Thu, Aug 11, 2011 - 10:35am

By now, you're all aware of the pretty technical formation we call an FUBM. Another one that we occasionally get to see is the FUCME. Let's watch for one today into tomorrow.

To no one's surprise, the criminal C/C/C raised margins on gold last night. They did this under the cover of darkness and at a point when gold was about to go parabolic. Gold margins get raised and the S&P reverses. That's a handy way to stop the rally. The S&P is now up 22 points and gold is down....brace yourself...$24! Definitely NOT the cascading waterfall that the C/C/C had hoped for. Oh, they might get some follow-through selling later this morning so I've provided you with some support levels on the chart below. However, I'm expecting at least a mini-FUCME to form over the next 28 hours. Why? Would you want to be short over the upcoming weekend? Really? I didn't think so. Expect some short-covering tomorrow as well as regular buying. This will halt the current slide provide new momentum for next week. One word of caution...I do not expect further margin hikes. Usually, they only come one-at-a-time. However, as we all know, if the criminals are dead set on killing a market for a while, they can raise margins as often as 5 times in 9 days. IF we get another margin hike tomorrow or over the weekend or next week, the C/C/C will have made clear their intentions to all.


Silver continues to suffer from the same disease that has plagued it for weeks. Namely, low open interest and high margins leads to a shallow group of buyers who, once they stop buying, are easily overrun by the Forces of Darkness. Up goes silver. Down goes silver. You end up with a chart like the one below, with lines all over it. Dazed and confused. I still think silver rallies over the next three weeks but days like this one sure make it difficult to be a believer.


That's it for now. I've got the following lows so far: $1755.20 in the Dec gold and 38.06 in the Sep silver. Watch those level closely for an indication of whether my FUCMEs for this morning or overnight and into tomorrow.


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Tom L averagejoe · Aug 11, 2011 - 11:12am

GRRRR - Double Post

I have nothing intelligent to say at the moment... please move along this post is a hedge.


Violent Rhetoric · Aug 11, 2011 - 11:16am
TheBaker averagejoe · Aug 11, 2011 - 11:16am


$1767 is exactly what I bought (small fish), still can't see what's going on frown

Hoping for a FUCME too

Tom L · Aug 11, 2011 - 11:17am

Volume drying up

in the last hour on many of the stocks I mentioned earlier. We should be approaching an inflection point soon. 


Violent Rhetoric · Aug 11, 2011 - 11:18am

Stink price limit day orders

Stink price limit day orders are in.

Tom L · Aug 11, 2011 - 11:27am

Silver Hourly

To add a little bit to Turd's chart above, I see these additions

Hourly Chart Here:



junoroland · Aug 11, 2011 - 11:29am


for the time being if they get a sell off i keep coming up with 1713-1717. I go in light, really waiting for 1688.(Paper Trade) Another margin hike or two will help. With the volatility lately this could happen very quickly.

SilverDog · Aug 11, 2011 - 11:30am

What the FUCME?

Can FUCME please be added to the Turd's Dictionary soon as possible.

My grandmother is so confused...

SilverWealth · Aug 11, 2011 - 11:33am

Granny back in Grocery store

Granny is alerting those who are interested in 'value' to have a look at the movement in UNG as it comes into its seasonally best time.

Granny has no idea about gold here but she can see with a thick magnifying glass that it is down over 50 pts from its highs which means,yes, its on sale. Does it go lower? Granny hopes so? But she can hardly read a chart anyway and a sale is a sale. DIA and FXI also on big sale today. So she is pushing the walker thru the aisles and humming her favorite tune, "the corn is as high as an Elephant's eye..."

SilverWealth · Aug 11, 2011 - 11:35am


thanks all around for the great site and great contributors. The GDX,Dow ratio is particularly compelling. We have seen the miners rally before and then no cigar so I am not holding my breath but by the end of the month and probably before we will know if this trend is for real.

BagOfGold SilverTree · Aug 11, 2011 - 11:39am


I like this one too!!!...

Bag Of Gold

SilverTree · Aug 11, 2011 - 11:42am
Darth Smoker · Aug 11, 2011 - 11:43am

legged out of GLD Spread

Oct GLD $170/ $180 Now long Oct $170

Capt. Willard · Aug 11, 2011 - 11:45am

Attempt at integrating the info

This is a humble attempt of a thought experiment, how things could play out in the near future.


1. Margin Hike in Gold

2. Stock Market tanks

3. Downrating of US Debt

4. David Morgan et al "can see $5 Silver"

5. Jackson Hole end of the month

Yesterdays margin hike was actually putting the margin down at the level before they lowered the margin to attract speculative capital away from Silver. All the MSM outlets were hyping Gold to the masses. This is new and usually a harbinger of bad news. It's like they wanted to get as many people as possible invested in Gold before the Stock market tanked, because their instruments (margin hikes, raids, media propaganda) become more effective, if used in extremely volatile sessions.

Now, if the stock market tanks really hard and Gold were to follow the 2008 pattern, we all know it would take Silver down twice as aggressively. David Morgan is somebody I would rate rather as "experienced" instead of calling him a "market guru" in the terms of Jim Sinclair, Sprott, TF, Rick Rule and the like.

My point is this: I can see a scenario, that includes a further decline in trust and numbers of the Stock markets, a freezing inter-bank lending process as the driver for a deflationary shock, which will develop and spreading by some kind of engineered news event as a force multiplier, which will take Silver and Gold "where they would have belonged over the summer doldrums" and quite a bit further down in a general sell off market environment. The money supply would dry up and the mayor economies could been led to face a scenario so grave in it's outlook, that inflating the debt seems like the lesser of evils. Along comes Jackson Hole. We already know there will be quantitive easing until mid-2013.

Food for thought. What do you think?

Sorry for the long winded "thought".

Shill · Aug 11, 2011 - 11:48am


Seeing some up ticks going into the lunch time crowd ( here in the east ) lets see if we can gain some momentum.

I have a last tick of 59.09 on the GDX and pointing up.

SRV - ES339 · Aug 11, 2011 - 11:48am


A double whammy... gold margins (obvious) and Treasury increase (risk on)... buy those stocks sheeple (may help the miners a bit though).

Should see more buying once the 30 Y auction ends this afternoon... sold my silver (PSLV) yesterday afternoon and bought back this morning (EE game plan is getting more obvious as the panic builds... they are losing control).

Adam Smith · Aug 11, 2011 - 11:51am

Perspective on Au Prices

In order to keep my perspective, I went back and looked up some information from Santa. He has posted this and has referred to it often. These are his friend Alf Field's predictions for major Au moves (which were made well before Au reached any of the figures listed). My comments in bold and italics:

Major ONE up from $256 to $1,015 (actually 4 times the $255 low); 1999 to 2008.
Major TWO down from $1015 to $699, say $700 (a decline of 31%); 2008-2009.
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $700 low); 2009 to ??;
Major FOUR down from $3,500 to $2,500 (a 29% decline);
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE).

My feeling is that these moves are and will be accelerating in their timeframes. The Angels are just stops along the way to these figures. 


The Vet · Aug 11, 2011 - 11:51am

Gold down 2.3% - CNBC talks about the bubble bursting....

Swiss Franc down 5% ... Big Yawn, hardly worth a mention....

Shill · Aug 11, 2011 - 11:56am


GDX goes green, no celebration yet, as the day is young.

Must eat food :)

bullwhip29 · Aug 11, 2011 - 11:59am

I'd be careful...

I don't like how these markets are being jerked around and toyed with. The activity over the last several days is definitely not normal and many traders of the "human" variety have been turned into road kill as a result. Whether it's the silly 600 pt ramp job on Tues or that seemingly controlled 500+ pt drop yesterday (that no one even batted an eye lash at and have long forgotten about hours later), who is to know what the real story is at any point? Looking at BAC and the other banks, why would anyone in their right mind be buying? So, what is the big rumor today? Will the market close up 500 pts or down 500? Or maybe the S&P recaptures the 1200 mark by tomorrow's close? Yes, this would be completely effin absurd, but it isn't impossible. All common sense would suggest this market shouldn't be played with, but time and time again the sheeple are willing to play just one more hand in hopes of finally hitting one out of the park. Bottomline, I don't trust or believe anything anyone is blurting out of their pie holes anymore. For what it's worth, I think the meltdown in 2008 was helped along (or perhaps engineered) to a certain extent. The same thing could be happening right now. People close to the action made windfall profits in '08 (as they also did on 9/11) while everyone else got the rug yanked out from under them without even realizing it at the time. Of course, those that jumped back in head first the day after Obama called the bottom (and didn't sell for 30 months or so) did ok too. The vast majority of regular folks out there are now worse off today than they were 3, 5 or 10 years ago. Traders today are simply at the mercy of those very few at the very top that could change things one way or the other at the press of a button. Given that we are dealing with certifiable criminal nut jobs, anything is possible. This fraudulent ponzi market could be kept alive for a lot longer than many are anticipating.

If Santa is correct (and why shouldn't we believe him?), then $1764 will continue to be defended for the foreseeable future. ie. weeks, not hours or days. We have already witnessed multiple attempts to cap prices at or near Santa's target. When the SHTF and gold rocketed through 1764 and eventually to 1800+, the EE was right there ready to play to margin hike card. As Turd said, lets see what they do next. If the PM's reverse course and head back up to new highs in short order, will another bomb be dropped on us? Given the crap we had to deal with in May, maybe just a single margin hike will in fact be enough to cool everyone's jets and keep everyone thinking for the time being?

Today's pullback barely shows up on the charts. We have had a huge move up since late June/early July. If a third or even a half of this move is retraced, we could be looking at prices in the $1650-1700 range. IMHO, this would actually be a good thing. If, however, the EE does have something bigger and more sinister planned (along the lines of what they did in May), gold could have a "15" handle on it again.

BagOfGold SilverTree · Aug 11, 2011 - 12:00pm

SilverTree (No subject)...

Nope!...This one's much better!!!...

Bag Of Gold

FogHorn LegHorn BagOfGold · Aug 11, 2011 - 12:00pm

Swiss currency message, FUCME, both versions

@BOG I found the post remarkable thank you. FUCME, well We know what FU means, CME is the Chicago Merchantile Exchange. Because, I was so silly yesterday I will try to "behave " as Austin would say so I won't be so rude as to blurt it out. :) Laughter is the best medicine, If We can keep Our sense of humor intact, We can tough out anything they throw at Us. With this bunch, I feel confident, We'll be just fine.

Slick · Aug 11, 2011 - 12:04pm

Sh!t Puppet Jeffrey Chrisitan of CPM group

Sh!t Puppet Jeffrey Chrisitan of CPM group on BNN talking down gold just like the other day but on CNBS..

The propagandists wheel out the Sh!t puppets, just like sh!t puppet Jamie Dimon on CNBS yesterday.

hmmm..They must be really desperate here

Tom L · Aug 11, 2011 - 12:09pm

Potential BO in TRX

It looks like the coil pattern on the 15 minute chart may be breaking to the upside. $5.99-$6.00 close would be confirmation for me. Good opportunity to call a bottom in TRX then as it re-establishes a trading range between $6 and $7. There's a Triple Bottom at $5.75 on the intraday charts. Looks good.

Lifted my small AUY hedge for a small loss. Glad I did.


BagOfGold FogHorn LegHorn · Aug 11, 2011 - 12:10pm


You say..."Laughter is the best medicine, If We can keep Our sense of humor intact, We can tough out anything they throw at Us.
With this bunch, I feel confident, We'll be just fine".

I say...Laughter is also the "language of the soul"...& it gives us the courage to live longer...& get stronger!!!...

Thank You...My Friend!!!...

Bag Of Gold

Slick · Aug 11, 2011 - 12:13pm

Another one I can't stand is that anti-gold & silver

Another one I can't stand is that anti-gold & silver

illuminati lap-dog bag of sh!t Andrew Bell.

Absolutely the wrong person for the Commodities Report

Tom L · Aug 11, 2011 - 12:17pm


50 period MA on the 60 minute chart has been strong resistance since the stock rolled over last week. It's currently at $9.02. If SVM break through that I would be buying more with both fists for a run back to $10 or so.


Insight ewc58 · Aug 11, 2011 - 12:23pm

RE: Hillary....

I detested Obama and Hillary was my last hope at the end, although I knew then she was as corporate as any of them. However, I knew Obama was getting the money from the banks. They manipulated the RBC meeting in May, which has pissed us off...the OLD women, the ones Donna Brazile brushed off.

The key thing about Hillary was/is that she had built a very good working relationship with the GOP senate. When she came in she was detested, but over time she really was able to dispel a lot of the negativity and build working ties. Contrast this with Obama, who had little Senate experience and who has been detested from Day 1. 

She was smart NOT to run for re-election. She extricated herself from what she knew would be a mess in Congress.

I wasn't thrilled when she joined the Obama Administration, but it's all politics. And, she apparently has really improved things at State and they are happy with what she's done.

I give her props for rescuing herself from the Senate crap and also improving the internal workings of State. U.S. policy still stinks in many ways, but it always has in recent times...

ReachWest Slick · Aug 11, 2011 - 12:27pm

Re: Puppet Jeffrey Christian

@Slick: Yes - I caught Christian on BNN, as well. One of his arguments against Gold appreciation is that holders of Physical Gold and Silver are cashing in their bullion with dealers - he cites the low premium for coins as support for this theory.

Sounds like BS to me - I see no evidence of this.

I'm wondering if there are lower premiums for bullion over spot due to increased competition between PM sellers. (Just saying .. isn't that how the free markets work? - and physical PM sellers are certainly in the free market .. ie. void of manipulation).

Tom L · Aug 11, 2011 - 12:27pm

@Insight: Hillary

The reason she could build bridges with the Repugs is b/c she's fundamentally no different than them. She's a warhawk, Neocon, so getting quid pro quos from the Repugs is as easy as saying yes to anything they asked on the foreign policy front.

Bipartisanship is just another way of saying "rape the taxpayer and bomb brown people."

O-Bomb-Ya is just incompetent. 


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