Sunday, June 10, 2012

CALM WATER

Care for a dip? Maybe you would like to dip your toe in first? Something just isn't right, but you aren't quite sure what. One thing that is becoming increasingly clear now to even some of the most stubborn investors is the obvious war drums of desperation coming from the system. Why is this worthy of a post you may ask? Once again I will bring back the word CONfidence. It seems too simple doesn't it? This is JUST about CONfidence? The answer is simply....yes. Its everything and the discussions inside the war rooms center around this simple word. If you listen to people like the President, Ben, Buffet, etc. you will hear over and over the word CONfidence....and its essential role in reversing our malaise. If you want to go back to Obama's initial speeches in 09 he promises over and over during those initial dark days that CONfidence in markets would be restored through a program including TRANSPARENCY and establishing a level playing field in markets. This would then usher in a new era of CONfidence in our free market. I won't rehash what really happened next. Where are we NOW and where are we going near term. Typically I do not speak in "near term" but today I am because I do believe an important point in the game is now upon us. We (the world) are truly collapsing right now. We have lost complete confidence and the momentum is astounding with bank runs occurring across Europe. Money is flowing into every form of mattress they can find over the pond. Yes, yes....its going into gold too. Its just that there are still plenty of peeps across the pond in the investment community that refuse to recognize the paper market and bullion market in gold are two separate and distinct entities. THEY ARE NOT TO BE CONFUSED AS THE SAME. The reason that the paper market manages to maintain the current range is simply the reserve status of the dollar remains intact, albeit a "tenuous intact". As long as the dollar keeps its reserve status gold will be controlled to some degree. Bullion on the other hand is another issue for the paper price of gold. Incredible tonnage of bullion is now being accumulated outside of the hands of the casino and they will bring up the price of paper gold to prevent "giving" their gold away. This will happen very soon. I believe in the next few weeks gold will be trading to 1700 and over 2000 before the year is out. This is not a revelation to anyone that has followed this trade but this is where I diverge from some people. I believe the paper price move in gold will be matched by a much bigger move in the miners during the next 6 months based upon the miner's importance strategically for the West and the East to control their future stores of precious metals. The strategic shorting of these miners was nothing more than an effort for the strong hands to accumulate the miners at dirt cheap prices.....nothing more. You have seen a historic trading move in many of these miners almost equal to the 2008 manipulated bottom. I always try to leave you with the possibility one more leg down but I believe they have run out of time to establish a lower low in the miners and the CONfidence and the waning momentum MUST be restored VERY SOON....days or weeks. gl




44 comments:

  1. well that didn't take too long....it wasn't day's it was minutes....heheheheh.....look for ben to join the fray soon

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  2. Damn crooks! With the Spanish bailout, gold should be up significantly, not a paltry $4. Kli, I would like to take this opportunity to thank you once again for maintaining this blog and being a rock to me for all these years (yes, it's years!). I'm not convinced it's going to take another 5 years to get to a parabolic move in gold. GL this week, we should have a good one, but it's opex so one can never be sure.

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  3. thnx kid and remember the game is to be in the shares now.....now is the time to do less trading and worrying about their day to day games and sit tight and watch the longer term fireworks....we could see some spectacular daily moves ahead that in aggregate will end with some tremendous longer term returns.....btw who the hell wants to trade into cash here with what ben has to do

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  4. btw sista lets wait to see how the miners trade tomorrow.....now that is what interests me here.....paper gold vs paper miners

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  5. Yep, I was just venting as I am wont to do, lol. You're just a really great human bean (as my son used to say).

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    Replies
    1. hedges moving into pair trade short gold/long miners

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  6. Bank Holiday in Italy..... Funny didn't hear anything on the MSM

    http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.adiconsum.it%2FPages%2FNews.aspx%3Fn%3D1675%26AspxAutoDetectCookieSupport%3D1

    Translated Page takes a while to load up, if your interested.

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  7. Cramer just on CNBS and in discussion re failure of Failbook IPO mess.....finally says the retail investor needs to go to the mattress and he doesnt blame anyone for being in cash...wow and actual moment of honesty......that I damn well guarantee you will draw a reprimand from above......they know better than that statement...

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  8. Just a follow up on Rand Paul..... hehehehehe

    http://www.infowars.com/the-ron-rand-paul-firestorm/

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    Replies
    1. very good one Tom.....spot on...listening now

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  9. market VERY weak...watch out below this week

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  10. SnP now RED......well that pop lasted 40 min

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  11. Phil Davis wrote this am that he felt much of Spain's bailout was already priced in on Friday.

    Keystone feels that we will have large swings this week, but little net movement up or down.

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    1. yes.....agree....bankruns are a bitch for the PTB .....that is how the individual votes and they are RUNNNNNNNING....They are saying "I call bullshit"......

      http://www.zerohedge.com/news/europe-scrambling-avoid-subordination-concerns

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  12. CNBS promoting this am a special coming up friday on a "New Currency"......hehehhehehee......getting closer

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  13. http://www.silverseek.com/article/silver-could-preserve-more-value-gold

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  14. rumors fly like wingless birds now days...or kind of like a bee in smoke...

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  15. Martin Armstrong is right, people fleeing to dollars rather than PMs at the moment.

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  16. Hah that didn't last long. I thought that bailout was nowhere near enough. It's going to take BIG ones from now on... like unimaginably big. The end game may be much closer than any of us thought unfortunately. I thought we might have more time but... not sure now. It's fine to gamble but make sure you at least have some physical at this point. The window is closing and these prices are a gift. Also some ALPO ;)

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  17. Watching DCTH.
    It's down to 1.47.
    Accumulating??

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    Replies
    1. I'm accumulating down here...more of a long term play...not a scalp

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  18. gold PAPER price is still controlled by the PTB.....really very easy to do....but what is going on behind the scenes with bullion being accumulated by the tonnage now is very difficult for the cartel to take......they will need to raise the price of gold and when they do it may be dramatic ie an overnite 100 dollar gap up....ultimately bullion is the only way to own gold and sovereigns and central banks already know this and are buying furiously right now....they know the end game is approaching fast

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  19. http://www.zerohedge.com/news/europe-brings-out-capital-controls-bazooka

    Oh boy!

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  20. platinum ripping but PAL and SWC not moving hehehehe

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  21. BNI depositors unable to make withdrawals / payments, payments of utility bills, mortgage payments, taxes

    Peter Giordano, Adiconsum: "Grave of the Bank of Italy's attitude that takes action without considering the impact on depositors, and especially on single-income families and pensioners"

    Adiconsum Bank of Italy asks for an urgent meeting and the lifting of the

    The Bank of Italy authorized the suspension of payments by Bank Network Investments SpA (BNI) without communicating anything to the depositors.

    Very serious and unacceptable - says Peter Jordan, Secretary General Adiconsum - the attitude of the Bank of Italy SpA in each BNI, because highly prejudicial to the interests of customers.

    Bank of Italy, in fact, after extending the receivership of the bank, thus giving the impression of an imminent rescue, then gave the green light for compulsory winding up, without giving any prior notice to the depositors, leaving them in no condition to perform any type of operation, even basic ones for daily survival, such as withdrawals / payments, utilities payments, rates, taxes.

    We must unfortunately note that offensive measures as those adopted to customers BNI - Giordano complaint - not an isolated case. Decisions without taking into account the heavy impact, particularly on savers in possession of a single bank account on which accrediting salary or pension, are not new to Bank of Italy, and also affected depositors of Banca MB.

    The attitude of the Bank of Italy - Jordan continues - is bureaucratic and deed and as Adiconsum we asked in a letter sent to the Bank of Italy and the lifting of the BNI and an urgent meeting to define the way in which customers, especially Fixed-income families and pensioners, can perform normal daily operations.

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  22. important to read for those holding a basket of miners in terms of how to rebalance you portfolio IF May was the bottom in miners....shifting from the larger caps to juniors in terms of timing

    http://news.goldseek.com/GoldSeek/1339417513.php

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  23. Reuters) - European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.

    EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen - no one Reuters has spoken to expects Greece to leave the single currency area.

    But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

    The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

    No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

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  24. California pushing more welfare recipients to work. I guess old Jerry Brown decided that Greece doesn't look so pretty after all.

    http://finance.yahoo.com/news/california-pushing-more-welfare-recipients-142406301.html

    Loved this stat from the article: "In fact, California houses about a third of the nation's welfare recipients, while only housing one-eighth of the national population."

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    Replies
    1. last one out of cali turn the lights off

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  25. what i have been watching and will continue to watch for today is price action and buying of miners in last hour...last several days they hit the bids in first couple of hours then wait and boot up last hour .....just watching ...they'll change it up some days but watching overall

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  26. For Jay: http://www.youtube.com/watch?v=Bx5Sc3vWefE&feature=youtu.be A brave young Canadian!

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  27. Looks like gold has it's eye on $1600.

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    1. it can have its eye on it but keep your eye on how the miners perform RELATIVE to gold for the real hint

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  28. technically miners appear to have a few more days of consolidation ahead...this would then form the base for the next move up.....ie another week maybe two then we should get a big move....that would coincide with the FOMC......something may give finally

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  29. Why has this not been more talked about? - http://www.telegraph.co.uk/finance/newsbysector/industry/mining/9323292/Chinese-offer-1.3bn-for-metal-exchange.html

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    1. not sure if they will let it happen......stay tuned

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  30. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/11_Fleckenstein_-_Stock_Market_Is_A_Farce,_Were_At_The_End_Game.html

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  31. well rudy gold just crossed 1600

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    1. Miners are holding in a down market but would like to see a move up into the close. Oil is down under 82. Fear is creeping back in....

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    2. market mo mo picking up steam into the close.......Ben needs some fear for his next big move .....my guess is they will surprise with a massive coordinated move BEFORE the FOMC

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  32. 1600 is being landed on......they don't want to trip those algos tomorrow

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  33. You really have to wonder what Ben and his buddies can come up with. 100 billion Euros seems to have quickly failed. But, just when you think there is nothing left that they can do,...Suprise!....and the markets will be fixed again.

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  34. Why would GS & JPM want to sell the LME? I wouldn't think they would want to give that control to China.

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  35. You have to check and find out "who" is behind the China group.....hehehhehehhehehehehehehhehehehe

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