Riding The Line - Update
This post was written on July 14...nearly two months ago. I'm reposting it today for public distribution. I'm not doing this to pat myself on the back or to inspire new subscriptions. Instead, I offer this post as even further proof of the degree to which the paper metal "markets" are manipulated and controlled by the bullion banks, at the behest of the central banks. It also should give you optimism that this current beatdown scheme has nearly run its course.
"Now There's A Big Surprise"
By, Turd Ferguson
Monday, July 14, 2014 at 9:58 a.m.
It took almost a month but, to no one's surprise, The Cartel Banks have finally come after gold today. Apparently the weekly close above $1331 was too much for them to take, much like the $1380+ close back on March 14. So, now what? How far will price fall before The Leg Hounds finish their business?
If you've been around here for a while, you know about The Mississippi Leg Hounds. As Cousin Eddie says, "once they lay into ya, you'd best let 'em finish their business." As mentioned in Friday's podcast, The Cartel Banks added over 100,000 contracts NET SHORT in just five weeks...all in a vain attempt to contain a measly 7% price rally. In just plain old, naked short, fresh paper, they added over 79,000 contracts or nearly 250 metric tonnes of paper metal! WHY?!? Because they had to contain the rally before the charts turned decidedly bullish....and if the charts turned bullish, investment demand would return...and if investment demand returns, from where will the gold come?
After the huge rally of June 19, The Banks were left playing defense. It played out as you can see below:
With the Friday close solidly above the critical $1331 breakout level that had been defended so ardently for over three weeks, it was clearly decided over the weekend that the RAID would begin today. There is absolutely no doubt about it and this is standard Cartel operating procedure. The most recent example of this was back in March when, after having failed at defending the $1380 level on 3/14, The Cartel pounced almost immediately on Sunday 3/16 and the proceeded to work over price for the next two weeks. By the end of the first week, here's what they had managed to do to the charts:
After applying steady pressure for a second week, they'd managed to drop price over $100 and back to the always-important $1280 level:
So how does this relate to today? I've been warning since late June that The Bad Guys would be coming. Getting price back below the main trendline was too important and that is clearly their goal now. Where is that line today? See for yourself:
I don't think there's any doubt (and I would be totally surprised if it didn't) that gold is headed to $1280 and the primary downtrend line that we've been following all year. In fact, I wouldn't even be surprised by a dip to the $1260 area. If you are looking to trade/stack, that's what I would be waiting for.
As this relates to silver, the main line on the daily chart is way the heck down near $19.75. It's going to tale a lot of work for them to get it there but it's not out of the question. IF they pull this off, I would be all over it! The main, weekly trendline is even farther down, near $18, and below most miners' cost of production. In my opinion, the long-term trend in silver has undeniably flipped and any dip back toward the old trendline is a buying opportunity.
OK, it's almost 11:00 EDT so I'm going to stop right here. You key takeaways should be these:
- This is completely and 100% expected and predictable.
- The selling will continue until price gets back near or below the main trendline.
- The Criminal Bastard Cartel Banks remain 100% in charge of the paper market. Anyone who denies "gold manipulation" is either a silly, inexperienced fool or a paid shill and disinfo agent.
I will, of course, have a complete summary of the day's events with a podcast later today and I'll be adding comments to this thread in between. Please be sure to check back often.
September 4, 10:00 AM EDT UPDATE:
As you can see below, since this article was originally posted, price indeed has fallen back toward the main trendlines. Not only that, price is "riding the line" as support for both metals, just as we said it would:
Gold has indeed bottomed between $1260 and $1280 as I have a low this week in the Dec14 contract of $1262. Silver has fallen past $19.75 to $19.20 only because the decline has taken so long to play out. With time, the long-term trendlines keep falling so silver had to fall an extra 50¢ just to catch up with it.
Ultimately, what does this mean going forward? Will prices continue to fall from here, as some are quick to suggest? I say no! This entire, manufactured decline from July 14 has now nearly run its course. Prices will reverse soon and begin to recover. The first level to watch in gold is $1320. After that, $1345. For silver, $20.60 remains a key pivot point.
Again, it is important that you understand this...If the selloff from $1345 was predictable, then the rally into year end is predictable, too. Keep the faith and persevere. Recognize this latest Cartel action for what it is and position yourself for the higher prices ahead.