Thursday, May 13, 2010

PULLBACK DAY update II

Of course this is wishful thinking on my part. No one can predict the algobot killer machine. I can predict the ponzi is alive and well and the lights are still on. Jim Willie has a nice article. But the second link is a kicker from yesterday I left up.

The events of the last 12 to 18 months have been as shocking as they have been instrumental in reshaping the global financial structures. In fact, the events have pointed out the fracture of the global monetary system and banking systems. The steady stream of events is accelerating in scope and intensity. The fractures are finally being recognized. The key to understanding the continuation of disruptive and chaotic events is the realization that nothing has been fixed, no remedy put in place, no reform agreed upon, no liquidation of impaired bank assets completed, and no work toward a more stable system. Instead, the old system has been subjected to a patchwork of futile efforts and initiatives that speak more of bilking the system, redeeming impaired assets, and channeling funds to those most responsible for the fractures. Instead of seeking solutions, the banking and political leaders revert to what has been their shelf of failed tools, since they know nothing else, stuck in the Keynesian box, painted into the 0% rate corner. The costs are horrific when solutions are not pursued. The beneficiary is gold, since all wayward policy costs money, which must be created, worsening the debasement. Gold rises with new money creation gone amok. $Trillion rescue packages have become the norm, in a cavalcade of debased currencies. Historical highs come for gold and silver, with gold fighting the political battles, but silver riding through the gates with high speed and raised dust. Central banks own no silver, and industry consumes silver

http://news.goldseek.com/GoldenJackass/1273731120.php

If you didn't see this one yesterday.....

http://fofoa.blogspot.com/2010_05_01_archive.html

Update I ..if I beg maybe they will listen and tank this pig tomorrow. We have some nice gaps to fill in my favorites. Still have a decent core here but would love to see those gaps fill to "Reload". Patience here. More blood to come?????

(Reuters) - Gold prices were nearly flat on Thursday as the market took a breather after the metal raced to two consecutive record highs, but economic jitters over a $1 trillion European rescue plan supported prices.

Even with Thursday's market pause, gold's rally in dollar terms now stands at 7 percent from a week ago. Worries about the European rescue plan also sent gold priced in euros and sterling to record highs.

Silver and platinum group metals were also unchanged as choppy currency and equity markets showed signs of stabilizing. U.S. stock markets steadied after volatility soared in the last several sessions.

Michael Daly, gold specialist at Chicago-based futures broker PFGBest, said overnight profit-taking weighed on gold. But, he added, economic uncertainties and the upcoming Indian festival of Akshaya Tritiya, a major gold-buying event, should support prices.

"There is a lot of uneasiness with the European Union and investors are weary right now. If central banks continue to print money at this rate, there will be inflation to follow and I think people are protecting their wealth" by buying gold, Daly said.

Spot gold was at $1,232.75 an ounce at 2:58 p.m. EDT (1858 GMT), nearly flat from $1,236.35 an ounce late in New York on Wednesday, when it hit a record $1,248.15 on fears that the massive European rescue package will not solve the euro zone debt crisis.

U.S. gold futures settled down $13.90, or 1.1 percent, at $1,229.20 an ounce.

Demand for both physical and paper gold investment was strong, with sales of coins, bars and exchange-traded gold funds soaring, and open interest in U.S. futures inching closer to a record high.

26 comments:

  1. Hey KLI. Found a good one for ya.

    "Abu Dhabi hotel installs gold vending machine"


    http://news.yahoo.com/s/afp/20100513/od_afp/uaegoldoffbeat_20100513120103

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  2. SOL not participating, that had a nice run while CNAM was moving down though...I got out of CNAM in personal account with a minor loss. Never loaded more when it was diving, so sad, too bad. Someday I'll grow a set. ;-)

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  3. SOL will move when the sector rotaion hits..

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  4. Took some CNAM off the table above 6 , may recharge but everything is a little overbought on the hourly and 30 minute, minimizing risk. Plus most shorts were squeezed, have to wait for them to reload to play um some more. Sidelines cash on discretionary.

    Waiting for precious metals to make a pullback to add is getting frustrating, hehheh

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  5. Silver is looking like it's going to explode any second.

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  6. "Waiting for precious metals to make a pullback to add is getting frustrating, hehheh"

    How I hate that...might try a little of the HL and GRS as well. Just a taste as they say, might finally dump some good earners and wait myself, SLW EGO and SWC.

    I hate ALU BTW, S is flying again, the one I don't have. ;-).

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  7. Joe says be out of CNAM long by mondays close.

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  8. If CNAM 6.25 breaks 8.15 is heavy resistance

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  9. CNAM is very dangerous no matter how good the news is, overbought on hourly, opening gap psychology, conference call AH on Monday with the traditional dump the news.

    Good trade in the 4s but with the high buying volume getting ready to dump around the news, you will get a beating if you chase it. China is still trying to move capital out of real estate and slowly into domestic equities, key word is slowly.

    The competition now for capital is now physical precious metals from both Central Banks and investors hedging against the printing presses.

    If you want to trade at a slower pace, then GFI, GG. PAL is good but is trading more in line with the movement of the S&P than a precious metal. Might get an overall small pullback in the general market which will make PBR attractive for an oil play.

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  10. If CNAM has a history of puking after earnings and Joe feels it best not to hold into Monday's close, is it a good short candidate? Or is there too much risk? Thanks.

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  11. If you have to ask if shorting is a good idea on a low float, highly manipulated stock on a daily uptrend; it probably is NOT a good idea. Take today for example, everytime someone attempted to short CNAM even during the downtrend, they got squeezed at every opportunity.

    You are better off getting out of debt and getting some physical PM on a pullback. Trading senior miners if you enjoy some punishment, everything else still requires an understanding of reflation and seeing if you can stand not puking and taking it up the rear as the algos tear your positions apart.

    Joe is mostly trading with discretionary money not his life savings, so the risk profile and experience is much different than most of the visitors here.

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  12. ABSOLUTELY correct red.....wayyyy too risky due to the float to short it. Let Joe do that its monopoly money for that cheap mthrfkr anyway....ehehe

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  13. CNAM has filled its gap as joe expected.....he also said he would not short before Tues. IF he shorts it at all

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  14. Whoops.......you sneaky bastics....hehehe. Come to papa....

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  15. keeping some powder dry for a fun day, room for more air out of the general market. Too many trapped longs in CNAM from this morning who have yet to puke.

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  16. Hi, red. For us slow learners (or maybe just me) would you explain reflation and it's market implications? Many thanks.

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  17. great discussion on CNBC FM regarding gold tonight....The analyst just destroyed Adami's moronic gold response.....hehehe

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  18. Definition below. Basically an intervention effort that artificially keeps over leveraged prices higher and longer than they can be supported by the peons getting massively laid off to increase productivity. Each tranche of fake money buys less economic stimulus, can continue until the fiat money and debt in circulation becomes suspect and there is a mad rush for the exits to preserve the purchasing power of capital be it gold/silver, unleveraged farmland or Alpo.



    http://www.investopedia.com/terms/r/reflation.asp

    Reflation

    A fiscal or monetary policy, designed to expand a country's output and curb the effects of deflation. Reflation policies can include reducing taxes, changing the money supply and lowering interest rates.

    The term "reflation" is also used to describe the first phase of economic recovery after a period of contraction.

    Reflation policy has been used by American governments, to try and restart failed business expansions since the early 1600s. Although almost every government tries in some form or another to avoid the collapse of an economy after a recent boom, none have ever succeeded in being able to avoid the contraction phase of the business cycle. Many academics actually believe government agitation only delays the recovery and worsens the effects.

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  19. Nancy what Red says is correct but here is the trick according to Joe......this time there is one thing they cannot control and that is the VELOCITY of the money....and that means that deflation is waiting when that game fails...that is why CONfidence that I talk about is what the "game" is about.

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  20. The physical money supply is increasing BUT until the velocity or the speed at which money shifts hands picks up (and it won't because the public is SCARED) that is the key..the public must have CONfidence for the speed at which money changes hands to pick up ....velocity....IF velocity picks up we will have HYPERINFLATION

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  21. Joe does NOT believe that velocity will pick up....we will end up in Hyperdeflation....btw DTO has been a mthrfkr

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  22. Question for T/A ......I have SLV topping out near term at 23 .......can I get a better target or is that what you get...it looks doable in a couple of weeks before consolidation

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  23. Gold and silver seemed to have decoupled from the general market. S&P looks poised to test around the 50% retracement from last weeks low to this weeks high to around 1125. Normally SLV would also be following and going to 18 short term, but that may not be the case.

    As to velocity, I agree under the current policies in the West velocity will not pick up. If you even wanted a chance at success with a monetary reflation effort, it has to be coupled with a longer term fiscal stimulus program that actually brings the down both unemployment and prices of essentials, being able to service overleveraged home prices is not an essential. Fiscal programs to increase energy (geothermal in Yellowstone), infrastructure (high speed passenger trains) and food production (tax credit for small farms and outlawing terminator crops) versus the quick solution of creating false conflicts to destroy excess capacity and create limited false economy jobs.

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  24. Well we've always got rationing as a tool if food or gas/energy prices get out of hand. Knowing us though the first benevolent act of our government will be the worst received by the people.

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