Just for fun, I thought I'd give you this dopey and utterly useless mainstream media headline/explanation as to why gold is down today. Of course, you and I know the real story.
So, as predictable as the sunrise, gold is under pressure again today. As we noted yesterday, any foray above $1282 has been quickly repelled and it was again overnight. Check the chart below showing the action since the Sunday Globex open:
Notice the blue ovals around the big green down candles. Do you know I've chosen to highlight them? Take a look at the timing. ALL of those big green down candles occurred during low volume Globex trading. This tells us two things:
- This is always a sign of Bank manipulation and intent. Only an entity hell-bent on manipulating sentiment and price would consistently dump into the low-volume Globex.
- However, this is also a sign of weakness that borders on desperation. Lacking the firepower to pull off a full-frontal Comex raid, the Bank(s) raid the Globex where they can get bigger bang for their naked buck due to the low volume and small bid stack.
Again, why are they so desperate to rig price lower here? Because the pending news and events as we go through this month should almost be exclusively gold bullish and with:
- Gold large specs NET LONG 189,000 contracts as of last week AND
- The Banks already GROSS SHORT 323,486 contracts
Every effort must be made NOW to shake the confidence of the spec momos and chase them back out of the paper gold trade. This spec long liquidation will be used by The Banks to buy back their naked short positions before the next news/event inspired price run up.
So, shake, shake, shake. Raid, raid, raid. Keep price below the critical $1280 level and the hope and pray that you inspire enough downward momentum that you can breach the 200-day MA on or before BLSBS Friday and inspire even more selling.
Of course, NONE OF THIS HAS ANYTHING TO DO WITH SUCH NONSENSE AS FUNDAMENTALS OR PHYSICAL DEMAND. And it most certainly has nothing to do with "gold losing its safe haven bid". This is 100% entirely driven be The Cartel Banks attempting to "square their books" a little while they can.
So, whatever. The Banks are going to do what The Banks want to do and, as we always say...They've got a little Mississippi Leg Hound in 'em. Once they lay into ya, you'd best just let 'em finish.
But how about silver? Isn't it funny how ole Turd's simple little lines often work so well? Just yesterday, I told you to expect the cap at $17.25 to fail and for silver to run quickly toward $17.70. Hmmm. As you can see below, the overnight high in silver...once $17.25 was taken out...was $17.74. As gold was driven lower, so was silver and I have a last all the way back to $17.25. Now we'll just have to see what happens later this week and with the BLSBS, though I suspect we're soon going to get another look at something sub-$17 and we'll need to watch that neckline at $16.65 really, really closely if we do.
And how about the HUI? The chart below is remarkable in that it shows another failure precisely at the 200-day MA. Why is this important?
Look, this is just a stupid index of miners. There aren't futures on it and no obvious way to "play" it of you're a gambler or a thrill-seeking algo. THERE IS NO REASON for it to stop on a dime and reverse at the 200-day 5 times in 15 days! The only explanation is a concerted, deliberate attempt by someone/something to keep the index below that moving average because of the positive implications an UPward breach would have.
(I feel like I'm having trouble explaining this in written form so I'll be certain to discuss this in today's podcast.)
Let me try again....There is no "market" for the HUI. Therefore, there is no "community" or group of active traders watching the index and buying or selling it based upon its relative position to the 200-day. Therefore, when you see such a clear pattern of failure at that critical indicator, the only conclusion you can logically draw is that someone/something is watching the number value of the HUI and then activating a sell program of the underlying stocks in a attempt to keep the index from printing a bullish cross. There is simply no other logical explanation.
Alright, I was going to type more but I see that the selling is ramping up and the price is back down to $1260 so I'd better just go ahead and get this posted. I'll add some more thoughts and links in the comments.