Some Charts

283
Thu, Dec 20, 2012 - 12:15pm

I've received several requests to "do what I do". So, here you go. (Keeping in mind that you should probably do the opposite.)

First of all, these hourly charts are astonishing. Just six, short trading days ago, The Fed confirmed QE∞ at a minimum of $85B/month, all needed to fund the ongoing U.S. federal deficit. Instead of rallying, the metals have been slaughtered. Why? Hmmm...We've seen this phenomenon in crude before (https://www.zerohedge.com/news/curious-case-post-qe-oil-hangovers) & (https://www.zerohedge.com/news/2012-10-09/why-oils-post-qe-plunge-may-be-over) and apparently it's worked so well there that The Fed and Their Cartel have decided to give it a go in the metals, too.

And now, mainly, I'm just mad at myself because I didn't see this coming. Of course The Fed is going to instruct their minions to crush the PMs. The Fed had no choice but to initiate QE∞ and the last thing they needed was an immediate, perceived quid pro quo with rising metals prices. The metals had to be crushed. It's all a part of their ongoing strategy of MOPE and SPIN. Duh! (Jeez, the more I type the more stoo-stoo-stoopid I feel. Better stop here.)

All that said, there is no reason to think that it's over, that the 12-year PM rally is kaput. I'm sure that the metals will stop and reverse, just like last year. The only question is, where? Since nothing has changed and the fundos are, in fact, even stronger than last year at this time, why would we expect prices to break any lower than they did a year ago? (Keeping in mind that the last sentence was typed by a guy who didn't see this selloff coming.) Sometime soon, the metals will reverse with a sharp, short-covering rally. That rally will likely stall and the momo-shorts will be emboldened to take another stab at the downside. Then, after failing to take things markedly lower, a bottom will form and price will begin to recover. If compelled to trade paper in this environment, here are some charts that show a striking similarity to the action of a year ago.

Hang in there. Good luck.

TF

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  283 Comments

Clubfoolish
Dec 20, 2012 - 3:55pm

So whaddya gonna do?!?

just bought another 300 ozs silver bars and ASE mix.

F'em, Feed'em fishheads.

Bollocks
Dec 20, 2012 - 3:56pm

@Cononish1314

"I attempted to log into Guernsey Mint"

If you're in the UK and are hoping to take advantage of the VAT - free purchases, then I think that's over now. I made a purchase recently and for the first time I was contacted for the VAT payment by Royal Mail. I called the import dept and explained the vat-exemption code on the customs declaration, which is applicable to legal-tender coins.

They said that they've been told by Customs that they must charge VAT and that they are to ignore the exemption code. This, of course, is illegal. Customs are ignoring their own rules -that VAT is NOT payable on legal-tender coins imported into the UK.

This communication from Customs came just a couple weeks ago, and Royal Mail are now charging VAT on all silver imports it seems.

The EE is tightening it's grip.

Bummer.

I've now switched to buying gold only.



GM Jenkins
Dec 20, 2012 - 3:56pm

And now, mainly, I'm just mad

And now, mainly, I'm just mad at myself because I didn't see this coming. Of course The Fed is going to instruct their minions to crush the PMs. The Fed had no choice but to initiate QE∞ and the last thing they needed was an immediate, perceived quid pro quo with rising metals prices


I agree - it's hard to imagine with all the obsessive planning and number-crunching and propagandistic perception-management that goes into the Fed's every decision and action, that they wouldn't have some kind of measure in place to keep inflation expectations from spiraling off the charts after such announcements. Two years in a row the metals are getting absolutely crushed in holiday trading after bullish early December news. Not surprising based on my Fundamental Law of the 21st Century Gold Bull Market:

"The price of gold will never fall so low that members of the middle class (working professionals, retirees, widows, etc.) who have not already bought bullion begin to feel psychologically comfortable buying bullion. Nor will price rise to the point where they begin to feel psychologically uncomfortable not buying bullion (i.e. they begin panic buying) until they are priced out of the market. In other words, until fiat money rapidly accelerates its approach to its intrinsic value of zero, gold will always be in a tight range where the growing obviousness that it's a good investment is matched by the appearance (and accompanying noise) that a massive sell-off is imminent."

Groaner
Dec 20, 2012 - 4:01pm

Yup, just like last Dec.

They realized that if they hit them hard during thinly traded markets they can do the most damage.

There is no other reason for this..

Becareful about jumping back in because I dont think they are done.. Next week too could be a big downer.

May see some short covering, bargain hunters here but they may smash some more..

Bollocks
Dec 20, 2012 - 4:09pm
Byzantium
Dec 20, 2012 - 4:11pm

@ GM Jenkins

"gold will always be in a tight range where the growing obviousness that it's a good investment is matched by the appearance (and accompanying noise) that a massive sell-off is imminent."

Spot on, that is exactly what I have been saying about silver these last days on these threads.

Reading between the lines, the cartel would seem to be frantically trying to fend off physical demand.

Let us hope that a real breakout is near.

Anonymous
Dec 20, 2012 - 4:21pm

Removed comment

Removed comment.

thurd aye
Dec 20, 2012 - 4:29pm

I was just out for a

I was just out for a jog...........BWAH...... that hit the spot good one mate.

kryton619
Dec 20, 2012 - 4:29pm

The Beat Goes On

Main stream media https://in.reuters.com/article/2012/12/20/usa-fiscal-idINDEE8BH0CF20121220

"Investors so far have assumed the two sides will reach a deal, but concerns over the fiscal cliff have weighed on markets in recent weeks. The S&P 500 index of U.S. stocks .SPX was up 0.4 percent in Thursday trading, despite a round of strong data on economic growth and housing."

Really? How about a paragraph that indicates that the Fed is printing 1 Trillion dollars a year, the dollar index continues to drop, and PMs have had the shit kicked out of them for a week.

The Republicans don't want to see taxes increased, the Democrats don't want to cut social spending programs what don't these guys understand about a 17 trillion dollar debt?

And the beat goes on....

Sonny & Cher The Beat Goes On
old tradesman
Dec 20, 2012 - 4:31pm

Are the PTB Forcing Paulson to Sell His Gold...

buy the big boys (and give them cover)

to sheer the sheep

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