In a move designed to mollify and distract, the altruistic Barclays Bank was fined today for repeatedly "sending out bursts of sell orders aimed at moving the price of gold". Ya don't say...
If you haven't seen this story yet, you can read about it here (the original story is from the FT but summarized by ZH):
So what are we to make of this? It's quite simple, really. This is designed to deflect and quiet the inquistors:
"See! We found the problem. One rogue guy doing devious things. We fired him, though. That's just not how we do business here at Barclays. No, no. Everything is on the up and up. And don't think for a second that
our co-conspirators DB, HSBC, Scoshe and JPM would even consider doing anything like this. Nope. Just this one guy. A bad apple. And we fired him. So there."
Look, you and I both know that this is only the very tip of the proverbial iceberg. The only interesting part of the story is that it's even a story at all. How and why the UK Financial Conduct Authority would sniff around enough to prompt this admission and firing is The Big Story. Could it be that some momentum against The Cartel may have finally begun?
And they (The Cartel) are crazy to think that this is the end of the story. Not a chance. Just like the admission via emails that they've been manipulating LIBOR was the "blood in the water" for all sorts of investigations, so will this admission be today. Today's announcement won't turn down the heat, it should only serve to increase it.
With all of this in mind, is it any shock that the metals declined over night (U.S.)? As mentioned in yesterday's podcast, the next move was going to be a drop to the bottom of the current pennant, and so it was. But price has quickly rebounded again and I have a last of $1293 as I type.
Wait a second, $1293 sounds familiar. Oh yes. We were stuck for over 12 hours in a $1.50 range back on Tuesday, only to see a quick drip to the bottom of the pennant on Wednesday. What happened on Thursday? After a trip to the top of the pennant, we were again held in a $2 range for over 12 hours. It looked like this:
Note the yellow box containing the nearly-identical action on the black chart above. Now note the yellow box showing the action since midnight last evening:
"Of course, gold manipulation was only done by one guy who worked at Barclays. But don't worry, we fired him."
Back to these "pennants". Just to remind you, we didn't just spot them being painted yesterday. Here's a chart from over two weeks ago:
I show you this to emphasize a point:
If you think this is accidental...that these points line up so clearly so that even Stevie Wonder can see the pennant...you're crazy! This is Chart Painting 101, my friend. These charts are being painted by The Manipulators. Why? Because they want the pennants to be abundantly clear to anyone who is watching. That way, WHEN the pennants are made to fail, there will be a plethora of Cartel water-carrying chartreaders out there to proclaim the bearishness of it all. Again, anytime the it's made to look this clear and obvious, you should know that something nefarious is afoot.
You might now be asking: "So, Turd, what is the right chart to watch? If this is all contrived, where is the real battle?" See below:
THESE are the charts to watch. Not the daily charts as they are so clearly being painted to deceive. Watch these weekly charts, instead. Recall that The Cartel has had ZERO success in breaking price down and through $1280 and $19 all on their own. What they are trying to do now by painting the pennants is draw in some extra Spec firepower.
IF they (The Cartel) can paint the pennants to completion and then force a break DOWN, the spec momos will board the short bandwagon again and hammer price. This is what The Forces of Darkness are hoping for and this is what the chart painting is all about.
Again, how am I so certain of this? Simply because the pennant are so blatantly obvious and clear to see. There is no way that this is being done by accident. It is purposeful and contrived with the intent to finally get price below $1280. By doing so, The Cartel will maintain their most important goal...crush and suppress western investment demand.
So, please, keep all of this in mind as you observe the action for the rest of the day and into next week and don't get too depressed. This could all backfire on them. Geo-political events could conspire against The Evil Ones and the pennants might accidentally break to the UPside. Wouldn't that be fun?!? More likely though, we'll soon see a downside failure of these recent pennants and we will then fall back to the much larger and far more important triangle patterns on the weekly charts.
Have a great holiday weekend and, if you know anyone, anywhere who is on active duty or a veteran, please give them a big thank you and a hug from Turd. They may have been pawns in the Evil Banker World Domination Scheme but that doesn't minimize their courage and willingness to serve others. They deserve our gratitude, respect and support. Always.