Saturday, May 12, 2012

I thought that marshmellow peeps might aptly describe the strategy employed against the PM and miner trades. I boxed in college as a light heavy weight and employed a similar strategy against larger opponents. I found that getting in close to a larger opponent and counter-punching with body shots was a very effective strategy against slower opponents as opposed  to head hunting. Besides in college we had heavy gloves and head gear that hampered head hunting at times but not the body punching. Right now you are being body punched by your opponent in this trade. It works. I know. It weakens you and it tires you. You start lowering your arms.....sometimes its from weakness.....sometimes its just subconscious and suddenly BOOM.......you are looking up from the canvas wondering what happened. That's the game retail peeps. It has worked for a long, long time. You are being beaten everyday with body blows in this trade and you are tiring....I know I am....but I know their game and I know that they cannot give away their bullion forever. Creating the illusion that gold has no "store of value" in a fiat world gone wild is completely ludicrous and a lot of very sharp people know this is not going to end well and they are very famous investors. Kyle Bass and Jim Grant to name only a few are now touting what we have been saying here for years now. They even make it a point to say they have never been "gold bugs". For that matter neither had I. There is another wrinkle now. Its obvious to some very powerful entities that the Central Banks are manipulating the headline price of gold and silver and they are using that strategy against them to accumulate the metal. The most powerful gold holders in the world are not going to stand for this indefinitely. They will put a stop to that dramatically and in my opinion in the next few weeks...they are not stupid and they know that bullion is essential to the next step in stabilizing their control.

Many of you want to believe as I that somehow, someway Ben is going to hit all the levers just right and we will muddle through this disaster to the other side and sunlight will shine once again on all of our faces. For this some of you are NOT investing in some silver and gold bullion. No one advocates putting all or most of your worth in PMs. That is probably not the best idea. However, many of you have none or very little of your wealth in actual bullion. Percentage-wise ten to twenty percent is reasonable to have. Just remember when this next move up occurs it can become very powerful and leave the retail peeps wondering what hit them. Violent moves up AND down will occur. So far the Fed is maintaining control of this trade through a variety of methods. They will also allow the volatility to enter in to it during the upside. Be aware..........keep your seat belts on during the next roller coaster ride up. gl


41 comments:

  1. Our Inlet peep will need our prayers and thoughts for his recovery......we wish him only the very best and know he will do well

    ReplyDelete
  2. just the most insanely counterintuitive BS headline

    http://www.reuters.com/article/2012/05/11/us-markets-precious-idUSBRE8390RW20120511

    ReplyDelete
  3. Last Sunday, our local paper had a large ad asking to buy silver & gold jewelry and coins. The ad was in the front (1st) section of the paper and took 3 full pages. Today, the same dealer printed the ad again--1st section of the paper and 3 full pages. If these dealers are still buying, then we should be buying too.
    Trader Dan wondered if silver might fall to $26/ounce range. I have held off buying silver coins (ie, new purchases) so far, but probably will buy some this week. Even if the prices keep falling, you can dollar-average on the way down.

    ReplyDelete
  4. No wonder you have the fighter's attitude! Loved the movie last year, Christian Bale was fantastic...anyway, here's a good reason to own the PMs, I like the way he always covers the situations in detail: http://news.goldseek.com/MillenniumWaveAdvisors/1336905620.php France has not balanced its budget since 1974...their taxes are already extraordinarily high. Not much industry left in France besides tourism...All the best to inlet as he recovers.

    ReplyDelete
  5. I picked up 25 silver coins on Friday...

    Happy Mothers day to all you Mothers! I wish we had some in congress!

    ReplyDelete
  6. Thank you Honest! Hope everyone enjoyed the day. Guess we're going up no matter what due to upcoming Facebook IPO. Big flush after the long holiday.

    ReplyDelete
  7. http://www.reuters.com/article/2012/05/10/us-platinum-risks-idUSBRE8490NR20120510

    ReplyDelete
  8. bloomberg..... Money Flows

    Investors pulled $815 million from commodity funds in the week ended May 9, according to data from Cambridge, Massachusetts-based EPFR Global, which tracks money flows. That’s the biggest outflow this year, said Cameron Brandt, the director of research for EPFR. Gold and precious-metals funds lost $467 million.

    Gold is now just 1.1 percent higher this year at $1,584 an ounce in New York after erasing most of its gains. The metal will rally to $1,840 in the next six months because it remains the “currency of last resort,” Goldman Sachs Group Inc.’s commodity analysts said in a May 9 report.

    Bullish gold bets plunged 20 percent to 92,498 contracts, the lowest since December 2008, CFTC data show. Wagers on a silver rally tumbled 32 percent to 7,159, the biggest decline since late December. Gold prices dropped 3.7 percent last week, the most in two months, as the dollar rose, curbing demand for the precious metal as an alternative investment. Silver declined 5.1 percent to $28.89 an ounce.

    ReplyDelete
  9. BIATCH slap that gold........hehhehehhe........you all have a GRRRRRRRRRRREAAAT day

    ReplyDelete
  10. The Beatings will continue until Morale Improves.......

    ReplyDelete
  11. Phil Davis wrote today that he believes 12,500 on the DOW and 775 on the Russell are being targeted. He also wrote that Ben might be slower to respond with more QE than others might think.
    Keystone wrote that based upon a parameter it monitors, the Deflation is now present. Also, based upon a Put/Call ratio, a rally should occur soon.

    ReplyDelete
  12. Rally, then more downside imo. Hopefully Jordan Roy-Byrne is correct and the bottom is coming w/in the next couple of weeks: http://www.goldseek.com/ GL all. Doc, what is Phil Davis' target for s&p?

    ReplyDelete
  13. ANV just turned green, lol.

    ReplyDelete
  14. Sister,

    Best I can tell, he feels that S&P could fall 2.5% from his "must hold" level of 1360. Thus: 1360 - (1360 x 0.025) = 1326'ish range. When you look at the chart of the S&P, there appears to be a support level in the 1320's. Also, the 200 day ema is just below that.

    ReplyDelete
    Replies
    1. I think 1340 is more important..if it holds we bounce...

      Delete
  15. cramer pumping for dimon to give back this years salary.....then very deftly adding that the gov should pressure for the "clawback" since there is NO CRIMINAL CASE......hehhehehhee......watta coordinated shill for the cabal......keep repeating for the peeps....THERE IS NO CRIMINAL CASE

    ReplyDelete
    Replies
    1. Keep in mind, this is the same Cramer that was telling Americans to go all in with their 401Ks back in '08

      But yes, they hoot, they holler, they steal, they gamble with America's future and nobody will ever go to jail. They are the untouchables.

      BTW, did you see that JPM dumped some cannon fodder today. Fired a few of the mid level peeps so the kings at the top can go back to the casino.

      Delete
    2. One of the highest paid women in the financial industry, Drew made $15.5 million in 2010. She has spent more than 30 years at JPMorgan (JPM, Fortune 500).

      "Despite our recent losses in the CIO, Ina's vast contributions to our company should not be overshadowed by these events," CEO Jamie Dimon said in a statement.


      I'd really like to see how she did in '08. :)

      Delete
  16. The point--there Never is a criminal case...just rereading Liars' Poker by Michael Lewis, it is the same scenario back in the '80s when the s&ls went bankrupt...due to mortgage blowups, same guy (Lewis Ranieri, at Solomon then). He was instrumental in getting Fannie/Freddie to take on all the risk and here he was during the 2007-08 blowup seeing the gov't. continue to take the risk. To quote Kli, watta game.

    ReplyDelete
  17. Man this sucks :) That's about all I can say heh.

    ReplyDelete
    Replies
    1. Well Hubz, I'm having an interesting morning. Made a play on some WYNN call options before I went to work. Got to work, was up around 20% but my charts said "HOLD"

      I then watched the price shoot all the way back down to my buy in price :(

      It's been running pretty flat for about the last hour and my charts still telling me to hold. But this is stressful. I need to start putting in stops anytime I get above 20%

      Delete
    2. I hear you, and something I need to seriously consider doing. I can't tell you the amount of times I've gotten a quick 20% only to watch it disappear within the hour on options. Greed is a killer! I've found too that selling within the first 30 minutes of trading is usually the best pricing. Hell sometimes you can rebuy your position by late afternoon for what you paid the day before despite not much price movement.

      Delete
    3. "I've found too that selling within the first 30 minutes of trading is usually the best pricing. Hell sometimes you can rebuy your position by late afternoon for what you paid the day before despite not much price movement."

      Yes, this is quite true and my WYNN trade is behaving exactly as described. 109 early was worth more than 109 now. But fortunately, the charts are still on my side and the DOW has recovered a bit. I'm expecting a pop upwards sometime today.

      Delete
    4. I've seemed to totally screw the pooch with my option trading on miners lately. Switched from HL to AUQ with terrible timing. HL is actually holding up in this beatdown and I think I would be near even or barely down. Now I'm hurting pretty bad in AUQ but have until Dec for this to improve. Just ready for them to get this downdraft overwith ugh. Just pound silver down to $26 already :)

      Delete
  18. Anyone around here care to call a bottom on gold? I'll call the bottom at 1505. Then Ben will have a grand press conference and announce QE3. The media will praise King Ben for saving the world while Joe Six Pack can't afford his six packs anymore.

    ReplyDelete
    Replies
    1. I've noticed, at least around here they are selling 4 Packs now :)

      Delete
  19. Must Read:

    JPMORGAN PROVES IT: Wall Street Is Just Kids Playing With Dynamite

    http://tinyurl.com/bnwa3kj

    ReplyDelete
  20. complete flush coming for miners.....and guess who will loading up on the puking peeps.....anyone that says these guys aren't good is only kidding themselves....hehehehe.....remember when Joe would say last year what prices he was waiting for.......well here they are.

    ReplyDelete
  21. I'm seriously thinking about taking the loss and getting into SLV Puts... $26 seems like a foregone conclusion at this point. Sheesh!

    ReplyDelete
    Replies
    1. nothing wrong with just sitting it out and waiting for the turn......easy to say now.....whipsaw can get you killed

      Delete
    2. Yeah sitting on my hands... i just don't feel good about anything right now so best to step aside. Gotta wonder what JPM imploding will do to commodities. I think we get our catalyst sooner rather than later for the launch.

      Delete
  22. i lost NOTHING....played golf today and haven't looked at the carnage on my accts this is where YOU should be accumulating like they are IF you have cash left (which I don't)

    http://www.zerohedge.com/news/supercommittee-really-runs-america-presenting-november-1-tbac-minutes

    ReplyDelete
  23. means they are going to try and destroy the commods and gold before they bring in the big guns

    ReplyDelete
  24. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/14_Embry_-_This_is_One_of_the_Greatest_Statements_of_All-Time.html

    ReplyDelete
  25. Never tried to post from stocktwits, but this is pretty interesting: http://www.robertsinn.com/2012/05/14/a-petrifying-chart-comparison/ Would love to hear your comments.

    ReplyDelete
  26. very possible sista........ we arent in leveraged short etfs that can take you to zero with no hope for recovery......so I will sit tight and enjoy my summer days relaxing and just admiring their work.......they ARE impressive.....hehhehehe.....watta bunch of puking and crying on Turd's blog with all the retail newbies.......gotta take the pain if you wanna play in their casino. AND if they don't get its THEIR casino yet then they never will. Always understand your opponent

    ReplyDelete
  27. listen to the interview

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/12_Dont_Be_Seduced,_Why_Summer_Will_Be_Disastrous_for_Markets.html

    ReplyDelete
  28. http://news.goldseek.com/GoldSeek/1337023368.php

    ReplyDelete
  29. Kli/others: If you have not watched this, it is very much worth the time: http://paul.house.gov/ Paul's commentary is also just perfect.

    ReplyDelete