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.


About the Author

turd [at] tfmetalsreport [dot] com ()


needadeel · Aug 11, 2011 - 12:28pm

London Fix

This is probably a stupid question and I could be wrong, but does anyone know why London seems to prefer a low close on silver? If true, how does this benefit them?

murphy · Aug 11, 2011 - 12:34pm


fwiw- HUI has broken out of both the 50 and now the 200ma. After the carnage in the market in the last week if we can hold above the 200 I think things are looking good.

Shill · Aug 11, 2011 - 12:34pm

Nice BO

Nice BO taking place...

Pelosi names House Democrats' delegates to 'supercommittee'

Super committee, the shadows of the shadows. Wouldn't this require a constitutional amendment? Oh wait we no longer have one of those, how silly of me.

FogHorn LegHorn wildcatspec · Aug 11, 2011 - 12:35pm

Welcome wildcatspec!

Thanks for posting! Saudi Arabia, wow , TFMR, is world wide! Hat tips are being used in pm blogosphere in posts on zh, seeking alpha and others. I expect other turdism's to become more widely used. I'll be looking forward to your posts wildcatspec. @ewc58 thanks for your options info, and posts good stuff. @TomL keep up the great posting thankyou.@henry I' m still laffing at the hedge what fun! Thanks All!

Insight Tom L · Aug 11, 2011 - 12:37pm

RE: RE: Hillary....again

Yes, she is, but the point is they detested her and she managed to change their minds, including on a personal level.

She went full-bore righty like you say, but on personal social issues she still would have not sent us back to the stone age most likely.

Frankly, I'm totally turned off by all of them. I'm not a Clinton groupie.

Dr G · Aug 11, 2011 - 12:37pm

For your viewing pleasure

For your viewing pleasure & to lighten the mood on this crappy metals day (source: https://www.freakingnews.com/Michelle-Barack-Obama-Pics-64861.asp)

Michelle Barack Obama

Slick · Aug 11, 2011 - 12:43pm

BullSh!tter Christian on BNN..what makes him such an expert

What makes him such an expert as to what the public are alledgedly selling to dealers in the coin shops? Especially here in Canada?

Like just yesterday the premiums on Gold Maple Leafs were higher than I've ever seen, granted gold was over $1800 cad oz, but he's no expert on what investors are selling at the local coin shops. He's nothing more than a little man.., a man-child which just proves that he's a sh!t puppet like Dimon and Andy Bell.

Like give me a break!

SilverDog ewc58 · Aug 11, 2011 - 12:46pm

Not Lost...

Now parked in orbit, probably with many others, to unleash Gravity-Well weapons to anyone that doesn't play financial ball...I said a while back, whoever runs those pesky flying triangles would have a hand of Jokers to play in this.

divekarsan · Aug 11, 2011 - 12:46pm

Watch Dr C

Have to watch Dr. C movement as usual may give us direction ......................................

ActionFive · Aug 11, 2011 - 12:49pm


Silver market trades like a blind person finding his way to 39.50 with his face.

Time to put 39.50 in the warning disclosure for futures trading.

The Vet needadeel · Aug 11, 2011 - 12:50pm

How does it benefit

How does it benefit them?


Just check out the members who do the fixing....

European American · Aug 11, 2011 - 12:54pm


spitfire close call
Shill · Aug 11, 2011 - 12:58pm

Dow11,040 +320 +2.98% Is


11,040 +320 +2.98% Is this the new Normal or what? This house has sure gone mad. I know it has been posted, but we must continue to warn others. https://dont-tread-on.me/how-gov-will-deal-with-pissed-off-americans/
Economical Disaster · Aug 11, 2011 - 1:00pm

Beijing Downgrades US

Beijing Downgrades US Treasury to A+
Is Anybody Listening?


Violent Rhetoric · Aug 11, 2011 - 1:04pm

30 year treasury bond auction

30 year treasury bond auction was a disaster.

30y now down 4-27/32; 

10 yr down 1-18/32

ewc58 · Aug 11, 2011 - 1:06pm
RuNuts Economical Disaster · Aug 11, 2011 - 1:06pm

Re: British government begins stealing its peoples’ bank deposit

Sounds a bit like the currency seizures that are rampant here on the suspicion of being drug proceeds.

Operation Rize - the inside story on the Met's biggest-ever sting

Yet the true story of Operation Rize reveals something far more chilling - a virtually un-noticed change in the law that strikes at the very heart of the British justice system. Under the Proceeds of Crime Act of 2002 (known as POCA), valuables and cash above £1,000 are presumed by the police to be the proceeds of crime, unless you can prove otherwise, a total reversal of the presumption of innocence. Aside from those three dozen or so people found guilty, the vast majority of the 3,500-plus box owners have turned out to be innocent. Yet their money was confiscated, and in many cases is still being held, by the Metropolitan Police or the Inland Revenue. The owners have spent nearly three years and thousands of pounds in uncompensated legal fees having to justify why they kept their personal belongings in safety deposit boxes and how they came by them in the first place. Worse still, when people have had their belongings returned, in some cases cash and jewellery has been missing.


Shill · Aug 11, 2011 - 1:08pm

If today's move holds, five

If today's move holds, five of the top 100 market-moving days in the last 60 years will have happened in the last ten trading days.

As far as I can tell that's only happened once before, in October '08.

FogHorn LegHorn needadeel · Aug 11, 2011 - 1:08pm


Sorry, I know@ needadeel, Your question is a serious one, but I have to admit it made me chuckle. In a" free market" what the LBMA prefers or doesn't prefer should have no bearing on the" true price discovery", which is determined by supply and demand. Price, or the" fix", should be determined by these forces alone. You are correct though they" fix" the Fix lower at the close, far more often than valid statistical analysis would dictate. Stuffed leather chairs, brandy and cigars, and priviledge influence the "close "somewhat.

pbreed ewc58 · Aug 11, 2011 - 1:16pm

Hypersonic is really hard to do...

I personally know several engineers that were working on this project.

Hypersonic in atmosphere flight is REALLY REALLY hard to do.

We have become complacent and think our computer models are reality.

There are still areas where we do not yet understand the physical processes well enough to model them.

Any real research (rather than a Jobs program) will have failures.

Shill · Aug 11, 2011 - 1:18pm

Most important story of the

Most important story of the day, and the last 2 weeks.


What you're seeing is not 1848. It more closely resembles A Clockwork Orange.

Awesomeness · Aug 11, 2011 - 1:20pm

Gold and ramblings

Remember Santa talked about this run going to $3000 before correcting. Remember all the margin hikes with Silver along the way to near $50, was there just one and a retreat? No! There we're tons of them. Gold should keep rising and run more. I'm targeting $2000 be the end of year.

I'd like Silver to catch a bid going into the weekend, maybe finally getting up to 39.50 would be nice. I like the idea of silver ramping a bit until the end of August, although historically it hasn't. Historically September is the big month, and I still think September will be huge for Silver, my price target is $44-$46. Although I don't think it will be there for long before getting whacked back. So I'll have my trailing stops nice and tight at that time.

I also like miners in September as well, disclosure, I have lots.

Peace, possible insurrection first. :D

· Aug 11, 2011 - 1:23pm

Don't be too nervous

 About this selling of gold into the close. Traders that don't want to pay their increased margin wait all day to see if a rally might develop and get a higher price. As we move to the closing bell, they give up and sell.

Might even make new lows on the day but gold will likely rebound quickly on the Globex.

Shill · Aug 11, 2011 - 1:24pm

Just wait till tomorrow...

 Just wait till tomorrow...wink

Shill · Aug 11, 2011 - 1:26pm

OMG, the TBT is signaling

OMG, the TBT is signaling Ben's plan for low interest for the next two years is coming unhinged.....


As I noted yesterday Liars never win.

Dr G · Aug 11, 2011 - 1:28pm

The market is schizo, which

The market is schizo, which happens right before it dies. Big ups, big downs.

Darth Smoker · Aug 11, 2011 - 1:29pm
SilverTree · Aug 11, 2011 - 1:31pm

Coin shop report

I went on my weekly coin shop trip today, I gave the man $299.25 and he gave me $10.50.

beinki · Aug 11, 2011 - 1:39pm

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