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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Gold And Silver - Buy! $1600 And $28 Targets? 0 comments
    Feb 8, 2013 11:55 PM

    Saturday 9 February 2013

    If Venezuela were any guide, we would have to say buy gold and
    silver, right here, right now! [VENEZUELA DEVALUES FROM 4.30 TO
    6.30 BOLIVARS
    ] For those of you who hold Bernanke Bux, aka fiat
    paper, pay close attention. Those Venezuelan citizens who held paper
    Bolivars took a 46% hit on their purchasing power. Those citizens
    there who held gold and silver saw an equivalent 46% jump in their
    holdings. If you think it cannot happen here, you are wrong. It already

    Since the privately owned Federal Reserve took control over this
    nation's money supply in 1913, today's purchasing power of the fiat-
    issued Federal Reserve Note, [FRN], is 3 cents, and that would be 3
    cents of post-1982 pennies because pennies prior to 1983 are copper content and now worth more than 3 cents, not to put too fine a point on it. Always remember, a FRN is NOT a "dollar," despite the false
    labeling. Each one is a commercial debt instrument issued by the
    Federal Reserve, a central bank, one of many throughout the world,
    all controlled by New World Order confiscators, which includes
    confiscation of all freedom, [read the Patriot Act and National Defense
    Authorization Act, and we will not even go into the organic
    Constitutional Republic being defunct because of them].

    Still, the likelihood of another devaluation of the FRN, but an "official"
    one, like what happened in Venezuela, as high as 50% would not be
    out of the realm of possibility. Anyone who still "values" the holding of
    valueless paper and has not purchased gold and silver in physical form, lives in denial and will "pay" dearly for that choice.

    Let us be clear, once more, [with apologies to the choir members],
    BUY physical gold and silver, now, at any price and at any time, and
    put it away...NOT in a bank or some financial institution; NOT in any
    paper form, ETF or any "certificate of ownership" form, which is just a
    piece of paper. If you do not hold it, you may never get to own it! Is
    that worth the risk? [Just ask Germany, unable to get its gold back
    from central banks in NY and London.] No honor among thieves, there.

    Here is one more fact for you to consider: $16, 483, 729, 858, 642.
    That is how many fiats are outstanding, a part of which the corporate
    federal government says is YOUR burden. [We warned you, FRNs are
    IOUs]. It is approximately the current cost of kicking the political can
    down the road in order to pay for all the banking failures, and
    government spending, the cost of funding the TSA to pat you down
    literally while politicians do it to you figuratively, and you can see how
    high those figures are. The examples are endless, and mindless.

    As for the futures...we start each week with new charts, expecting
    developing market activity will lead us in the right direction. Previously, we have maintained a bullish bias when reading the charts. Not so, for
    this week.

    [The long positions, acknowledged last week, were sold on the
    Wednesday rally, missing the break on Thursday and Friday.]

    One cannot remain bullish for the near term, for futures only, when the developing market activity tells a story of price weakness. The least
    amount of market knowledge arises when price is in the middle of a TR. Why? The middle of anything is at a 50% point, so the odds of the
    market going up are equal to the odds of the market going down, while still within a trading range.

    As you can see from the established channel, price could decline and
    not find support until the $1600 area, which is where the rally began,
    last August. We often say how markets are always testing support or resistance areas, and that includes previous breakout areas, too.
    As things stand, a further decline in the futures is not far-fetched,
    although why gold and silver would decline by any amount, given
    surrounding circumstances, is a mystery. Still, it speaks to the staying
    power of those in power who desire to keep PMs suppressed. It is stillworking.

    GCJ W 9 Feb 13

    While silver had been a bit stronger than gold, recently, gold held
    better on the late week decline than did silver. Seeing how gold has
    been virtually sideways since mid-December, and trading within the
    first three trading days of January, it can continue to meander for
    several more weeks to come.

    One red flag was the sharp volume increase on Thursday with a close
    off the lows. It is the market telling us that buyers were as active as
    sellers, and meeting the effort of sellers at the lower end. Friday's
    small range does nothing to clarify the picture.

    Buy the physical, keep the powder dry in futures.

    GCJ 9 Feb 13

    The weekly chart is similar in silver, but we added an "axis line," one
    where it acts as support and alternating resistance, and that area is
    around $32. The labored rally from last week fizzled, and were price to
    decline, an obvious target is $28, also where the rally started in last
    August. This is should the December lows not hold as support.

    SIH W 9 Feb 13

    Keeping it simple, we see lower highs and lower lows, the simplest
    definition of a down trending market. We had been watching the
    formation of a coiling wedge for the past several trading days, even
    "hoping" for an upside breakout, but so far, the opposite has

    The increased volume on Thursday's decline looks more like a day that
    sellers were in control, in contrast to the same day for gold. Friday's
    attempt to rally failed, volume declined, and that says demand was
    weak. As an otherwise inside day, it is hard to draw any meaningful conclusion.

    Buy the physical, and the American Eagles are such beautiful coins,
    but avoid futures for the near term.

    SIH D 9 Feb 13

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