Cure For Boredom

Fri, Oct 26, 2012 - 10:00am

Not only is a "Storm Of The Century" ready to form and hit the U.S. east coast early next week, the "Storm Of The Century" is suddenly building again in Greece. Yikes!

Here are your salient links. First, the meteorological phenomenon. Hurricane Sandy is set to merge/combine with energy typical of a "Nor-easter" this weekend. The storm is then set to turn left and head toward the Jersey coast sometime on Monday or early Tuesday. See this:, this: and this: and this:

Now, lest you think I've suddenly changed my name to "Turd Cantore", there's also a monetary phenomenon to worry about in Greece. This was supposed to have been papered over for a while...certainly until after the U.S. elections. Oops. See this:, this: and this:

All of this means that we are likely entering into a period of significant volatility in the metals markets. The good news, for us, is that the metals are entering this phase after having already been pushed back to support levels that indicate an end to this current "correction". Of course, anything can happen and I may end up looking like a complete idiot (again), but all indications are that we have reached a bottom and have completed this mirror-image pullback to the QE2-rally pause of January 2011.

Let's start with silver where the technical picture is slightly more clear than gold. Look, first, at this 2-hour chart. You can plainly see the obvious support at $31.60 - $31.70. Four attempts have now been made this week to breach this level and each wave has been repulsed. Now, once silver trades back above $32.25 and then $32.50, the pressure on the recent shorts will begin to increase. Some will begin to cover, the rally will strengthen and, soon, the bottom will be clear to nearly everyone.

And you can clearly see the bottom forming on these next two charts. The 6-hour chart reveals the downtrend line from the highs on 10/4 and the daily chart shows that we have completed an almost perfect and "textbook" example of a 50% retracement.

The gold charts look pretty good, too, though not quite as clear as gold seems to be trading about 24-48 hours behind silver. This is a little odd in that gold usually leads the trade. Whatever. The gold chart also shows that a bottom is forming/has formed and a move higher next week will confirm the lows.

So, relax. Keep the faith, be happy and buy a little more physical today. If you live on the U.S. east coast, head out to Lowe's and Costco and prepare to hunker down. If you live in Greece, buy yourself a stock of gyros and ouzo and consider taking the next week off.

I'll be updating things throughout the day, including thoughts on the CoT when it's released, so please check back later and review all of the comments. Have a great day!


About the Author

turd [at] tfmetalsreport [dot] com ()


ancientmoney rl999
Oct 26, 2012 - 2:10pm


"Why would the entire planet suddenly decide not to buy a commodity?"

I think you misread my meaning. A halt to trading would indicate the opposite--everyone in the world would want PMs. Reason: this would not be another garden-variety brush-up, where a major power dismantles a relatively feeble foe. Israel and Iran going toe-to-toe would cause much havoc worldwide, with Strait of Hormuz closed. If it went nuclear, all I can say is, HOLY F____!

Mr. Fix
Oct 26, 2012 - 2:12pm

@ Comicus

Are you trying to be funny?


Thanks Nana,

I love what you do here.

Oct 26, 2012 - 2:14pm

Silver Demand In China For Wealth Protection to Climb to Record

Silver Demand In China For Wealth Protection to Climb to Record 7,700 Tons

Oct 26, 2012 - 2:16pm

Hey guys... these derivatives make my assets look big?

dumpster ivars
Oct 26, 2012 - 2:21pm

dumb and dumber

so just buy the real thing . quit gambling on a rigged market

you guys dont buy silver you buy chunks of paper .

when will you fellows learn probably when you lose it all

dumpster ivars
Oct 26, 2012 - 2:22pm



Oct 26, 2012 - 2:22pm

@ Dumpster

Who was that directed to?

Oct 26, 2012 - 2:26pm

Bullion Buzz newsletter... Jim Willie

“The Gold price has been doing important technical work for the last month. On the surface the price movement looks boring if not weak, with lost momentum. That is typical of the brief phase when consolidation takes place, while building the right side handle. The downside risk is to 1720 (daily basis) or 1750 (weekly basis), really no big deal. The recently announced and detailed QE3 initiative is incredibly bullish for Gold, providing the bull market the most wonderful fuel that is supercharged by the permanent 0% rate.”

Jim writes...

Some competent analysts claim the United States and Western nations are stuck in the eye of the hurricane. Maybe so, but the internal stresses are so great that they will move beyond the eye into a zone of clearly apparent destruction soon. Some aware analysts believe the bond monetization plans will lift the financial markets. Maybe so, but the ensuing and continuing damage to the economies is profound from rising cost structures. Some awakening analysts no longer look to the USFed as a source of solutions. They see the central bank as increasingly desperate, pushing the same levers that accomplished nothing in the past. In fact, the failing central bank franchise system is visible in the open for all to see, with the embarrassment noticeable when the good chairman speaks as high priest of hollow dogma. New money backed by nothing swims around, financing the USGovt deficits, redeeming toxic bonds, adding nothing to the capital base. In the background is a pernicious effect, having come full circle. The Chinese industrial expansion since year 2000 came largely at the expense of the Western economies. They forfeited thousands of factories in the mindless pursuit of lower costs, while overlooking the abandoned wealth engines that produced legitimate income. In the last couple years, the Western economies have served as weakened customers for the Chinese production. The effect finally has slammed China, which complains of weaker US and European demand. Any trip through Spain will demonstrate that smaller Spanish factories and mills are shut down, with Chinese imports in replacement, as local shops stock mainly Chinese products.

"The global financial system is empty of ideas "--Jim Willie

Credit to Jim Willie..
Oct 26, 2012 - 2:29pm


Thank you. PD's works....but, not too many more care about that post it seems. I do think its important though that people use terminology that builds people up as a group, not isolating which helps to create groups like elites, which aren't, but love to claim as such.


Oct 26, 2012 - 2:32pm

I Hope It's True!!!

43 TRILLION dollar suit against U.S. govt. officials and major banks! Accuses of stealing from U.S. people and money laundering. Screenshots of CNBC running it.

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