.com/news/chart-day-25792000-unemployed-and-underemployed

As you might expect, the incredibly gloomy NFP number has spiked the metals as these markets anticipate the eventual and imminent re-introduction of overt QE. Both have cleared resistance at $1720-25 and $33, respectively, and look poised to rally further later today and through the early part of next week.

Not to put a damper on your excitement level for today but now would be a good time to go back and review this post from Wednesday: https://www.tfmetalsreport.com/blog/4160/storm-flags-flying Here is the summary of the post:

"This is a "watch" not a "warning". If, next week, gold rallies toward 1750 and above while silver pushes through $33 and toward $35, I may be forced to issue a full-scale warning. Even then, the warning will simply be to alert traders to lighten positions and hedge for imminent weakness. Long-term stackers should still use any and all dips to add to their positions in preparation for much higher prices in the weeks and months to come."

There can be little doubt that open interest, particularly in gold, will surge today. There is also little doubt that price will rise toward 1750-60 next week. Then what happens? This:

September 13 FOMC Meeting
Two-day meeting, September 12-13
Press Conference, September 13

With QE3+ now beginning to be "priced in", what will happen if The Bernank does not start the presses next week? A Cartel raid, perhaps? Probably. Again, though, as stated in the "warning flag" post, any raid will be temporary and will only stand as an opportunity to purchase more metal at a lower price. You must remember, brief 10% corrections happen quite frequently during metal bull runs. Go back and look at January 2011 as an example. Same thing could happen here. Silver could pull back from $35+ to $32+ and gold could fall back 5% to $1680 or so. If it does, no big deal. Simply BTFD. The party has only just begun.

To that end, you should read this as Tom Fitzpatrick is a very well-respected analyst: https://www.businessinsider.com/citi-2500-gold-six-months-2012-9#ixzz25jNMcMyf

Along those lines, since we are only just beginning a powerful, new upleg in the metals, perhaps now is the time to consider joining "The Army". Remember, the first calendar month is only $100. If you like what you see, you can continue in October at the full rate. Not that I encourage active trading but I recognize that there are quite literally thousands of people still doing it. Why not learn from the best?? https://www.coghlancapital.com/daytrades-application?ak=turd_army & https://www.tfmetalsreport.com/podcast/3621/tfmr-podcast-16-special-announcement-andrew-maguire

Lastly, as you know, forex is nearly impossible to trade and chart effectively. That's why, when I get one right, I like to tout it just a bit. We've been watching this top in The Pig for some time now and I gave you 80 as a target a few days back. That forecast is looking pretty good and, after a brief bounce, 78 is beginning to look likely.

I'll have a new podcast for you later today as well as some analysis of the CoT numbers, so please check back when you can. The podcast is with our pal, Ned, and it specifically addresses the miners and the hows and whys of owning them.

Have a fun day and a great weekend!!

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  414 Comments

Istack
Sep 7, 2012 - 11:03am

Days like this

The Shirelles - Mamma Said
ACM
Sep 7, 2012 - 11:04am

Looks Like We Broke Resistance!

Trolls are going to have to regroup. LOL!

thisismynewname
Sep 7, 2012 - 11:04am

Silver ahead of NASDAQ on the year

after eclipsing the DOW and S&P earlier these past couple of weeks.

balz
Sep 7, 2012 - 11:05am

I smell a February 29 takedown

Same pattern.

Overextended rally, and just when everyone seems to believe we're back in business : TIMMMMMMBBBEEEERRR!

Hope I'm wrong.

145Bluesman
Sep 7, 2012 - 11:05am

Silver hi hoe

Who needs amusement parks. I have some shiny.

What a ride, what a ride.

Istack
Sep 7, 2012 - 11:09am

I feel....

Adam Sandler - I Feel Pretty - Anger Management

i'm feeling very sad about the dollars that i own today. Must convert! Dollar getting hammered!

Green Lantern
Sep 7, 2012 - 11:10am

My Dear Extended Family,   If

My Dear Extended Family, If you have eyes to see, coordinated central bank monetary and fiscal stimulation action is taking place. Yesterday was "Draughi Day." Today the Chinese officially released massive fiscal stimulus on top of the already monetary stimulus. Watch for the US Fed to chime in. QE to infinity MOPEd as sterilized is falling into place. Please review my post from last weekend to you on the illusion of monetary sterilization. Gold is going to and through $3500. The approach some long term gold bulls took toward gold, initiating a temporary short directly after Labor Day, is now in the process of backfiring badly. Regards,
Jim My Dear Extended Family, Monty Guild, a friend of mine for more than forty years, is the most honest and capable man, in my opinion, in money management. I respect Monty's feelings on many matters, certainly the macro picture. Monty, like I, believe it is possible that coordinated central bank actions in the USA, EU, Japan and China are being discussed. The economic problems are so severe, so international, so global, so entwined, so insoluble and still caused primarily by the greed of 1990 to present finance in the form of OTC derivatives that only coordinated global action can kick this can one more time. Gold is truly going to and through $3500. The gold business is the best business to be in. Respectfully,
Jim

Nana
Sep 7, 2012 - 11:10am

Silver Lining

Rilo Kiley - Silver Lining (Video)
Marblesonac
Sep 7, 2012 - 11:12am

Collateralizing loans with PMs

I used PSLV to collateralize a loan with a 70% haircut 5 year fixed at 6% I could have taken a variable at better rates, but that would have defeated the purpose. I did make the loan when PSLV was around $20 and I had a collateral call when it got around $11.50

Raoul Dusentier
Sep 7, 2012 - 11:13am

@Turd: What are your thoughts

@Turd:

What are your thoughts on that the cartel will do something similar to what they did during the spring and let the prices rise signficantly for a period and then they will perform series of large attacks against the metals. Does you think it is likely that something similar will happen now?

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Key Economic Events Week of 7/22

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