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“We’ve warned repeatedly to never sell the market manipulation
committee (FOMC) and their gang members short. I suggest they have a pot
full of ideas to skate over this very thin fiscal ice. This is an election
year and the Boyz will do anything to make incumbents look like economic
supermen. We all know they’re 70 pound monetary weaklings but also
legendary escape artists with public relations tools extraordinaire. Watch
for a stock rally until April Fool’s Day. How appropriate is that?” -
Traderrog
Barchart.com Explains TSLF: Totally Selfish Loose Funding
"The FOMC committee held a 90-minute conference call last night to
discuss and approve the new facility, which was approved unanimously. The
FOMC also approved an increase in its dollar swap lines with the European
Central Bank, the Bank of England, and Bank of Canada, thus providing those
central banks with additional access to dollars. In a coordinated move, all
three of those central banks plus the Swiss central bank injected a total
of about $45 billion of reserves into their respective banking systems
yesterday to relieve global inter-bank lending dislocations. The new
facility is called the Term Securities Lending Facility (TSLF). This
adds to the already-existing Term Auction Facility (TAF), which
the Fed has been using in place of the discount window to lend to banks on
a longer-term basis with a wide variety of acceptable collateral including
mortgage-backed debt. The Fed last week announced an increase in its TAF
auctions to $100 billion for March from $60 billion last month." –Barchart.com
Morning Call 3-12-08 (Editor: This stuff is PR pap to pump markets. Real
help is absent).
Entering Phase Two of Global Crack-up Boom
Notice they term the collateral as “a wide variety of acceptable
collateral including mortgage-backed debt. What this
means in real terms is The Mystery Committee will take any banks’
un-salable paper trash these lenders and others cannot price nor sell. This
garbage has no value whatsoever as it is not trading, has no actual price,
and ought to be vastly written-off or, written down. They can’t do that or
the entire system would implode. We are now in Phase Two of the Global
Monetary Crack-up Boom.
The Mona Lisa Picture of Market Intervention. S&P 500 Intra-Day
11:45 AM 3-11-08 TSLF Stock Boomlet Kicks-Off.
U.S. Dollar Continues Bumpy Failure to Bottom
Intraday Dollar June, 2008 Futures 3-12-08 Tumbles to 72.90 Support.
Dollar’s new main, lower support is 70.90 and 70.70. Should 70.70 be
violated and confirm on a close, look out below.
Dollar’s Damage Will be Excruciating
Is this a messy chart or, what? The United States Dollar seemingly
cannot get a grip as the FOMC, United States Treasury and foreign central
banks have instigated policies designed to save their respective economies
letting the dollar fall into oblivion. As one analyst said yesterday,
“We’ll fix the economy first and worry about inflation later.” We’ve got
some news for him; the USDX is the Reserve Currency for 85% of the
entire world. This destructive posture is ruining America’s core asset
valuations and dragging down other nations as well. If this situation skids
into hyperinflation (maybe fall, 2008); all will be totally out of control.
The Green Man, Chopper Ben, and Good ‘Ol Hank at Treasury will be running
to find some new addresses off this planet.
April Gold Futures Give Perfect Bull Continuation Triangle. Rally Ahead.
May 2008 Silver Futures Show Similar Triangle. Notice Opens and Closes
Stuck Near 19.80. Silver Does Not Want to Sell.
May Copper Weekly Futures Temporarily Peaked. Hard Resistance is $4.
Copper is a primary indicator for precious metals, bonds, and the
general health of business and industry. It is a major component of
electronics, autos, and construction. This weekly chart has formed a bugle
pattern, which is bearish. Note lower, lows from last April until a
December, 2007 bottom. The top channel line for the same period gave us
four larger tops with the last one ending near March 1.
Copper is tricky to interpolate as it’s by-products of gold and silver
mining are in long range bull markets. Next, when general business and
manufacturing goes weaker, its price tends to sink. Another prime factor is
the 140,000 tons of copper each day imported into China for their internal
uses and booming economy. We forecast copper to rally for most of March,
then top out and sell similar to last year’s performance. Our prediction
for gold is a $1,050 high for spring. Silver could hit our objective of
$22.00 to $22.50. Precious metals share traders should enjoy a rally for
the rest of March.
Big Picture for March, 2008
Watch for rallies in most all markets until the end of this month.
Sometime between March 24, and April 7, 2008, the bloom goes off the rose
and the nasty “Sell-in-May-And-Go-Away” arrives. We forecast a -24% haircut
in most stock shares including precious metals. In this instance, the baby
gets tossed with the gray water. Traders should prepare and act
appropriately selling into strength those shares they prefer to be out of
and wait for a later summer bottom to buy in again. Some smart traders are
all in cash right now planning to buy heavily after the next lower base has
been secured. Others will simply hold and ride out the storm clearly
understanding what lies ahead. Still others will sell half and keep half. In
our newsletter, Trader Tracks, we provide weekly guidance and extra e-mail
alerts to report our best new trades and offer suggestions for trade
management.
Whatever you do, make a concerted effort to stay with the trend and hang
onto your core holdings of preferred shares, cash, and coins. Physical gold
should never be sold or, traded but rather accumulated steadily on a
monthly savings plan and squirreled away. Big traders are always ready to
buy on the dips and normally never sell their gold and silver. You would be
amazed how quickly your physical gold and silver will accumulate using this
strategy. - Traderrog
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