Yesterday I posted that this week would be a test of the EE's power, and it appears that they still have plenty of fire power left to knock the crap out of the PM's. Knowing that we have not only options expiry on Thursday for silver, and Monday for gold, we also have the Jackson Hole meeting; Almost without exception, when these high powered meetings occur, you get a smashdown in the PM's. I think they are about to announce something big such as more monetary easing in some form.
Why is the DOW up almost 300 points as I write? Why is oil up the dollar down and PM's down at the same time, when the fundamentals say the reverse should be happening. Quantitive easing, means more fiat, means prices go up, especially the PM's, but noooooo, they got to make their worthless fiat look good so down goes the metals just in time for their fiat easing announcement.
Just look at these incredible volumes in the Globex that were needed to take down the metals on this last leg down. You have more volume in the Globex than you do during the regular Comex hours. Is this insane or what? Who in hell has the power to dump this many contracts in the after hours market? Maybe they are already selling the gold they stole from Libya.
Well, we are not out of the woods until all this short term options expiry and fat cat meetings are over. It takes incredible balls to try and predict the direction in markets of any kind in this incredibly manipulated unpredictable climate. Kudos to our brave Turd. Only insiders at the FED and JP Morgan have any clue where things are going in the short term. But we have observed their games for so long we do get some clues as to when they are going to raid, we just don't know how much.
Regardless, these criminally desperate times only assures one thing, and that is when we come out of this there will be fireworks to the upside to pay for this unwarranted smashdown in the PM's. Lots of people like to say this is healthy, and maybe it is, but this volatility is the direct result of massive manipulation and intervention into the markets, and that dear friends, is not healthy in the long run for the general economy.
Well, I did warn of a double whammy this week, looks like I was totally correct. Lots of the best analyst underestimate the power and tenacity of the EE to manipulate the markets and fail to adequately warn their subscribers in advance. They are often the same fools that "poo poo" the idea that there is an "EE" and that massive manipulation going on. As the deception and fraud are being exposed to the general public, nothing can stop the stampede into the safe harbors of precious metals in the long run.
The question is, how long can they keep the PM's suppressed this time? We are entering very strong seasonal support for the metals. We have many strong fundamentals pushing the price upwards. Will we get a nice FUBM tomorrow, tonight, or will the big buyers sit on the sidelines to wait until the smoke clears? If EE attacks tomorrow, we could have a ten day or so wait until this bull resumes its charge forward. I am hoping given the strong fundamentals that this will not be the case.