No Joy in Mudville

Thu, Oct 30, 2014 - 11:19am

Like you, I was hoping that we could file away these longer-term charts with the downward price targets. Unfortunately, the price action of yesterday and today means that we have to revisit them.

Let's start with the HUI. We've been repeatedly mentioning that there was a likelihood of the index falling all the way back to the lows seen in 2005 and again in 2008. Well, here we are. I've got a low so far today of 167.92. Not quite the 160-165 that we've been discussing but awfully close.

And, just so you know, things don't have to stop here. Perhaps the ultimate goal is to bankrupt the entire industry but shorting them to death and damnation. Maybe. Check the chart below. Could the HUI fall to 100 or lower? That seems laughable and unlikely but, in the end, WTFK? I know that many of you own these damn things and I've suggested nibbling away at these levels but you must be cognizant of the fact that greater forces than Turdville are at work here and if they want to sell these poor companies down to zero they're going to try to do it.

And here are your 5-year, weekly gold and silver charts. Earlier this month, we figured that The Cartel and the spec algos that are short had to be absolutely salivating at the prospect of running the stops below 80. They were unsuccessful back then but look to be ready to try again soon. The question becomes: Does this set off a waterfall similar to April 2013, where price almost immediately falls to 50? Perhaps, instead, it's a fake out and price almost immediately reverses near 55? Something tells me we may not have to wait long to find out...

And silver is just awful. Like the miners, it has been shorted to death with absolutely no care for fundamentals or economics. Seriously, it's now down over 5% on the day. Why, exactly? Just a handful of hedgy algos piling on the paper shorts, chasing the downward momentum to lower and lower lows. At this point, and especially if gold plunges through 80, it sure looks like silver is headed to the early 2010 lows near .65.

So there you have it. It is what it is. Instead of an A2A today, I'll be in the TurdTalk chatroom beginning at Noon EDT where I'll be glad to attempt to answer any and all questions you have.


About the Author

turd [at] tfmetalsreport [dot] com ()


Oct 30, 2014 - 11:52am

14...and a quarter

is some fib sequence number I am expecting...i hope not but what can ya do?

Oct 30, 2014 - 11:53am

Volumes in some miners are REALLY high

Like I am in a war throwing pebbles at an aircraft carrier.

Oct 30, 2014 - 11:54am

election and thanksgiving

some pressure will be taken off after the election, however the big question as to this BS recovery will be black thursday and friday retail sales.

it appears that expectations have been lowered. who knows what happens and then in 3 months we start finding out how this holiday season really was.

govt info on retail sales wil certainly be robust. but the retails in general keep missing that memo.

Oct 30, 2014 - 11:54am

neat stuff

more uses for silver every day it seems:

Oct 30, 2014 - 11:54am

New River

I've been on the New River but that was in Belize a few years ago.

This 4th. qtr. rally must be the anti-rally.

Hypnotized Housewife
Oct 30, 2014 - 11:56am

Worthless shares?

I'm really not being a wise acre here - do I actually have to consider that some mining shares could become worthless, as in zero? Forgive me for being a novice. I am trying to digest the magnitude of this.

Oct 30, 2014 - 11:56am


I cannot believe in these blatantly manipulated environments that anyone would buy miner stocks (inventory in the ground).

Apparently you have not ever encountered the concept of "eminent domain" as it could be rewritten to apply to miners assets.

A lot easier than confiscating physical in your possession. Buy only physical now.


Oct 30, 2014 - 12:00pm

No mic needed

It's just a text-only chat room.

Headed there now.

R man J
Oct 30, 2014 - 12:01pm

A short ton?

And after today's ridiculous buy-the-dip purchase I wondered if I would qualify.

I asked myself if I owned a "short-ton" of silver yet. So I looked it up. It is exactly 2,000 pounds., not yet.

Then I asked myself if I owned a "sh*t-ton". And here was the result.

"Like a metric assload, a metric sh*t ton is exactly 204.62262 pounds more than a sh*t ton."

Futher calculations determined that I did not own a sh*t-ton yet, but was getting dangerously close to owning a sh*t-load.

Danforth Coxwell
Oct 30, 2014 - 12:01pm

How do you stop the spread of infectious disease???

Use proper hand washing techniques!!!! Contact your local Public Health Department for more details.

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