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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 - Increased Odds For A Rally. Clock Is Ticking. 0 comments
    Mar 9, 2013 10:25 PM

    Saturday 9 March 2013

    Based on the tape, [in chart form], precious metals appear postured for a rally. To what degree is unknown, but current developing market
    activity favors one. Silver continues to outperform gold, and we start
    there.

    Based on February's low-end close, one would expect at least a
    nominal lower low for March. That event has occurred, and already
    one-third through for the month, there has been no other downside
    effort. Just that showing alone gave rise for expectations of a better
    performance this month.

    Price still remains entrenched in a sideways trading range [TR], and
    they tend to last a lot longer than most expect, this one being no
    exception.

    SIK M 9 Mar 13

    We often draw attention to the last August breakout as being
    significant, and the strong likelihood for its breakout to be important
    support. That has not disappointed. Now, in addition to the lower
    channel line also checking the price decline, we note an important
    drop in Open Interest over the past few weeks.

    Time will tell, but this may be another, if not the most important low
    within the TR.

    SIK W 9 Mar 13

    Failed probes lower can be interesting, but they are much less reliable in a down trend. It depends upon where they occur. The one from last August was at important support. Early January was another, and the
    current failed probe is a part of another pattern that suggests a high
    reliability for a rally from current levels.

    The silver stars appear to be lining up.

    SIK D 9 Mar 13

    Where silver's monthly close was low-end, gold's was slightly off the low. What became a distinguishing potential turnaround for gold was
    the fact that February was the widest of the past 5 month decline.
    You tend to see the widest bars at the beginning, but when at the
    end, they can be a sort of selling climax and a form of downside
    stopping action.

    GCA M 9 Mar 13

    We see the clearer activity from the silver charts giving greater
    support for how to view the gold charts. Without silver, gold's
    interpretations would be much more subjective. Instead of a more
    obvious starting point for a rally from last August, gold had a
    congestion area that was likely to act as support in the future.

    The last three weeks have overlapping bars, a form of balance
    between buyers and sellers at an area where sellers have been in
    control for the past six months, and perhaps now losing it. The
    clustering of closes echoes the same thing, a possible turning point.

    GCA W 9 Mar 13

    Where the present suggests a rally, and the future has not yet
    happened, the past reminds us that there is considerable work to
    overcome selling efforts, and future rallies appear to have their work
    cut out for them. One needs to be select in buying futures.

    As we have steadfastly maintained every week for so many months
    past, buying physical gold and silver are the best steps one can take
    for preservation of buying power and for wealth accumulation. The
    stock market may be at all-time highs, but as Goldcore points out, the
    Dow rally since 2007 is just 50% of gold's appreciation for that same
    period. The reasons for buying physical PMs is vastly different in
    purpose and in risk when compared to buying futures.

    There are records being set for buying Silver Eagles, and for gold
    eagles, they are equally encouraging. Still, the numbers of people who
    own and hold physical gold and silver are still relatively small. Those
    who know are buying and know why. Those who have yet to buy have no reason to wait even one day longer. The government noose is
    tightening, and sooner, rather than later, it may be close to impossible
    to buy physical gold and silver without directly reporting purchases to
    the central planners whose plan will be nothing short of confiscating
    the last remaining "vote" of freedom.

    If you want to know the future, be very aware of the past. There is
    one, and one reason only why Socialist Franklin Delano Roosevelt
    issued an Executive Order to have those poor saps who listened turn
    in their gold. The New World Order has been taking over this country
    since the 1860s, one piece at a time. The "outlawing" of gold was their effort to get people to give-up their only means of wealth. When one has wealth, one does not need the government, and central planners
    know this. It is unacceptable to not be in total control of the people.
    When you give up your wealth, you give away your independence.

    As an aside, Executive Orders only apply to federal employees and
    "persons." You should know that by statute, a "person" is a
    corporation, a creature of the state and owing total compliance to the state. If one chose to believe that he/she were such a "person," [a
    word of art purposefully used to deceive], and "felt" obligated to turn
    in his/her gold, well the government was not going to tell them
    otherwise, for that was its purpose, back then. With today's Rule Of
    Law being ignored by all forms of corporate federal government, it is
    also much easier to keep the people dumbed down, and afraid.

    The turning in of gold then is now the effort of the NWO to get people
    to "register" their guns. It is easy to control a people with no form of
    wealth. It is not so easy to control even a poor population that
    remains so heavily armed. This is exactly what Hitler did in Germany.
    If you want to see your future, look to the mistakes made in the past,
    and learn from them.

    If you do not physically own and hold gold and silver, and your
    ownership is in some form of paper promise, you may never own it. If
    you do not know what a "stacker" is, it is time to become one, with
    diligent haste. The clock is ticking.

    GCJ D 9 Mar 13

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