Wednesday, September 7, 2011

WHERE THERE'S SMOKE


There's confusion....or something like that. Leave it to the Central Banks to create another moral hazard. This is getting complicated.....and I like it. Think about the Swisse move. Pure genius unless you are a Swisse. Let me correct that, unless you are not a Swisse Multinational Corporation. The attempt by the Swiss was to make their exports more competitive and prevent an overvaluation of their currency since it had become a "safe haven". Now to the meat of the commentary.....The move ostensibly helped to bring down the Swisse but it also helps to SUPPORT the Euro too since the Swisse are buying the Euro peg. Nobody talking about that are they. BUT what was more interesting was the attack on GOLD right after the dastardly currency manipulation by the Central Banks. In the middle of a slow overnight market they sell 7000 contracts in a nanosecond on the market. WHOOOOOPS...that made some margins choke and puke. BUT WHY?? To hold the price of gold down? Perhaps....but I think it is extremely weak to believe that is going to do much beyond a couple of days. NO....I think all it did was try and stem a monster move by Gold in the face of the Swiss removing the Swisse Franc as a "safe haven". It was really just an attempt to decouple the thought process from the investing public that GOLD IS A SAFE HAVEN. I'll repeat...it was to keep the phrase GOLD IS A SAFE HAVEN from being talked or THOUGHT about by the sheeple. CNBS lately has been having an inordinate number of talking heads vocalizing (and laughing) that gold is NOT a safe haven...in fact it is anything BUT a safe haven. I've heard that so frequently over the last couple of months that I am now beginning to see WHY this pattern had developed. Now that the Swisse took out the franc as a "safe haven" its very obvious that this has been anticipated and the need to kick the legs out of the "safe haven of gold" needed to be attempted with this blitz of experts repeating this mantra. Of course that means that they disseminate these talking points through their primary dealers well in advance so never assume that these repetitive talking points are accidental. Look for continued volatility going out now in Precious Metals but use this to accumulate on weakness. Its a game and you are pawns. Just don't be dupes. BTW under the cover of "smoke" the boyz stole your miner shares cheap this morning. While you were watching the bleeding in gold they were grabbing shares of the miners.

To the picture above today. Nice protests huh? 450 thousand protesters! Must be some Italian mob..... nope.... Thats Israel. That's right. Perhaps the most aware populace on the globe. So what are they protesting? hehehehe.... That's right the bankers. Dontcha love it.



36 comments:

  1. Kli - don't you even consider buying QID just because we are messing with you. Hehehehe

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  2. thnx....I was feeling compelled to join....hehehehehehehe

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  3. "Gold has no intrinsic value because you can't eat it" is a way of saying "You are (Pawns, Sheeple &) Goats who swallow printed paper." Yeah, it's FRNs that have intrinsic value--and lots of vitamins too, the ink lines your intestines against radiactive food.

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  4. Wilks? Catching up, noticed the post about SLV and GLD yesterday. Just wanted to re-iterate a few things. There are people who believe GLD/SLV and/or PHYS/PSLV could be in trouble but I believe both supposedly have assets to back up the issues.

    From a taxable perspective, last time I checked GLD/SLV considered a collectible, no cap gains allowed, so unless in an IRA/SEP use caution. Not saying it can't change, but PHYS/PSLV should be taxed at cap gains rates.

    Can anyone verify GLD/SLV does not actually (at least on paper) have assets?

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  5. PSLV has an independent audit........GLD less clear theirs is independent and no transparency...the Pisani piece on GLD was VERY suspicious.......buy what ya want but I like PHYS PSLV much better

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  6. Over on Harvey Organs blog he has nothing nice to say about Gld/Slv basically a fraud....

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  7. The ECB voted to hold rates unchanged and Trichet will speak later today. It will be interesting to hear what he says. Some are speculating that he may use language that might weaken the Euro. The Swiss are trying to weaken their currency by strengthenig the Euro. Thus, a battle is going on.

    Also just to note, it appears an inverse H&S pattern is developing for NKTR.

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  8. stick a fork in us.....we're done

    http://www.zerohedge.com/news/bloomberg-finds-confidence-lowest-earners-now-record-low

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  9. http://www.youtube.com/watch?feature=player_embedded&list=PL20D03FBA9DB98701&v=GdeNZT4AY40

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  10. http://seekingalpha.com/article/292389-silvercorp-proves-it-s-not-a-fraud?source=yahoo

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  11. "Stick a fork in us were done" If that's not bad enough but at least those folks surveyed were still earning, what about the 2 million that fell off the EUC this past year....... Their gonna have to start a Suicide Survey! This is out of control!!!

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  12. Heavy in SVM at the open yesterday at 7.75 and holding, squeeze has started.

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  13. SVM as I mentioned is the most undervalued silver stocks out there. Lot of catching up to do in the upside.

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  14. Red,

    Seems like for SVM at 7.05 when I came in real heavy pounding the shortie hedgies and split them, that broke their momentum of down side. Even you can not imagine how many shares I came in with, heheeeeeee!

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  15. SVM needs to catch up about 8 bucks from here and Joe is smiling

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  16. Kli,
    From your lips to God's ears......... hehehehehe

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  17. The SVM's CEO proved to me by releasing 95 pages including their bank statement account, taxes,,etc that he was ready and willing to fight for his company and that to me at low prices meant come in real real HEAVY.

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  18. The 1930's is appearing in all things...

    http://www.marketwatch.com/story/longshoremen-storm-wash-port-facility-2011-09-08?link=MW_home_latest_news

    Hundreds of members of the International Longshore and Warehouse Union (ILWU) stormed the port of Longview, Wash., early Thursday, overpowering security guards, damaging railroad cars and dumping grain at the center of a labor dispute, the Associated Press reports. The local police chief told the AP that six guards were held hostage for several hours after the longshoremen broke down gates and smashed windows in the guard shack. He added that no one was hurt and there are no arrests. The ILWU believes it has the right to work at the facility, operated by EGT, but the company is using a contractor that does hire other unionized workers.

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  19. The weekly chart on SVM is showing that 100sma at 9 really the only thing holding it back until 11.20..it also shows the bounce off the 200sma Joe talks about above...

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  20. Chuck,

    What hedge funds have done to SVM's stock price is nothing short of CRIMINALs:

    http://www.mtv.com/videos/michael-jackson/8895/smooth-criminal.jhtml

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  21. Joe,

    Hedge funds are now....Ruh ohhhhh! Scooby snack now....

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  22. Hello All---

    Anybody follow GBG?

    Sean.

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  23. Hi Homer

    This is the best breakdown of GLD Ii have seen and why you should not own it.

    What Bob Pisani forgot to tell you about GLD

    http://m.youtube.com/index?desktop_uri=%2F%3Fgl%3DGB%26hl%3Den-GB&hl=en-GB&gl=GB#/watch?v=k08BXBGrCtk

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  24. Sean,

    you must be looking at the 50/100 cross on daily coming up and 100/200 cross on weekly

    Volume is looking great...if it gets over 2.4something on daily chart, room to charge...

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  25. tza made a nice move today..quick 4.5%

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  26. i am probably wrong, but it feels like a bear trap to me. seemed like mkt had a chance to breakdown hard and it didnt. i am really contemplating playing CAT. seems like such a generic play with obamas jobs speech, but with it trading lower today, it almost feels like a diversion. i will place my bet before the close. the risk seems small with CAT , maybe i can catch a 3-5% move on it. good luck everyone. my money is on the big kenyan tonight. haha

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  27. really important euro/us area...maybe up thru the 11th and then down to spur fed 2 weeks after?

    my throw against the wall..

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  28. The outlook for deflation:

    http://www.financialsense.com/sites/default/files/users/u618/images/2011/N225-SPX-overlay-real-peaks.gif

    http://www.financialsense.com/sites/default/files/users/u618/images/2011/Japan-inflation-deflation-since-1970.gif

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  29. Kli, another great commentary...really appreciate the spelling out for us literalists. Nice day for euo, svm, and ric...not bad for auy which I've held since '09! I'm short the dollar, should I move to uup? My gauge for gold is to ask "financial advisors"...not one over the last 3 years has EVER given any credence to owning pms...when they start to recommend, I'll think about selling some, lol. The last one said to me, "but you can't sell it, can you?" This is a very, very successful person. Just shows you how few people understand and heaven knows, if it weren't for you guys I would just be another clueless spinning sheeple.

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  30. Bernanke-Inflation is ingrained in the economy

    Does this guy shop at the grocery store or fill up for gas?

    Inflation in the things we need and deflation in the things we don't..Trying to get us to buy the over priced assets from builders, banks or auto Mftr's by forcing up the simple things people just need to live....then stuffing it down the conserative senior citizen with 0% fed rates...

    Evil or economics?..I hope him and his masters are on this road

    http://www.youtube.com/watch?v=q3GHiBP0bFU&feature=related

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  31. All,

    Bookmark this link and every day you can see the SVM company insiders action, couple of days ago, the CEO himself in the open market added 100K shares buy at 7.87:

    http://www.canadianinsider.com/coReport/allTransactions.php?ticker=svm

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  32. Chuck,

    You mentioned:

    "Inflation in the things we need and deflation in the things we don't"

    What you really mean is inflation in the price of essential goods/services ( food, gas, tax,health insurance costs,,etc) and not in ALL things we need since there is no inflation in JOB market which is what people need as well, so it's really inflation in essential price of goods/services AND deflation in housing, assets, and jobs and that means STAGFLATION for now.

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  33. My statement above means there is deflation in SOME items we do not need and also deflation in things public need like assets, price of housing, and jobs. Combo of both deflation and inflation for things people need.

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