Tuesday, August 28, 2012


Since Jim Willie brought it up already I think we can discuss this briefly and move on. More than likely the behemoth investment cough cough "Commercial" bank appears to be getting set up for a good old fashioned flushing. Too many bankrupt Zombies in the game and Morgan will be next in line for the firing squad.
Just be aware of the past hypothecation and rehypothecation these events are associated with this type of event. Too many carnivores in the same room and if you are in this game then you can become "collateral damage". I bring up Morgan tonight because it will leave damage.

On Friday we will have the 10AM Bernanke speak. When this is concluded be aware that a beatdown of PMs may follow. I would be surprised if they take Gold below 1600 this week.....but they may. Miners will follow. Here is what I would expect. NO definitive QE announced.....no surprise there....but IF they do not announce QE do not despair. He will instead pump the improvements in the economy and then state that there is NOT ENOUGH IMPROVEMENT YET and that MORE WILL NEED TO BE DONE VERY SOON. He has to talk the talk or it would be a bloodbath Friday. He can levitate the market for awhile with the overhanging threat of QE ...AND  sell bonds with the threat of a collapse looming also. This can play out for awhile but not forever. Eventually his bluff will be called and he will announce the bazooka. In the meantime he must hold QE over the head of the market like a club and those pronouncements will provide the impetus to push the PMs higher. Remember the boyz return next week and the market moves will begin in earnest. The gold bulls may get their revenge if the mo mo boyz start to get in. The big boyz are loaded.......now its the rest that will get to play. http://lewrockwell.com/wile/wile57.1.html


  1. If Rickards is right, we will have nominal GDP targeting as the next QE on Sept 13th - that should be very sweet for PMs for a long time - open ended QE forever :"So look for the following sequence of events. On August 31, the Fed will give strong indications that more quantitative easing should be expected if economic conditions do not show substantial improvement. On September 6, expect the European Central Bank to lower its main lending rate by 25 basis points to 0.50 percent. Then on September 7 look for an employment report weaker than consensus estimates due partly to quirks in seasonal adjustments. This will give the Fed economic justification and political cover for the start of a new quantitative easing program on September 13. This double-dose of ECB and Fed ease should give stock markets a lift through the fall at least until the twin dangers of the fiscal cliff and war with Iran stare investors in the face later this year."


    Then we have Martin A., who is hard to divine even on a good day, implying that since we are rallying into September, is expecting a beatdown in gold into January: "Looking at our empirical models, the ideal primary target for the next turning point appears to be March 2012 thereafter we see a two-month move in the opposite direction initially there appears to be a fairly large change in Trend developing in September of 2012 which can lead to a move into the January 2013. Therefore if March unfolds as a reaction high we could see a retest of support in May with a reaction high into August for Labor Day and a decline into a final low in January 2013. It is clear that January 2013 should be a very important target. If that is a low then we should be able to see a significant rally into 2017 thereafter.” "


    Delivery from Tulving arrived yesterday, two business days from placing order. Good luck JD.

    1. yup.....both scenarios easily could occur which puts a freeze on the pros....but it doesn't put a freeze on the the inside boyz....they've been accumulating and "stacking" tonnage throughout the beatdown as they have driven out the weak hands....which is the ONLY purpose of the beatdown.......to steal your shares......and paint a picture of PMs as a "risk trade"....hehehehhehehehehee

  2. Honest,

    Just bought a little GENE the last two days! My average is 3.23. Hoping for $4+.

    1. winning! short replies its 4am here...4.25 is 360..should consolidate there...

      great trade...aloha

  3. nice beatdown on headline price of gold......hopefully some more tomorrow...should set up nicely for reversal on friday

  4. everyone here might want to throw some chump change at ABIO...since damn smart phone GENE alert, I can't get back to sleep...

    .39 but volume is building, just pushed above 20sma..if it gets over 50sma...nice gains...

  5. also may want to take a look at the gold chart just posted showing the descending triangle STILL intact.....be aware....should be a fun flush if they do it...if they can flush it through the baseline i think it will be a FAKEOUT.......