Chances are that you're not going to want to hear it but it has to be said. If recent history is any guide, then The Banks have set us all up again to get our guts ripped out in the days and weeks ahead. This podcast will provide details and serve as a warning to prepare accordingly.
Again, we've gone to great lengths this week to explain to you that this latest gold rally is very likely just an illusion. The rally is not based on "financial markets crashing" or "investors seeking safe haven". Instead, the rally has been based upon HFTs buying gold futures contracts as a response to an historic decline in the USDJPY (rally in the Japanese yen). IF WE'RE RIGHT ABOUT THIS, then the massive current buildup of "Commercial" short positions is/was to be expected. The Banks are simply playing us all for fools again...shorting and creating new paper shorts for every new Spec buyer. Just as we've seen several times over the past three years, momentum will eventually stall as buying evaporates..and then...The Banks will give the paper markets a shove and down they'll go.
To that end, here's your latest CoT report with positions as of last Tuesday's Comex close: https://news.goldseek.com/COT/1455914187.php
And, as we discuss The Evil Ones and their positioning, we use these two charts as visual aids:
It's Friday, so we also discuss the weekly charts of gold, silver and the HUI:
And we close with one bit of seemingly good news...the still-declining USDJPY. It made another new weekly closing low, which means there still exists the possibility that it could fall to 110 in the short term. IF IT DID, something close to $1300 gold and $16.25 silver remains a possibility, despite all of the aggressive Bank capping efforts.
Look, as we've discussed, there are genuine reasons to be excited and believe that we've finally turned a corner:
- The yen rally that looks to continue through 2016 will help all "commodities"
- Faith in central banks is declining
- The Fed is in a box
- Negative interest rates around the globe
- Falling equity markets
- Declining Western gold supply
- Demand for ETF "gold" has already led to 150 mts of "deposits" in 2016
- The mining shares are up over 60% in the past month
- And that's just a partial list!
But, the extreme nature of the naked shorting by Cartel Banks should concern everyone that we are once again being set up for a smash. Just be smart out there and don't take anything for granted.
Have a great weekend,
p.s. As mentioned in this podcast, I'm going to be somewhat scarce Monday through Wednesday as I have a little family time scheduled. I'll still be checking in from time to time and will certainly be posting some content. However, there won't be the usual combination of daily posts and podcasts. Normal service will resume on Thursday. Thanks for your patience.