Inspired Defense

77
Mon, Oct 1, 2012 - 12:07pm

After the CNBS interview of Fed Goon Evans seemingly caught The Cartels off-guard, the coordinated response was swift and decisive.

It began this morning with this: https://www.zerohedge.com/news/2012-10-01/presenting-einsteins-definition-insanity-taxpayer-funded-suit

The reaction in the metals was almost instantaneous. Prices shot higher and were once again within a whisper of taking out critical Cartel resistance and triggering an even-more-massive short covering extravaganza. At precisely 9:00 am EDT, The Monkeys sprang into action.

The first mission was to blunt the move toward the all-important $35.50 level in silver, above which lays a tremendous amount of buy-stops. Once that was achieved and momentum halted, the real attack began and silver plunged 60c in just 4 minutes. Gold, too, was repulsed in a Gold Cartel counter-attack. After successfully holding gold under $1790 at 9:00 am and 10:00 am, the gold attack began once the London PM fix was in. Between 10:00 and 10:04, gold fell $5 but when it appeared to bottom for the third time at $1785, desperate measures were called for. An overt attack by The Forces of Darkness drove price down $12 in just two minutes at 10:39 and 10:40 EDT.

Below are 2-minute charts that show the action.

None of this should surprise anyone around here as we have been watching The Cartels aggressively defend these levels since the announcement of QE∞ nearly three weeks ago.

Despite all of this nonsense, please do not get discouraged. Gold priced in euro once again made a new all-time high today as demand to convert debasing fiat for hard assets is continuing unabated. Euro gold has led dollar gold higher this summer with a lag time of about 4-6 weeks. Just be patient and you will be rewarded. The Cartels are fighting a losing game.

Next up, The Bernank! As I type, it is 11:51 EDT, which means that The Bernank will begin a speech in Indianapolis in about 40 minutes. You can feel quite comfortable that volatility is about to ramp up again. https://www.jconline.com/article/20121001/BUSINESS05/310010023/Bernanke-address-monetary-policy-today-Indy?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

Speaking of volatility, you'd better get used to it. Have you seen the latest open interest numbers? Volume and liquidity have finally returned to the metals pits and this will undoubtedly lead to more volatility in the days ahead. The Dec12 gold contract ended Thursday with a total open interest of 353,966. As recently as mid-August, the entire gold complex open interest was just 385,000! And in silver, the Dec12 has an OI of 86,972. For comparison's sake, total silver OI fell under 100,000 late last year and was as low as 102,000 as recently as February.

In terms of news items, chew on this one for a moment as it doesn't seem to be getting much media play. (https://www.zerohedge.com/news/2012-10-01/iran-rial-implodes-20-one-day-follow-death-currency-real-time) If the Iranian currency continues to implode, things could get very dicey, very quickly in the region. The mullahs and rulers of Iran could very easily begin to feel threatened by an upheaval of their own population and desperate leaders often take desperate actions in their attempts to cling to power. Watch this story very carefully all week!

Lastly, we're finally ready to conduct our first interactive webinar over at TurdTalksMetals. The first event will be on Wednesday and the guest will be James Turk of GoldMoney. I would imagine that you might have a few questions for James but you have to be a member of the site to participate. All of the details can be found by clicking here: https://www.turdtalksmetals.com/webinar-sign-up/. I sincerely hope you consider joining the site and participating in the fun.

That's all for now. The Bernank speaks in about half an hour so get ready!

TF

About the Author

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

  77 Comments

  Refresh
thurd aye
Oct 2, 2012 - 11:06am

Some context to Russia's

Some context to Russia's stance toward the west.long KGB defector interview,vg.

It isn't new ,but qualifies as relevant I feel.It's s long game,like China.

USA suffering because of these actions formulated decades ago.

In several parts.

https://uselessdissident.blogspot.com/2008/11/interview-with-yuri-bezmenov.html

philipat
Oct 1, 2012 - 11:32pm

@EG

Just like Iceland is now growing nicely again. And Sweden. But in The United Corporatocracy, all losses must be socialised. Why anyone would want to emulate Japan as a model is quite beyond me.

El Gordo
Oct 1, 2012 - 10:35pm

And to think back...

...if the government had just gotten out of the way and let it all fall down we would probably be well down the road to recovery by now. The big banks, both foreign and domestic, would be gone, the losses would have been taken and assets liquidated and reasonable values, and we would be looking at a brighter future. But government always finds a way to step in, expand and extend the problem then try to take credit for doing something to fix it even if the fix doesn't work. There's got to be a way to get these sycophants out of the way, but I'll be darned if I know what it is.

Read more >> Options >>
Match: sycophant and others. syc·o·phant (sĭk'ə-fənt, sī'kə-) n.
A servile self-seeker who attempts to win favor by flattering influential people.

[Latin sȳcophanta, informer, slanderer, from Greek sūkophantēs, informer, from sūkon phainein, to show a fig (probably originally said of denouncers of theft or exportation of figs) : sūkon, fig + phainein, to show.]

sycophantic syc'o·phan'tic
(-făn'tĭk) or syc'o·phan'ti·cal (-tĭ-kəl) adj. sycophantically syc'o·phan'ti·cal·ly adv.

© Houghton Mifflin Company

Copyright © 2012 Answers Corporation. All rights reserved.
Terms of Use Privacy Policy IP Notices Disclaimer

Green LanternPining 4 the fjords
Oct 1, 2012 - 10:28pm

re: I Am Confused

This is our defense of our actions, and we are very very right to pursue our current policies" then why aren't metals rising & the dollar tanking

The Answer is VELOCITY! there he goes again using that fancy word. It seems to me that we still have a dollar velocity issue and the flood gates of velocity still haven't opened. People still want to hold the dollar. They still perceive it to be more valuable than trading it away for non-dollar goods. And to get a good picture of this we have to look at ALL non-dollar assets not just the metals ie collectable. You know the stuff the really wealthy do with their money when they realize that their currency is no good. While we know better, the crowd hasn't caught on yet. In other words, things might be even worse than we thought.

Today Fed Pres. Evans and Bernanke made a spash on the headlines and everybody took notice. For the last several days, I've been pasting articles from Bloomberg and other financial trades by statements made by Evans and the other Fed Presidents regarding, "" we are going to need more" These interviews just don't happen. Calls have to be made, appointments scheduled. It's obvious from the consecutive number of interviews being given that there is an agenda here. A public relations tour and total saturation to get the word out that they are not finished, QE3 is not enough and expect more. Keep watching how many interviews the Fed President gives to tell us what they are going to do. The frequency of these interviews is a sure sign something is up.

Lets look at the markets. I think this article from today's New York Post summarizes the velocity issue very well even although the paper is rag. Fear of the markets is still on the table big time.

Skittish investors have yanked more than $300 billion out of US equity markets in the last two years, with a drawdown of $4.47 billion last week alone. That’s despite the huge climb in the Dow Jones industrial average since its depressionary low of 6,547 in March 2009.

A huge signpost on the road out of equities was the announcement late last week that Fidelity — the home of rock-star stock pickers like Peter Lynch — now has more than half of its customers’ $1.6 trillion assets in bond funds. A huge signpost on the road out of equities was the announcement late last week that Fidelity — the home of rock-star stock pickers like Peter Lynch — now has more than half of its customers’ $1.6 trillion assets in bond funds.

“Most people haven’t made money in the stock market in the last decade-plus,” said Sonu Kalra, who manages the $15.4 billion Fidelity Blue Chip Growth Fund.

The daytrading fad also has waned. While 76 million households have individual trading accounts through services such as E*Trade, only a tiny fraction — 9 million — actively trade.

So if the Fed is throwing another 300 -400 to the banks which is not going to automatically get the $300 billion dollars of equity sitting on the sidelines to get back in. They are going to have to create the mother of all bubbles. It's not enough YET and they will have to literally flush the economy with fake dollars. And it seems they are intending to do it come high or hell water. It would seem to me that every bodies patience will continue to be tested. And I hope somebody will make an argument to tell me that it won't take that long. My guess is that you can't shovel it all in at once. But it's going to more like fire fighters dropping their water loads on a forest fire. One drop at a time.

What somebody needs to do and who is really motivated, start following the money that the Fed wired to all the banks. This will start telling us where all that fake currency is going to enter the system. That would be the mother of all analysis!

Colonel Angus
Oct 1, 2012 - 10:00pm

JPM lawsuit

So, JPM owes the $20 billion, they can't keep money on margin in trading accounts, their silver shorts have to be liquidated, and silver goes to the moon???

I like the sound of that story, but then again I'm presently wearing a Max Keiser "A silver coin is a silver bullet" t-shirt. I did, however, take off the tinfoil hat.

Hammer
Oct 1, 2012 - 9:34pm

(No subject)

Although monetary policy cannot cure the economy's ills, particularly in today's challenging circumstances, we do think it can provide meaningful help. So we at the Federal Reserve are going to do what we can do and trust that others, in both the public and private sectors, will do what they can as well.

is the bit that made me go, "Oh sheeeeeeeeeeeeeettttttttt......" That is just outright admission there is nothing they can do except pump up the morphine drip to ease the patient and hope and pass the buck (pun fully intended there). Wow, just wow.........

¤
Oct 1, 2012 - 9:11pm

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

Silver AlertPuck Smith
Oct 1, 2012 - 8:58pm

Puck, there are dozens of

Puck, there are dozens of things that are bullish for silver. We are only missing the most important one - much higher prices.

Oct 1, 2012 - 8:49pm

Silver Cross on the London Fix?

DATE USD CENTS USD/Oz 5 day mva 10 day mva 50 day mva 100 day 200 day
10/01/12 3435 34.35 34.17 34.22 30.67 29.24 30.56

Maybe I'm miscalculating, but based on the spreadsheet I keep it looks like the 50 day average crossed the 200 on the London fix today.

Haven't I heard some people saying that's supposed to be a good thing?

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Key Economic Events Week of 7/20

7/21 8:30 ET Chicago Fed
7/21 2:00 ET Senate vote on Judy Shelton
7/22 10:00 ET Existing home sales
7/23 8:30 ET Jobless claims
7/23 10:00 ET Leading Economic Indicators
7/24 9:45 ET Markit flash PMIs for July

Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

Recent Comments

randomness