Friday, December 31, 2010

Hangin Tough

10:45 UPDATE:
Been talking a lot this week about hitting the superfecta in silver (day, week, month, annual close). With this current spike in price, we now have a legitimate shot at a superfecta in gold, too. The all-time closing high in Feb11 gold is $1416.10 on 12/6/10. I have a last of $1418.40. Look out!

11:40 UPDATE:
Keep watching that Mar11 USDX. The recent intra-day low was 79.15 on 12/14. A close below there would indicate 78.50 is next.

The title means this, of course, is obligatory:

OK, once you've re-swallowed the puke that was in your mouth, let's move on. Our PMs are hangin tough!
As predicted for the past three days or so, the dollar completed its rollover last night. Here's a reprint of last night's chart:
Almost on cue, the USDX shed about 0.25 and has reached a bottom, so far, of 79.27. As you might imagine, the dollar weakness has led to PM strength and has pre-empted any Evil Empire raids. Again, I can't stress enough the importance of closing today at new daily, weekly, monthly and annual (post-1980) highs. Blythe and her monkeys obviously know this, too, so be alert today for any and all dirty tricks.

Lastly, I haven't taken the time to read this yet but I can assure you ahead of time that it is extremely valuable and a must read. This Egon dude has been spot on for years. In fact, The Turd considers him a "brother from another mother". Read it. Print it. Save it.

Metals still looking good as I close. Keep your fingers crossed. Out.


  1. Turd's umbrella keeping us dry!

    While the dollar devalues, precious metals will take on its liquidity. This is where we say, gold's price is not rising, it is the dollar devaluing. If the dollar rises, that will be where the big monie is made, but whatever. It is a win/win situation, and has been since $700.

    Keep up the brilliant work Turd, and I didn't watch the video, were you quoting New Kids on the Chopping Block?

  2. Yes, I was Jimi. I don't blame you for not watchin it.

  3. Thanks Turd for linking to the high-quality version. I expect nothing less from you lol.

  4. That was a good read by Egon. I am glad he mentioned (and silver) in that second to last paragraph!

    I am very curious how Blythe and the flying monkeys will attack today given that the dollar is absolutely tanking.

  5. Silver at 30.90 as I type.

    I hope the BoS really hammer Blythe today. Low volume can be in THEIR favor as well.

    Turning the tables!

  6. As much as I love this action today, I'm not as excited as when the PM's are up vs. every currency. Gold is down vs, Eur Aud BRL and GBR.
    Still seeing new highs vs. dollar is what most folks watch, so FU Blythe!!!

  7. I normally have a visceral reaction to anything like NKOTB from my younger days, but this time I realized Wahlberg was the front man for that group. Holy crap that guy is a chameleon. From Marky Mark to NKOTB, to a big time actor he always manages to make a comeback. Gotta respect that even if some of his work makes you wanna vomit.

  8. Turd, you are my brother from another mother. Thanks for all the great work. Kudos: You've created a great community here. I dig it.

    Much thanks to whoever posted that Jim Sinclair video. It was very insightful, and cause for hope. But I wonder if we have the gold.

    In any case, our metals are doing great.

    Happy New Year CIG&SA!

  9. Oh, flaunt. The Wahlberg of whom you speak is not Marky by Donnie. However Donnie, did go on to a memorable role in Band of Brothers in which he redeemed himself nicely. Brother Mark started out as Marky Mark then went on from there.

    I'm always up for some NKOTB and I'm not ashamed to say it.

    Silver: $30.88, Gold: $1418.60. Happy New Year!

  10. If any need help washing the kids out of their mouth:

    Was Wahlberg in Band of Brothers? Funny, I only remember Sophia Vergara.

  11. I wish I could understand at least some plausible scenarios for what the endgame might look like when the control system finally suffers catastrophic failure -- especially in silver, since I think that is where it is most immediate danger.

    If it seems clear to anyone here ( and especially TF ) I would sure love to hear a scenario or two.

    I will propose one, although I think I am about one standard deviation less knowledgeable than people here or on ZH.

    Argentum Apocalypse Scenario #1

    1. It turns out that the Big Short is *not* JPMC, but China. The PRC has been playing both sides of the ball.

    2. They have been supplying COMEX with occasional rations of metal, but only when necessary to barely avoid unconcealable default.

    3. Realizing that they have now succeeded in bleeding the West dry of as much silver as they are ever going to get, they halt further transfusions. The COMEX and the LBMA are emptied of their scraps of remaining metal within days.

    4. Blythe Masters suffers an aneurysm while screaming at her Mandarin translator.

    5. PRC informs COMEX that it will settle its short position, but only for US dollars, no metal. And then only at COMEX spot price -- no secret bribes.

    6. Blythe suffers a second aneurysm while screaming at her translator that "They can't do that!" The PRC reply is "Gun Kai", which her translator renders as "We regret that we cannot comply with your request."

    7. COMEX halts deliveries of metal for 24 hours with no explanation.

    8. COMEX declares a liquidation-only market. You can sell them silver (at their price) but you can't buy any.

    9. ZH and TF readers note that the COMEX spot price is no longer meaningful. Establishment/statist dupes and shills claim that it still is.

    10. PRC opens a silver market in Hong Kong. HK silver prices are 25% higher than COMEX on the first day, and diverge rapidly thereafter.

    11. Silver trading volume on COMEX drops to zero within a few weeks.

  12. Another good interview out today on KWN. Turk says, “We’ve got a financial Katrina coming.” Talks at length about how he sees next year unfolding.

  13. Looks like they might push it up over 31...

    And thanks to whoever recommended AGQ to me yesterday - good for a quick play

    Happy New Year Turd - this is a great blog

  14. Yesterday I wondered where Turd was.
    Today I wonder where Blythe is.

  15. @mick -- I think you may be closer to the truth than you give yourself credit for. My only suggested modification is that instead of suffering aneurysms, Blythe rings the opening bell as the head of the new HK metals exchange. See, the Chinese may not be the only ones on both sides of the trade, just as the Vamp Squid is not the only one to have figured out how to become the drain that the US/World is swirling down...

  16. Is it possible that we get a margin hike today..?

  17. george, as Turd pointed out last night, she was hitting the sauce. She's probably in bed with a hangover.

    Seriously though, there appears to be a push to make a close over $31. If it succeeds, then we're in Turd's "let's not get carried away...yet" scenario from last night's post.

  18. @george -- I think the buyers-on-margin are all dead already. Or have adapted so that they are no longer vulnerable.

    After the blatantly manipulative games that the Powers have played lately -- raising margin requirements in the middle of a session? -- you'd have to be pretty slow to let yourself be in a position where you could get run over again by the very same play.

    That's the problem with trying to manipulate a market. It adapts.

    Oh, and ... Fed Delenda Est.

  19. It sure would be amazazing though....

    Thanks for the link Turd, that guy is spot on. Went back and read his September post and his thoughts then are exactly what is happening now.

    Happy New Years to all you guys hanging out at The Watchtower! ;) Looking forward to all this mess in 2011.

  20. Gold has turned and advanced now vs. EVERY currency, the reversal in the Brazil real is stunning.
    Happy New Year

  21. I had been figuring we would peak early next week at about $32.50 and then drop back to about $30 with solid support at $29.50.

    Does today's action raise the bar?

  22. Theme for next year

  23. Dan: Give your $32.50 two weeks to play out, not one. Otherwise, you are spot on.

  24. Thanks, Turd. I'm basing the numbers on the pattern the BoS has been following since October: Up 10%, down 5%, consolidate for 2 weeks, rinse, repeat.

    I'm wondering, though, if today's near-$31 close will attract new interest that will apply upward pressure beyond $32.50 over the next couple of weeks. Maybe $33-$35 as a short-term top? I'm guessing the BoS and the EE would both prefer to hold at $32.50 and then shake out the weak longs.

    Thoughts, Turd or anybody?