Madness

84
Thu, Mar 10, 2016 - 10:21am

Following the lead of the BoJ, today the ECB announced increased QE along with a new program to buy European corporate debt. Next up will undoubtedly be ETFs and then equities. The madness of The Keynesians knows no bounds as they desperately attempt to maintain their debt-riddled monetary scheme.

Here's your full list:

As you might expect, the initial HFT reaction was to crush the euro which, in turn, rallied The Pig. This led to a spike in the S&P futures and a dump in gold. But then something curious happened on the way to HFT paradise....Draghi opened his mouth....and actual human logic began to set in.

If the BoJ is monetizing everything, installing negative rates and collapsing their bond market...

And if the ECB is now clearly going down this very same path...

Then how in the heck is Mother Fellen going to continue on her alleged path of higher rates? And so what happened next? The Pig sold off sharply, which rallied the euro. This led to a selloff is S&P futures and a spike in gold.

Got it? MADNESS!

So what does the rest of the day hold? Beats me! What are you asking me for? I have no idea!

Seriously...THIS IS MADNESS! It's like how we've discussed the Swiss National Bank. The Swiss...traditionally about the most fiscally conservative people on the planet...now have their central bank printing francs to buy stocks. STOCKS! They own over $1B of AAPL for pete's sake! FREAKING MADNESS! And now the ECB is going to be monetizing the debt of "non-bank corporations". Are you serious? (Pause for a moment to consider how unlikely and impossible that seemed just 10 years ago. Shit, five years ago!)

At the end of the day, the primary focus for all of us in Turdville however is GOLD (and silver, too) and today's follies are just another nail in the Bullion Bank coffin. WHY? Because if you and I can see the madness of all of this, then there is certainly a growing number of Big Money individuals and institutions that can/will see it, too. And as these folks continue to turn to gold...even in small allocations...the pressure increases on the Bullion Bank Confidence Scheme. This speeds up the timetable for delivery failure and the collapse of the entire fractional reserve pricing structure.

To that end, check today's chart. After falling to an immediate, HFT-driven low of $1237.80, I now have a last in the Apr16 gold of $1264.10. Not too shabby. I'll be VERY interested to what the action the rest of the day and then overnight, as the Japs and the Chicoms get a chance to react to Draghi and his "bazooka".

Silver fell in sympathy but it bounced right from where we'd anticipated, at the extension of last week's triangle. Very nice. If it makes a move through $15.80 now, look out!

(And now I have lasts of $1269.20 and $15.64. Ole Whipsaw Clive probably just had a stroke.)

But the real interesting story today is The Pig and it's measuring stick, the POSX. Here's the chart I added to yesterday's podcast thread:

And here's an updated look. A break of the 200-day and then a close below 96.50 should be enough to shove the POSX even deeper and, subsequently, rally gold to new highs above $1280. (This chart is stale as it's 15 minutes delayed. I've got a last in the POSX of 96.49)

AND THE HUI!! WOO-HOO!! A close up above 180 today (or anytime soon) and there will be a whole new round of buying that should materialize. Crazy, wild stuff...and very fun to watch!

As I close, here's an up-to-the-minute chart of the euro:

This puts the POSX at 96.55, gold at $1266, silver at $15.63 and the HUI at 178.

Go live your life with joy.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  84 Comments

matt_
Mar 10, 2016 - 3:08pm

@info

I actually hope you are correct about the miners. Right after I told myself I wouldn't do it again, I sold a bunch of covered calls on Monday that expire tomorrow. A little pullback tomorrow will mean I get to keep my shares and my premium from selling the calls.

There has been more volatility in the share prices and interest in the options on the major miners lately. It has made the prices of options go up enough some times to tempt me. GG and NEM have weekly options, and it has been possible to make a decent bit of money each week selling calls if the timing is right. I know it is playing with fire, though.

infometron
Mar 10, 2016 - 3:11pm

Good news and bad news for Au?

Good news, nice encompassing candle today (edit: for Au, not HUI, sorry)

Bad news, Au, second intraday lower low and a second lower intraday high in the past 5 trading days

I'm being cautious here, cashed out on my two most liquid miners...

SS121
Mar 10, 2016 - 3:18pm

somebody help....

i'm so crazy, stoned and drunk that this article looks like pure misinformation-

China Is Now In Control Of Global Silver Prices

Submitted by Tyler Durden on 03/10/2016 - 14:10

China has been an unofficial price-setter for most metals over the past decade. And this week, the country became an official participant in setting prices for one of the world’s most important precious metals markets. That’s the London Bullion Market silver price. Where one of China’s largest banks just became a member of an elite group of players that controls fluctuations in this key metal.

my mind is blown. i thought the current usd/silver chart was in control of global Silver prices. me and the guy i just bought some Silver from both looked right square at the usd/silver chart to get the price for our transaction.

oh wait... what? that price is really controlled by "China" first unofficially and now because they are part of a silver fix that is now in control of the price?? really..wow, how's that work? was the fix that now controls the price NOT controlling the price before "China" was part of the fix?? back when "China" was unofficially controlling the price?

and isn't the fix just a chart referenced agreed upon price used to settle fiat contracts amongst the big banks?? the fix itself has no connection whatsoever to the chart price, even according to official story widely believed by the system's controlled opposition. (HFT Algos... JPM and the Specs "manipulating"... what happened to all that silliness? it sure doesn't jive with a rogue "China" unofficially setting prices then joining the Fix, which now apparently sets prices??!?!?! is this where more of that amnesia is needed??)

'cause now "China" is part of a group that claims to agree upon a "fix" price and PrEsTOOOOoooo... China Is In Control Of Global Silver Prices.

See.. to my crazy ass this seems like 100% pure b.s. that is prepping weak minds for an attempt to move the silver and gold CHARTS away from the usd, and present it as a perfectly legitimate occurrence.

somebody help sort this out! and there's no need to attack me personally. i'm crazy, drunk, high, ...a slave to a warped worldview, yada yada yada... ok fine.

But how (tyberious?...anybody?) exactly is the silver chart price determined, and just what exactly is the price reference for the world's physical Silver transactions???

Please be more specific than just "China" so i'll know exactly who to call when i make my next purchase.


Mar 10, 2016 - 3:19pm

Hey Hey we're The Monkeys!

And people say we monkey around....

Gold suddenly drops $5 on the Globex. HUI 4 points off its highs as stocks magically recover. S&P now 20 points off its lows and back to green!

koan
Mar 10, 2016 - 3:27pm

@ss121

Dude, if you're not smoking something then maybe you should start?

Edit: No offence meant of course, just you seem a little...err...uptight?

CaptainDanite
Mar 10, 2016 - 3:43pm

Too Easy ... Today At Least

So, right on cue, they ramp the S&P above 1980 again. Only consolation: it's going to be very hard to get the DOW back above 17,000 again today.

SS121
Mar 10, 2016 - 4:03pm

koan, i can't relax!!

i'm a nervous wreck.

i get attacked by the controlled opposition for not believing the conflicting media narratives surrounding the silver chart and now all this peer pressure for me to get high(er)!!

but yes, you're right, more smokin' should do the trick. i'll stick around here to read the zh congregation's explanations on the "China"/Silver thing... then i'll get right to it. PLEASE HURRY!!! lolz...

amigo, i'm probably the most relaxed crazy person in Turdville. either you missed the implied <SARC> tags or were really just shooting for some of those easy "attack SS121" hat-tips... Doh!

have a good weekend, stack up some metal, and don't get caught up in the folly of the foolish. they'll leave you hangin' every time

infometron
Mar 10, 2016 - 4:04pm

strong finish...

Metals finishing strong, could bode well for tomorrow, sorry @matt_

I bought 50% back into my two most liquid stocks...

May have to average up tomorrow

For the young'uns

The Monkees- Hey Hey We're The Monkees.
gold slut
Mar 10, 2016 - 4:12pm

Watching, watching....

SS121, I have been watching the S&P 500 very closely over the last few weeks. They end the day with a fairytale ending - if things are crap, they end as un-crappily as they can, if things are bad, they just manage to end with a not-near-so-bad-as-they-could-have-been end, and so on...

This is blatant BS for anyone who wants to see.

There is no doubt in my mind that what you say is correct. Keep reminding me though...

Kind regards

koan
Mar 10, 2016 - 4:49pm

How dare you, sir

Suggesting I would attack you or anyone in the house of Turd has offended me greatly!

Now that makes me think you are smoking and paranoia is creeping over you. Now I'm confused.

Either way, all good bud, sorry the sarc went over my head...

mausche
Mar 10, 2016 - 4:55pm

Relaxation

It might take kalpas before realising we are "illusion" ourselves.

It stops all suffering.

Form is emptiness,emptiness is form.The most precious one.Koan.


Mar 10, 2016 - 6:36pm

For some reason, I don't know why...

Longtime Turdites will recall the professional trolls and douchebags at a site called "The Screwtape Files". For some reason, I found myself thinking about them just now while I was on the treadmill.

And what do you know...The site has basically been vacated. No posts since Dec 6 of last year. Just about the time when gold finally bottomed. How about that? Coincidence???

https://screwtapefiles.blogspot.com

tyberious
Mar 10, 2016 - 8:41pm

UK Man Wins Court Case

UK Man Wins Court Case Against BBC for 9/11 Cover Up

from Topinfo Post:

Tony Rooke refused to pay a TV license fee because the BBC intentionally misrepresented facts about the 9/11 attacks, he alleged. It is widely known that the BBC reported the collapse of World Trade Center Building 7 over 20 minutes before it occurred. WTC 7 was a 47-story skyscraper that was not hit by a plane on 9/11 but collapsed at free-fall speed later that day.

So Rooke said the BBC had to have had prior knowledge to a terror attack making them complicit in the attack. He presented the BBC footage to the judge along with a slew of other evidence, and the judge agreed that Rooke had a reasonable case to protest. Rooke was found not guilty and he was not fined for failure to pay the licensing fee.

Read More

tyberious
Mar 10, 2016 - 8:42pm
tyberious
Mar 10, 2016 - 8:43pm

Doomsday Weapon

When asked about the US missile defense system, he said that it was “absolutely useless” against the RS-26.

“This one is even better than the famous Topol-M missile… Its warheads are supersonic and change their course all the time. Some of them will penetrate any existing missile defense shield and will hit their target,” the expert added.

When asked whether the new Russian ICBM had caught the Americans flatfooted, the expert said that not only the Americans were clueless but that the Chinese too now had something to worry about.

“Russia is 100-percent safe now, unlike everybody else,” he emphasized.

What makes the RS-26 so special is that even though it weighs just 80 tons, compared to the 120-ton heft of its RS-24 Yars predecessor, the Rubezh packs a frightening 1,2 megatons into its four 300 kiloton warheads.

With a potential range of 11,000 kilometers the RS-26 can hit targets all across the United States.

Moreover, its booster stage is down to under five minutes, which means that NATO radars in Europe will have no time to register the launch.

https://www.veteranstoday.com/2016/03/09/doomsday-weapon-russias-new-mis...

tyberious
Mar 10, 2016 - 8:48pm

Rory Hall: Daily Coin

Michael Noonan: Gold & Silver The Elites Have Decimated the Country

Michael Noonan: Gold & Silver The Elites Have Decimated the Country
tyberious
Mar 10, 2016 - 8:55pm

Andrew Hoffman –

Andrew Hoffman – Institutional Precious Metal Demand Is Back!

from Financial Survival Network:

Wipeout Wednesdays with Andrew Hoffman:

– Historic ECB decision tomorrow

– NIRP going crazy, as even Japanese 30-year yield nearing zero, and $7 trillion of sovereign bonds trading at negative yields, DESPITE the PPT-orchestrated stock and commodity rally!

– Fed next week – Boxed in a corner, as global economy at weakest point since Great Depression

– Indian silver demand exploded to a record last year, and Chinese imports exploding since last Fall’s lifting on ban of silver concentrates. Meanwhile, U.S. Mint on sale to blow away last year’s record silver Eagle sales. This is why I wrote an article about why the gold/silver ratio is historically overvalued this morning

– Nearly unprecedented institutional PM demand, as evidenced by last week’s sell-out of the IAU ETF’s shares, and the PSLV closed-end fund now trading at a premium to NAV – per yesterday’s “Admiral Sprott rides again!”

Click HERE To Listen

infometron
Mar 10, 2016 - 9:53pm

Turdville!

Best RSS feed anywhere!

Fabulous posts guys & gals!!

Y'all sure keep me busy...

AlienEyes
Mar 10, 2016 - 10:07pm

RE : Doomsday Weapon

"Look Down, Shoot Down Light Speed Weapons" have been operational for over a decade. So much for the constant course change thing.

However, it can defeat rail guns. "Fast Burn" Anti-ICBM's are iffy. If nuke tipped, they could vaporize a warhead but then, plutonium vapor is not a good thing. An enhanced EMP nuke could screw up Russian guidance systems, regardless of how much shielding they have. So could a neutron bomb. As I understand it, a neutron weapon can be configured in such a way that the release is somewhat like a very crude shaped charge. What this means, if true, is that neutron density can be much higher in one area than in the rest. This could easily fry every circuit in the guidance system. Shielding is useless against neutrons.

tyberious
Mar 10, 2016 - 10:27pm

AE

Been drinking, as usual, it after 5 PM PST. What's my take away?

Ok, re-read, but don't the Iranians and Russians use vacuum tubes and not semiconductors in their military equipment?

tyberious
Mar 10, 2016 - 10:28pm

Mass Exodus: Thousands of

Mass Exodus: Thousands of Lifelong Democrats Jump to Trump

by Kit Daniels, Infowars:

Over 46,000 Pennsylvania Democrats have switched parties to vote for Donald Trump, joining thousands of other lifelong Democrats in blue states doing the exact same thing.

In Massachusetts alone, at least 20,000 Democrats have defected to support Trump and another 1,000 blue-collar Ohio Democrats are also jumping ship to Trump, and no Republican president has ever won the White House without Ohio.

The movement, called “Ditch and Switch,” was promoted in Sept. by the YouTube duo Diamond and Silk and explains why Trump is winning so many open primary states where voters don’t have register as Republicans to cast GOP ballots.

Read More…

AlienEyes
Mar 10, 2016 - 10:53pm

tyberious

No. To do the same thing it would be as big as a large camper that sleeps 8 with a kitchen.

.

(I'm riding with Jose Swervo Oro tonight.)

SilveryBlue tyberious
Mar 11, 2016 - 2:58am

Goes to show

just how unpopular Hillary is? I bet she doesn't lose a wink of sleep.


Mar 11, 2016 - 9:11am

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