The Dog Wags The Tail...Again

Take it as a very good sign that this is happening with increasing frequency.

To recap:

  • As noted last week, the POSX sat at the edge of the precipice, near 79. We all expected efforts to, at once, talk UP the dollar and talk DOWN the euro.
  • Today, the man that Goldman placed in Europe, succeeded in talking down the euro.
  • The Gold Cartel pounced and initiated a waterfall decline.
  • To their collective chagrin, massive allocations of physical were sought at these rigged-lower prices.
  • To hedge/cover, The Cartels had to almost as quickly get on the bid in the paper market.
  • And you end up with a chart like this:

This is all well and good and clearly benefited us today. However, note that the rally stopped right at the 1685 resistance level that The Cartel has used to cap the market for several days now. As long as it remains profitable to keep the price there in order to fleece the paper longs, 1685 will continue to act as resistance. The hard part is in predicting what happens next.

And next week brings the Chinese New Year  ( If physical demand temporarily slows, then you can rightly expect more downside shenanigans from your friends in New York. If that's the case, look for prices to cling to the blue trendlines on the charts below. Maybe, during the holiday next week, silver sees another drop toward 30.60-30.80? Maybe gold bumps along in the 1660-1670 zone? Again, IF THEY DO, take it as a gift to btfd and stack a little more at the discounted prices. You can bet our Buyers of Size will take them up on it when they return from holiday.

Of course this doesn't mean that prices have to go lower next week. Far from it. In fact, I would imagine that The Cartel actually lost a little money our this morning's trade. They'll be reluctant to try that trick again at these levels so we may very well see gold break $1685 soon (tomorrow?) and head toward $1695, instead. Silver, too, could just as easily break higher and move back toward The Big Test level near $32.50. However, without sustained physical demand, it will be tough to break through so next week is likely still rangebound regardless because of the holiday.

The interesting side note continues to be Sylvia Platinum. Like gold and silver, Sylvia has been rangebound for nearly 16 months. However, just yesterday, she broke UP and out of her range...but just barely. This is akin to gold being a shade above $1800 or silver trading near $36. What will happen next? Can she maintain this level and begin to move higher still? If so, the August 2011 highs above $1900 come into the picture. There is no way that a platinum moving back toward 2011 highs wouldn't provide spillover strength/interest in gold and silver. Therefore, watch ole Sylvia closely in the days ahead.

OK, here are your random items for today. First, Brent at Santiago Capital in SanFran has cranked out another terrific presentation. It deals primarily with fractional reserve banking and is very straightforward and easy to understand. Not only should you watch it but you should forward the link to your friends/family that don't seem to understand the full picture. All you need to do is enter your name and the player begins (I entered "Percival Sweetwater").

Also from my inbox is this: This author always notifies me when he posts something and this one is pretty good:–-big-picture-9511

Many Turdites own/follow Silver Wheaton so I thought I'd pass this one along. Maybe they'll change the name to "Silver&Gold Wheaton"?

As if we didn't have enough to worry about, there's this:

And these: &

And why the hell does the U.S. DHS need 1,600,000,000 rounds of ammo? Are they planning to shoot every U.S. citizen 5 times?? Wait...don't answer that. We need to keep "Main St" on-topic as much as possible.

That's all for now.



Mr. Fix's picture

@ tmosley...You asked for it...

There are plenty of such sites....

Have fun!wink

punchbowl's picture


Possibly Hitler did use babies as punching gloves. 

Who knows?  

But he definitely used the retarded and handicapped check out the Reichstag fire.  Dont bother checking out his divisive liquidation ideas.

AgAuthaChristie's picture

@ Dagney

"And just something to ponder, let's say the majority of bankers and politicians were pedophiles and homosexuals. They would be soooooooooooo easy to control and form into a machine of complete corruption. Wow! I think I'll tuck that away for when we form new government: screen for pedophiles, homosexuals, and anybody bearing a massive social stigma to put into a position of authority. This ensures obedience to my controls or risk being outed."

Aha!  Sandy Hook is now starting to make sense!  They diabolically killed two birds with one stone. Pretend to slaughter schoolkids to help with gun control efforts but actually kidnap them  to provide as party favors for the ravenous homo/pedophile banker legions who do your bidding.  Mr fix was right!  PURE EVIL!!!!!!!

Karankawa's picture

Karankawa: My computer ate my

I'm sorry for your computer malfunction.

But your reply doesn't address the question at all.

And you bore me as well.

Loud Noises's picture

I've never been a big poster

I've never been a big poster here on TFMR, but I am just going to chime in to share my thought.  I used to read through all 10+ pages of each thread to hear some good commentary and catch news stories that I missed otherwise.  I can honestly say that I'm only going to be coming back to read Turd's posts each day and save my 30 minutes of going through the thread comments.  Its just getting ridiculous.  There's so much "if you aren't with me, you're against me" type thinking, bickering and general dumb shit that I no longer gain anything from it.

No, I don't expect anyone to care.  And I don't think I'm important either.  But I am sure that there are probably a few dozen other people that never post who feel the same way.  There is still value in the forums, which I wish people would utilize more.  Turd does put in extra effort to make sure that this is more than a one dimensional site.  Increasingly, I have just felt like I take time out of my day to read the ramblings of people who need to get out more and enjoy their life.  Your life doesn't suck even 10% as much now as it probably will in the future!

I don't mean to slight those that DO contribute good things to this community.  Unfortunately we are approaching a 1:10 ratio of good comments to total garbage.

sideshow03's picture

Re: I've Never Been A Big Poster

100% agree...I think we are on the same page with our posts....I wish people like you WOULD post more so maybe WE can take this forum back....

But I assume all that will happen is you ALSO being "ignored" by those who perceive themselves as superior. Thats ok....they are the "Cartel" to people like us...and we hope to prevail too!

Keep posting!

Hammer's picture

Price illusion 5 minute mark

Price illusion

5 minute mark onwards.

exiledbear's picture

Meanwhile bitcoins are at $22

Up from $5 when I started scaling in and probably $10 when I started talking about them. Actually these days when BTC ticks up I make more money from that than I do from gold.

Yeah, they're virtual, but you know what? I CAN UNDERSTAND THE BITCOIN TICKER AND CHARTS!

Gold is just - psycho. I'm not selling my physical, no way, but I don't take any of the official PM charts seriously.

I guess we'll live in la la land until we don't and then I guess gold will finally discover its true price.

rusty's picture

From todays Sydney Morning Herald NSW Australia - I don't think they're seriously proposing it.

Hammer's picture

Isn't it The Chinese New Year

Isn't it The Chinese New Year ? 

withoutwax's picture

Return to the Gold Standard



1) Destruction of the banking establishment -- $800 Trillion of worthless derivatives has put the banking establishment into insolvency… they just haven't declared it yet. Greenspan was a big supporter of derivatives and non-regulation. He let them sow the seeds of their own destruction. Greenspan promoted unregulated derivatives and risky mortgages knowing the greed of the "big people" would destabilize their financial world.

2) Destruction of the fiat money system -- In order to "save the banks" the Federal Reserve has fired up the helicopters to flood the system to the point that the US dollar will become worthless. You didn't think the US would allow Japan, China, Russia and all to cash in all those worthless dollars for real goods and resources did you? The US will default through the abuse of the printing presses. This is part of the plan. They will make it look like nobody had any control over the global destruction of the financial system.'

Biggus Stackus's picture

@ Loud Noises

I agree that I came to read this site many times when it was a financial blog.

There once was a lot of insight into investments and trends, charts etc. , now its 90% ranting about chemtrails and boring YouTube links.

You now have to scroll through a lot of crap to get to the nuggets from the likes of Ivars

ltcolkilgore's picture

One thing is for sure...

We are all individuals with our own biases and beliefs, opinions and ideas...

But... we all share a common interest in PMs and I do agree that the main focus should stay there whether it is simple brag on buying some metal or an incredibly in depth analysis of the charts. I will make the effort to do so going forward... Not that I mind the other posts, some are quite interesting...

IMHO - To ignore button anyone at this point is hazardous because the little bit of info you were looking for may get lost by doing so. Scrolling works much better for me...

Anyway... I hope you all have a great Friday and add to your stack today!

Torpedo Fish's picture

@biggus Stackus

Not all chemtrail videos are boring , take this one for example. I consider it to be 100% proof.

While enjoying superb and relaxing music one can watch how his/her food is being poisoned and nature destroyed by toxic barium, strontium and aluminum compounds. What's the point of getting richer if only thing left to eat is Monsanto monster food from seeds resistant to these chemicals ?

audi's picture

"Galearis" wrote (2-7-13 @ 9:48 P.M.)

"Mines do not own the gold they mine; they are only permitted (as in permit or licensed) to make it out of the ground and sell it on the open market at a phony price."

I disagree.  Eric Sprott a few years back urged miners to keep some of their production off the market.

I know of at least one company that does that.  Wesdome Mines (WDO) keeps some of its production gold in their inventory.  According to 4Q2012, they have 8900 oz. saved that way and list it as part of their "cash".


Urban Roman's picture

While Turdville explores the finer points of Godwin's Law,

and why Usenet might not have been such a bad idea, Jesse has pointed out this article on BBG ..

Ex-Amaranth Trader, CFTC Unite to Ask Court to Toss Fine

Hey, nobody can touch our crooks but us, and we're too busy and understaffed to do it. Now that's industry friendly!

Don't you just love it when regulatory agencies fight? It's like watching mud wrestling. 

Keg's picture

Keeping the thread on PMs only

How many times and how many ways can you say BTFD?  Throw in a few "don't trade this manipulated market" comments for good measure.  Would be a short thread each day.  And boring.

I am here for the same reason that I think most are, we started buying PMs because we believe that the great Keynesian experiment will end badly. We wanted to protect our assets.  We want to protect our families.  We want to be in position to thrive when we get to the other side of whatever the coming economic collapse turns out to be.  So I find anything that may help me in that endeavor of interest.

The main thrust of this site is PMs.  But there is so much that can influence prices.  And the timing of the coming economic collapse that is the reason most of us started buying PMs to begin with.  Just look at the current post by our beloved leader.  He links to stories about EMP, Homeland Security buying bullets, and military moves by Russia and Japan.  Should we not discuss these issues in a thread following a post that includes them?  I appreciate links like those that Turd put in his last post and similar links provided by posters on this site.  Many of them are informative and educational. 

Sometimes a thread disintegrates into something that is not very informative and is not interesting to read (at least for me).  Much of the past 12 hours falls in that category.  The bottom point of these threads usually includes a post referencing chemtrails.  But that is OK.  Not every painting by Rembrandt was a masterpiece.   Not every thread here will be a classic.

Byzantium's picture

Might be useful?

I like structure & I like classifying things, and here is how I would sum up the ongoing community issue thrown up again through this thread.

Apologies if you find this a useless post, but some may find it useful.

I wonder how the actual community today is clustered in this Venn diagram, and where Turd would want it to be? Mebbee a flagship 'conspiracy corner' is needed, to provide a similar role to Pailin's corner.

I am squarely in the middle of the diagram, and I like things as they are, but that's just me.

I would speculate too, that some PM bugs became so, because they started out as conspiracy theorists, and some became conspiracy theorists through their involvement in the PMs. All the same, it is possible to remain in just one silo, as evidenced by this thread.

Sorry if the image is a bit fuzzy; it is a failing of Jpegs.

boatman's picture

i'm with kegger.............. i say let it rip

we got the scroll past and ignore button.....pretty easy to use.

what's the problem..................u can tell in 2 seconds whether u want to read something or not.

i notice the socialists/communists like to tell everyone to shut up the most.....they just can't stand it.......they can't even stand that it is BEING talking about THIS or THAT!!!!! need a permit for THAT!!!!! need a license for THAT!!!!..............we need a TAX for THAT!!!!................we are going to pass LAWS for people LIKE YOU!!!!!

AGAIN-------this is what got us in all this Keynesian BLOW UP in the FIRST PLACE.

isn't our premise the great keynesian experiment is coming to an end?

the hell with them i say......

if you don't like it here.............try this:

Byzantium's picture

Can anybody answer this question?

I don't think Turd responded to my earlier query, so I ask the same question to the greater community, with a diagram to illustrate.

Everybody is getting excited about the narrowing pennant.

As somebody who is unschooled in TA, I ask what is a very relevant question when in a position of this ignorance; is there precedent for resolution as drawn below? Can we just pass through the apex, into a mirror pattern, but a divergent one, rather than a converging one?

I hope somebody can answer; I find it very intriguing.

Based on the gradients of the two lines, it is also a very troubling scenario.

Green Lantern's picture

Can any of you computer

Can any of you computer literate individuals confirm that the virus warning now on KWN site is a result of an outside attack?    I don't know about such things I have a hand crank for my computer and when that doesn't work I use a car battery. 

The Fed has been hacked.  Yahoo has been hacked.  The New York Times has been hacked.  The WAll Street Journal has been hacked. And now they are reporting the Washington Post has been hacked.

Bank of America has been hacked.  This morning they are reporting that the Bush Family has been hacked.

There are a 1/2 dozen new hacking stories this morning.

New articles this AM on facebook and twitter preparing for hacks.

The Tax Office (ATO) has confirmed that fraudsters have hacked at least four tax agents to access taxpayers' personal information

South Carolina had tax payer information hacked.

Oklahoma has been hacked. 

The report I posted from the World Economic Summit, included a discussion about the new threat of cyber terrorism.  

I'm sorry but The Fed will not be the only people making monetary policy if this trend of hacking continues.   You won't have to worry about the price of oil if they begin hacking banks or investment houses or they steal your personal information from the state. 

rtabit's picture


pennant signals possible explosive move in one direction or the other, one of the two trends lines becomes dominant and takes control of price action, but sure what you draw can happen and I'm sure it's happened before, but not what one would expect.  That's how I see it anyways.

ivars's picture


GSR broke the triangle formation UP yesterday ( metals down):

So we may expect a continuation up (PM down) , but perhaps not today, as GSR also hit the median of the fork and 50 day MA from below:

Turd Ferguson's picture

I believe you have answered your own question


Note that your blue support line was broken and the clear trend is now down. This is exactly what I am watching for.

Byzantium's picture

More TA; an observation.

Thanks rtabit for earlier response.

This chart is not a question, but my prediction for cartel intentions.

Resolution of this pennant, will result in the cartel simply extending the pennant into the yellow zone as shown. That will box us in for another couple of years, notwithstanding the cartel losing control.

In indirect support of this prediction, somebody recently described Jesse Livermore as a trader who ignored diagonal chart lines, and only observed horizontal ones.

Byzantium's picture

@ Turd

Thanks Turd;

to ensure that I understand, so long as support continues to act as support, then it can't happen, but otherwise watch out below?

HappyNow's picture


In the context of sweeping social change sought by extreme liberals and the satisfaction (and re-ordering of the developed world) sought by conservative survivalists Y2K was a bust.  It is an analogy to the arguments being  made here for that context.

Airplanes were going to fall from the sky, Nuclear power plants explode, Banking systems fail, etc. etc. etc.  All sure signs of the Apocalypse and all bearing meaning to the extreme camps.  Vastly different meanings to different camps which was a key part of what I was getting at.

And then it was a bust for both camps.  They still need their Meaning though so they keep on finding it.

For sure it was a lot of work to repair the software and hardware that had been in place without a thought for what might happen when the logic failed.  In the computer world it was a huge event.  A boon for the recently retired or soon-to-be retired too.  Many thanks to you and your ilk for getting on that and keeping it from being a real mess.

I can't agree that it was the turning point as the loss of  'taking rights for granted'.   For me that turning point was Kent State decades previous.  No drones necessary.   Drones may be the modernization of that kind of confrontation adapting to developments such as flash mobs.

ClinkinKY's picture

If you have half an hour to spare... to this speech by Dr. Benjamin Carson wherein he pretty much "gives it" to B.O. regarding the problems with PC, crony capitalism, etc.   B.O. is  definitely not amused. Very inspiring speech by a very smart man.

ballyale's picture

CME Cuts Gold, Silver Margins

CME Cuts Gold, Silver Margins

Tyler Durden's picture

Any trader of paper gold and silver will likely never forget the endless and certainly parabolic barrage of margin hikes that the CME imposed in the spring and summer of 2011 which had only one purpose: to break the back of the relentless anti-fiat rally in the precious metals (and which culminated with the historic May 1 take down of silver when the metal plunged some 15% in the span of seconds). Since then, perhaps as a result of initial and maintenance margins still at residual levels indicative of when the S&P was some 30% lower and some $4 trillion less in slushing global central bank liquidity, the upside euphoria in gold and silver has been decidedly hobbled, perhaps so much that the CME is now scrambling to find a whole new set of gullible investors who will obediently put their money in the paper trap, only to see a surge followed by yet another mauling from soaring margin demands. After all, the CME needs trading volume to keep the cash flow flowing - killing the paper market in any one product suits nobody. Sure enough, moments ago, the CME once again cut margins in a slew of products, most notably gold and silver, by some 10% and 14%.


Good luck CME with finding people gullible enough to trust you this time around.

Patrancus's picture

earning the distain of Obozo

earning the distain of Obozo could be hazardous to one's health, Dr. Ben Carson speaking at National Prayer breakfast, I would not think he be paranoid if he kept a private security detail to watch his every speak, sleep and step. The truth hurts Obozo, you can really see his discomfort having to sit next too and listen to a black man of faith who is smarter than he.

Clink sorry for repeating your post, you always get my hat tip, though every American should be watching and listening to this man who's ideas should have made a man like him a president of a nation in dire financial trouble.

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