Thursday, March 29, 2012

BREAK UM' ALL

Precious metals trader
Throw those punks in the street and make the plebes beg. After all we're the greatest game on earth and we OWN IT! If any of you had any doubt when Joe used to tell you who ran the casino then by now you should have NO doubt. This was never a fair game and it was always fixed. The difference now is the end game. The end game is survival. YOUR SURVIVAL. To paraphrase advice I was given one time when asked what the purpose of the stock market was.......and I tried to answer with a detailed answer, but was eventually interrupted in the middle of my lengthy explanation with a very simple answer by my questioner.....THE PURPOSE OF THE STOCK MARKET IS TO TAKE YOUR MONEY.

Think about that simple statement and this was by a very inside insider.....the purpose is to take your money. There is little doubt now after the breakdown in 2008 and the exposure of all the ugly warts of the system that the prolls that are still in this market are being taken apart. Right now we are seeing a breakdown in many of the confidence measures that have been propped up by the fiat printing over the past two years. The damage done by letting the boyz slaughter the plebes last summer in the breathtaking takedowns and volatility has NOT been repaired. This has done irreparable damage to the pathetic volume that existed in the market then and has placed us on the edge of a no bid market. I bring this up just to let you know HOW dangerous of a casino you are sitting in. This is NOT your MOMMA's market. It will rip your head off if you lean to far with leverage.

Having said all of the above negativity I will now shift to the next game. Seven card stud with the one-eyed jacks wild. I like this game.....especially when one-eyed jacks are wild. I included a video that I want you to watch. Notice VERY carefully Mr. Nenner's choice of words in the vid. I hope he was given clearance for his use of language. Enjoy the day. You are all in a chop shop right now but it won't last forever. If you don't like it then buy AAPL. It's supposed to go up forever. But I can assure you someone wants all of you out of this trade. hehehheheheheheehheeh.......gl



Tuesday, March 27, 2012

KILL THE TRADE

Take um all out. Bury the trade. Make sure we get them all out before this next move. That's the game.folks. Its  called accumulation. Most longer term and shorter term charts appear to be bottoming. One final plunge is possible but you cannot count on it. Once the bus is loaded this time expect some extreme volatility over the next few months in the precious metals. The game is to naked short the commodities trade here and provide Ben the cover to continue provided fiat to prop up the banks and world liquidity without the rising costs of essentials forcing an end to the ponzi. There is NO possibility this ends well. ALL longer term bonds cannot afford even a 100 basis point move without crushing the entire illusion so printing will have to continue unabated. The world is moving away from the dollar incrementally and with the recent restrictions imposed on SWIFT in the Middle East and Iran, the move away from the dollar to settle for Oil will accelerate as the US actually PUSHES countries OUT of the dollar as the reserve settlement currency. Imagine ....we are cutting off our noses to spite our face.

Today Bill Gross made an astounding statement on CNBS recommending gold as an investment going forward for all portfolios. This is an abrupt change in his recommendation on gold and has implications within the investment community going forward. These moves will happen gradually then one day the snowball will be an avalanche. Prepare for big moves going forward and hang on. GL


Monday, March 26, 2012

CHILD'S PLAY

If only it were child's play. The casino is in a desperate position with declining volume and participation. Luring the risk on trade back in to the greatest game on earth is not such an easy task for the bankers. The pain inflicted by the bankers on the peeps last year coupled with the pain still felt from the thrashing of 08-09 has appropriately taught many retail investors to stay away from equities. Just when some damage had started to heal, last years beatdown created open wounds that will not be easily healed. Right now the liquidity drain from years of overleverage is forcing the Fed to pour in fiat to keep the entire system functioning. This will continue until the costs of essentials rising FORCES the Fed to stop the fiat printing.

Feel free to fall for the game of whether there is QE to come or not. It is a game of illusion. QE has NEVER stopped and it cannot stop......at least until the above stated costs of inflation force its downfall. There are multiple QE programs at work around the world now. So separate yourself from that disinformation. When you go back in a few years and look at the charts of PMs and the PM miner equities you will be amazed at the most recent beatdown and just how insignificant it will look.

Enjoy the game because the reality of what is happening underneath the surface of the disinformation is not nearly as pretty as the illusion of faux prosperity. Prepare. gl all

Friday, March 23, 2012

WHERE IS THE GAME HEADED?

Perhaps the pie charts can give you a clue. You have to only take a look at these simple purple charts and as they say a picture is worth a trillion words. This week only reinforced my opinion that the boyz are accumulating the weak hand's miners shares as they reinforce the conditioned stimulus that the precious metal trade is NOT a safe haven. Not only is it NOT a safe haven but they want you to understand it is hazardous to your financial health. Just ask all of those MF Global customers. They were taught a lesson and it wasn't something that I laugh at. The casino is to be feared and playing in it can cost you dearly.

Next week promises to be interesting as the COT report shows the commercials are covering shorts in gold and silver and adding longs. When backwardation (as it is now) comes into play in gold you can count on this beatdown nearing a dramatic end. I hope you all have a nice weekend and if I have time I will update with some new vids. For now you can look at some charts I pulled up after the market closed today.

Wednesday, March 21, 2012

ITS ALL ABOUT THIS

Make no mistake this game is far from over. High stakes poker with a pocket full of jokers is no way to run the world, but that is the game. When you throw the kitchen sink into the pot and you still only get a stare from the table you know you have a big problem and that is exactly where Ben is. Today's charade with Timmy was comical to watch. Having been in similar bluffs in my life I sympathized with Ben's painful dilemma in front of Congress today. It was truly difficult for me to listen to the Abbott and Costello show, knowing that every time Timmy spoke Ben wanted to crawl under his chair and stab himself in the eye to lessen the pain of listening to Timmy. Don't get me wrong, Ben isn't the greatest Fed spokesman in chief that I ever watched but contrasted with Timmy his personae is in rock star territory.

There was one camera shot when Timmy started to speak that Ben actually turned his head and appeared to be staring at the floor in complete disbelief that anyone could be the Secretary of the Treasure and that inept at the game of Bullshit. Ben knows very well that a big part of his job is to project CONfidence and if that fails he has nothing right now. Here he was with Tiny Tim mumbling and stumbling in a stacatto style that was finger nails on a chalk board to anyone actually listening to the mind numbing testimony today. It was so pathetic that several of the congressmen and women actually interrupted Timmy after just a couple of sentences of his answers and dismissively turned to Bernanke for clarification or another question was delivered to stop Timmy's confusing answers. It is very apparent NO ONE in D.C. can stand Timmy. Imagine other countries dealing with Timmy's power moves. They must have a hard time disguising their contempt.

Ben and Hank were a sad team back in the meltdown but Ben has improved a little. Timmy must have some purpose but it is not visible to this eye. Anyway the gist of today's action was clear. "We're in deep shit and its getting better." Maybe the public bought that line but I have noticed a number of metrics that say they aren't. This is end o days stuff and you are in historic times that I had hoped I would never see in this country, but here we are. If anyone has seen the movie Havana then you know how I feel playing in this casino. We are going to end the same way and its only a matter of when. This is still accumulation on the miners. My cash is low right now and I am still holding off for the finally plunge if it comes. Many charts appear to be in a bottoming process so I guess we find out within the next few weeks if I am right.....gl all









Monday, March 19, 2012

BREAKING NEWS

Princess Kate gave a speech yesterday. A soldier was incarcerated in Fort Leavenworth. A school shooting occurred in France. Oh.....and we are preparing to start WW3 with Iran. You know....the Persians. They are developing a nuclear bomb.......like Pakistan has a hundred of......and India has a hundred of.....and Israel has a  few hundred of.......and many other nations have hundreds and thousands of......including the ten thousand we have. But you see.....Persians apparently are in the axis of the EVIL..............and they can't have one.....unless they get one before we can stop them like North Korea did.......then we shut up and back off. Oh....and I forgot Princess Kate gave a speech. She is royalty. You know......like the kind of royalty thousands of Americans died fighting against that enslaved us and we wanted our liberty from. Oh.....I guess we forgot.....at least our corporate media forgot. They seem to think we need a constant reminder how important these royals are in our lives. Maybe we need to be reminded that we didn't really escape enslavement and attained freedom.  One thing is certain.....the casino is still open and as long as it is I want a hit...I don't see a turn yet in the current beatdown so I'll wait...gl all also be aware you may have to use google chrome as your browser to read and post comments.....please participate

Sunday, March 18, 2012

STREET FIGHTING

The German tanks and infantry were stymied in their Blitzkrieg across Russia when they encountered crowded urban fighting. Much of the maneuverability advantage that their superior mechanized divisions had was lost in the crowded streets and rubble of the major Russian cities. The defenders were able to gain the advantage over the Nazis while building their own reserves for the counter attack on an expended and weakened enemy. Right now it appears that a similar strategy is in place economically with our "trading partners" in the East. The hegemony of the empire is mired down in its blitzkrieg of the world and is struggling in urban fighting with the reserve currency status of the dollar and euro hanging in the balance. Many of our trading partners have lost confidence in the long standing status of the dollar and are maneuvering into other exchange vehicles that will prevent further plundering of their natural resources and vested trading interests..

Grand economic supercycles result in dramatic transformations just as this supercycle will. Headlines run daily regarding the debt debacle in Europe but spend little time addressing the same mathematics in the U.S.. Is this an accident? Of course not. There are few accidents occurring with the controlled news cycle now. This is a systematic recapitalization of the big banks with a back door bailout to many of the largest private bond-holders. Most of the real money is coming in the form of further debt being heaped upon the populace of the affected countries. This guarantees a further drag on their chances of long term economic growth and recovery. This is why you hear many money managers recommending moving more and more long term assets into more developing countries not burdened by high debt.

Ultimately there will be a dramatic devaluation of the dollar. Most likely there will be some fear trades over the next couple of years that push people into the dollar to keep it somewhat strong......at least relative to the Euro and Yen.....but ultimately the dollar will tank. There will be no other way to repay the debt without creating inflation. These will be interesting times ahead with the slow decay of the freedoms and values that we thought under-pinned this country. The moral decay and dumbing down of a once proud country is becoming more and more obvious.....except of course to the most oblivious out there. They will never change and they will be the first to put the gas pellets in the chambers. gl

Wednesday, March 14, 2012

NOT EVEN CLOSE TO THIS BAD

Now this is what is called a beatdown. Predictions abound tonight that the metals and miners have a lot further to fall. So it is understandable if your fear indicator is running high. Perhaps you feel like the Seventh Calary before Crazy Horse destroyed the fabled Custer and his regiment. It has become obvious to even the most non conspiratorial trader that something is deeply broken within the miner trade. Of course when we step back and look at the weekly charts in a couple of years you may find these ugly corrections appear as minor blips. Time will tell of course but my bet is on the blip. Enjoy the discount and hold some cash in case we get a monster washout day to trade. Go ahead and cruise some of the message boards on your favorites. Its as negative as I've seen. Charts later....gl

Tuesday, March 13, 2012

PUT AN ICE PACK ON THAT!

You wanna play this game then be prepared to have your ass spanked. That's the game right now. You are NOT wanted in this trade. Not even a little bit in on this trade. Its so bad that the miners themselves are being told to cease and desist. If you are a PM miner the word is out from the top.......shut up and don't pop your head up. You are NOT part of the plan to save the world. I think I like this. VERY negative sentiment developing for months now on the PM miners and the strong hands now control the trade. If the masters of the universe want to keep pushing prices down then I will tell you right now that there is money taking orders quietly. Still have reserve cash too and will continue to buy on further beatdowns. No buying today. May buy tomorrow. Right now just watching support holding in most if not all of my miners so patience is a virtue here.

There are continuing bank runs developing momentum in Italy and Spain now and the central banks are desperate to build confidence. A run at the breakout in the SnP is certain. We are in the most amazing display of central bank power and to watch the level of coordination between the media, pundits, hedges, bankers, and politicians makes one stand in awe.......and perhaps slightly nauseated. Just remember if you want to play in the casino you have to know who owns you.......gl