Outside Reversal Week

Sat, Nov 10, 2012 - 12:43pm

Longtime Turdites understand the significance of an "Outside Reversal" or "Engulfing" pattern. On the daily chart, an ORD has proven to be a very reliable indicator of a change of trend and momentum. When you get one on a weekly chart...

First, for the uninitiated, here's a definition from Investopedia:


As you might imagine, I have a good reason for bringing this to your attention. After all the dust settled yesterday, we are left with ORDs on both the gold and silver weekly charts. Taken by itself, of course, this is just one indicator of potential gains to come. Throw in the dynamic fundamentals as we close 2012 and head into 2013, and we've got plenty of reason to be excited. If you haven't yet bought this recent dip, you should probably consider doing so in the very near future.

And it's not just the weekly charts that look compelling, check out these daily charts:

As we break it down further, check out how pretty these 8-hour charts are. The sellstop-running plunges of 11/2, followed by the quick reversals and now the breakouts bode very well for next week and beyond.

And even the 2-hour charts look pretty salty. Let's see how long these short-term trends can continue next week:

All-in-all, confidence is extremely high that the month-long pullback in the metals is over. I expect a rally from here through the end of 2012 and I am anticipating an exciting, unprecedented and historic 2013.

From a news standpoint, I trust that most of you have already seen this. Just in case, though, here's a link. Add another log to the fire regarding the leased, hypothecated, gone for good German tungsten gold.


And I first published a link to this story on Thursday. Fortunately, in case you missed it, The Doc and DenverDave are all over it for you. https://www.silverdoctors.com/new-royal-canadian-mint-silver-etr-is-just-another-fractional-bullion-scam/

Lastly, we wrapped up our 2nd Anniversary Hat Contest yesterday and the winners are:


The Dec 12 settled at $1730.70 and "worldend666" edged out "mapleleaf" by a whopping 18 cents! Worldend guessed $1730.00 and Mapleleaf had $1731.58. WOW!!!


Here Mapleleaf got his/her revenge with a guess of $32.67. The actual close was $32.62. Very impressive!!


Crude settled at $86.07 and the winner, with a guess of $86.00, was "delric". Good job!

Congratulations to all three winners. Please email me your shipping information at tfmetalsreport at gmail dot com and I'll ship you your very own autographed, genuine and authentic Turd Hat.

I hope that everyone has a safe and restful weekend. Get ready for an exciting week next and a very fun end of the year!


About the Author

turd [at] tfmetalsreport [dot] com ()


Cononish1314 ancientmoney
Nov 12, 2012 - 1:50pm

Math guy

Dunno, but I assume that he's one of D.P.'s "you math guys".

Nov 12, 2012 - 1:52pm


Textbook FUBM or not, thats still a bunch of monkeys with a headache :)

Nov 12, 2012 - 1:54pm

Just for Fun

In honor of the outstanding discussion of money, FOFOA, freegold, and other assorted things, a pic titled "The Philosophers":

Many thanks to Mr. Fix, WorldEnd666, Doc J (Emeritus), Cal Law, Vypuero, S Roche, Bardian, Xeno, T Mos, Watchman, and many others for their positive contributions to discourse in this thread.

P.S. - If you took part in the discussion but are not pictured here, you probably 1. don't have an avatar, or 2. you have an avatar but it's so damn hard to work in to a pic that my laziness worked against you, or 3. failed to pay the Pining silver bribe.

Nov 12, 2012 - 1:58pm

Simian City

I have decided that "The New Chartism" simply involves the meticulous analysis and Kremlinology of monkey raids.

Someone get on and do it.

It'll be a great (ba)boon to us all.

Nov 12, 2012 - 1:59pm

Removed comment

Removed comment.

القراع عصفور Cononish1314
Nov 12, 2012 - 2:08pm


sheesh - calculus deals with as many dimensions as you desire, even if its 8, on its side.

Fractals? Tableaus? nonsense.

good Q? where are you guys? have you all been driven off? what about you 47? you were an awesome writer, and an awesome point of view. i'm biased though, i drink a lot of Guinness.

القراع عصفور Anonymous
Nov 12, 2012 - 2:11pm

Ned Schmidt is a Piece of Shit!

please, don't insult Turd:-)

Nov 12, 2012 - 2:23pm

Tweezer tops

I don't like those tweezer tops that have formed on the daily gold and silver charts. Silver in particular loves to reverse off tweezer tops.

I expect a pullback to 1694 and 30.80 in the short term....good opportunity to exchange some fiat.

Its Diwali the Festival of Lights, today for Hindus (13th November)..does anyone know if this festival involves exchanges of gold as gifts?

Nov 12, 2012 - 2:24pm

Silver Miner ETF, SIL

Crapping out here. Dropping below the 50 Day MA. SSRI having trouble, though bouncing around between its Bollinger Bands. GPL heading south. Saw the piece SSRocco put out on miners and having trouble figuring these price drops, unless it portends silver is going to drop. If $30 a ounce is break even for miners...hmmm...idk...Any thoughts?

PS...ohhh, look at Facebook move, now thats a store of value!!! Lol!!!

Nov 12, 2012 - 2:34pm

"Isn't it funny all of our

"Isn't it funny all of our master pedophiles (Ned Schmidt, John Nadler, Jeff Christian, Jaime Dimon, Blythe Masters, David Rockefeller) ALL hate silver???"

And they're all about to be exposed as frauds and laughingstocks, too. If they're short, they're also going to get completely freaking cleaned out.

Nov 12, 2012 - 2:36pm


I changed my mind. No new post today. If all the banks can take the day off, why can't I?

Nov 12, 2012 - 2:41pm

just bask

in the glory of the comeback victory against Penn State.

Nov 12, 2012 - 2:42pm

Here is a FOFOA quote we should all heed:

"If you buy gold because of my blog without really understanding my view, I think it is possible that you will sell your gold "to lock in a profit" with the worst timing in the last 5,000 years. You don't want that on your headstone, now do you?"


I think he is saying that it will take some time, maybe 3-6 months or longer, for a gold revaluation to settle itself out. As paper gold will be history, and therefore COMEX spot pricing will not exist, there may not be a way to really know the true values of gold and silver for awhile.

During these times of confusion, it will be important to have some fiat to use, so one doesn't sell their stack in a time of need. To help you see through to the other side of the currency devaluation. Having prepped, and bought some stores of food, etc. will also have been helpful.

Nov 12, 2012 - 2:43pm

@Vypuero Regarding "small inflation"

It's already debatable why govt / bank deserve to impose a small inflation upon the public but I'll skip it for now. Statistically their track record of keeping FIAT inflation "small" is a big fat goose egg out of thousands times. Why would I believe they'd deliver under Free Gold then? It's controlled by the same bank / govt crooks with the same motive and same tools. Would this time be different? Nah.

If you really want to keep inflation small then I have an excellent choice to be used as medium of exchange - GOLD. It's free from govt / bank shenanigans so it's stable. Every year we only mine about 2% of existing stockpile so the inflation is kinda small. Now let's use gold, shall we? Well, somehow Free Gold is against it. This is where FG becomes double-talk, IMHO. It wants small inflation and yet it does not want to use the medium of exchange that sees to small inflation. What a farce!

If you read FOFOA's posts you could tell he believes in central planning. He wants govt & central banks to be able to inflate the credit supply so he thinks having gold in there could balance it out. Nah, that's not how govt / banks behave. Once they are allowed to inflate it's simply in their gene that they want unchecked power. If gold gets in the way they rig it just like what they are doing today. His theory is in a dead end.

القراع عصفور
Nov 12, 2012 - 2:46pm

have a beer or ten Turd

we got the FEDS tab open over at the Speak. even top shelf beers like Pabst are free.

Nov 12, 2012 - 3:01pm

In the words of Richie Cunningham

Yowzah, Yowzah, Yowzah!

Have you seen the new silver OI numbers??

Total silver OI is up 5000 since last Monday and price has risen $1.50. Total OI a/o Friday was 142,611. This is the 2nd highest level ALL YEAR behind 143,056 on 10/12.

Something very powerful is brewing.

Nov 12, 2012 - 3:06pm

Does This Tie in to FOFOA?

Money, as we understand it, has three fundamental characteristics: store of value, unit of account, medium of exchange, and must be durable, rare, fungible and divisible. We all agree on that.

Now, what makes refined opium, that is, heroin, NOT money? Or, for that matter, pure cocaine? Or methamphetamine, or oxycodone?

Are these not also similar to gold, in that these substances are universally recognized, have their own intrinsic value which can be stored, can be divisible and exchanged, are durable and will not spoil or rot or corrode, but which must be stored properly, although at a minimum of effort, and, while not terribly unique, but because of govt prohibition, have taken on the qualities of being somewhat rare, that is, difficult to possess in large quantities without risking prison or worse?

Why would not a large, sophisticated organization or sovereign, NOT want to use these drugs as MONEY?

Gold pays no interest, but neither does a pound of meth, either.

See what I am getting at?

Here is my somewhat twisted take.

What if we separate today's society into castes, just like the old days. There are (1) the uber wealthy, that is, the privileged; (2) those near the top who service the privileged; (3) the middle class (which is today made up of working stiffs who pay income tax); and(4) the great unwashed (which is today, those at the bottom rungs, whether getting benefits, or earning subsistence wages and effectively pay little to no tax, and basically live damn near day to day).

Would it not be logical to divide up MONEY into that which each class finds useful as their unit of account, means of exchange and store of value? Why not?

For example, let's take a look at the crack whore. Seriously. I represented two of them in an interesting case. My two crack whore clients were street-living, homeless, crack whores, who turned tricks to survive. Each young lady consciously chose to partake in the flesh trade. They had their own reasons, but basically, were addicts, who needed to consume daily their respective drugs (meth, cocaine, or both), and were willing to sell their bodies to get their fix.

Neither of them cared about money, except to the extent it provided the means of exchange to then use to exchange for drugs. Both of them often exchanged their bodies directly for drugs, using no money at all-pure barter.

Now, looking at it, neither had any use for gold, nor would either of them had any means or ability to save using gold. It would have quickly been pawned or stolen. Same thing for FRN's. These two did not have use for FRNs, because they would just as quickly trade them for drugs, or get robbed.

They both did have use for drugs, though. They could trade meth for a place to sleep, a warm bed, a shower, a meal, etc., and they could trade their bodies for meth, too.

So, at the low end, both of these girls, for their own reasons, used crack for money, not gold, not FRNs, not digital currency, not anything else. Why not?

Similarly, all of us working stiffs use FRNs or similar local fiat currency. Why do we not trade using meth, or crack? Because we do not consume it, and we do not want to pay the societal costs for possessing it, although in a SHTF scenario, having a large cache of intoxicants may be a very valuable commodity indeed . . .

Anyhow, why can we not extrapolate this concept to the uber wealthy? They care not about paying income taxes, they do not work for a living. Their existence is spent acquiring power, moving into and out of asset classes with ease, courtesy of their bevy of paper-pushing wizards, like tax lawyers, accountants, and paid politicians who keep them in power. To these uber wealthy, they care not about FRNs either. They want power, and they need assets and wealth to keep, maintain, and grow their power. Gold to them is damn valuable, in quantity, measured in tons, not ounces. So too would be drugs, which are also damn valuable in small quantities, and which wealth is measured at the grand scale not in ounces, but in tons as well.

So, we know the uber wealthy possess and covet gold, right? So why would they NOT be deeply involved in the drug trades?

Maybe we are all just being duped into focusing on the shiny, when we should be focused on the shiny AND the shenanigans of the uber wealthy with respect to their involvement in the drug trades?

Perhaps this could explain the actions of the central bankers? The central bankers use gold, as a fractional reserve system, to keep the currency system in place for all of us mere workers. The uber wealthy trade in power, which power comes from the barrel of a gun, using great quantities of drugs as the medium of exchange, store of value and unit of account.

Why is this theory not equally valid as respects gold?

Gold requires labor, effort, resources, all of it. Processing opium into heroin, or coca leaves into cocaine, takes the same labor, effort, resources, PLUS it requires payoffs and backing of sovereigns. Only the uber wealthy control the sovereigns, so only the uber wealthy can control the medium of exchange at that top level.

Why is there a grand, global war on drugs? Why is marijuana so reviled by those in charge, and so beloved by everyone else? Marijuana is a naturally occurring WEED, that is a very close substitute for the processed drugs. Why then would the powers that be NOT want to get into distribution and control of marijuana? Because they CANNOT control it, because it is too ubiquitous, and easy to grow. It allows for substitution, thus freeing the masses from their dependency upon controlled substances.

It all makes sense to me.

Maybe why that is there has been no great JPM collapse over the manipulations of the markets, silver, the Comex, etc. Maybe all of that is just noise on a small scale to distract us, while the great power battles are fought on a continental scale?

How else to understand the GREAT and ENORMOUS waste of life and treasure in Afghanistan? For what? For the poppy fields, that's what.

Maybe the Vietnam conflict paved the way for those in control to understand just how powerful a tool the populace's consuming of intoxicants really was? Maybe that lead to the present status quo.

Look at what has happened since then. Which drug-producing dictators have been allowed to exist? Why do drugs still pour over the border?

Why do the police try to stamp out small meth producers, but let the white collar crime go unpunished?

It all makes perfect sense to me.

Nov 12, 2012 - 3:08pm

Removed comment

Removed comment.

Nov 12, 2012 - 3:08pm

Manipulation everywhere...

Investigation into alleged manipulation of gas prices

Allegations of manipulation of UK wholesale gas prices are being investigated by the Financial Services Authority (FSA) and Ofgem.

The investigations by the FSA, the UK's financial watchdog, and energy regulator Ofgem follow claims by a whistleblower.

Energy Secretary Edward Davey said he was "extremely concerned about the allegations".

"The government takes alleged abuse in our markets very seriously," he added.

Three of the UK's big six energy suppliers have released statements to deny any involvement.


silver66 California Lawyer
Nov 12, 2012 - 3:16pm

How does this tie in to FOFOA

I like the way you think

Nov 12, 2012 - 3:17pm
Nov 12, 2012 - 3:18pm

Looks like you had a few

Looks like you had a few puffs already tonight CA Lawyer

I had no idea what that was about but it looked like it must have made sense when you wrote it.

Nov 12, 2012 - 3:27pm

RE: all the banks can take the day off

The monkeys never take a day off :{

ancientmoney California Lawyer
Nov 12, 2012 - 3:28pm

@Cal Lawyer

While maybe not a tie-in to FOFOA, there is no doubt in my mind that the "war on drugs" is a way for the banker-criminals (not elite) to launder drug money, and get it to the "right" people. They want the majority of the drug-trade proceeds for themselves; it is those who try to take too much for themselves "downstream" that are the enemy of the "war on drugs."

While the big money is made at the top, the small-time, gangland dealers on the street, fighting their turf wars, kill each other off, and many times innocents are caught in their crossfire.

Nov 12, 2012 - 3:31pm


Yes, we all agree on the attributes of what money is but the store of value component must be separated from the utility function of money. Kind of like an economic counterbalance. Only gold and not art work, mansions, or other tangible items of value can perform this function because gold is the most liquid form of wealth, and savings, on the planet. It has the capacity to act as a capacitor for excess currency and credit in the body economic.

Wouldn't issuing various currencies for use among the varied classes only lead to currency, or FX, exchange issues similiar to todays problems with the higher echelons having a more valuable currency and ipso facto lower relative prices while the lower echelons are doomed to a lower currency value and ipso facto higher relative prices?

edit: I like my money clean and so use the 40oz size bottles of tide. accepted by crack dealers nationwide.

Nov 12, 2012 - 3:33pm

Good post California Lawyer

I don't think there's any doubt that those at the top are heavily involved in trafficking hard drugs. They will always be wherever there's money to be made.

And that they also use drugs as money itself, cutting out FRN's. Makes a lot of sense.

Nov 12, 2012 - 3:36pm

double post


Nov 12, 2012 - 3:40pm

I Don't Partake

Stone cold sober here. Seriously. That's why I spend so much time here.

I am being dead serious, though, about store of value, unit of account, medium of exchange with respect to controlled substances filling those roles.

I am not advocating for such, only theorizing that at the highest levels, perhaps, instead of physical gold, the real money is DRUGS?

Why not?

Does it not explain so many things?

For example:

What if say a pacific island legalized growing of poppies and the manufacture of heroin? What if a giant export operation then ensued? What if on the island, the govt declared that there would be no taxes of any kind. Would not kingpins from the world over suddenly set up operations there, run their headquarters there, tax free? Why would they not?

Look at banking and the Caymans? Why is there so much banking going on there, and not, say, in Kansas?

I say it is obvious. There are far too many people at the top, including their sovereign puppets who have wrested control of the world through drugs to allow any other competing system to exist.

Gold, silver, other currencies, are just a distraction from the real wealth. Fort Knox is an illusion, designed to keep the perceived wealth and currency system intact.

Think of it differently. Who is making all the drug profits? Individuals, or sovereigns? If it is individuals, which ones, and what do they do with their wealth? Do they not pay off politicians to keep the status quo in effect?

Which sovereigns allow drugs to be grown and manufactured in their countries? Why are the Americans so anxious to go there under the guise of eradicating supply, when we all know that an artificial suppression of supply, provided demand stays the same, only drives prices, and hence profits, higher? Does not everyone see that elimination of drugs is a demand problem, not a supply problem? But why is there no effort to curtail demand, only supply? Follow the money, see?

Sorry to engage in this sort of "out there" thinking, but I just cannot seem to accept that the pursuit of gold is the be all end of the elite. There must be more there, and my explanation is at least plausible, if not accurate.

Please think for yourselves. And keep thinking.

All comments are welcomed!

Nov 12, 2012 - 3:41pm

Drug Of Choice

My favorite drugs of choice are;

Ionic Gold

Ionic Silver

With the adjustment that's coming, I don't think they'll come down from ionispheric levels

Nov 12, 2012 - 3:41pm


Is this really different than 2008?

No it isn't. The paper/electronic markets will be the game in town for a long time to come. It will continue to be a managed ascent with a lot of setbacks. They know they have to let it rise, but they, and only they will dictate how much at what point in time. There will be no "commercial signal failure" or "supply squeeze" or any of that, because they know the market and they know exactly how much will be available at what point in time.. and they can intervene in the physical market too by financing miners and making sure there is enough physical on the market.

They have the fiat, they are in the know, they manage public perception, and until it becomes really impossible because resources are running out, they will maintain their schemes and basically control the market(s). And that will be for a looong time. Better realize that if you plan on trading.. if you're not willing to accept that ugly truth, just stick with your regular physical purchases. Sit tight, don't think or analyze too much, and just watch your holdings appreciate in value over time.. and maybe if you grow old enough you will witness the day when it finally all blows up.


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