Tuesday, July 10, 2012

CONFIDENCE!


Charles Ponzi
The picture of the game. That is.....the game of CONfidence. This face managed to get his name attached to a lot articles about our economy and banking system over the past several years. We are in the the desperate phase of mass deterioration. This is the final act of absurdity. Even the propaganda machine for the game has been taking on a more ominous tone lately. When you hear Rick Santelli openly scream on air that Gary Gensler is a joke within the world of traders you know the end game is in sight. That doesn't mean you should expect your misery to be immediately rewarded with a gun of the PM trade, but we are reaching a stage of desperation now and it will not go on indefinitely. The system is slowly eroding as the last vestiges of excess are scraped off the bones of the proles. After the remaining meager harvest is collected then the savagery will take over. As scarce resources are fought over, the violence will escalate. Divide and conquer will work amazingly well as the left attacks the right and the right attacks the left and the middle attacks both as the masters of the universe sit high atop Mt. Olympus and smile. I really don't pay too much attention the absurd proclamations that a day of reckoning is coming for the puppet masters. Its coming alright but not the way the proles and pundits would like to think. Only nature will have their pound of flesh and make no mistake they will have it. The little people that believe justice will be at hand will only find and empty hand awaiting.

Nice shakeout in the miners today. Its beautiful how easily they do it. Its just like shooting fish in a barrel. I marvel at how repeatable the game is for the market. You shouldn't be surprised, and unless you've just crawled out from under a rock more pain should be anticipated. It wasn't that long ago that the internet was rife with predictions of the collapse of JPM and Bernanke. I guess those sycophants are all quiet now. Just remember folks, this is a nine inning game and we are still early in the game. The last innings are where you better be in the parking lot headed for your car. If you stay till the end watching the outcome then you may be part of the score. BTW in case any of you wonder if the current action is depressing for my own trade the answer is simple.....not really. Where else would I keep my investment unless a portion was in the miners? I will still accumulate physical if they keep tanking it. GL



19 comments:

  1. Mr. Ponzi rules! Kli, doesn't disappearing client money at PFG mean more shorting of commodity futures?

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    1. but of course sister ...also from Captain Hook....."Gold is in a classic bull market. I think gold is in its second psychological phase. The second is the longest phase of a bull market. It's the phase where the public slowly becomes interested in an item.
      I believe that the third sentiment phase for gold lies ahead. In the third phase the public finally turns bullish, then more bullish, and finally all-out insanely bullish.
      What will be the signs of the third phase of the gold bull market? First, new inflation adjusted highs in the price of gold (gold above $6,200). Next, gold will be the focus of every conversation; it will become THE talk at parties and wherever people gather together. Next, gold coins and bars will disappear. The coin dealers will be out of gold and will start touting silver and platinum (the prices of which will be rocketing higher). Finally, the naysayers will start warning of a "gold bubble." But their warnings will be early. The price of gold will shoot up to unbelievable prices."
      What will be the signs of the third phase of the gold bull market? First, new inflation adjusted highs in the price of gold (gold above $6,200). Next, gold will be the focus of every conversation; it will become THE talk at parties and wherever people gather together. Next, gold coins and bars will disappear. The coin dealers will be out of gold and will start touting silver and platinum (the prices of which will be rocketing higher). Finally, the naysayers will start warning of a "gold bubble." But their warnings will be early. The price of gold will shoot up to unbelievable prices."
      I believe that the third sentiment phase for gold lies ahead. In the third phase the public finally turns bullish, then more bullish, and finally all-out insanely bullish."

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  2. Boy Stuff in Hotel California has gone bat chit crazy!

    For your listening pleasure

    http://www.youtube.com/watch?v=lFlPC3h3Z2Y

    as you read the following………


    First the California AG settles with the Fed’s on the National Fraudclosue Settlement

    http://www.nytimes.com/2012/05/16/business/states-diverting-mortgage-settlement-money-to-other-uses.html?_r=3

    and of Course the money was used for the purposes intended………….

    Then the California AG and Legislature passes a Home owners Bill of Rights, right after pissing all over the Rights of Homeowners with said settlement……

    http://oag.ca.gov/news/press-releases/california-homeowner-bill-rights-passes-legislature-bringing-mortgage-reforms

    Now you have San Bernardino trying to use Eminent-Domain to solve the problem of Home Owners underwater on their mortgages……..

    http://www.zerohedge.com/news/eminent-domain-transfer-wealth-program-challenges-remain

    This of course is being done by the same County that’s going/thinking chapter 9

    http://www.zerohedge.com/news/because-once-you-drop-bankruptcy-court-you-dont-stop-san-bernardino-chapter-9-deck

    Moral Hazard? What’s Dat??????

    Look on the bright side though, somehow there’s money for that High Speed Rail System!!!!!

    We are living in strange times indeed!

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  3. Kli,

    Thanks for posting the SVM chart. I think we need to see if SVM can hold the 5'ish range and thus creates a double bottom. Will it hold though??

    Phil Davis wrote today on his site that he believes the market will overall trade downwards in a choppy fashion for about 2 more weeks, but then we will get an end of the month rally. He believes the S&P could trade down to about 1320, then a rally.

    So, need to be patient.

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  4. thank you all.......now here's what I see.......unless an exogenous event occurs I expect NO MAJOR movement in metals and PMs until late August or early September. THAT does not exclude the possibility of a stealth move up in miner prices prior to this time period.......just not the explosive price movement that you would see when Ben and the boyz announce a mega print event. I also think it will be September because I think they want all hands on board from the Hamptons before they act.

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  5. Pulled from the following:

    http://www.zerohedge.com/news/libor-manipulation-leads-questions-regarding-gold-manipulation


    "Financial repression means that most markets are manipulated today - especially bond and foreign exchange markets.

    Many astute analysts are asking today (see Commentary) - why would the gold market be completely immune to such intervention and manipulation?

    The last thing insolvent banks and governments want is a surging gold price.

    Perverted and ‘unfree’ markets create profound risks financial systems and economies and for all investors and savers. They also present opportunities.

    As ever, it is prudent to be on opposite side of official manipulation as ultimately the free market forces of supply and demand will always win out."



    Say it ain't so.......

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  6. OVIT-very small float...came up on radar with FDA approval...bid ask is tough plus there are not a lot of shares...hard to get in and their are bids stacking up....

    could double..

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    1. Also DOC...I have NKTR target to 16 on p&f chart...

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  7. Tom. there is no money for a high speed rail system in Cali. The fed had ear marked 3.5 billion of funds which would have expired last friday. So the State Legislature "approved" moving forward and to secure the feds 3.5 billion. No stipulaton on how said money is to be spent. A stealth bailout.

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    1. No stips Nice, missed that one but at least you guys are getting the digital fiat to keep that ship floating a little longer........ fwiw: We aint in much better shape on this side either!

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  8. Honest,

    Thanks! Although it is not the most classic looking, the chart seems to show a Cup & Handle pattern.
    I am tempted to sell covered calls, but I am hoping the price will explode higher 1st.

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  9. Markets got that sinking feeling...FOMC minutes likely disapoint qe-3 seekers (the entire market) and the Bernanke put football is jacked by Lucy.

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  10. http://www.zerohedge.com/news/gold-report-2012-erstes-comprehensive-summary-gold-space-and-where-yellow-metal-going

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  11. MY guess is that China is more than happy to assist the JPM gold manipulation.......and that is why this is a short term game......The real power behind gold bullion stores is NOT going to give much more away at these prices

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  12. Good lord has gotta be the longest tighest range on a commodity I've ever seen ;) Freaking silver!

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    1. Yes Hub...this is just a magnificent management of this trade by the greatest Cabal EVER!!! Never underestimate their ability.......hehehehehe.....meanwhile I am doing JUST what they are doing......aquiring physical

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  13. Replies
    1. BTW nancy you may want to add here

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  14. Are you speaking to moi? Gone all day, looking at art as investment w/wealthy friend. Interesting. I don't own kog...wealthy friend in your field Kli, but better--consulting for hospital compliance to new laws...says nothing good happening there. Plugged into HHS. But back to the chart. Missed the day, will watch for entry tomorrow.

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