Riding The Line - Update

150
Thu, Sep 4, 2014 - 10:23am

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 31 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 80 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 0 and back to the always-important 80 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 80 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 60 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 .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 , 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.

TF

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.

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  150 Comments

Pounds of Money
Sep 4, 2014 - 10:28am

First

First

Search
Sep 4, 2014 - 10:32am

Second

Second

4 oz
Sep 4, 2014 - 10:33am

Just checkin' to see If

Just checkin' to see If anything is going on!

rl999
Sep 4, 2014 - 10:38am

woot

For $10 a month you get an incredible amount of material - a podcast and a post most days, as well as the A2A - we get access to great guests and TF asks the questions we provide. There is nothing else like it and the value is immense.

Dressguard
Sep 4, 2014 - 10:47am

New Subscribers

My guess is you will lose subscribers with this post. But it's your call.

ivars
Sep 4, 2014 - 10:56am

Out of line/repost with some

Out of line/repost with some changes; currently looks dire:

As long as bankers rule, and they do in debt controlled world, Russia will go for war whatever we do -as Hitler did- provided there is clever support from China and de facto acceptance by the USA ( NATO) and in the end Russia will lose the wars it will start and be divided between China, Germany and may be others. Big territory, no people, lot of resources, no technology, only nukes. Weak country, weaker then Germany in WWII, i would say.

That is why Russian reaction is so hard. What was started by the USA in Ukraine, and towards which Russia reacted sharply, IS EXISTENTIAL THREAT TO RUSSIA. Its the beginning of an end. I have no idea however if they have any chance to get around it. Bankers from USA (Rocks) and China (Roths+ Chinese) are dead serious it won't.

That may take 10 years , with initial Russian success, especially in Ukraine. May be some Baltic nations will be eliminated in the process, who cares.

Now when China will finalize its conquest of Russia and establish reserve currency position, say after 2026..or 2038...then it will go after USA seriously. That is where the USA will finally not feel safe on domestic soil. May take another 10 years or more. It is a bit similar sequence to WWI and WWII - both of them were required to remove Great Britain (Roths) from throne and install the USA (Rocks,Morgans). In this sense we are going to see WWI first. It has already started. In new surrounding with nukes around. In WWI ( real) they used weapons of mass destruction. In WWII- no. Will it be repeated?

Russia is fighting a lost game here. And Putin serves his masters. He was installed, always remember that. Like pope Francis. USA pushes Russia to war as its in its interests and Europe is not sovereign as USA controls its defense. And money supply via reserve currency. Its perfect setup for the USA and China bankers as long as they are in high level agreement that Europe and Russia MUST NEVER JOIN FORCES.

Later it comes back to the USA soil but that is may be 30 years from now..

Get ready to militarized and autocratic world. As we are reaching peak debt, it may end also with gradual elimination of bankers. Then its important where to park capital as debt and money disappears- like Catholic church/monasteries was used to store largely useless gold for centuries during 5-12th centuries.

BagOfGold
Sep 4, 2014 - 11:04am

Is gold going to $1000...+ or - 5%?...

Is this possible?...Look & see what Bill Downey says!...

https://www.goldtrends.net/FreeBlog/3091861

Bag Of Gold

ancientmoney
Sep 4, 2014 - 11:04am

Trendline slope . . .

The trendline slope is down the last three years. The cartel has fought tooth and nail to keep the PMs glued into the range around that downward slope.

I see no reason for them to stop selling paper now to keep this trend going. Their "money" to do so is free, and why would they let loose now?

The PMs will stay locked up until the comex and paper PMs as we know them fail. And, they intend to keep them from failing until war and martial law is in force.

We will be waiting for what happens after we come out the other side of this controlled demolition of the western financial system.

CPE
Sep 4, 2014 - 11:38am

Trendline slope...

Your assumptions don't take into account that physical Au and Ag, not paper, must still be available at "market prices".

Also, Turd's post above shows that we are above, not below, this trendline.

If we are to fear some Omnipotent paper manufacturer, then why are we not below the trendline? Why isn't Au or Ag at zero? Why hasn't a Central Bank purchased all physical Gold and Silver everywhere?

Since mine shut-ins affect the stream of physical being dug up that is subsequently used to suppress price then should these paper manufacturer's drive all mines out of production? Will that affect their ability to manufacture paper while maintaining a physical market?

It seems there are limits within the matrix........hmmmmmmm

Morpheus: Asking The Hard Questions

If paper manufacturing equated to Omnipotence then we would all be owned by Gideon Gono...

Bongo Jim
Sep 4, 2014 - 11:51am

Ride it out

Traveling Wilburys End Of The Line

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

Key Economic Events Week of 7/8

7/9 8:45 ET Fed Stress Conference, three Goon speeches
7/10 8:30 ET CGP Hump-Hawk prepared remarks
7/10 10:00 ET CGP Hump-Hawk House
7/10 10:00 ET Wholesale Inventories
7/10 2:00 ET June FOMC minutes
7/11 8:30 ET CPI
7/11 10:00 ET CGP Hump-Hawk Senate
7/11 12:30 ET Goon Williams
7/12 8:30 ET PPI

Key Economic Events Week of 7/1

7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 10:00 ET Construction Spending
7/2 6:35 ET Goon Williams
7/3 8:15 ET ADP June employment
7/3 8:30 ET Trade Deficit
7/3 9:45 ET Markit Services PMI
7/3 10:00 ET ISM Services PMI
7/3 10:00 ET Factory Orders
7/4 US Market Holiday
7/5 8:30 ET BLSBS

Key Economic Events Week of 6/24

6/25 10:00 ET New Home Sales
6/25 1:00 pm ET Chief Goon Powell
6/25 5:30 pm ET Goon Bullard
6/26 8:30 ET Durable Goods
6/27 8:30 ET Q1 GDP final guess
6/28 8:30 ET Personal Income and Consumer Spending
6/28 8:30 ET Core Inflation
6/28 9:45 ET Chicago PMI

Key Economic Events Week of 6/17

6/18 8:30 ET Housing Starts and Building Permits
6/19 2:00 ET FOMC Fedlines
6/19 2:30 ET CGP presser
6/20 8:30 ET Philly Fed
6/21 9:45 ET Markit flash June PMIs

Recent Comments

by happycamper515, Aug 19, 2019 - 10:43pm
by Ronnie10011955, Aug 19, 2019 - 10:32pm
by bullion only, Aug 19, 2019 - 10:30pm
by Turd Ferguson, Aug 19, 2019 - 10:28pm

Forum Discussion

by NW VIEW, Aug 19, 2019 - 5:29pm
by HappyNow, Aug 19, 2019 - 2:31pm
by NW VIEW, Aug 18, 2019 - 4:18pm
by NW VIEW, Aug 18, 2019 - 1:17pm
randomness