Tuesday, May 31, 2011

AND NOW THE PUMP...Operation TWIST

What better reason to rip a market higher than a near default in Greece....or an unexpected recession in Denmark. Perfectly timed to bring about the short positionss for a nice slaughter on a beautiful Monday morning. This is one of the most treacherous markets to trade but if you understand who runs it and how they do it then the surprises are more expected than not.

Of course their nemesis gold and silver are struggling today, but the anti-ponzi game will eventually succeed....maybe just not a monster day this day. Miners should gain some traction with general equities but the real action should be in the energy plays today. HNR ATPG SGY WPRT NBR.

Watching the movement in crude oil is like watching a slow train wreck. This economy cannot sustain this price. I drew some channel lines this weekend and came up with oil crossin over 120...If it does we are all toast this year. My guess is they will not let it go there but they are fighting a global liquidity crisis and could actually fail at preventing that climb. Just unbelievable that we could sustain that price.

Only a postulation but right now the chop and sideways action predicted through June is looking good. I don't trust any of it but I have to play the charts and the miners look good in the intermediate term ...short term we could get a few days of sideways action on them but that would be your chance to accumulate a small ammount. Remember as usual we have a risk of another leg down on them but the charts say they go higher. With POMO for another month it certainly could be. Watch EXK AG SSRI SLW EGO GFI etc. EGO and GFI have the least downside risk. gl

"Whoever controls the volume of money in our country is absolute master of all industry and commerce...and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation or depression originate."
- James Garfield


http://www.zerohedge.com/article/preparation-feds-last-doubling-down-david-rosenberg-believes-qe3-will-be-nothing-short-opera


Operation TWIST


Saturday, May 28, 2011

THE WHOLE ENCHILADA update II


CONfidence. That's it. That's the whole enchilada. Without it the Ponzi is finished and they know it. If you remember back in early 2008 I warned (on SKF) there was a massive run on the banks and that confidence in the system had collapsed. Some of you here today knew this and like me tried to short the banks. Even knowing this was occurring it was still hard to beat the Ponzi at their own game...the market. After all the dust settled in mid 2009 you could look back and see the genious and duplicity of their actions. Certainly anyone that believes free markets were at work needs to go out and have their lobotomy checked. It was a masterful take down of a bloated pig while the smart money bailing out of every paper asset they could. It was shear, unadulterated panic by the dumb money in late 2008-2009. Things got out of hand for the Ponzi as the system washed out globally but all in all they were able to control their landing and establish a "bottom". They even had their CNBS market experts making sure that the game was on when they called "the bottom".

The damage to market psyche was tremendous and they knew it would be a long road back to try and restore CONfidence. The real truth that most do not understand (I know that some of you here do know) is the real power always understood the restoration of market psyche was NOT going to happen. At least during the next few years. They knew that this was the Grand Poobah...The Big one....The Grand Supercycle. They knew they could bring the market back to ANY NUMBER THEY WANTED. Do you get it yet? Remember when individuals asked the obvious silly question back in 08-09....If the Fed can print money why not just buy stocks and make the market go up??? Well guess what.

So here we all sit. Staring out across the landscape of a "recovering economy" or staring out at the abyss. Which is it? If we are staring at the former then why do we have 50 million Americans on food stamps. Why is our U6 unemployment at 16%. Why have our home prices dropped more than home prices did during the Great Depression AND WORSENING? Why did a million people apply for the low level McDonald's jobs this year? Why are most leading economic indicators starting to deteriorate again?

Market participants will gradually be destroyed over the next few years. It has to occur. Until then the ones "on the inside" get to pick over the scraps as the remaining participants.... retail and non Fed hedges get slaughtered.

Fiat currency WILL survive. Make NO mistake. In what relative value and which one is king is anyone's guess. I'm not that smart. Many assets such as energy, farmland, water, etc. will also have greater value when all the dust settles. And of course the "real money" will be fine...gold and silver. This will be a wicked unwinding over the next few years so I hope you understand that participating in this market is not going to be for the faint of heart. Right now the game is still about CONfidence and that means no matter what they tell you about QE2 ending the monentization is NOT going to stop. At least not until the "pain" of stagflation and its cost of essential DEMANDS it stops and we are not there yet.

update I http://news.goldseek.com/ClifDroke/1306519695.php

update II Celente interview.. http://radio.goldseek.com/







R.I.P. Mary....


Friday, May 27, 2011

GREECE PLACED ON DEATH WATCH!! updateI

Fitch placed Greece debt in the toilet tripple Z negative about 3am and the futures tanked. They quickly had the brakes put on them and the news was whitewashed as to its effects. Obama met with members of the European Union about the same time and was literally told their entire debt problems were only Greece and to go foch himself and sit down. And I thought for a moment in the middle of the night we had a problem.......never mind. I almost have to laugh when I watch these machinations. Its comical to realize you are watching a swarm of rats swimming upstream in a torrent of raging debt water. You know they're not going to make it but you are mesmerized by their paddling and just can't stop watching the action wondering and waiting when the carnage begins.

Its similar to watching the precious metal trade except in reverse. You know the cabal is furiously beating every rally back on the metals trade to protect the fiat CONfidence game. After all if they can't devalue the currency then they can't keep cutting the mutton off the sheep. Its just amazing to see how many of the sheep still don't get the precious metals game. They have been so effectively conditioned to view this as an anachronistic trade that some even ANTI-ponzi traders fight the gold game. Somehow they view it as part of the ponzi. You would think with all the information out there they would take the time to study this. Apparently they are too busy looking at the same charts and EW that the ponzi is using to stick up their asses and not analyzing the trade that could sustain them through this meatgrinder of a market. Oh well... you can lead some people to the water but blah blah blah.

Where are we today? That's easy...the same place we were yesterday and the day before. We're in a trader's market. Its being sustained by the monetization to kick the can down the road so that a political promise to the current administration is kept. They could really care less about the promise but the do care about the "deal". The deal is this. You do not prosecute. You pour all your country's future into the financial industry and military industrial complex. You create a level of debt for your populace that is the maximum sustainable level and we will take your last drop of blood. THEN and only THEN...will we turn off the spigot of liquidity. AND you can COUNT on that happening. It will get turned off. When it does YES my friends GOLD will correct as will ALL of the commods and equities. THEY will crash. It will be very ugly and you will not be cheering any of this.

For now however you are playing the game so keep on enjoying this time. Its running out just as the charade of a recovery is running on borrowed time. In fact CNBS has reached the point of absurdity with its constant attempts to put lipstick on this pig.

Remember they have another limiting factor besides nature.....and that is the price of essentials. The last year was only a prelude for what is coming. We've had a nice manufactured and expected respite in prices......not nearly enough but at least a little breathing room. It won't last long. Ben has no choice. Monetization must and WILL continue. As it does and this reality sinks in then you will find a continued migration to the PM trade. Energy plays in ATPG SGY NBR WPRT HNR etc will continue to be havens.

I'll be watching EGO GFI ANV GORO SSRI SLW HL AG EXK PZG GPL in the miners and I suggest you have your core here. If you don't like these plays go to PHYS PSLV......you should be fine at the end of the year. You get NO guarantees but it beats the hell out of this devaluation game... gl

update I........ absolutely must watch ...get past the commercial and watch the whole thing......absolutely unbelieveable....MUST SEE STUFF

http://www.cbsnews.com/video/watch/?id=7361572n

Thursday, May 26, 2011

SOME THINGS CHANGE

But not the forecast for this year. It still is going to be a trader's market. Just like 2010 was. The trick is to know how they are going to do it. They know. Just look at the recent bear call by Goldman on commodities. just a few, short weeks ago they made that very bearish call, sending oil silver etc. plunging. Of course they were short on their own prop desks as were their satellite hedge operatives. Then magically they reverse their bearish call and go bullish on commodities. Now that was one of the shortest major market calls yet.

What caused this sudden reversal? Did they see a sudden shift in the economy? Did they "re-analyze" their data and find that it was not bearish but bullish instead. Maybe it was something more ominous.....perhaps the "shakedown" er shakeout of the commodity prices for the ponzi created some serious problems for them.....ie LIQUIDITY... My guess is they would have liked to take prices further down but were running into some liquidity issues and had to put the brakes on the drain. This doesn't mean we won't have some continued downward pressure on commodities for sometime...probably through the entire summer. But during this time there will be rallies that are tradeable, particularly in the precious metals and energy.

Don't forget the energy plays HNR (Soros is still buying last quarter) WPRT (a monster) ATPG (a monster)....NBR...SGY..

We still have another month of scheduled POMO. This should provide at the minimum support until it expires. After it expires we may get another "shakedown" for another cry from the masses for the Fed to step in with QE3. One way or another they WILL have a QE3...that is an absolute must. Otherwise last one out of the stock exchange can turn out the lights.....because the ponzi is over.

Miners still looking like they have some technical traveling to do but I trimmed a bit off my holdings yesterday for a trade if they pull them back a percent or two. This is a tricky game and if you have a core you will be rewarded this year. SSRI SLW GPL EGO GFI ANV GORO AG EXK HL.......yum yum. gl all

Final note.... Google blogger doesn't like us I guess. So when you try to comment go into your google account (it may come up when you commment) When you sign in MAKE SURE YOU UNCHECK the "keep me signed in box" .. There is a glitch that will not allow you to comment if the box is left checked. Lets see the comments again thats what makes this work for us..

Wednesday, May 25, 2011

ITS HOPELESS updateIV and Mark Haines

Or is it? As the end of QE2 nears you have to ask yourself what will Ben pull out of his hat next. He has no chance. Its all over. Certainly we are going to have a massive liquidity crisis soon and the market will crash. Maybe....but don't bank on it. He knows he's walking a tight rope over the crocodile infested waters, but don't worry he knows it your ass that's ultimately going in. This will not end well but I intend to keep trading this with the same strategy that brought me to this dance. Until Ben truly pulls the plug on the monetization I'm still in the PM trade. Right now the miners are in consolidation. Professional money managers and agents of the banksters are accumulating these miners on this consolidation. I believe it may have another leg down but right now I have to have a core. Keeping 50 to 60% in cash should provide you the ability to add if we get the fear zone breached with a real doom and gloom dump. If we hit 1220 on the SnP this summer then that should provide Ben the necessary fear to reinstitute a major monetization pump for the end of the year and one more Fed victory dance. Without this current beatdown of commodities the next round of monetization would not be possible. Remember the limiting factor for monetization is the price of ESSENTIALS. Even though the current level is straining the Faux Recovery it has NOT broken the back of the little guy yet. It will ultimately and then the real money will flush this stool of turds with a real deflationary collapse. I am not in the camp of hyperinflation first and Joe is not either. That doesn't make us right, but that is my best judgement on our outcome. They like the current administration. Make NO mistake about that. O has played ball with the bankers and he will be supported. Do not buy into the hyperbole that O is a socialist. He is a CORPORATIST. He is controlled and will remain loyal to the oligarchy.....PERIOD!! You have to invest with a knowledge and awareness and that gives you an edge on the outcome of this game. Europe should reach the brink of collapse soon. It will be yanked one last time out of the fire before a major default. Ultimately it will default and the Euro will be toast....but we will have one last can kicking rabbit pulling last minute scam to save it for tomorrow.

Stay in the game or go ahead and just grab your physical and food stores and tell um you've had enough of the casino. I've grown fond of the game and know ultimately I will be disappointed. I can live with that. If you can't ....get out now. You know the drill trade the fear ....buy the fear sell the exuberance. gl

update.... unable to get comments up and runnning.....very sorry will try and get it fixed......try anonymous...but even that is not working....

Mark Haines .....Just a brief commentary.... I have watched Mark Haines for 25 years. He was at times arrogant...irrascible....belligerant....and a myriad of other negative adjectives....but I always found him to be a genuine human despite the fact he was an attorney by education. He GAVE A SHIT about integrity and he knew the limits of what he could say in a corporatocracy. He knew and he would cross over the line anyway. That is courage. Did he go all the way and get his ass fired??? NO....but he pushed it to the limit and beyond at times. Good luck to you Mark and you will be terribly missed by this observer. YOU HAD COURAGE. More than I can say about the rest of the schmucks on CNBC.

from JDA .... http://www.jrdeputyaccountant.com/2011/05/dont-bet-on-fed-pulling-out-any-time.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FOVWr+%28Jr+Deputy+Accountant%29




Must read.. http://www.kitco.com/ind/willie/may252011.html

Tuesday, May 24, 2011

FOCUS update

Many investors seem confused at this point, which should be expected. We are now over two years into this bull and of course it flys in the face of reality at this point. That is the game. Why is everyone so droll? Because you are trying to use "reality" as your guide for the stock market. This is the mistake of the retail investor. They believe the hype from the MSM that tells you the stock market is the most rationale reflection of the real economy. HA! So let's see where we are since its time to make money.

1) We expected a severe correction in silver almost two months ago .... check

2) We expected to have the eurozone reemerge as the source of fear this summer... check

3) We expected a strengthening of the dollar as a result of number 2 and whatever multitude of fear issues they could throw in the pot (Middle East, North Africa, Icelandic volcano etc).... check

4) There would be an accumulation/consolidation phase for the Precious Metals that could last for weeks..... check

5) The market overall would remain in a range with probably a significant correction to justify the need for QE 3....... ________ stay tuned.

We are at that finely tuned aspect of market manipulation that is making a lot of bulls very nervous. That's good if you are expecting this PM trade to gain some traction. There is a lot of negativity now in the metals trade. We have shaken the trees and now the stronger hands are taking over the trade. We could get further shaking over the next couple of months ( which I expect).... but right now we are in a range that I am more comfortable investing in. The miners have had a three month correction and are sitting at very nice levels. This is where the longer term traders here should be building a nice core in oversold miners like EGO GFI GPL PGZ ANV SLW SSRI..... Paulson is....Soros is...... The headlines are that Soros is selling. In fact he is. He sold GLD ENTIRELY!!!!! Its and ETF that is rumored to be a fraud. After he sold his large holding it confirms to me it probably IS!

I am not surprised by the destruction of interest in the market by the public but if you are asleep by the tick tick of the watch they are swinging in front of you then you had better wake up. Use the fear to accumulate some of the miners and trade some at the same time if you wish. We could even get a nice bull run in the market to put the icing on QE 2 and destroy the bears right here. Ben would decare QE 2 victory once and for all. Throw in some more terror and ouila we have QE3.... One way or another we will have some form of QE3. It may not be called that but it will be monetization. There is no choice for the weak kneed politicians. It may be an ugly summer so be prepared for some swings. gl

comments are down from google......again.....nice day in the metals.....

Monday, May 23, 2011

AND THEN THERE WAS ... FEAR

On cue the summer Euroland fires are being lit. Not only are they bringing back the Eurozone troubles to boost the dollar but they are bringing back our old friend on cue the Icelandic volcano. These guys are good. Sorry about the gratuitous volcano but it is amazing. When you are balancing global economic collapse you need to coordinate and manage your catastrophes to the best of your advantage. After a very carefully orchestrated weakening of the dollar over the last year it is now time to change trend for awhile and what better time to revisit the PIGGS. Sprinkle in the political strife in North Africa and the Middle East and we have FEAR. Fear as far as the eye can see. Fear like few people can imagine. Yes the Mainstream Media will bring up the various videos soon of riots spreading across the Euro Continent as the peeps fight the PTB to prevent further austerity measures being imposed upon them. There is an element in Euroland telling the countries with the most highly socialized sytems that they must bear the burden of paying back the debt to the banks. Of course the real battle is how the bondholders (the real power) don't take any haircuts. The real game is to continue the the process of keeping the Euro peeps debt slave.

Of course there is one problem. There is NO WAY Euroland can maintain its programs especially in countries like Greece Italy Spain and Portugal that give them retirement in their early fifties and provides 8 weeks of vacation to all of their workers. You may wonder why I am not knocking their socialized healthcare. Actually their system is better than ours by a factor of 100%. They have only 8% of their GDP on health care we have 17%. Damn....there I go drifting off the subject. Very well lets look at us. Our unfunded mandates put us a debt to GDP ratio that is actually WORSE than Greece and I am writing this entire essay laughing at the irony of our hyporcrisy. But you must understand this is ALL manipulated.

Nothing has changed ... I expect EUO to continue to perform well as this dollar strengthening plays out. Perhaps we break 80... It doesn't matter... this is your accumulation phase for Gold silver and the miners. Don't let the noise impede you. Watch EGO GFI ANV GORO SSRI SLW GPL. Have fun and GL.

Saturday, May 21, 2011

END O DAYS

I'll keep our post brief today since I am in preparation for the rapture at 6PM. I need to do some checking to see if its a serial time zone departure today or there is a specific time zone that will designate the end of the world. Apparently there is supposed to be major earthquakes initiating this event. Well I guess one of my neighbors didn't buy into this theory since he torched his 8000sq ft house last night that he was building and had run out of money on. Did I say he torched. I meant to say it mysteriously burned to the ground at 1am. The world will most likely NOT end today but we are certainly seeing the frayed edges of a society based on quicksand economics starting to come unraveled along more than just its edges.

Many mom n pop business are closing or just hanging on now clinging to the belief that this is somehow going to get better. Now before you challenge this statement with a "do you have to be Soooo gloomy" I just want to say look around your own circumstances and environments. Do you see anything that looks like we've changed our ways? Oil is over $100/bl and we are still seeing families making 40K a year driving gas guzzling SUVs and bitching about the price of gas. Are you KIDDING ME?? We have troops on the ground in multiple Middle Eastern Countries dying for this gas just to keep its price at that level. You are spending TRILLIONS to keep them planted in that sand. Heaven forbid that we brought them and the "private contractors" home to this godforsaken economic moonscape. Then we would have battle hardened, explosives experts by the tens of thousands in country here with a major ax to gring and NO JOBS. Oh wait....they can work for the government hunting down the citizens and disgruntled vets trying to protest the state of the state. I love it. I glossed over the fact that we are presumably "over there" to prevent "them" form being over here. Are you really that stupid. I recently talked to a friend of mine from Texas about this. In fact he brought it up to me and asked me about it. He is an independent minded ex-Republican and his words to me were "Do they think we are that f__kn stupid? We are killin those sons o bitches by the tens of thousands over there. Men women and children. They are going to be trying to pay us back for this slaughter for decades." How can you argue that logic? Unless you are brain dead....which the majority of Americans are....its obvious. WHAT WOULD YOU DO? Imagine going to town today to buy groceries and there were Iraqi tanks at each of your major intersections. Imagine watching your wife getting searched by a Iraqi soldier before she goes into your local Baptist church. Imagine seeing your teenage daughter and her three girlfriends shot to death when they drove up townand mistakenly ran a red light checkpoint because they couldn't understand the command to stop and were machine gunned by armor piecing rounds that left their bodies shredded.

Oh well enough of that. Lets get to what is on billboards here and all over OUR news today. The ranting of a senile old evangelical preacher whose claim to fame was he predicted the end of the world in 98 and was wrong. Now he's at it again because this time he is sure. The mainstream media is all over this. It takes the attention of the peeps away from reality and when his bullshit prophecy fails they will all nod knowingly that they knew it was bullshit and feel reassured that the PTB still have control of their wretched existence.

So once again we can all relax and watch the daily kabuki theater as the puppet stings maintain the minuet dance of obfuscation. The neocons holding their spell over their unholy alliance with the evangelicals and the anti-abortion crowd and the homophobic anti-gay crowd. All dancing around the campfire of the oligarchs that are sitting back laughing their asses off at how easy this game is. No its not the end of the world. That happened a long long time ago.



Due to the current financial situation caused by the slowdown in the economy, Congress has decided to implement a scheme to put workers of 50 years of age and above on early, mandatory retirement, thus creating jobs and reducing unemployment. This scheme will be known as RAPE (Retire Aged People Early). Persons selected to be RAPED can apply to Congress to be considered for the SHAFT program (Special Help After Forced Termination). Persons who have been RAPED and SHAFTED will be reviewed under the SCREW program (System Covering Retired-Early Workers). A person may be RAPED once, SHAFTED twice and SCREWED as many times as Congress deems appropriate. Persons who have been RAPED could get AIDS (Additional Income for Dependents & Spouse) or HERPES (Half Earnings for Retired Personnel Early Severance). Obviously persons who have AIDS or HERPES will not be SHAFTED or SCREWED any further by Congress. Persons who are not RAPED and are staying on will receive as much SHIT (Special High Intensity Training) as possible. Congress has always prided themselves on the amount of SHIT they give our citizens. Should you feel that you do not receive enough SHIT, please bring this to the attention of your ongressman, who has been trained to give you all the SHIT you can handle. Sincerely,
The Committee for Economic Value of Individual Lives (E.V.I.L.)

PS - Due to recent budget cuts and the rising cost of electricity, gas and oil, as well as current market conditions, the Light at the End of the Tunnel has been turned off.

Friday, May 20, 2011

CONSOLIDATION

If you are in the precious metals or commodities you might want to remain somewhat cautious. But if you want to try and trail the dragon then you may want to be nibbling on the dead carcasses littering the battlefield of gold and silver miners. This is certainly an accumulation level for many of these miners. EGO GFI SLW GPL EXK all have blue lights flashing. Will there be further blood shed here? Probably but this may very well have been the bottom in this correction. If you had reduced your core holdings then now is a reasonable time to start building it back. Some of these equities have corrected almost 50%. Unless we are going into a complete 08 market crash then this should provide an excellent entry point. Should you go ALL IN here? NO... Will you wish you had gone all in here in a six months? Maybe.

I am purposely being "wishy washy" on the trade here. NO ONE knows just how the trade will work out from this point...except the "house". They know what the shorter term trade is. Even for them there may be a "doubt" entering the game. At 0300 overseas gold was trading up 12 dollars. Four hours later the "house" had pushed it into the red. Silver was up strong too overseas then was pushed red. Just prior to the open gold is turning solidly green. There is ample evidence of heavy overseas buying of PMs. This is not something that is going to go away. At least not until WE stop our monetizing our debt. The same applies to other sovereigns and I don't see this happening from a political reality until we have much more upside in the price of essentials.

Until we see blood flowing in the streets on our own soil will the debasement of our currency stop. Simply put....until the public demands it .....will it happen. Now understand this very well. When YOU the public demands that Ben stops printing....your world is going to change very drastically. Be aware that when you cry for the dollar this game is going to take on a new and ominous course. It will be AUSTERITY. Forced austerity. It will be the long, cold, dark, winter. It will be the K-wave.....the Kondratieff Winter.....the end of the Super Cycle....the washout. Your silver spoon will be pulled from your suckling pig's mouth and your soft, easy life is going to be altered forever. Your trading in this stock market will end. gl to all

Netty lectures O .....let's the prez know who is in control.....hehehe.....if you are aware of diplomatic protocal then you immediately recognize the level of insult......look at O's face while he is being dressed down. I don't think there will be any further discussions on the "two state issue" this year...



Thursday, May 19, 2011

STAGFLATION !!!!! BREAKING NEWS update

Stop calling it inflation. Big difference. After hearing the one hundredth "expert" refer to our current economic condition as inflation, I had to throw out a thread on just where we are in this cycle. This is NOT inflation. Unless you somehow can convince me that assets are now expanding in price with the velocity of money now growing exponentially. Unemployment is still in the tank. None of our structural impediments are being addressed by our politicians OR the real power that rules all. In fact the "true power" continues to shift their manufacturing base to developing countries, draining the life blood from this countries stable employment base.

Structural educational failures continue to serve as an anchor to any future growth that we might see in technology and a competitive work force in a rapidly expanding developing nation skilled work force. Our ability to produce competitive workers in a dynamic world is in danger of dropping into the abyss. I do NOT see us grasping the magnitude of this problem. I think we will continue to sit at the table of stupidity looking at problems in education such as the cost of college and the debt that has become an impediment to some of our most talented middle class families, and wondering HOW we got here. This problem requires action now. The remedy is going to take years to innact and we need to get started now before we fall behind even further. Did you ever imagine that your country would reach the point that it "Applauded" 56 thousand McDonalds jobs as if this were and "Accomplishment". These are the jobs of a failed state. If these had been 56 thousand high tech or manufacturing jobs then perhaps we could have cheered.....but to actually HEADLINE these jobs??? How long are these Putz's going to whistle past this graveyard????

Today's market news.... continued PM trading range with short term trading the order of the day. Silver should push to 39 in this swing over the next two weeks.....it might see 32 first but then that should cover my ass. You should have at least 50% cash here and not be too quick to try and trade your core. I think the miners are close to a bottom but by the time the beat the trader's brains in, it will seem like they have fallen another 50%.... SSRI GPL SLW EGO ANV GFI EXK PSLV ......thats the game gl

BREAKING NEWS..... GDII news has learned from Fed insiders that QE2 is to be followed by a new program that will go by QEi QE to Infinity.....

Wednesday, May 18, 2011

TWO PONZI DEATH CARDS

Gold and its poorer cousin ... silver. They must be stopped. Their headline rise is a threat to the entire dollar fiat ponzi. Creating value out of thin air cannot occur if your currency weren't the world's reserve currency and this is the critical instrument that has to be protected. This currency is not only inextricably linked with other major fiat but it is unfortunately linked with gold and silver. Fiat has NO value except the CONfidence that the piece of paper that can be printed out digital thin air will be useful as an exchange for something of value. The danger is that the holders of fiat lose CONfidence. This loss of CONfidence can take several forms but one issue is TIME. If holders of fiat recognize that it has no value due to decay then they will move from certain fiats that are "decaying" to fiats with "less decay". This is where fear begins to enter the equation. FEAR is what the fiat ponzi must fight. This is why they are constantly REASSURING you on the tube everyday. You must have noticed. Its become a daily mantra. It has always been there but its even more obvious as the war is waged to combat this insidious beast....FEAR.

If the CONfidence is lost in King Dollar as Kudlow and others have named the ponzi currency leader then the game is lost. There is only one thing that is going to prevent the total collapse of the dollar. Ironically that will be FEAR. No....not fear in the loss of value of the dollar...but fear that you will not be able to get dollars. Ahhhh....the irony of it all. And yes.... this is not only possible...but many believe inevitable. THIS will be the deflationary collapse. When liquidity EVAPORATES. When Ben turns off the presses due to an extreme stress on the system with the costs of essentials begins to strangle the economy. Ben uses the "core" inflation barometer, but the real inflation rate obviously relies upon food and fuel as an impact on the real economy. Ben knows this. This is why they are attacking commodities now. They control the prices of commodities through the futures markets. They always have. Unfortunately for them they do not have absolute control and eventually the real price discovery will occur. For now though its in their ballpark and until the foot is taken off...commods will be kept in the doghouse.

King dollar is in trouble. Our empire is under pressure and many large countries have become disgusted with our shift to the World's bully. As more trade agreements are reached in their own currencies the status of King dollar will slowly diminish. There will be one last gasp for King dollar. After the deflationary collapse/liquidity collapse.... You better be getting into any asset BUT the dollar. gl all

Tuesday, May 17, 2011

THE RAPE!

No, not the one on the headlines right now. That's just foreplay in the world of Central Bankers. The irony of the arrest of DSK was not missed on many of the enlightened/aware meebers of humanity. That may only comprise a few percent but its still tens of millions of people. After decades of abuse by the IMF in developing countries to have their head arrested for raping a maid in Manhattan is almost an afterthought.

No..... the rape was the one comitted by a contingent of oil traders in one house. This trading group conspired to destroy a group of short positions in oil by running the price up through 100 and crushing what little hope that millions of people had of getting over the hump this year. I have no problem with these "traders" conspiring to screw these short positions. After all that's what makes a market. What makes this even more odius than the 2008 short squeeze on a major oil short position is the fact that it was essentially these tax-payers that provided the bailout for these traders to even exist. AND....its essentially taxpayer money that is providiing the ZIRP/POMO free money that is being distributed to these traders to provide the paper for them to throw onto these positions virtually risk free. AND....the fact that this particular trading house sits right in the middle of the daily Working Group meetings that determine how to manipulate the CONfidence that is being "gradually restored" to the American Consumer.

Can you digest what was just said? These slimebags just let their henchmen rape the very shills they were trying to set up...... How can you not love these guys. Here you are trying to paint a "recovery"... lying eveyday about how things are improving. Painting a green tape on the market. Fudging unemployment figures and earnings reports. Planting daily news stories and controlling the real disasters in the news.....and your very own soldiers are raping your shills in the back alley. Just too funny. Greed never ceases to amaze me. The impact of these oil prices will not be fully felt for another quarter but they are being felt now in earnings.

OK back to the game. Today is going to be important if gold and silver leak then my guess is they are going to go significantly lower over the next few weeks. If silver breaks 33 then 28 is in the cards. Gold wants to get to 1420. The bugaboo in all of this is the Eurozone. Gold is going to gain traction if Europe starts to burn and silver will follow quickly. Right now they are talking Greek default/restructure and that is going to mean even more austerity talk. We are in very dangerous territory and I cannot stress enough to now to have cash on hand. As much as you can. There is trouble coming and its coming faster than I originally thought it would. gl


Monday, May 16, 2011

MONDAY HANGOVER

Many members of the cabal are perplexed by the actions of their IMF head. They are asking themselves the questions over and over. Why would a well educated, very rich, very powerful Frenchman in a posh Manhattan hotel suite......be taking a shower? These questions just don't add up for the puppetmasters. Certainly they didn't appreciate him chasing the young maid around the hotel suite....at his age he could have had a heart attack. Typically he would have just stood still and waved a handfull of fiat in the air, waiting for his conquest to be lured back into his lair. I'm sure these matters will remain a source of consternation for his cohorts in the halls of wealth and power.

Meanwhile back at the ranch miners were showing early strength and and I added a small GPL EGO PSLV AG. The rest of the complex looks tepid.

Remember a lot of technical damage has been done to the commods and precious metal complex so a consolidation range for a few weeks would be very healthy. As usual I never trust them so a small core position buildup is now in progress. I may be a "buy and hold" guy now......hehhehe. We'll see. Silver would be very nice if it touched 40 and pulled back this week. Lets see if they can pull it off. Gold should remain steady in a range bound area for several more weeks. 1430 would be nice again.

have a nice day and gl

Sunday, May 15, 2011

LADIES AND GENTLEMEN...START YOUR COMPUTERS

Unlike the past several weeks this week opens with new promise. Of course in this casino new promise can sometimes end in bitter dissappointment so as usual one must do their own DD. What I can say now is the elements that made me so negative on the precious metal trade a month ago have now had some breathtaking corrections.... especially in the silver trade. Silver alone is now down over 30%. In anyone's book that is a nice discount. Of course that doesn't mean it can't get cheaper and my hope that they can break 30 is still in play of course. If they do break 30 and they do it this week it would bode well for a nice trading bottom........certainly an amazing short term trading entry point if it were to occur.

What really has piqued my interest is the $HUI chart. We are resting at very tempting levels for at least a trading opportunity in the miners. This has been a very extensive, time consuming beatdown of this trade and has taken a lot of steam out of the 2010 end of the year rally in these miners. If I am right we are getting very close to a bottom in these miners. Ideally we should get a few days more of chop with a break above the 200ma and a retest before setting a new higher low confirming a nice turn up in these stocks. If you are a longer term swing type trader then this is certainly a place to buy some of the less beta plays like EGO GFI and HL. If you are a shorter term trader I also like these stocks here for at least a bounce. My beta plays on silver are still SSRI and SLW and they are also in that buy zone. As usual these set ups can be bull traps to entice you into a further chop shop to shake you out but if you are going to play in the casino you have to take your positions when these set ups present themselves. Am I calling a bottom? NO NO NO. I'm only saying if you lost your core a month ago then you can reposition yourself here. If you are a trader it doesn't get much better than that. The downside here is that the dollar appears to be strengthening further and QE is soon leaving the stage. I contend that QE will be reinstituted in some other form. I am not alone in this belief. Politically it will fall under some other nomenclature. I am not going to play the alphabet game in this thread but they have NO choice but to continue to monetize this "recovery".

We are in desperate straits and they are not improving except in the minds of the talking heads that are placed on the your TV screens everyday to try and restore the prole's CONfidence. Nothing has changed in the last two years. We had a chance to address the structural damage done to our system by the corruption and excesses created by a finacial system gone wild.....but that wasn't in the cards. Now as investors we have to recognize the cards that are dealt and play them.

One last admonition.....we are finally getting fear in the silver trade and this is absolutely one hundred percent necessary for this trade to move into its next phase. Technically it needs to repair some damage so I would like to see some time spent in the 33 to 49 range. Let's see if this happens. If we get a nice cup and handle over few months then it could be a great end of year set up. This trade was too easy but now its in the zone I am more comfortable with. Do you throw in "all in" here?? No, but you can add carefully or start a new trading core position. PSLV is warming.

Finally soft commods....in particular sugar. I was asked recently about SGG. The 65.8 low was a 61.8 fib correction from the big move last year to the high 103.5. If you wanna roll um then this is in play now. gl gl gl.... don't get heavy in it.

IMF EMERGENCY LIQUIDITY INJECTION FAILS

Apparently the IMF Chief...Dominique Strauss Kahn... carried his mandate too far in Manhattan this weekend. Confused over his duties as chief of world liquidity he overstepped his purview with his hotel maid when he came out of his shower naked and discovered her in his room. Believing apparently that she was there to recieve an injection of liquidity he chased her down the hall and allegedly tried to sexually assault her in an attempt to maintain his mandate. In spite of her struggles the IMF Chief persisted allegedly forcing her to perform a sex act. She allegedly escaped when he tried to pull off her panties and reported him to her supervisors. He had already left the room leaving his cell phone behind. Ultimately he was pulled off his first class seat at the airport by the NY Port Authority. Surely there has been a misunderstanding and once his bailout is completed and the appropriate monetization is completed then the unseemly affair will be over. Until then the NYPD Sex crimes division will complete their investigations.


NY TIMES

The leader of the International Monetary Fund was pulled from an airplane moments before he was to fly to Paris and was being questioned Saturday in connection with the violent sexual assault of a hotel maid, police said.

Dominique Strauss-Kahn, a possible French presidential candidate in 2012, was taken from the first-class section of an Air France flight at John F. Kennedy International Airport by Port Authority officers and turned over to Manhattan detectives, The New York Times reported.

thnx jd...

Saturday, May 14, 2011

THE WEEK IN REVIEW

In a sentence......controlled, globally coordinated commodity takedown. Is it the end of the commodity trade? NO....not as long as you can read the bottom line. What is the bottom line you might ask? 14.6 Trillion of government debt. That is your headline today. But its not the 800lb gorilla. Its the state municipal and unfunded mandate. They are the ones that are gonna kill us.

Here are a few facts to consider: (Source: CIA Factbook)

1.The U.S. GDP is presently stated to be $14.7 Trillion. Consider that this number includes Government (Federal & State) of $6.7 Trillion. That leaves us with a non-governmental economy of a mere $8 Trillion, net.
2.This 8 Trillion Dollar Economy breaks out this way: Agriculture – $17.6 Billion, Industrial Output – $3.3 Trillion and the Service Sector – $4.6 Trillion.
3.U.S. Industrial Growth – 3.3% (World Ranking: 98th).
4.U.S. Federal Spending (2011) is estimated to be $3.7 Trillion. State & Local Government spending projected to be $3.2 Trillion.
5.Total U.S. Federal Debt: $14.3 Trillion (stated). Although if you add to this number the Federal Government Guarantees under TARP, FannieMae & FredieMac, FHA and the Global Banking System Float by the Federal Reserve then we would need to add, at the moment, an additional $9.3 Trillion. Lastly, if you really want a view in to the completely absurd then of course you will need to consider the Federal Unfunded Mandates toping out at a hefty $112 Trillion. Lastly,
6.Not included in the numbers above is the total Debt and Unfunded Mandates for the individual States presently slightly over $4.7 Trillion

Now that you have spit your rice krispies all over the room....do you really think that they have a grip on this? SERIOUSLY!!!! If your answer is the obvious then you must agree that there will be continued monetization of this disaster.

The question will be at what point and in what form. Right now we are in a prolonged dollar move that will reset the EURO/USD.... I cannot tell you how long or how strong but as QE2 expires there will be a serious effort to manipulate public opinion in favor of more Fed intervention and strengthening the dollar should accomplich a much needed correction in commod prices and equities. As QE2 finished out we may see a move of equities over 1400 SnP before the final flush. After all....it would put an exclamation on the success of QE for the Fed (haha) and provide a nice diving platform for a vicious correction. You know...one of those corrections that drag in all of the Faux bulls as bears....especially the Gartman types...proclaiming the end of humanity. It will be beautiful. AND I might even be short if we got up into that zone in June.

That is all speculation so what is the real play? Longer term the Gold Silver play is intact. Commods....especially essentials may see a severe beatdown. Energy plays would take a hit. They are really needing a bounce here btw....which is why this market COULD be going up in June. All in all its a chop shop here but if you have a core of miners ....hold on. Gold miners like EGO GFI starting to blink blue light buys....so lets watch..

Friday, May 13, 2011

THE DEATH OF THE MATRIX

Must read.... This author ...Maybury is "known" by some of the "inside" players....Joe knows him well.....I suggest all of you take the time to read this interview with him..

http://www.lewrockwell.com/orig10/galland28.1.html

http://www.chaostan.com/gormaninterview.html

BACK UP

Hooray.........comment all ya want now

Thursday, May 12, 2011

THE GAME... TAKE UM DOWN

Any good ponzi only dreams of one this powerful. Complete and absolute power. What do you do when your money printing creates an unwanted side effect, like rising energy prices? Stop printing? If you did then the precipitant drop in the equities market would be self-defeating. Let's see .... what would you do in the greatest controlled markets ever???

from ZH and Reuters... •( RTR ) 04/21 02:30PM OBAMA SAYS HAS ASKED ATTORNEY GENERAL TO CREATE TEAM TO "ROOT OUT" FRAUD, MANIPULATION IN OIL MARKETS THAT COULD HIT GAS PRICES
•( RTR ) 04/21 02:31PM OBAMA, IN PREPARED REMARKS, SAYS TEAM'S FOCUS WILL INCLUDE OIL MARKET TRADERS AND SPECULATORS
•( RTR ) 04/21 02:31PM OBAMA SAYS WILL MAKE SURE THAT NO ONE IN OIL MARKET IS TAKING ADVANTAGE OF THE AMERICAN PEOPLE FOR THEIR OWN SHORT-TERM GAIN


You direct a surgical attack on commodities. You declare a "froth" within the MSM. Shows like CNBS have analyst after analyst coming out to tell you how overvalued oil is due to a drop in demand (after having them tell you oil was going to 150/bl just a few weeks ago). Set up the shorts and crush um like bugs.... Frankly I don't give a shit about the oil longs. I just wanted to show you how the game is played. The reason oil went so high was two fold.... 1) We are printing enormous ammounts of money that must go somewhere and oil is a defacto currency 2) There were several large short positions that GS wanted and my guess is ....they got um.

The PTB are taking down gold and silver in the AH market which of course has been their M.O. Pound fear into the weak hands and let them choke and puke like the newbie wannabes they are. You should never play in this casino if you don't know the rules. Get out and take your marbles. This game is going to get a lot uglier. I guarantee it. Look for silver to break 30. Gold should get to 1430...I hope. Oil is going to 92 then maybe the 80s

Wednesday, May 11, 2011

WHAT DO YOU SEE?

I see money printing as far as the eye can see. I see a debt service that is growing to such a massive size that the only way we can service the debt is to print more dollars and buy our own treasuries. ANYTHING that even remotely thinks about changing this will result in a deflationary collapse....and Ben knows this. It doesn't matter how many times they try and tell you that the economy is healing it is a mathematical certainty.

You think the economy is improving? Then you need serious ophthalmological help. This is a structural collapse. This is literally thirty years of steady neglect to our manufacturing base that was crafted to create a "new economy". An economy that was to garner its strength from "consumption". It was to be led by a new driver of growth..... BANKING. Bankers were to become the new producer for the United States of Amerika. This was the ultimate outcome for true capitalism "gone wild" (TCGW). As the sheeple were conditioned to accept a number of fundamental changes to their values and perceptions the bankers gradually gained complete control of the government. Over time they managed to completely remove all ability of the regulatory agencies to do their jobs to watch over the inmates. It became even comical to watch the regulatory agency heads leave and take over banking positions paying them tens of millions after they left office. Many then appear on Bloomberg and CNBS repeatedly dismayed how the bankers were able to pull off their coup. I love it.

We were able to maintain the Ponzi of money with a massive injection of liquidity over the last 30 years with the invention of derivatives. They were so fraudulent that Greenspan Summers and Ruben had to destroy the career of Brookley Born so they could grow to the point of destroying our country. Born knew these schemes were a ponzi and she was determined to try and stop them. HA!!

Now I watch as this country slowly goes through its finaly gasps as we try and manipulate this exonomy as it slowly slides to the edge of a precupice of certain destruction. No one is going to step in and pull us out of it either. The surreal daily machinations of "recovery" have reached a bizarre level of absurdity now and the market has reached a laconic level of trading.

Back to the trade......Silver and Gold appear to be trying to form a base. Their "collapse" appears to be over and now the time to heal the damage will be watched for evidence the bottom is in.

Oil still needs to settle in the low nineties..... I cannot imagine a controlled ponzi will allow this to proceed any further.... I guess we'll see.

Many of the energy plays we have here GMXR LNG HNR WPRT HERO have looked very strong. LNG HNR look like shorter term trades. gl and don't worry.....

Tuesday, May 10, 2011

NOT GONNA WORK

Sorry Ben. You are just whistlin' past the graveyard. You can't really believe that you can control the price of commodities with you Margin requirement raises?? I really do appreciate your efforts since I am short oil however, but its not going to work. You cannot control commodity prices with these tricks, but you can affect a change short term. What you are doing however is even more dangerous. You are removing liquidity from these markets. You are killing many of the smaller players who are destroyed by your manipulation. They are leveraged and when they get those margin calls its all over for them......permanently. They're gone. Your big boyz and their satellite hedges are all in on the game so they aren't even scratched....not to mention many are short. Its a grand scheme.

Are you going to raise margins on the grains and live cattle futures??? How about cocoa or sugar Ben? You could really do some good for a lot of hungry people, but then you know its not ultimately going to work. Ultimately the effects of what you are doing will create a much more dangerous market.

We are in a supercycle of commodity price growth and I believe we are looking at five to ten more years of price explosions, so hang on to your hats. This is our future and its not going to be like anything we have seen in our lifetimes.

Gold and silver need to base and they will ( i hope)...lets see where they range....is 33 the bottom??? gl gang


Monday, May 9, 2011

LET'S BE PERFECTLY CLEAR

Maybe..... First this is an ALL OUT effort to stave off a deflationary collapse. There is NO CHOICE but to continue monetization of the debt. Pretending that the economy is stablilizing is an obvious effort to create confidence and help to kick the can further down the road to fulfill promises to the current administration that the economy could be kept on life support to give O a chance for re-election. It may get him re-elected but the patient is going to die. The probability of a hyperinflationary scenario before the deflationary collapse remains small. I do not see the PTB allowing a washout of all debt which is exactly what a hyperinflationary scenario will produce. The trigger signal will be most likely a tightening of interest rates which will be trumpeted by the MSM as a sure sign that the economy is back on track. Most likely by the time that happens....early next year...stagflation will be severe enough that the public will be screaming for the scalps of the pols and Ben knows the brakes are eventually going to have to be used. Rather than a crash ensuing I strongly anticipate that some form of monetization will be used during the intial rate hikes to keep markets....equity and bond. In other words it will appear the investment community gives its approval...HA.

For now our interest remains fixed on the Precious metals trade as the much predicted beatdown of the trade took place and through fear into the hearts of the weak hands. New longs choked and puked up positions for the past as the massively manipulated COMEX raised margin requirements so many times I ran out of fingers and toes to keep up with it. Please tell me you get it now......this is ALL a game........and you DO NOT own this casino. But don't think the casino can't lose with some players and we are trying to convince ourselves we are going to be that player.

I hope that eveyone noticed the news this weekend that Hong Kong is opening its own "COMEX". This could be quite a change in the game. Stay tuned. Will this beome a thorn in the side of the precious metal/king dollar juggernaut? Will the West's stranglehold on the commodity trade finally be broken? Is silver's early morning surge a response to this event?

Pay close attention to the technical movements of silver. if it breaks out over 38 and holds then it is gone. I want to see a hold....This could easily happen because it would leave several wannabe longs on the sidelines wanting to see a more healthy consolidation move here. I know I do. I want to see this market trade in a healthy range for a couple of weeks between 33 and 38.

Gold remains very healthy. With the EU troubles slowly coming front and ceter again, it represents the "safe" trade in more than one way. For the trader that likes to avoid the beta down moves it gives you less of a heart attack than silver. With the EU coming front and center ...several of the gold miners could finally start turning. EGO GFI have technicall been beating along at the bottom of their stochastics MACDs channes etc....ie. they have limited downside and really need to start performing.

GPL in silver has been a nice trade and I will continue to give it a close look each day for movements to trade it. If silver does run off then these miners and PSLV will be my trade. I will not chase it but try and trade it only. I nibbled the last ten days to build a very small position in PSLV and SLW and a couple of others but nothing major. Its still dangerous and your profit has to be protected.

Oil is getting a bounce back....not shocking as some greedy shorts (me) will get a squeeze. I still think we see low nineties soon. I won't bet the farm but can you imagine the audacity of the ponzi pushing oil over 100. The results of this has been devastating to the consumer. It has absolutely killed millions of people. Well...that's the game so have fun. gl

Saturday, May 7, 2011

ILLUSION

Alas....another week in the Great Ponzi passes with bruised and battered precious metals players licking their wounds and still trying to figure out the number of the bus that hit them. Just as they had the greatest power every conceived by mankind on the ropes...battering it with lefts and rights....bleeding from every orifice of its body.....it stands up and biatch slaps the hapless traders that fell for the rope a dope tactic. The greatest power EVER doesn't just slap them it kicks their ass across the ring and laughs while they do it. It then walks over to the battered wannabes and laughingly says......you didn't really think you were going to win .....DID YA??

But it seemed so OBVIOUS. EVERYONE could see it. The JPMorgue was in major trouble with their short position in the COMEX. It was inescapable from all mathematical calcualations regarding the price of silver and their exponential losses. OF COURSE silver was going to the moon. Just one problem....someone forgot to tell JPMorgue they were finished. The "unaware" plebes had unwittingly stepped into the trap that had been laid by the "prey". A slaughter then ensued, and cries of foul erupted from the proles.

Don't cry for me Argentina. Wipe those tears off your face then use the tissue to clean up the other mess down below. You have either just learned a very valuable lesson or you will remain just as clueless as you were before this happened and blame everyone but the person you should blame.........yourself. I mentioned several times in this blog that I had gone to mostly cash when silver hit 40. I missed most of the trade to 50 other than some day trades in SLW. I wanted to buy/trade SLW on the collapse and had to fight to take my own advice and not get too heavy on the dips. Usually I take a beating on these kinds of moves and fail to have enough cash to hit the lower trading bands. We'll see how this one works out....BUT and a BIG BUT...if you read this blog you have no excuse for believing that the house was going to go belly up and be broken by the silver trade. They just have too many guns to throw against us.

Is it futile to resist? Maybe ....but one thing is certain now. YOU MUST be AWARE....THEY control the paper trade.....NOT YOU. If you are going to survive you cannot get greedy. Secondly ....physical gold and secondarily physical silver is your main store of wealth. enjoy the game.....or GET OUT. THEY will most likely get you before this is over. gl

update I... lol.. (BTW, the liberal critique of the Ryan budget proposal is dead-on: Paul Ryan’s proposal is a bunch of bullshit. Any budget proposal that doesn’t touch the Department of Defense cannot—and should not—be taken seriously, period. I say this as an anti-choice, anti-welfare-state, anti-vegetable, pro-red-meat, pro-gun, pro-Catholic-Church Conservative who is eagerly waiting for the Constitutional Ammendment that will make it legal to shoot hippies for sport.)

http://gonzalolira.blogspot.com/2011/05/fiscal-spendingthe-steroids-of-gdp.html


Friday, May 6, 2011

JOBS ARE GREAT!

Don't worry the Fed's got your back. Nothing can make a Ponzi more happy than 1 million new Mickey D jobs to boost you economy. Think of it. Don't get me wrong...working at Mickey D is respectable, but its hard to defend how that job creation is positive for the "recovery". Even the moat ardent supporter of the Ponzi is having a hard time spinning the Job's number with a straight face. Of corse most know that the different manipulation tricks are really to play such as the "birth death adjustment" that really skew this number.

This is what I take out of this.....the dollar is still going on an uptrend....at least for awhile.....perhaps multi-month. The beatdown in PMs looks to still be intact and should have enough momentum to push us below 30. My "dip buying has been restrained but even restrained dip buying in this freefall can become painful.

Positions in EUO and DTO have been helpful and EUO should remain a nice hedge.

The EU and the Chinese have stepped back from their strengthening moves which I believe is coordinated and will open the door for the dollar move now. I also believe that will allow the EU to deal with the PIIGS again during the next months. Should give the dollar a further boost. Of course Ben will then use the market turmoil and fear created to institute further monetization. He had to take down the commodity sector first to provide cover for further monetization. That plan is proceeding perfectly.

Unlike some.... this is a VERY welcome and EXPECTED pullback. I refer to Marti Armstrongs recent PDF on this very issue. He felt for us to have a monster move in GOLD during the next few years that it was IMPERITIVE that we not open June with gold OVER 1500. I'm going to look for that article. If someone has it (JD) please put it in the comments. gl

Thursday, May 5, 2011

THE SOUND OF SILENCE

What do you hear on the highways when the price of gas reaches four dollars a gallon? Pretend all you wish. Try and keep the price off the MSM airwaves as much as you wish. But there is one UNDENIABLE FACT. This economy cannot continue on a growth course with oil over 100$/bl..... This is a wooden stake driven through the heart of the American consumer. Create all the false flag events you wish. Trot out all the manipulated economic statistics to booste CONfidence in you staged recovery.....but your stupidity in allowing your traders to rip oil over 100 to steal some change from a couple large short positions destroyed your ponzi. Good luck if you think pulling this back to the low hundreds or 90s will save you now. This economy is so overwhelmingly damaged by this run of oil that it won't bounce back. Oh sure....you can paint it awhile longer but you just ripped the psyche rout out of the "recovery" for those "little people". You disconnected manipulators blew it. I don't know where oil is going now, but I do know what the effects of oil over a hundred for the last few months has done.

Alas our poor silver. Another road kill in the life of the ponzi. A few weeks ago we would have looked at the price of silver at 36 and we would have been thrilled. After the manipulated run up and crash to our current spot of 38 there is rampant panic and terror in the silver market. I was out of the trade too early but I knew the true power would extend the dark hand and give us our much anticipated crash. But what I find more interesting is the action in the COMEX and the COT's four margin increases in less than a week. This is unprecedented and tells me all of the tin foil conspiracy theorists are right. There is no bullion and the COMEX was in trouble. The interesting issue now is that even though the have kicked the hell out of the price of silver they cannot get the open interest to leave the COMEX. So they are going to have to pay a nasty premium to pay off those standing for delivery or they could still default.... (they will NOT default)... They are giving you another nice entry into silver though.

Risk on Risk off means continued damage to the energy sector too. So SGY HNR ATPG HERO GMRX NBR have further to bleed.

Watch the Euro announcement by Trichet..... if he is not hawkish enough this could signal a turn in the dollar/euro......lets see........gl

Wednesday, May 4, 2011

RISK ON RISK OFF??

What does this really mean? Has Ben turned off the printing press? Who's pulling the strings of the puppet here. Who is the puppet and who is the puppeteer? You really don't believe that President Obama is running this show do you? Surely by now you have studied this game long enough to recognize that this is a "Game of the Gods" and I am not referring to the old Germanic board game. These players the Bankers of the bankers and they are navigating the Titanic. They may have hit the iceberg but they sure as hell are not going to let the band stop playing. After all.....they've been on this voyage before. After years and decades and centuries of managing these economic and market cycles this game never gets old for the puppeteers.

Right now we are trying to let some steam out of the engine room and that steam is the price of oil. We are all looking at gold and silver here and it IS a headline they hate to see but of even more urgency for them is oil. Interestingly enough they seem to be more focused on silver which makes me believe that the COMEX and the JPM short position was indeed in danger of a major default. But I find the lack of effort on the oil price even more interesting and makes be believe that indeed they want to see inflation put back into the system so desperately that they are willing to kill the patient to save the doctor. Otherwise they get the bankers most dreaded enemy ..... deflation.

Deflation will be natures ultimate solution for their violation of economic and nature's law but they intend to keep sailing full speed ahead and oil and its effects will be collateral damage to the plebes. Can you imagine.....that just 2 short years after the collapse of oil prices we are now at 110 dollars a barrel? In an economy that is still on life support with real unemployment at 16%. Small businesses are hanging buy their fingernails with gasoline at 5$/gal in some areas of the country. This is what a sinking ship looks like as STAGFLATION insidiously takes us to the bottom as the band plays on and the chairs are rearranged on the deck.

None of the factors have changed for our energy and precious metals plays. In fact with the number of top callers coming out again with this recent beatdown of the PMs you can rest assured this is NOT the top. Be patient and hope that your favs like SLW SSRI ANV GFI GPL HL EXK get cheaper. We may get a V bottom so if you want to nibble here and you have NO core then I won't complain. I have restarted my trading core the last two days and have 80% left for may desired core position.

Also watching WPRT HNR ATPG HERO GMRX LNG ......not quite there and keep hoping this is a multiweek event.....remember sell in May and go away...If you've made money BE PATIENT and see what they give you.

Tuesday, May 3, 2011

MASSIVE SILVER SLAUGHTER

And the crowd cheers. The Roman gladiators faced their cruel banker masters in the arena yesterday and were beaten silly. Today the gladiators will face off again in the colliseum. The Plebes are crying for more blood from the silver gladiators and they are going to get it. The trap was set with a net of margin calls and a parabolic move. The PTB will now collect their physical silver and put out the much ballyhooed COMEX default......at least for now. It always was going to be a high hurdle to clear. Especially when the PTB control all the rules of the game including the unlimited printing press of fiat. For now you have to know who is in charge and what their capabilities are. They can easily push silver under 40 so sit tight.

Oil is the bigger number that has been taking a back seat to silver and gold. This commodity is crushing the real economy and no one is really talking about it. Just unbelievable. The "silent majority" is being crushed without even a peep. I believe it may be a type of "Stockholm Syndrome" that has developed for the Plebes. They were tested in 2008 and now they want to see what the experiment will do three years later. I have news for the masters....the results will be the same.....economic collapse. But oh well we killed the most evil man in the world.........Mohamar Ghadaffi...no wait..that was his kid and grandkids we killed....it was that Ahmadinejad guy in Iran...no wait we want to go to war there or at least nuke them.....it was that Sadam Hussein fella......we did go to war to get that "most evil" guy and we did hang him and kill a million Iraqi civilians....collateral damage....how about that Mubarak ... he was really evil....wait never mind he was our guy...wait they all are...don't count that.....I know I know we got that evil baastid Osama Bin Laden. Of course we seem to forget we trained him too. We seem to forget that his brother bailed GW out of a failed oil enterprise in Texas (he died in a plane crash in Texas shortly after that hehehe)....but we are killin' people right and left and I'm losin' track while I'm laughin' in my cheerios (or cryin'). Anyway bottom line I've been shortin' oil for a week and carefully....underwater still on the trade but this is ridiculous.

Be patient on your trades now if you made money just play the junk like DMED for short trades. It could get some nice trades in it but be careful. At least it DID get FDA approval. gl

Monday, May 2, 2011

WHAT'S NEXT?

Demonic crazed mass murderer Osama Bin Laden killed by crusaders in shoot out at palace in Pakistan. How's that for a blood thirsty alliteration headline. We are covered in blood and cheering for Cheerios this morning in sheeple land. The MSM talking heads are telling the sheeple all over the country they can rejoice and breathe a sigh of relief now that the evil demon is dead. After all if there wasn't an Osama Bin Laden we would have had to have invented another demon to replace him. Hell we've got a half a dozen now over there to take his place. We've got Daffy...we've got Assad...we've got Ahmadinejad. So maybe it was time for us to make good on our pledge a decade ago by GW to get em dead ur alive. After all ten years is probably enough time to leave his scalp out there for the masses to see before we finally put him out of existence. Now that he is dead.....I wonder if anyone else out there feels the same as I do. I get the same feeling I got after seeing pictures of Mussolini and his girlfriend hanging upside down, dead being paraded around Rome at the end of WWII. It was mesmerizing to see the smiling,bewildered faces of all the Italian sheep in the picture. The faces reflected a sense of macabre pleasure in seeing the slaughter and display of the hapless dictator and his concubine as if it were some surreal art display. What's funny is the majority of those faces were probably cheering him just a few years before when the murdering bastid was telling them what they wanted to hear....

I was with two staunch republicans when Fox news revealed that Osama had been killed. Both of them had the same initial reaction which was ... so what?? Big deal. I felt like this was probably more of a reaction to the fact that both of them probably harbored a resentment that O would now have credit for Osam's death. Both individuals were big proponents of both wars and both buy the MSM mantra that all Arabs are terrorists. So I really wasn't surprised that they weren't celebrating his death. I did agree with their initial reaction was which was "So What?". Where I do digress is that I am fearful that it can ignite a retaliation strike down the road. Oh well....the cycle of violence will continue.....for this is how it is written. At least by the most powerful group every conceived.

People will beat this horse for a couple of days and tell you what a great thing it is for us... but I am more interested in the overall effect that it has on the Islamic extremists. My guess is it won't be beneficial for stabilizing this region anymore than our invasions of Iraq and Afghanistan stabilized it. Remember how we were told this would be great for us in the region and how we would be welcomed with open arms. Right now these regions are boiling over in rebellion and nationalism and this could serve a very negative effect on these feelings....we'll see. Did we just create another martyr for the anti-western extremist to rally more converts and terroists around? You can decide for yourselves.

From our traders perspective the dollar should get a knee jerk boost and this may serve for at least a multiday short squeeze for the dollar.....which of course will give the commods and PMs the much needed smack down that I have been hoping for. This would be VERY healthy and give these markets the much needed chance to build up the technical energy for their next big long term move. Which should be gold at 1700 and silver at 65. This is a very welcome pullback whether you understand it or not. This game has to have it.

Next question will be when to buy. If I am right then you may want to wait at least a couple of weeks to see how much air they can take out of the metals. I am hopeful this will happen but will not be surprised if silver received only a one day kick in the pants. Certainly if you went to almost all cash as I did....nibbling and short trades are in order as early as today.......but if you have a core still then sitting tight and hoping that in two weeks we start to see silver touching some lower supports like around 36. That is probably going to be wishful thinking. We'll have to wait and see how they play it. Remember all of you that SLW GFI were a couple of stocks I've been watching closely for a couple of weeks.... that have already had corrections so they may really get tasty on this pullback. I'll be interested to see how they react. Also HL has been whacked and has made a great trade. Look at it.

Energy stocks need air out too.....SGY ATPG HERO HNR WPRT....lets see how hard they can whack oil...it could be a one day event too.....DTO should get some help here as well as EUO if the dollar rallies hard. This week promises to be a traders dream....IF you make the right moves....gl