Sunday, June 3, 2012

WHY IS HE SMILING?


Maybe he had a large PM equity portfolio on Friday. Of course on Monday that smile may get slapped off his face and he may throw that T-shirt in the trash. I mentioned recently that we were going to enter some very volatile moves in the metals and Friday really wasn't a surprise. This game is getting very long in the tooth and coiled springs have a tendency to explode and that is where we are. This trade will not be unleashed fully without a fight by the fiat managers so expecting extreme volatility here WOULD surprise me. By extreme I am referring to $200 plus moves. They are coming.....just not in the near term. If my guess is correct we may not get them until the end of this year. The one thing that could shake me out of this guess would be a disorderly breakdown in Greece in the next month and that would send gold volatility much higher. Also if the descending wedge breaks then we will see some real nice volatility to the down side in triple digits. so be prepared. I of course will laugh my ass off and tell you not to wet your pants but it will provide my last buying opportunity for cheap physical and I will commit the cash I have waiting for that 1340 level. It can happen. I also want to add that I had posted last week that I was wanting to see how the miners and gold would react to a blood red overall market day and we had that answered in spades on Friday. Alf thinks 1520 was THE Bottom......so THAT'S WHAT MAKES A TRADE...it may be but you keep your mind open..

One thing we can all be assured of changes are coming and they are coming very fast. Depositors are draining Eurozone banks and the PTB are going to have to step in and stem that flow I believe VERY SOON. I fully expect dramatic announcements very soon announcing depositor's insurance in the Eurozone much like Bernanke did when our Money Markets broke the buck in September 15 2008.......It was part of a bold strategy that stopped our Bank Run in 2008. Of course they had to print Trillions to shore up Bank Reserves but it did work to save the "system". Once again we are facing a loss of CONfidence and a run on the bank. This MUST be stopped and action cannot be delayed for long. Rest assured also that gold's headline price will be thwarted again and you will have tears over it but it will break out to heights that I believe will amaze us. Its a store of wealth and if its not bullion delivered, you will most likely never see it. gl

MF Global news breaking.   

71 comments:

  1. http://www.financialsense.com/contributors/pater-tenebrarum/keith-weiners-open-letter-to-ben-bernanke

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  2. http://yrah53.wordpress.com/2012/05/30/marley/

    I do not know if you fallow Yar..

    this is his web site.

    paladin

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  3. http://news.goldseek.com/ClifDroke/1338711231.php

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  4. http://www.johnmauldin.com/images/uploads/pdf/mwo060212.pdf

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    Replies
    1. Very interesting read. Thanks for sharing.

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  5. http://www.scribd.com/doc/95768376/Hmmm-02-Jun-2012

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  6. Question: What will happen after the collapse? Will fiat currencies continue? Will we see a world dollar? Will we be bartering? Will we get Hitler? World War 3?


    Hiroshima today is a thriving modern city. Can we rebuild the world economy like the Japanese rebuilt their city?

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    Replies
    1. Jay they will never end fiat......but they will need to re establish CONfidence in the different currencies....ie a rebalance with "something" backing currencies...my guess is there will be more than one "reserve" currency as equilibrium is established this will take some time (years) to play out.....gold may play a role.....oil will and possibly other resources.....as far a chaos and war i really don't have a crystal ball......but my feeling is things will get much worse before they get better....prepare....it hurts nothing to prepare

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    2. BTW Jay...the collapse may not even be a "collapse" per se.....it may evolve with a series of "events" .....these events may seem to appear random and some may actually be unplanned but my guess is we will continue to deleverage over a period of time and it will be very frightening at times. We already are under marshal law and most don't even realize it.....very softly being implemented ...i give them credit....but how it eventually plays out, only they will know and maybe even nature throws them a curve ball

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  7. I believe we will have some kind of basket of "real assets" including gold, platinum, silver, maybe even oil, this is what will back money post fiat currencies.
    alternative investments

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  8. Phil Davis writes today that he believes CNBC is trying to panic people into selling. Thus, we could be near a bottom.

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    Replies
    1. exactly the reason you listen to CNBS.....try to use it as a tool to determine which way the boyz are trying to herd the sheep

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    2. I will be very interested to see what kind of fear builds before the FOMC meeting for a tell on whether they take action or not

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  9. Kli, you were right down the street from my firm. Looks like you were standing on 44th. Small world...

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    Replies
    1. Spent most of my time on WS and in Soho.....next time I say I'm in town just mail me and I'll buy you an americano

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    2. Will do.....but who knows what the next few years will bring....

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    3. i understand......NY may not be on my agenda in a year

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  10. Should be a nice PM ramp into Thursday....

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    Replies
    1. should be a nice PM ramp into 2018....hehehehehe.....but the road may be bumpy

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  11. AUMN..short squeeze?

    GALE might be active today...presentation at asco...I saw something on silver charting last night that will post later that I liked and will let you give me your take after I get off confernce call this am...

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  12. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/3_The_Real_Reason_Why_Global_Markets_Are_Melting_Down.html

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  13. Nice bouncing on zgnx & zcls, have traded both. Great pic kli. I go to the city 3/4 times a yr. What is wrong w/gpl & pgz?

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  14. Replies
    1. PZG is technically still showing signs of coming off a possible bottom so pullbacks are to be bot......since I am out of brokerage cash.....and only have physical buy cash left .......i will watch on the sidelines

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  15. I looked at AUMN. Great move today! Brutal chart. AUMN has been a money losing operation since 2009. Sold non core assest to raise cash and lost a 400k revenue stream.

    Chart wise? shows some consoldation over the past few months.

    15% short interest.

    They bleed $$$.

    But, ripe for the squeeze. between now and thursday could do quite well.

    You can see PM's trying to rally and are being smacked down...

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    Replies
    1. thanks Sheeps! are old friend BOIL is active today...must have hit a fib..

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    2. good.....hold um down .....longer they do the bigger the upside move coming....hehehehe.....hard to day trade that but then that IS THE PLAN

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  16. I expect gold to consolidate here for a bit like everyone else, just makes sense with the prior resistance being at around $1630. Will probably take an overnight pop to clear that. But who the hell knows ;)

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    Replies
    1. give the prop desks some stop shopping to clear out the new leaves for a few days

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  17. A big print announcement coming needs to have gold contained BEFORE it is announced.....they may even let it go up somewhat before the announcement and smack it down WITH the print announcement depending on how they disguise the print announcement......either way the play is to hold here

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  18. Keystone wrote today that they still feel 1260 is the target for the S&P.

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  19. gold should go back and test 1600 area

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  20. Yes, and taking today/tomorrow w/grain of salt since there is no London fix due to Queens Jubilee. Easier to manipulate down. Thanks for Keystone target Doc. I was thinking 1275 would do it, apparently not.

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  21. buying dcth here, big buy program just started

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  22. Anti-Gold article published in the Wall Street Journal:

    "How Much Gold Do Investors Need? Zero Should Suffice"

    http://tinyurl.com/crdyw3m

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  23. What's shaking kids? Miners going green...

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    Replies
    1. I think KLI nailed it when he said it was going to be a stop shopping day.

      The only constant in the universe is Facebook getting flushed down the toilet again.

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  24. just got back and looked at AUMN....bot some this am thanks to the heads up.....not enuff though......hehehehhee.......very little was in the dry powder box.....

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    Replies
    1. Great call Sheeps and KLI!:

      Golden Minerals Company (AUMN)
      4.50 Up 0.79(21.29%) 2:56PM EDT - Nasdaq Real Time Price

      Always nice to see some people on this blog hit a jackpot once in a while.

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  25. http://news.goldseek.com/GoldSeek/1338813762.php

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  26. Krugman: “We’re talking as if a billion dollars is a lot of money”


    http://weaselzippers.us/2012/06/03/paul-krugman-rationalizes-solyndra-were-talking-as-if-a-billion-dollars-is-a-lot-of-money/


    I've come to the conclusion that Krug is indeed an economic genius. He's showing Americans and the world the fastest way to go bankrupt :)

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  27. Krug wants bens job and he knows that outprinting ben is the best way for a pol to give him the job..

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  28. may try and make a quick trade at the 495 HUI level which will coincide with several of my miners resistance levels....

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  29. That AUMN short group is trapped and getting their asses handed to them......that kind of action is very good to see and signals we may be coming off a real bottom.......

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    Replies
    1. retesting daily high:

      Golden Minerals Company (AUMN)
      4.66 Up 0.95(25.55%) 3:24PM EDT - Nasdaq Real Time Price

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  30. http://www.zerohedge.com/news/hoarding-continues-china-purchases-record-100-tons-gold-april-hong-kong

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  31. just posted a weekly on AUMN...take a look at the target

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    Replies
    1. Blasted right through the daily high:

      Golden Minerals Company (AUMN)
      4.78 Up 1.07(28.84%) 3:34PM EDT - Nasdaq Real Time Price


      Checking your chart now.

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    2. holy chit talking about trapped rats in a killing field......shiiiiiiit

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    3. Unstoppable! Shorts on suicide watch.

      Golden Minerals Company (AUMN)
      5.08 Up 1.37(36.93%) 3:54PM EDT - Nasdaq Real Time Price

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  32. several miners closed strongly....EGO GBG hmmmmmmm

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  33. listen to the cox interview http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/6/3_Donald_Coxe_files/Don%20Coxe%206%3A3%3A2012.mp3

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  34. AUMN - Wow guess a few folks are gonna have a hard time sitting down tomorrow! Nice vol spike eod........ hehehehe

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  35. was that a flash crash in silver just now...what a day...ZlCS powered up, AUMN and I like my DCTH entry a lot...

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  36. IF this is the bottom then I expect a very carefully disguised (as it has been so far) move up from here......

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  37. Received my silver today from Gainesville coin. First physical I have ever owned. I may be addicted, just something about holding and feeling the weight. Thanks for the Gainesville site Kli. Need my KGC to get back into the 9's, I'm patient. Good luck to everyone.

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    Replies
    1. Congrats! :) You won't regret it, and yes it is addicting.

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  38. GBG had a roockin day. +14% nice call Chuck on AUMN.

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  39. GBG has moved 35% in the last couple of days......WOW

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    Replies
    1. Wonder what's up with these big moves in random gold stocks? Just your typical squeezes?

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    2. just a function of very oversold conditions coupled with the short covering off of a major bottom

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  40. Kinda seems the worst or the most shorted got the squeeze today...Silver doing well tonight so far....Hard to keep the lid on PM's right now. Lot's of cnbs jabber today about miners.

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  41. smells like a big move for silver tomorrow...maybe like the move of early Jan 2012.....Some have been tipped off and those miners that where being shorted out of existence had to cover........

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    Replies
    1. could be sheeps....HUI could easily hit 495 area in a single day

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  42. Yep..see that. Looks like a 3rd of a 3rd up could be here.

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  43. 495 482 either sets up but i like 495 before any cash raising

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