The last 24 hours have been brutal and relentless but the worst might...might...be over. Take a moment to review these three charts, in order. You'll see what I'm seeing and understand where I'm coming from. They are March11 silver charts. I could show you Feb11 gold, too, but they look a lot alike.
Additionally, the other commodities I use as a reference are also "bouncing" as I type. Crude is back above $88 and is 0.80 off its lows. Wheat and beans are both now up on the day and 0.20+ up off of their lows. Gold is now almost $10 off of its low, too.
Again, the worst may be over. Time will tell.
Was it Ted Butler who was just talking about HFT?
ReplyDeleteCFTC's Chilton wants more high frequency trade oversight
By Christopher Doering
WASHINGTON | Wed Dec 8, 2010 9:33am EST
(Reuters) - A top U.S. futures regulator official said Wednesday he supported tougher oversight of the high-frequency trading market that's responsible for a third of the volume on regulated U.S. futures exchanges, including requiring that the trades be reviewed and monitored.
http://www.reuters.com/article/idUSTRE6B72GF20101208
Interesting thoughts about BoS on ZH by Quintus (also mentioned here earlier:
ReplyDeletehttp://www.zerohedge.com/article/volatility-chasing-goes-gold-precious-metals-drop-year-end-profit-taking-rumor#comment-789033
"They are not trading. They are not flipping contracts. They are loading up Airplanes with gold and shipping it to a vault from which it may never emerge in our lifetime. I contend that this is behind the London Fix price movements. The wider picture of paper gold and derivative shenanigans isn't really relevant to a sovereign state looking for permanent accumulation of physical gold reserves."
If true, combined with the pressure on EE to keep prices down at all costs for as long as possible, will make for a hell of a pressure cooker explosion...
This is Dec 8. This is the short-cycle bottom today/tomorrow. Trading top by Christmas. Get ready to buy all you can at the major cycle low in January.
ReplyDeleteTurd has the price levels nailed. Don't wimp out, especially in January.
I just moved cash to my brokerage account in anticipation of increasing positions in SIL and GDXJ.
ReplyDeleteMight be in the minority but I'm pleased as punch! I'm just a wage slave and young enough not to have had much in the way of assets to move. Hoping this dip lasts till payday so I can drop the check into the metals and get more bang for my fun buxs. Thank you Blythe!
ReplyDeleteHammering it down can hurt them long term, us little goons and the BoS will keep plugging away at them and getting more metal for our currency.
I'm with you ShamefulPath ...expecting a bit of money in January and hoping beyond hope that there is a good dip in January.
ReplyDeleteCan someone explain further why there is an expected dip in January ...and what that dip might look like as I want to buy physical & miners next month. Sorry if this is already addressed. Just direct me to T's explanation on this..
I was a buyer this morning....
ReplyDeleteIt would seem that uncertainty is the order of the day.Currencies appear to be all over the place along with commodities down.Long term profit has to go somewhere and soon that will be G & S.As the markets will find out you can fool some people all the time,some people some of the time but never everyone all of the time.As things continue to come apart safety exists only in PM,s.
ReplyDeleteI think China is manipulating LBMA and CRIMEX to their advantage. They wanna dump their gigantic pile of junk Dollars for metals but cannot do it on a mass scale that'd cause a price shock. They thus just dabble with it and leak some rate hiking news or other negatives along the way, giving EE fuel to rig it down for them, and then step in to buy.
ReplyDeleteHouston, looks like we definitely have support at $28. Just looking for that alive and scared cat bounce!
ReplyDeleteWas able to swap out of my SLV for PSLV entirely. I read some of the prospectus on SLV, being nervous that the custodian was JP Morgan. I saw enough to confirm my suspicions, including that the silver holdings may be in UNALLOCATED accounts. Meaning JPM can lease it to itself. So I dumped all my SLV and bought Eric Sprott's PSLV physical silver fund. The silver is kept at the Royal Canadian Mint, and cannot be allocated to anyone else. I am going to sleep better as a result. I plan to send 500 or a 1000 bucks to my trading account every now and then and pick up like 40 or 80 shares from time to time. You all worry too much. Up down sideways I keep accumulating, just like those guys that started accumulating at 5, I started at 22 and when it's over 100 I will retire..
ReplyDeleteSome key levels that stand out to me on my 2hour silver chart: Double bottom Nov 16-17, double/triple bottom Nov 26-29 and the double bottoms today at 28. All 3 periods above are appears on a solid trendline starting from Nov 16-17...let's see what the balance of the week brings.
ReplyDeleteI think Don has it right. You would only be buying the bounce here and you would have to sell, MAYBE, at a slightly higher high but then the bigger dump comes and you would want to avoid that drawdown unless you can handle it. I am using GLD Daily 5/13 to 7/29 as a guide here. I am looking at 1/17 as a possible time to start buying. Obviously I will be ready to go earlier if warranted.
ReplyDeleteWell I'll be Jiminy! Santa has moved the goalposts
ReplyDeleteJanuary 6, 2010 at 8:56 pm
Dear CIGAs,
The Angels are moving targets that are refined with each market reaction. Their change is miniscule but we account for it. That fact that $1224.10 was the cash high and the fact that the $1080 area worked reasonably well has lit up $1764 even brighter than $1650.
I therefore conclude that gold is definitively going to $1650 with an overrun to $1764 prior to a reaction before it moves to higher prices on or before January 14th, 2011.
http://jsmineset.com/
DXY looking very heavy here...79.93
ReplyDeleteTurd...what's going on in that brain of yours? What are you thinking?
ReplyDeletesass - but why not buy physical silver instead of PSLV? Wouldn't that give you even more peace of mind?
ReplyDeleteWent over to read Tylers article and of course had to read some comments. Usually enjoyable and educational. After about 25 comments(200 posted), I couldn't take it any more. Whole bunch of whiners. Man up or get out of the game. It's a frig'in correction, not the end of the world.
ReplyDeleteSass that move into PSLV is what all paper traders need to do......SLV is part of the ponzi all....it "claims" it is backed by physical...Hahahhaha....take the opportunity to switch out
ReplyDeleteYeah - but you can trade options in SLV.
ReplyDeleteWell the fact that JP Morgan is custodian of the SLV ETF, and we know that they are THE manipulator of the silver markets, should give pause to SLV holders. Sprott may have to give a lot of thought to how to handle the converters like me and how to keep adding physical silver to his Royal Canadian Mint inventory.
ReplyDeletedd: Just posted someting interesting
ReplyDeleteJeff: I've gotten to the point where I can't stand to hang out at ZH too long on days like this. Too many trolls just trying to piss people off.
If/when the turd hits the fan, having your silver stuck in Canada isn't going to do you a lot of good, is it?
ReplyDeleteTurd,at least there,s no Johnny Bravo or Robot trader on this Blogg.Just wait til China starts spending those tired old $ in earnest,at the moment you can,t see the wood for the trees,buy those f****n dips.
ReplyDelete@cbottlebob Indeed...buy these dips! I think tonight will be interesting. $28 was a lot stronger support than I thought.
ReplyDeleteTurd, you mentioned a fun week....my gosh man, if you have kids, I bet they cant sneak anything behind your back. Amazing foresight!
Bob: If they show up, I'll just delete their posts.
ReplyDeleteTF Metals Report. Troll-Free for 27 Days and Counting!!!
Paul - re that jsmineset.com repost titled "A Look Back to January 6, 2010." I can't tell if he's standing by his call or what?
ReplyDelete