It was a decent
down-week early on but then things stalled Thursday before it was announced
that JP Morgan had a small trading loss. This small loss forced an unexpected
conference call which is odd.
it’s a small loss then who cares?
have a feeling we are in for a major revelation that will rock the markets to
their foundations very soon.
positioned quite heavily short as a result and hope to do well.
can’t put my finger on anything specific but the feeling I’m
getting during trading and looking at hundreds and hundreds of charts
everyday has my feelers up in a big way. Cracks are widening.
even more odd is the absolute drubbing taking place
in the gold and silver markets at the moment for no apparent fundamental nor
technical reason. I know GATA talks about manipulation and I agree with them
for the most part but this is different at the moment.
seems as if the powers that be know that what is coming soon, whatever it is,
will set gold and silver afire so they are getting them to a lower starting
hope I’m wrong, it’s just what I’m seeing and feeling now.
don’t know if it will be a flash crash or a 1987 type of event but I
think it could be worse than both. Again, I hope I’m wrong.
week I mentioned my offer to you of a free subscription until I double the
swing trading account. I began this offer on May 1st.
did double the account on paper this past week on Monday but I did not cash
out and am hoping for quite a bit more profit in the days to come so the
offer is still available to anyone.
check out the precious metals chart, but I’m warning you, if
you’re queasy at all, skip this section because it ain’t
was hit for another 3.69% on the week.
it feels pretty desperate at the moment but you have to ask yourself, does
that gold coin give you more confidence or that pile
of $1,575 in paper currency?
chart above looks like we’re heading to the $1,550 area at least and
really it’s no big deal in the scheme of things.
it hurts if you look too much and can’t handle some pain, and it
certainly hurts writers like myself as there is
really not that much interest sadly at the moment.
it’s the opposite of as it should be. People should be clamouring in to
find the best bargains in the best companies right now while things are so
very depressed. But sadly, many of these great mining companies will be many
multiples of today’s prices before they see an influx of investors and
then it will be quite late to the party.
banks are buying physical gold by the tonne as noted here recently and they
are the smart money, at least the ones accumulating gold such as Vietnam,
China, Mexico, South Korea and the latest central bank to add to their reserves is
Kazakhstan as they bought $115 million recently to up their gold
ratio to 9.5% of reserves.
smart money is buying now I assure you.
be looking for gold to hit $1,550 this week and then I will take another look
at a much longer-term chart (not shown) and see what I see although I do have
to say it’s quite shocking to see gold continuing to be hit as a major
US bank is announcing losses and likely there are much more to come.
markets and many stocks just aren't acting right to me lately and it feels
like they’re on the edge of a large cliff these days with a strong wind
heading their way ready to blow them over the edge.
can’t say anything for sure because I have no inside information but
things just seem ready for a major swift downside event and I’m
positioned for that. I do hope I’m wrong though.
we do get a major event I expect gold to not be immune, at least initially,
as everything will be liquidated regardless, although for the metals it will
only be futures contracts.
assure you anyone with a gold coin in hand won’t be rushing out to sell
it in the face of a major market event. Think about that last thought for a
do you store your gold?
the GLD ETF and gold futures saw heavy volume as the price was pushed lower
and then lighter volume as we’re bouncing at the current area a tad. We
are heading lower yet for now, but I am NOT a gold bear, just a realist who
reads charts and they tell me we’re going a bit lower over the
dropped 4.47% for the week and also looks to have some more downside in it’s near-term future as
$28.50 area has some support and so far it’s held on a closing basis
but the strong volume is on the downside for the moment and that tells me
we’re heading lower still, likely to $28 and quite possibly $27.
never thought I’d see this deep of a correction but that’s why I
try not to think too much, I try and only react to markets. Thinking and
predicting are a fools game with rare great results but reading pattern and
getting a feel for charts and markets can be quite rewarding after years of
consistent volume in the SLV ETF and the futures says step aside. If
you’re looking to buy some more physical gold and silver, hang off
another week or so, if you’re looking to sell your physical metals
I’d say hang of a month and see where we are then, I doubt you’ll
want to sell it anymore.
now you’d be selling at the lows and there is no point in that.
moved lower by 3.30% this past week and through the Fibonacci levels I
mentioned last week and expected to act as support, which they didn’t.
see no reason at all why we aren’t heading lower still here to test the
$1,440 level this coming week.
PPLT ETF didn’t see much volume for the week really but it was
definitely selling volume while the futures market saw quite a strong volume
also to push this white metal lower.
need to consider buying the physical or a trading position in this at the
was absolutely hammered lower to the tune of 7.63% for the week. Last week I
thought that platinum and palladium were heading lower still but I
didn’t expect palladium to be hit this hard.
it looks like we can easily move to test the support area under $570.
in the PALL ETF and futures are indicating we’re heading lower still
for the moment.
metals may be leading the markets at the moment as they are being held up at
key levels by the powers that be, but they are on the brink of a breakdown
like palladium has just had.
another bank comes out and announces more losses then we will almost
certainly see a vacuum appear in the markets which will suck them much lower.
think we’re in for an interesting week.
Bank of England halted stimulus bond purchases
this past week as a threat of inflation exceeded the threat of recession.
This is a conundrum indeed as they are now stuck between a rock and a hard
place. Either way gold wins. If the currency devalues further due to
inflation, gold wins. If debt increases further, gold also wins.
has had it’s knocks
over the past decade to be sure, but it’s winning the war by a
far as I can see the only choice Greece, Spain, Portugal and others have is
to default on their debt and leave the Euro. It’s been my view for a
long time now and I do not see any other alternative. Similar situations have
occurred many other times throughout history and will repeat many times
again. The question is just how deep do they go
before jumping ship.
sooner they leave the better. The damage will be severe to large
institutional banks and central banks and the IMF along with the BIS, but the
problem will be much worse if it’s let go any longer.
like a growth on your body. The sooner you have it attended to the better and
less likely it will be fatal.
powers that be all know this as they aren’t stupid. No really, they
the meantime though Greece is set to receive 4.2 billion Euros
in part of another bailout effort. It’s amazing. The drain in the
bathtub is getting larger and larger and there are no plugs large enough to
fill it and the water being lost is dollars.
is no way this money will be spent right or last long. Greece will be back at
the trough in short order begging for more money. Sounds like a teenager
without a job!
three state-owned Chinese banks are being allowed to
expand their operations within the US. I wonder if they actually
were allowed or if they told the US they were going to do it, so make it so!
Chinese are the world superpower now although they have some more hurdles to
overcome in order for that to become obvious to everyone.
US likes to put on a brave face and talk tough in public but I assure you
behind closed doors they do a lot of listening.
is a nice video interview with a long-term favourite of mine
David Rosenberg. He discusses some monetary issues and feels that
gold will rise to $3,000 before this cycle is over. I personally think
we’re going much higher than that level but either way, gold is a
bargain here and could be even cheaper in the days ahead.
physical gold is bought here or at the ultimate low, wherever that may be, I
am sure you’ll not regret the purchase in a year. And certainly not in
a longer-term timeframe as well.
favorite of mine, Eric Sprott,
had a great appearance on CNBC this past week and it’s well worth the watch. It’s
always fun listening to Eric and doubly so when it’s on the big US
Heres is an intriguing article on the old Brink’s-Mat
bullion robbery. I can only imagine how good the book will be if
your into these types of non-fiction tales.
feel like I’m forgetting a few things this week but that happens.
sweat your positions at the moment, rather consider adding to the great
companies you already own or would like to own soon. It’s also soon
going to be time to buy the rest of your physical gold and silver hoard.
worry, the secular bull market in precious metals is
far from over. Far from over.
a superb weekend and thank you so much for reading.
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