Here are a few items to help you kill the time while we wait for the caps at $1730 and $32.50 to fail.
First, you may have noticed a decided lack of charts these past few days. This was by design. I have found sometimes that it's easy to get caught up in a certain perspective or pattern and, occasionally, it's beneficial to step back for a few days, clear my head, and then re-assess. Having done so, I'm happy to report that both charts look extraordinarily strong, in line with the fundamental picture post-election.
After having been forcefully contained in the weeks following the announcement of QE∞, momentum failed and the paper bears shoved things lower. The remarkably strong physical market then provided a floor for the paper price at/near $1700 in gold and $31.50 in silver. Recognizing this, paper bulls had held onto those support levels. What came next (last Friday) was a deliberate washout of those paper bulls as their sell-stops were triggered and price tumbled lower. What is so bullish about this is the almost immediate rebound in price that began on Monday and continued, in earnest, on Tuesday. The charts now show solid bottoms in the areas we originally defined two weeks ago. They also show the extremely bullish "washout bottoms" (the opposite of "blowoff tops"). Why is this so bullish? Simple. It is evidence of a selling capitulation where the last remaining sellers have now sold. Remaining longs are emboldened and we are now set up for a further short squeeze which will finally turn the momentum back in favor of the long side.
Combine this with the fundamental picture post the U.S. election and there can be no doubt that he next, major move in the metals is UP. Buy some physical today.
To that end, one of your fellow Turdites has constructed a helpful tool and he kindly asked if I'd publish a link for him. Glad to help: https://comparesilverprices.com/
OK, on to your reading list. First up, our friends at GBI (which is the infrastructure of HardAssetsAlliance) have issued "part 1" of a new 3-part series on the U.S. dollar endgame and its effect on gold: https://www.bullioninternational.com/blog/entry/gold_supply_and_demand_dynamics_and_the_potential_dollar_endgame
A vocal proponent of this theory (fact) is our pal, Detlev, and he has just published and excellent new piece that you should definitely take the time to read: https://detlevschlichter.com/2012/11/contra-richard-koo-and-the-keynesians-it-is-not-about-aggregate-demand-but-about-real-prices/
And Paul Mylchreest has written another excellent white paper. This one deals with many interesting topics, not the least of which is the coming collateral "issues" for 2013. Please make the time to read and fully comprehend what Paul is suggesting here.
Lastly, effective immediately, I will once again be moderating and policing this main thread. Please understand that I have given you this entire site for your off-topic discussions. Use it. This main thread is our entry way and it is where we attract and convert new Turdites to the cause...a cause that has only gained more urgency since Tuesday. Now, if you want to show yourself to be a complete idiot by calling this "censorship", knock yourself out. The simple fact is that this is my site and, quite frankly, my place of business. You are no more welcome to deface and hijack this site than you would be if you came to my house and started breaking shit. I have the right to protect my property whether it is real or virtual. If you are unwilling and/or unable to adhere to this rule and therefore help to promote the communal and collegial spirit of this site, then I kindly ask you to leave us now and take your self-righteous indignation somewhere else.
Thanks again for the well-wishes to MrsF as she speeds down the path to recovery. I hope that everyone has a great day!
TF
