Wednesday, May 30, 2012

ITS ABOUT TO GET REALLY UGLY

So toughen up cupcakes. This ride is gonna get a lot bumpier. They don't want you on it and today's shakeout was just for starters. Overtrading after this monster beatdown may find yourself on the sidelines without your shares and staring at your monitor wondering what the hell happened. They can rip this right through your resistance AND your supports without breaking a sweat. They want you OFF the train. Just watch and see how good they are. Sure, go ahead and ask....ARE THEY REALLY THAT GOOD?? Answer: youbetcha. Next on the agenda is your wake up call with gold up 50$ in one day. That is when you know that things are going to get rolling and they plan on leaving you at the station. Once we get up to the 75$ day then you may need to lighten up a little but that's going to be north of $2100. Its still possible we could even see a truly big move in gold this year but thats probably more than a year or two off......They still have control but once fiat begins unwinding in the true fear trade, gold's moves will become shocking. Remember...gold's daily price discovery from being revealed is being defended by the system at all costs......but remember what "all costs" means.....It means that a certain amount of actual bullion must be taken out of the hands of the cartel and distributed to interests in places like China, Venezuela, Bangladesh, India, Vietnam etc.......and that does not set well. Once the Western Central Banks say ENOUGH.......then gold has to start rising to prevent the draining of their own gold reserves.

You are still in the early stages of this game. When they have to trot out the likes of Munger and the other big name gold haters to attack....then you know they have a problem. It will only intensify so prepare for the battle royale. You're gonna get some scrapes and bruises and you're gonna take some body punches but remember this is a LONG game and it will be measured in years......sit tight and try and enjoy the history you are watching. Everyday is another chess move. gl






43 comments:

  1. Lots of interesting tidbits in the news.

    Trader Dan wrote yesterday that he believes the Feds are allowing some deflation. He believes the Continuous Commodity Index (CCI) could fall to 465 and gasoline needs to fall about 30-35 cents. Then the Feds could step in.

    Phil Davis also today mentioned that gasoline is "a huge ripoff" and needs to fall. Phil also points out that the dollar is up 5.4% in May which accounts for much of the fall in the DOW and S&P. Should the dollar fall, equities would rise sharply.

    Keystone has written previously that more Defaltion needs to occur before the Feds will act. So, this matches with what Trader Dan wrote. Keystone also feels that the yield on the 10 year could stumble along sideways "for years yet" before inflation occurs. Keystone does not see hyperinflation occurring until after 2014.

    So, as Kli points out, this is a "LONG game".

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    1. agree Doc and also want to emphasize the decoupling of PM and PM equities from the market and the dollar strengthening over the past several weeks......just as they did in October of 2008 .....are we there yet? are we at a bottom? stay tuned

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  2. just imagine folks .....today the German Bund hit 1.24%...WOW....heck we are at 1.59 on our 10....but guess what ....the German debt/GDP is 85....thats right....ours is worse...and these are "safe harbors" for capital flows....as these safe harbors become exposed for their own "titanic potential"...watta ya think money is going to head to..........

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  3. Chicago PMI a disaster...52.7....down from 56.2......recessionary

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  4. Gold responds and moves up......

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  5. now the employment numbers tomorrow......boom boom

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  6. Of course, Gold gets smashed in the face, fast! Can't have it break up to fast!

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  7. initial gold move is being slapped down.....hehehehe.....textbook shakeout on up move......once again..gonna have to wait to see how they really want it to move today......can't have that "safe trade" advertised.....unfortunately for them they are losing gold to a lot of investors that just arent buying that line

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  8. I agree kli. No way they let silver gain the trendline..kinda comical really. Any moment a big buyer moves the needle. The cartel will have to fall pretty far back.

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    Replies
    1. miners look to be holding very well here....readjusted some of my miners

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  9. 27.36 in slv above that slv should rock. I am locked and loaded.

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  10. They keep sub dividing the silver wave..frustrating as heck. Above 27.36 it is off to the races.

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  11. added an hourly chart on PPP above just now

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  12. Glad I am just watching that SVU I posted yesterday. Taking a big plunge.

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  13. svu has further to go. 3.90 perhaps. SVU has losses.

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  14. Spanish CDS blowing up and tanking the market

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  15. wonder how long they can wait before they act....this is getting hairy fast

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  16. hehehehe.....turned gold back to green .......again

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    1. Miners are gaining strength as well, as the market falls. Oil is about to break 86. Market is falling and Gold is rising........its getting crazy out there!

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    2. Miners are looking real weak here.....I hope its a shakeout but does not look promising. Looks like they want to go down...again

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  17. that earlier gold dip was 15K contracts getting dumped on the market in less than 2 minutes......hehehehe watta joke.......I guess that was just a discount for the london bullion buyers

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  18. trying to crack the ssri support...other miners the same. Divergerce to the base maetal...fukers playing rough today.

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  19. Man oh man the 10 year is something else. Loans are going to be free within 30 days at this rate ;) But they still won't be able to move houses because THEY'RE TOO EXPENSIVE! :)

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    1. I think it goes to 1.00....

      I don't think the fed steps in...qe doesn't do as much for economy as cheap gas..

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    2. Home prices are still way above pre-bubble prices even when adjusted for inflation. One band-aid after the next has prevented them from getting close to market prices.

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    3. Fed ultimately cares about saving the big banks and the "system".....cheap gas is necessary to kick the can down the road.....QE has never stopped and never can stop....QE for Eurozone from our Fed is occurring through several channels....and that CAN and WILL help to put a cork in current Euro leakage...(when they announce them)......this will ultimately get out of control.....but for now it will keep the game going....

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  20. Replies
    1. And very few are and if they do and purchase they are guaranteed to lose 15% on their purchase........ on a trading note I'm getting frustrated!!!!!!! Basis a bit to high on most and nothing left to average down with! Grrrrrrr.......... $ 35 Silver and $ 1750 gold would do the trick!

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  21. Bullion outflows in london must be heavy for that massive contract dump to not have held ......this is really going to get rough.....but it is fascinating to watch....I'd hate to be using margin to trade this mess

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  22. gotta love ZH comments..
    LawsofPhysics

    Spain would gladly pay you 600 burgers tomorrow for one today. Winning.

    Login or register to post comments
    Thu, 05/31/2012 - 11:09 | 2479593jus_lite_reading

    Geeeeee.... I wonder why rumors of a "bank holiday" are circulating? LMAO

    Let's see. Bond prices in the US are skyrocketing. At these levels, you'd think the US just hit the 2nd greatest depression... with QE4 certain now, something smells rotten in Harlem...

    Login or register to post comments
    Thu, 05/31/2012 - 11:13 | 2479610Ahmeexnal

    Pass the EuroBONG buddy!

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  23. ....And the greatest retail swindle of the last 10 years continues....

    Facebook, Inc. (FB)
    -NasdaqGS

    26.92 Down 1.27(4.52%) 12:15PM EDT - Nasdaq Real Time Price


    I just looked at the real time market cap. It's still at 57.92B Way too high for a company making just 200M per year.

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  24. I agree..is facebook barbaric?

    Cartel better do sumthin'. silver about to make a bullish macd cross and go into positive macd territory.

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  25. Meh getting bored... seems like we're just stuck in a quagmire on most trades here lately. I want another 10% up day like we had not long ago ;)

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    1. tug o war......could go either wa

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    2. You know it's bad when Facebook is up and miners are down ;)

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  26. just posted an hourly on HL......if I had dry powder I'd try it

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    1. Man that looks good! I hope we're not about to take another elevator ride down to hell... augh.

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    2. could be just raw meat bait ....ehehheheheeh

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  27. "Banks Pressured to Buy Government Debt"

    http://www.cnbc.com/id/47633576

    Guess they gotta find someone to buy the paper after China lands. :)

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  28. I just checked some charts on Facebook. Look at the three indicators at the bottom. All three sky rocketed into overbought territory at the end of day. This doesn't happen too often.

    I should have bought some puts at 3:59 PM I have a feeling it's going to take a major dive tomorrow morning.

    http://i.imgur.com/UPhVO.png

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  29. http://www.zerohedge.com/news/big-reset-2012-and-2013-will-usher-end-scariest-presentation-ever

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    1. KLI: I doubt they'll ban shorting and put options. Bush admin tried that in '08 and it was like showing ones hand to the entire poker table. I personally made a small fortune at that time.

      I remember when you were calling the end in '08-'09 on the SKF boards. Then the Fed and Obama said F it all. They've been pulling rabbits out of the hat ever since.

      The vast majority of Americans aren't like us. Give them American Idol, EBT cards and the Superbowl and all is good. I just can't see the game ending. The cabal will defend it with guns, missiles and even nukes if necessary. They've studied history in depth and know how to play human chess.

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