Monday, May 10, 2010


And why shouldn't it? After all its been scripted. The wash rinse repeat cycle of the stock market dance is alive and well today. It was choreographed down to the last move. You have to listen to what the game is telling you. Violent down moves intraday only to recover quickly by 600 points. Another hard down day followup. The pundits like Kudlow and Kramer screaming that the sky is falling. Put up constant pictures of riots on the streets in Greece as a backdrop while you watch the market collapse.

My bear juices should have been flowing like the Icelandic volcano.....but they weren't. We have all seen this movie one too many times. The charts had broken down. EW was wavering on the abyss....but the control of the market was laying in wait with a nasty bear trap for the pitchfork crowd that dared to step into their trap.

Was this a trap? Would they have stooped to dropping the market one thousand points in the blink of an eye to add fear into the equation? Look how desperate the Eurozone was. They go from NO response to a ONE TRILLION dollar fluff package. I don't know about you........but I like it. Its game on. Its how GS makes money. Its how traders make money. And its how you and I make money. This is exactly what you want to see. Its why Joe was laughing his ass off when the market was droppping off a cliff thursday. He knew what was coming. This is the game. Either enjoy it and understand it or pick your marbles up and go home. You have no business playing if you don't understand the rules. You don't make them. They do. And you better not cry about it. THEY DONT FRKN CARE>... Lets make money. Gold and silver are my game.

update I focus on swc alu slw ssri pal today and the next week

update II this is why gold is about to patient ...this is a disaster

May 10 (Bloomberg) -- The European Central Bank said it will buy government and private bonds as part of an historic bid to stave off a sovereign-debt crisis that threatens to destroy the euro.

The ECB wants “to address severe tensions in certain market segments which are hampering the monetary policy transmission mechanism and thereby the effective conduct of monetary policy,” the central bank said in a statement at 3:15 a.m. in Frankfurt. The announcement came less than an hour after European finance ministers unveiled a loan package worth almost $1 trillion to staunch the market turmoil.

Resorting to what some economists have called the “nuclear option,” the ECB may open itself to the charge it’s undermining its independence by helping governments plug budget holes. Four days ago, ECB President Jean-Claude Trichet said bond purchases hadn’t been discussed when members of the bank’s 22-member Governing Council met to set interest rates in Lisbon.

By deciding to “go in and buy sovereign and corporate debt, they crossed a line,” said David Kotok, chairman and chief investment officer at Cumberland Advisors Inc., which manages about $1.4 billion in Vineland, New Jersey. “The line between fiscal and monetary policy gets blurred.”

The euro jumped to $1.2982 at 8:30 a.m. in Frankfurt from $1.2755 at the end of last week.

update III........ NEW YORK, May 10 (Reuters) - U.S. gold futures ended lower
on Monday, but well off initial lows, as safe-haven buying
decreased after a $1 trillion global emergency rescue package
eased contagion fears. * For the latest detailed report, click on [GOL/]. GOLD * COMEX June GCM0 settles down $9.60 at $1,200.80 an
ounce. * Ranged from $1,184.40 to $1,207 * Gold holding up well in spite of sharp return of risk
appetite amid rallies of global equity markets - traders. * Short-covering of euro, rush of funds into euro-zone
government securities weighed on gold prices - Brian Hicks,
portfolio manager of US Global's Global Resources Fund. * European Union agreed an emergency loan package that with
IMF support could reach 750 billion euros ($1,000 billion). * The ECB will buy euro-zone government and private debt
and abandon resistance to full-scale bond purchases to contain
Greece's debt crisis [ID:nLDE64900T] * Investment demand was strong. The world's largest
gold-backed exchange-traded fund, SPDR Gold Trust (GLD), said
its holdings rose nearly 3 tonnes to a record. [GOL/SPDR] * Comex estimated final volume at a busy 180,311 lots. * Spot gold XAU= at $1,203.15 at 3:35 p.m. EDT (1935
GMT), versus $1,207.75 late in New York's previous session.


  1. watch gap fill on swc at 16.54

  2. silver appears to be headed to break 20.68 in short order.

  3. Congrats American Sheeple! Your tax dollars just went to bail out SOCIALISM!!! WAKE UP...when do we start throwing rocks in the streets? As you drag your azzs out of bed every morning at 5AM...the Greeks and the entire Eurozone will be laughing at the stupid American taxpayer!!! Oh wait I forgot...I'm about to get free healthcare...

  4. Man, who put that caffeine and vodka IV in the futures market.

    At least, in a sick and twisted way, things make sense again. Seeing this bailout and rally brought me comfort in knowing I knew what was to happen next.

  5. I don't know what to play today. Staying all cash for now.

  6. One Trillion to "Europe" this gets better and better every day and it's being spun as a good thing HA!! Kli, Joe, Red 1000 Stars for calling this one!!

  7. ENER has near term gap 7.03 to fill.

  8. have private e mail some of you are having problems commentin......hopefully bug will work out.


    Collapse of the Dollar and How America was set up to fall...interesting read everyone should check out..."Da party ain't over"...far from it...IMO
    Anyone notice...China barely up last night...hmmmmm..I was counting on China to keep us alive and well....

  10. SOL stop 9.88

  11. Just scalped some BIDU for $300 Back to cash for me.

  12. If you are playing pal gap needs fill at 4.58

  13. Check out the Goldman 1 day chart, from 150 to 142 so far. Thought about buying puts earlier, wish I had.

  14. Strange how the USD is taking all this so well. PAL does look pretty good right now I'm putting that on my radar.

  15. closing very strong here.....hehehe watta game

  16. thats why you have to avoid that chit. It's suicide.

  17. KLI: immred was advertising your blog to a SKF investor that got his arse burned today....

  18. Thnx for the you guys and gals put some comments up that make us respectable.......hehehe.......maybe we will go "all in" on SWC tomorrow.......ehhehe....NOT. BTW Analyze where are you tonight we need the T/A for the next ponzi move.

  19. Any of you "gamblers" wanna short DTO here it is looking like a doable.....I'm not but its playing its game.

  20. Every time I've touched oil, I've been burned.

    Going long on your gold plays seems a lot safer to me.

  21. A few thoughts tonight, we are once more taking part in a glorious ponzi-initiated bull market, and one would think they want to goose this to the upside as quickly as possible, to attempt to re-establish some level of credibility with joe-smoe retail, calling the recent events an anomoly with an intermediate channel bust behind us and all is well. 401K grief-grumblings will diminish, as people with residual indignation pat themselves on the back for being long, to once more drink koolaide from the all-is-well punchbowl. They need SPX 1162 to have a 1210 target, and given their manipulations tonight on the futures... Some of our previous hurdles are once again sticking points on the way up, the most significant being the 1176-1181 range. Don't worry, they probably won't bother with the cash index for that anyway, just use the futures for most of the upside to instill buy and hold/swing trade mentality. Keep in mind, SPY max pain is 119 for Friday. There was so much upside across everything it is hard to judge the leaders, but tomorrow will give a better indication. I put on a couple positions midday once I saw stability and the gaps holding, and will look for more decent setups tomorrow. Waiting was key today, a few positions really faded heavy. I would watch $compq here, there is a lot of upside available in tech, if they break 2434 it is game on. Some of our favorites are reporting in the next two days - ANV 5/11, SSRI 5/12, that is enough to keep me away from those areas short term. EGO is in an interesting position, having fulfilled its previous target, but now has a new technical pattern, if it breaks out above its current level EOD the new target is 19.04, but it may need to consolidate again to 15.5 first.

  22. 1185 is the target (20 dma) it seems it might be a little less fireworks to get there (a few days to the rest of this week) at the expense of the bears who they will try and paint another P3 is just around the corner trap around 1162-3. Too much at stake to risk allowing the hourly to drop back below 1135 (which is 5 points below the 20 week moving average at 1140 critical trend line) before going up to 1175. Longer term 1221 closing basis is needed to paint the picture this has legs past 1240.

    With $1 trillion freshly extorted from Western Democracies, Dr. Evil can continue his plans for world domination for another 6-12 months (each tranche becomes less effective than the last). In real life Austin Prechter gets to play with the Swedish enlarger pump after each Kabuki Act.

    Depending on how much of the printing presses reaches the real economy, expect the Chinese to play along while continuing to tighten and hoard strategic commodities. Dr. Evils sights will turn on them when everybody gets totally indebted up to their eyeballs around the globe, then you will start to see the end game with Nature and Fate joining the struggle to restore the balance at the cost of lots of dead hairless monkeys.

    I still like physical precious metals, with silver having more potential during the reflation due to its duel use as money and industrial plus there is a whole lot less physically available on the market compared to gold due to the manipulation.

  23. Any thoughts on austerity, red? I haven't heard mention but I don't see how they'll be able to ever get the Greeks to stop rioting unless they severely punish all these other deadbeat nations in exchange for getting to hit the fiat bong.

    Also, if you're a betting man (aren't we all) how long do you think until US states' numbers come up for bailouts? New York et al going more bankrupter would be a massive wet blanket if they don't preempt it. I guess bankruptcy being a relative term is a sign of the times..

  24. And you think we do state bailouts in-house or do we make the IMF get involved to complete the circle-****?

  25. Morla,

    Actually the top tiers of power don't really care if the Greeks stop rioting, the consequence is to be cut off completely for the sovereign debt markets and hyperinflation along with half of the public sector getting laid off and collapse of the government, which will happen anyway. Right now it is still a game for more sovereign concessions through debt and fiat currencies of first the Western Democracies, then the BRIC nations are next.

    As for the US, we will just print more money, as long as the rest of the world prints just as fast only essential items like food will go up. The BRIC nations don't want to be caught in the trap but strengthening their currencies will cause a massive inflow of fake fiat into their economies, export of inflation from the bankrupted Western Democracies (sometimes better known national socialist with a mix of feudalism).

    Trading will remain very volatile as concessions are being extracted from the PIIGS. S&P needs some basing after the volatility. I am still sitting in the physical gold and silver camp as more fake fiat gets created out of thin air to compete with real cash like the Chinese and other creditor nations have.

    If you look at the bigger geopolitical picture, Greece has historically sided with Russia due to their common religion, Greek Orthodox. It's a proxy battleground for policy and control between the West and the East.

  26. Glad you don't mind the advertising as I kind of started it. stephenmcleod was lamenting that he keeps giving up profits he makes - all good moves. He was around the ultra forums forever, good guy. I pointed out the game has changed and to place this blog on his list of fav sites.