Tuesday, May 8, 2012

FIGHT THE FED!

You really think you can beat the greatest financial machine ever invented after centuries of evolution? Well if you believe that this little economic collapse is going to occur with a wish and a click of your ruby red slippers then think again buckaroo. We are definitely NOT in Kansas anymore. You are in a war right in the middle of the evil empire's own backyard and I am sorry to inform all of you.....they DON'T play fair and at least the aren't going to play by your rules or what you think the rules should be. So why are you even in the paper trade you may ask. I couldn't possibly give you any good reasons unless you say that you cannot remove your money due to some type of lock down in a retirement account. Otherwise you are in their casino and they can make up the rules of this game on the fly. Right now they want your mining shares and they are going to take as  many shares as the sheep capitulate and choke them up cheaply. I see nothing that indicates a turn yet and cannot even guess how low they may take these shares. My only positive comment after today's beatdown is that I would not have a clue where I would rather put fiat money (short of physical gold and silver) than the PM mining sector at this point. But of course there can be even more pain ahead.

I don't feel the slightest bit of capitulatory trepidation from this ridiculous beatdown so we probably have even further to go so don't get optimistic in the near term. I took the advice of one of the comments today and had some great R&R in the great weather.......so I can't share much on market ticker movements nor do I care today. The charts seem clear tonite that more pain is to come. I'll watch with total awe and amazement as the seemingly unimpeded takedown continues and marvel at just how efficient and coordinated the boyz are. It won't last and when they cover the rebound will be long and amazing.......gl,  Will be very busy for a couple of days but will try to get the posts up.....great comments all

75 comments:

  1. My Dear Extended Family,
    Today has been interesting in a perverse way. I have heard from every gold short who knows my name. I have heard from every weak gold holder that knows my name yelling for help. This time I cannot answer all the incoming communications. Nobody could.

    A month ago I got over 3500 incoming emails in less than three hours. The shorts exulting by email really cannot expect an answer. Even the weak gold and frustrated gold share holders cannot expect me to assuage their pain one at a time. The reason is it is always the same people pushing the panic button.

    I fully expect Alf Fields to be proven correct. As of today nothing he has said is wrong. He feels the gold price has bottomed in this reaction. That is yet to be proven incorrect.

    The US dollar is not putting on a grand performance today. The US economy is not going to support the sitting Administration's desire for another 4 years. QE to infinity is certain even today.

    There is a global stock market sell off today which is totally unacceptable as it pertains to the US market in an election year. Liquidity floats all boats and all boats are screaming for that liquidity today.

    The cash market continues with its brake on the fully out bearish algorithms attacking the paper gold market.

    Re-read the recent interview I did in Futures Magazine as it covers all relevant to gold fundamental issues. Like all other reactions in gold since $248, this will end, and gold will again go to new highs.

    Gold companies with 43-101 certified resources that are growing are calls on the gold price that have no end in terms of time.

    If you cannot stand the heat you must get out of the kitchen. If you can stand the heat, I firmly believe we will prevail and be rewarded in shares and gold itself.

    Please accept this as what I would have told you on the phone. Please accept this as the answer to your cries for HELP by fax and emails as no one can answer this many emails and faxes.

    If after you review the fundamentals in Futures Magazine you agree there is no change, buck up your courage and stop watching prices. They will get better as soon as the algorithms do not get their way and mindlessly reverse themselves.

    Nothing is better for gold than an implosion on the Dow as it is intolerable to the PPT. That is where the Fed's and Administration's head is at. Liquidity floats all boats. The Administration controls the Fed under such circumstances. In the entire history of the Fed, they have never failed a sitting administration.

    Love,
    Santa...Jim Sinclair

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  2. McClueless called for a bottom in gold, should have known he would be way early to the
    point of being outright wrong....

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  3. I'm calling for a bottom in gold to........pullleeeeeeeeeeeeeeze

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  4. Spent last bit of cash.....PPP, EGO, and KGC were added. I am truly an investor for sure now. Now I will try to pick up some physical gold today... On another note, NG is taken off. Hopefully it comes back back to get in but the ship has sailed me thinks. GL to all.....

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  5. The beat down continues, break out the Monkey's!!!

    Strange that they are kicking the crap out of everything considering it's an election year........

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  6. We have to see if Gold can get back to 1600 & hold. Trader Dan wrote that a fall to 1550 is possible and that there would be strong buying there.
    I am thinking of buying some silver coins.
    I am still holding my RWM and will sell that at some point and then try to repair my miner positions. Inlet wrote last month that RWM might get to the low 30's.

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  7. Alert! Alert! Scottrade clears through Penson...I have quite a bit of money there (less than last week) and am on my way to move it asap. GL.

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    Replies
    1. Hi Sister. I'm using Scottrade. What is the problem there?

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    2. I wonder if its a limited commods

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  8. Looks like Spain has to nationalize Bankia......Things are starting to get interesting!

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  9. the commodity beat down had to happen..Bill Gross says Fed is going to ease....this just looks like a orchrestated hit by the fed mafia...everyone was screaming for oil to come down...that cme margin raise on speculators last week was the key event...its also covering up the fact that banks are now giving homeowners 200K off their principle..while the person whom paid on time gets nada....this to cover up title issues across the land....while the banks get to write loan off at par... what a game..the govt. picking winners who should have been losers and winners whom paid and did the right thing..eat crow meat...contract law is history
    http://articles.latimes.com/2012/mar/09/business/la-fi-mo-bank-of-america-mortgages-20120309

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    Replies
    1. LOL - from the Q&A

      Though it is unclear exactly how much money each homeowner might receive, officials have estimated that about $17 billion will go to current homeowners, to help reduce the principal they owe on their mortgages, while people who have already lost their homes can expect to receive checks for $1,500 to $2,000.

      What a dummy I am for continuing to pay my mortgage...

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  10. Wow, look at KGC what a beat down. My KGC position is now 20% underwater, OUCH!! Will not need the money for a year or so, but this is getting sick. Hope I still make some coin on this by spring of 2013, we'll see. The RSI is coiled so tight right here. Wish I had waited till now to jump in, oh well another lesson learned. Good luck to everyone.

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  11. BAC headquarters are here and there are well over 500 people outside protesting various things right now. They've even had to block off a street, just reported that so far it's peaceful.

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  12. Some of my miners are turning green on a really down DOW day.....could this be the reversal......who knows......

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  13. BOOM! Wow... what a snapback. The stuff true bottoms are made of :) Hopefully this is it guys! Cross your fingers. Also please talk me out of going all in on FXE puts :) Tempting as HELL.

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    Replies
    1. FXE = CurrencyShares Euro Trust

      I had never heard of this ETF. What a great way to take advantage of a soon to be worthless EURO.

      Check out the unusual volume on PUT options today:

      http://finance.yahoo.com/q/op?s=FXE+Options

      My daily charts show that it's probably going down towards the end of the day. Now I'm tempted too.

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  14. Sweet, gotta love BOA! Did I ever go about things bass ackwards!! Who'da thunk you can come out ahead by being a deadbeat and living beyond your means!! Wonder if all these pleebs know that there might be a nice little tax liability for all that debt forgivness......

    http://taxes.about.com/od/income/ss/mortgage_cancel.htm


    Gotta love election years!!!!

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    Replies
    1. Unfortunately we played by the rules as well. But I guess I don't get the plan here (admittedly didn't read too much on it). They will forgive some of the principal? So if I mortgaged a house for $500K over 30 years, it's now worth 250K, they forgive $100K or so. Does that really get me out of trouble or just get the lenders out of some of the trouble they are in?

      "By cutting the amount owed on the mortgages, Bank of America could reduce the $3.25 billion in penalties it faces from the foreclosure settlement by $850 million. The details of the principal-reduction agreement were first reported by the Wall Street Journal."

      Are they really going to take mortgages that are $250K in principal and bring them to $150K? I don't see a lot of specifics printed anywhere. Wasn't there a scam the banks were running as they dumped houses at losses, were made whole by the government, then went after the homeowners anyway? I'm sure we'll pay for this somehow.

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    2. its to cover up bank losses, keep people paying and cover up massive fraud in regards to titles...I bet the people who get big reductions are the ones with title issues....

      It's one f#$ded up criminal circle...
      http://www.theshortsaleguide.com/forum/topics/citimortage-35-000-moving-allowance-letter

      how about 35K to move out of the house....

      prudent people are stupid...me being one of them...

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    3. Amen! Sucks doing the right things in a criminal world! Like my good friend tells me all the time.....your a SUCKER.......

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  15. One more thing about KGC for anyone who has read clif droke. One of his favorite chart patterns is "channel buster". He even has a whole book on it. Look at Kli's chart on KGC it set up this morning as a classic channel buster pattern. Let's see if it works.

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  16. EXK +, reported record adjusted earnings. I have traded this one in the past.

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  17. Watching these crooks work is amazing, whatta turnaround. And it isn't even opex!

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  18. Man TRX was the miner to buy in the beatdown yesterday, reversed hard at one point and now is running like a scalded dog! For those that don't know this is Jim Sinclair's miner. I used to play it in the $6-$7 range like clockwork but now it scares the shit out of me. Moves hard and fast in BOTH directions

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  19. Just to add to Homer's, Honest's, other's thread above. It is my understanding that if you accept a reduction in your mortgage, that you must then report that as income on your tax return and pay taxes on it. So, if for example, you accept a $100,000 reduction in your mortgage, you must then pay taxes on that $100,000. That would be quite a tax bill for many and likely push them into a different tax bracket as well. So, it may be a clever way for the treasury to boost tax revenues in the short term.
    Please correct me if I am wrong.

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  20. GDX hit its 50% retracement this morning ($41.41) from the 2008 low ($15.83) to the 2011 high ($66.98) - I think the miners are about to rally their asses off! Good luck! JD.

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    Replies
    1. very interesting JD..... and to be noted

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  21. The reply button isn’t working for me today, Doc take a look at the link I posted above when you get the time, some, not all, will be taxable as income....... hehehehe

    This is all a cover up for the MERS'/Robo Signing/Doc Fraud suits by the States and Untraceable Title's. I had a glimmer of hope that the NY Atty Gen would hold out but he got a visit and an offer he couldn't refuse!

    Here's a good site if you want to keep up with this garbage:

    http://4closurefraud.org/


    Anyway, if you feel like a sucker now, read the following and you will definitely feel like a Super Sized Tootsie Pop!

    Whatt'a Game........

    http://www.zerohedge.com/news/couple-lives-13-million-4900-square-foot-home-five-years-without-making-single-mortgage-payment

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  22. LOL - guy's business actually helps banks move out people who are being foreclosed.

    "Keith Ritter has a business, Beat It Movers, that involves eviction services, property preservation and cleaning of foreclosed homes. Here, he checks out some ceiling damage in one such home in Fort Washington. Ritter gets the irony of working for some of the same banks that have foreclosed on him. But he has to make money somehow. “All I know is real estate,” he said."

    I think the rule is just pay your muni taxes and you'll have a shot.

    I think I also saw something a while back where Fannie (I think), was moving slow selling foreclosed properties, i.e., being very strict with short sales. Of course as the properties sit, thousands of dollars in maintenance are accrued which we pay

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  23. on the road .....peripherally noting volume turn.....this is a war to hold.....they will not hold the tide shorts will have to start covering

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  24. Eric Sprott speaking da truth and takes a swipe at the Oracle Of Omaha... hehehehe


    http://www.zerohedge.com/news/sprott-berates-berkshires-buffoons-and-says-all-markets-are-manipulated

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  25. OUCH: Cisco down 9% after hours....

    Close: 18.78

    After Hours: 17.15 -1.63 (-8.68%)

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  26. Scottrade swore they were self-clearing on the phone but I wanted something in writing so I got an email saying they use dtcc. I was also concerned about my cash...gonna take some of it out of there. On the gold question, could this be the cause of some of our woes: http://www.zerohedge.com/contributed/2012-19-09/japanese-are-dumping-their-gold Among other things...can't get the comput to pull up "reply" think I need a java upgrade.

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  27. Japanese are "dumping" gold right into the bullion hungry IBs......its just another example of the flesh being picked from the bones of a "nonessential" club member......radiate um .....strip um of their gold....leave um for the buzzards

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  28. have a great day tomorrow....am in the headquarters of Wallyworld and finding out some of the recent corporate shenangigans.....hope we have a nice up day tomorrow.....all of you read the first comment from Sinclair and you can rest assured that the trade is to hold tight

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  29. Keep the faith everyone. If we haven't bottomed yet we are damn close and at the rate of the metals falling it shouldn't be long. $26ish for silver and low 1500's for gold. If those break with gusto I am at a loss honestly. Lots of good stuff out tonight, Turd Ferguson's post from Uncle Ted about the massive accumulation being done while masterfully repressing price. I don't get angry at this, I view it as if *I* had the opportunity would I do the same? Of course I would but I am no saint :) I would love to know what caused the pop to $50 last year though, gotta think they were losing control temporarily and i strongly believe that is the kind of move we will see again someday, only this time it will run well past $50. The sharp rebound in miners was very encouraging too today though many miners close roughly around breakeven. NEM, AUQ, and HL are still my personal favorites for now. Buying LEAPS is still the best bet I think as well... no earlier than Sept, and preferably JAN 13 or 14 if you can go out that far. Can't remember where I read tonight... but they put out the idea that the Euro dying is actually good for gold and silver as that is one less place for money to hide. Will come down to the dollar or gold and silver, and we all know which is the actual store of VALUE don't we? :) Cheers!

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    Replies
    1. Looks like you are having a good start today:

      NEM: 47.14 +0.6 (1.29%)
      AUQ: 8.47 +0.33 (4.05%)
      HL: 4.18 +0.16 (3.98%)

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    2. If only they would hold their gains! Ughhh...

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  30. Both Phil's Stock World & The Keystone Speculator wrote about the dollar & the Euro today. Phil wrote that the Swiss are buying the Euro to provide support for it. He warns that the Euro is being artificially supported.
    Keystone wrote that the dollar might fall to the 79.7'ish range, and thus we might get a brief snap back rally. However, Keystone then believes the dollar will strengthen, and perhaps reach 81.5 or even 83.5. A rising dollar will hurt Equities & Commodities such as the metals.

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    Replies
    1. just a note of caution on the dollar/metals trade..... at some point there will be a decoupling from the strengthening dollar and the weakening PM equity price.......there are a variety of factors involved....fundamental and technical at this point.....maintaining the illlusion that fiat currencies/debt can preserve wealth is essential to the PTB....at a point the PM (true safety trade) will take over for the investors looking for safe harbor

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  31. ie....fearing a strengthening dollar coming is not entirely going to correlate with PM prices falling

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  32. welllll.......looks like another great day to sit tight.....wonder when the squeeeeeze will come..

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  33. If Priceline goes to 680 today I'm buying calls.

    They are beating it down too fiercely.

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  34. thinking silver respects the techincials and shorts begin to cover.

    nat gas taking a hit usually means risk on.

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  35. You guys gotta see this...

    Scroll down to page 3

    China pretty much owns Africa.

    http://www.scribd.com/doc/93105802/GS-Africa

    PS. Mining is huge there.

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  36. There are a couple charts on the Keystone Speculator site that may be of interest.

    An SPX chart showing a H&S pattern. They describe 1340 as being a critical level and that price could fall to 1260'ish.

    There is a Gold Chart showing a triangle. Keystone feels that the news in ominous for gold. They describe 1560 as critical, and that a failure here could lead to 1325 or even 1200. They admit that a "QE3 Announcement" would cause gold to spike.
    Just to note, Keystone has been bearish for gold all year so far.

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  37. I'm making some pretty good dough today.

    I used my new system to pick up some Mastercard (MA) calls at around the 419 level.

    It's currently at at 424.07

    Up about 30% in a few hours. And here is the best part, my system says to hold a bit longer til it gets around 425. I'm a happy camper.

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    Replies
    1. And of course, right after I typed this, it drops down to 423.

      I jinxed it.

      Delete
    2. Nice! Gotta love options when you time them right. :) I'm watching the Euro closely to see if it's going to lose 1.30 with conviction. If so i might throw a grand at some FXE puts to gamble on.

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    3. Unfortunately, I didn't time the exit very well. I still made money :) but missed the peak by quite a bit. Damn greed got the best of me.

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  38. There is a rumor floating around that JPM is going to pre-announce a credit rating downgrade at 5 PM Eastern.

    Get out the popcorn.

    Here is the phone # for anyone that wants to listen in...

    JPM call: (866) 541-2724

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    Replies
    1. ...and look at JPM tank after hours.... woooweee

      After Hours: 39.15 Down 1.59 (3.90%) 4:46PM EDT

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    2. I wish I owned some SKF right now.

      After Hours: 38.70 Down 2.04 (5.01%) 4:50PM EDT

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    3. JPMorgan Discloses 'Significant' Derivatives Loss

      NEW YORK (TheStreet) -- JPMorgan Chase(JPM_) disclosed in its latest quarterly filing that it has suffered "significant" mark-to-market losses in its synthetic credit portfolio since the end of the first quarter.

      "This portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the Firm previously believed," the bank said in its 10-Q. "The Firm is currently repositioning CIO's synthetic credit portfolio, which it is doing in conjunction with its assessment of the Firm's overall credit exposure. As this repositioning is being effected in a manner designed to maximize economic value, CIO may hold certain of its current synthetic credit positions for the longer term."

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    4. After Hours: 38.20 Down 2.54 (6.23%) 5:22PM EDT

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    5. J.P. Morgan Chase CEO Dimon cites "$2 billion trading loss on synthetic credit position," calls the trade "flawed"

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  39. Not too long ago, a phrase like Synthetic Credit Portfolio would have raised the ire of the shareholders and the interest of the SEC.

    I was browsing the JPM board earlier, funny (not really) comments like (I thought they passed the stress test".

    Also something interesting was posted there that was just announced earlier today...
    http://www.marketwatch.com/story/fdic-chief-sets-plan-for-handling-big-bank-failure-2012-05-10

    Are these investment banks still classified as "banks"? What a scam.

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    Replies
    1. homer: They know that the US government will bail them out.

      It's a win/win for them. The greatest scam in the history of America and our government actively supports it.

      Delete
  40. Financials are getting trashed across the board. It's going to blood in the streets tomorrow.

    Are we finally going to see the The Volcker Rule?

    J.P. Morgan shares down 6.5% to $38.05. BofA down 2.9%; Citigroup 3.9%; Goldman Sachs and Morgan Stanley off 2.8%.

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  41. Lesson learned...
    Had ARNA shares and took the profit early but could have sold 1/2 lot and seen if they got FDA ok...they got it....

    up $3.00 a/h

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  42. http://www.zerohedge.com/news/worlds-largest-prop-trading-desk-just-went-bust

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  43. Been gone all day, thank goodness...just to add to the confusion InTheMoneyStocks is calling for about 1350 on spot, 1300 on gld. Goldman on the other hand is calling for 1840 in 6 mos. What we DO know is it will not be 1840. Just rereading the old Liar's Poker and what is really unbelievable is that the same people who caused the s&l crisis (1st mort. crisis) also caused the latest one. One Lewis Ranieri who was a bond trader for Salomon & pressured Congress to do all sorts of things including create Fannie/Freddie. UNBELIEVABLE.

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    Replies
    1. At least there is one difference between the S&L scandal and the latest (which is somehow not a scandal). Folks at least went to jail for the S&L one. I love it when William Black speaks on the subject, I think he's still amazed that no one went to jail. But I think he knows that's the current environment because he's the one that points out folks like little Timmy, a regulator who failed on a such massive level, was rewarded instead of punished.

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  44. back at home now.......safe from wally world headquarters........post later tonight

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  45. Anyone gonna play faz tomorrow? Or tvix or uvxy? Sometimes take tiny positions with $100 profits, but hey it's a profit.

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    Replies
    1. do so at your own peril sista

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    2. sis, watch ARNA tomorrow. 10+ million shorts will need to cover...so lets say they try pushing the pps down...buy a couple hundred shares, set tight stop and see if you can make some money scalping...the volume will be huge...just get mixed up in it the right way..

      I'm going to..

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  46. You know what's sad... JPMorgan could go belly up in the next 3 months.... But most of the sheep in America, including many here will vote (D) or (R)

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  47. Jay...were not sheep...were warriors...I've wrote in Paul last time...will do it again...

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  48. I just voted for Paul on Tues.in our primary. Honest, thanks so much...will watch arna for a scalp. Hopefully it gaps down in the am. Welcome back Kli! Now China's numbers bad, the PMs are down...guess they're saying deflation is back or whatever. JPMorgue is a real problem. Cannot believe "they" let them do this stuff over & over again. It is soooo criminal. But who's looking? It is really hard to believe it isn't on purpose.

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  49. Just looked at arna, up 90% AH. Looks like everyone already covered. ::).

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  50. KLI: Honest: sister: why aren't Americans concerned about banks gambling with their money?


    Are Americans that dumb?

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  51. Sister, Joe I gander has been playing it...the volume will be big..I think shorts are going to attack pps at the start especially if they get a market edgy and down...I'm going to wait for the pullback and see if I can jump in and make a couple dollars for gas..I just bought a vw jetta tdi diesel sportswagon..I laugh at gas prices...getting about 45-50 mpg, I just cost big oil a lot of cash...

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