Killing Time

100
Thu, Mar 5, 2015 - 10:40am

One look at these updated charts and you'll see why there's really not much to discuss this morning.

I mean, seriously, what else is there to say this morning? When not even the ECBQ€ stuff can budge price out of these corners, you know just how carefully these pennants are being painted. Please click the gold chart in the left and look at how precise this is. Absolutely remarkable!

So, really, the only thing I'd like to discuss this morning is the clip below. Perhaps, before you watch it, you should go back and read Part Two of the essay series that Jim Quinn published last week: https://www.theburningplatform.com/2015/02/28/breaking-bad-debt-episode-...

Not only is a 7-year auto loan a bad idea, a 7-year auto loan where you roll the amount you're "underwater" into your new loan is a even worse idea. To then have these loans packaged together and sold off in tranches as AAA-rated collateralized debt obligations is a nightmare we've seen before and a truly horrific idea.

And now comes this...a discussion on CNBS as to whether someone should take out an extended car loan and use the extra debt assumed to dabble in the stock market, all because a "diversified portfolio should return in excess of 3-4% over time". And to think, I'm the one vilified and despised in some corners of the internet because I've had the audacity to suggest that folks continue to add physical metal while prices have declined these past three years...

Anyway, this is a sure sign of an impending stock market collapse. How can I say this? Because this is the exact same type of discussions that dominated the financial press in late 1999 and early 2000! Back then it was "take out a home equity loan" and/or "get a cash advance on your credit card" and buy tech stocks. Don't you realize that the NASDAQ was up 80% last year? This is easy and anyone with just a few extra minutes of time per day should be able to double their money really quick and then pay back all of the fresh debt. Just buy a good diversified portfolio with names like Lucent, Level 3, Worldcom, InfoSpace and JDS Uniphase.

Ugh...

As I go to close, I see that price has suddenly popped $5 and it is slightly outside of the pennant. While this is certainly not a bad thing, don't go getting all excited about a positive resolution just yet. There will be all sorts of false breakouts and breakdowns today and overnight as the pennant closes to zero. Nothing is permanent until 8:30 tomorrow.

TF

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  100 Comments

usk
Mar 5, 2015 - 12:02pm

Good call again

Gold and Silver are fading. Same bullshit. Note that Euro is failing faster than Gold this time.

usk
Mar 5, 2015 - 12:07pm

Central Banks are selling Gold

to control Euro crash and avoid a flight to gold from European funds.


Mar 5, 2015 - 12:07pm
ReachWest
Mar 5, 2015 - 12:08pm

Argh - More of the same garbage

Somebody said "Breakout" .. so I foolishly clicked over to Kitco to see..

Nope - just another algo pattern running the same-old-same-old from a couple of days ago - albeit smewhat attenuated to try to trick us.

Nothing is real but the ounces in my grubby little mitt.

joeblack
Mar 5, 2015 - 12:11pm

Back below $1200

have to admire their ability to cap


Mar 5, 2015 - 12:11pm

I must admit that I think this is pretty funny

$1200.00 last and wedged right back into the corner of the pennant.

usk
Mar 5, 2015 - 12:19pm
Iceberg Slim
Mar 5, 2015 - 12:21pm

Pennant Resolution

just for fun, how about we get a tally of how everyone thinks the pennant will resolve tomorrow?

my gut is telling me down, because it seems the cartel has painted this pennant for a reason...given these paper markets are not fair and just, it seems like the logical outcome.

for the record, i do hope i am absolutely wrong though.

G-Rod TF
Mar 5, 2015 - 12:25pm

That would be the Claytons peg

(For Aussies....)

The peg you have when you don't have a peg.

REF: https://www.youtube.com/watch?v=ylH43Tcaj60&feature=youtu.be

Gamble
Mar 5, 2015 - 12:25pm

Man , they are working hard

I wonder what kind of strain they are putting on phizz? It's so funny , no gofo numbers , is that to keep us in the dark or to keep the algos in the dark ?

Gamble gamble

Wife just called , she said time to sell? I said " what?", she said "the house"

love the wife , love the wife!

matt_
Mar 5, 2015 - 12:27pm

My vote is down

...and I am wrong 99% of the time if the means anything to you. I'm hoping gold price goes down, because I want to buy some things on sale tomorrow.

However, the other side of the argument seems logical. Painting the charts might be an effort to suppress inevitable buying pressure tomorrow. Who knows.

Kokanee
Mar 5, 2015 - 12:27pm

7 Year Car Loans

At first I was confused by the clip because I couldn't figure out where the money came from to invest in the market if you were using the funds to buy a car. Then I realized this was aimed at people who had $30,000 or so in cash just kicking around and ready to spend on a new car! ROFLMAO!

What world do they think most consumers actually live in?!?

I really don't think this will be any more than a drop in the bucket in terms of starting a stock market bubble. However, what it will do for the vast majority of people out there is as follows:

1) Reduce the monthly rates on the car loan letting them spend more for the car and pay more interest over time.

2) Practically guarantee that they will be severely upside down on the car loan well before the end of the term.

3) Effectively lock them into a roll over of the loan into a new car on or before the end of the 7 years.

This is clearly not financially sustainable. However, the Wall St. geniuses can then package up this garbage and call it triple A based on the theory that they are all "secured" loans when in fact most of the "security" will be fresh air. This will become evident upon default and a seizure and sale of the vehicle.

Wall St. is just hankering to scrape up anything that yields more than nada and flog it to some dumb pension fund. We've all seen this picture before.

G-Rod
Mar 5, 2015 - 12:28pm

At Iceberg Slim

I like your game.

I reckon that it's break up.

(If it breaks down, treat it as a buying opportunity, the drop in price will be short lived).

BTW: Gold at a flat $1200.00 (mathematically precise price)

CPE
Mar 5, 2015 - 12:30pm
DeaconBenjamin
Mar 5, 2015 - 12:35pm

Dr. Marc Faber & Chris Waltzek - March 4, 2015.

https://radio.goldseek.com/nuggets.php

Dr. Faber talks about how Greenspan admitted to him that the Fed is not independent, and how bizarre it is that an official of the San Francisco Fed, where the boom and bust was worst in 2008, would be selected to be the head of the Fed.

lund175
Mar 5, 2015 - 12:36pm

Hold off on Bitcoin purchase?

NEW YORK (Reuters) - The U.S. Marshals Service on Thursday started auctioning off 50,000 bitcoins following the conviction of Ross Ulbricht for running Silk Road, the underground website where authorities said drugs and other illegal goods could be bought using the virtual currency.

The six-hour online auction of roughly $13.5 million worth of bitcoins at current prices began at 8 a.m. EST (1300 GMT). The 50,000 bitcoins were being offered in 20 blocks: 10 blocks of 2,000 bitcoins and 10 blocks of 3,000 bitcoins

https://finance.yahoo.com/news/u-begins-auction-50-000-162455345.html

DeaconBenjamin
Mar 5, 2015 - 12:37pm

Mar 5, 2015 - 12:41pm
Stackable
Mar 5, 2015 - 12:42pm

Pennant Resolution

It will break down, then up all in the span of about 5 minutes!

Kansascrude Pseudozero
Mar 5, 2015 - 12:50pm

Good for you Pseudo

Will be a busy spring for you sounds like but good timing to get a springtime garden in the works. You moving out of the city or doing a geographical relo to another region? Best of luck in your move

G-Rod
Mar 5, 2015 - 12:53pm

Stackable makes an excellent point

Yes - first down (before BLSBS annoucement), and then up after the BLSBS announcement.

At Matt_ - stop boasting, you're making me feel bad.... (dang it, he's only wrong 99% of the time...)

At Gamble - Thanks Goodness it was only the House, she could've said the "The Precious"...

lakedweller2
Mar 5, 2015 - 12:55pm

@deacon

They misuse prominent when should have said puppet when referring to the weak so called nudges....judges.


Mar 5, 2015 - 1:00pm

Another view of today's action

The channel defined by the arrows is the slot being used to jam price into the corner near $1197-1198.

This almost looks like a planned mini short squeeze. Bust out. Squeeze some shorts and then use the algos to drive price right back into the channel.

No. This "market" isn't manipulated/managed at all. Move along now.

Pay attention. The same trick will likely be tried to the downside sometime soon.

lakedweller2
Mar 5, 2015 - 1:04pm

Pennant

Vote down. Now to think about it.

CPE
Mar 5, 2015 - 1:05pm

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G-Rod
Mar 5, 2015 - 1:06pm

Banning all gold transactions above $125

Banning any form of Gold Transaction - courtesy of Bastards Inc.

Goldencross
Mar 5, 2015 - 1:06pm

Peter Schiff

Initial jobless claims "unexpectedly" jumped to 320,000, the highest level in 10 months. The positive trend of falling claims has reversed.

G-Rod
Mar 5, 2015 - 1:08pm

Gold's getting a little frisky on the downside

Whoops - false alarm, already running back to home base at $1200.00................

G-Rod
Mar 5, 2015 - 1:13pm

Yep - Golden Cross

Initial jobless data is not looking good - but will it be included in the BLSBS numbers on Friday.

We will wait with baited breath for the fateful and decisive moment that will rid us of this irksome robot induced pennant.

AIJ
Mar 5, 2015 - 1:14pm

Was long UUP

USDX resistance at 97, we are close.

VERY over bought

PM's VERY over sold

Vote: Data screams UP / But emotions say Down

Decision: Emotions most always wrong so.....UP ( Thank you Mr Spock )

( Still hedged both ways though. Can you have your cake and eat it too? )

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Key Economic Events Week of 4/22

4/22 10:00 ET Existing Home Sales
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4/25 8:30 ET Durable Goods
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4/1 8:30 ET Retail Sales (Feb)
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