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-anno...

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

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turd [at] tfmetalsreport [dot] com ()

  414 Comments

johnnydow
Sep 7, 2012 - 11:34pm

$GOLD:GOOG

QE pixie dust works now for Gold. Big nothing next Clown meeting. Gold starts to slowly drift down after that point headed into election. The BTD end of the world crowd will crow the loudest before the election. Keep any eye out for this pattern.

¤
Sep 7, 2012 - 11:37pm

MOPE

Your observant for one thing.

The markets are managed to some degree on certain occasions it appears and what we saw today was some type of global coordination all the way around in a very controlled and effective manner.

The 10 yr. notes bounced all over the place in unison for the most part. Weird.

Pretty impressive acheivement by them.

Gramp
Sep 7, 2012 - 11:43pm

Then what Johnny?

"Starts to slowly drift down after that point"...

I will keep my eyes open for that, then what?

TomMack
Sep 7, 2012 - 11:45pm

steven king too scary

more sedate king

benny_bomb_boom
Sep 7, 2012 - 11:46pm

preppa

heres the clowns mouth

johnnydow
Sep 7, 2012 - 11:52pm

@Gramp

Buy GOOG instead of GOLD.

TomMack
Sep 7, 2012 - 11:52pm

oops wrong king

that's better

¤
Sep 7, 2012 - 11:56pm

Fauna - Para Mi

No translation necessary, just dig the rhythm ...and the fluorescent dancer.

Video unavailable
SaratogaPrepper
Sep 8, 2012 - 12:27am

gee sorry

Didn't see no clowns in that one.

tho at times.........

Edit: And there are Ladies who read these pages, so is the use of vulgarities REALLY necessary?

TomMack
Sep 8, 2012 - 12:49am

time too act

i think we are entering a new phase for the US economy. the plate spinners are losing control too many plates to keep spinning. the 'warning' signal that comes before the 'watch' is upon us. there is time, but action is required a new sense of urgency is required.

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