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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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  • Silver - QE4ever, POMO4ever, Nevermore4ever. 0 comments
    Oct 5, 2013 4:10 PM

    Saturday 5 October 2013

    The central bankers have no rudder, adrift in a sea of fiat, taking
    everybody with them. Witness Cyprus and Greece being forced to
    walk the plank. Those who choose to stay on this Ship of Fools will
    suffer the same fate, even worse as the growing panic emboldens
    banker reactions.

    Unless one has become anesthetized to the proverbial handwriting
    on the wall, symptoms are teeming all around. Barack "Yes We
    Can" [more than double the debt] Obama told everyone, promised
    everyone that he would cut the deficit in half. What he did not say
    is cutting it in half would then be the measure by which it would
    multiply. Issuing fiat does one thing and one thing only: it robs
    everyone of whatever value they have. It is a hidden transfer of
    wealth from you to the government, plain and simple.

    POMO, [Permanent Open Market Operations], with emphasis on
    Permanent, designed to maintain the illusion that stocks are in a healthy bull market, so all must be well...at least for the top 1%; for the rest, not so much. Everything the Federal Reserve does is an
    illusion, including its existence, but it has become the financial bully
    no one dares to challenge.

    One of our favorite lines comes from Leonard Cohen's Anthem,
    "There is a crack in everything, that's how the light gets in." For all
    those in the Western world mired in the endless debt forced on by
    central bankers, silver is part of the light that gets in and provides
    an escape.

    Some of the smartest people in the financial world are the
    Stackers. Bankers have been doing everything possible to squeeze
    the life out of Precious Metals, but those in the PM community
    are not in the least bit fooled by fiat money creation. Stackers
    understand there is no third-party risk owning the physical metal,
    and eventually price will adjust to reflect the massive distortions
    created by the Creatures From Jekyll Island.

    While there have been projections for silver to reach $100 the oz,
    $200, even $300, it really does not matter. Whatever the price, it
    will justly reflect all the mishandling of the economy by the central
    bankers, and those who own and hold silver, and gold, will reap the
    benefits of their foresight learned from hindsight.

    The day is coming when central bankers will lose total control, and
    the message to them will be clear as sound money is reestablished:
    Nevermore! 4ever!

    A look at what the charts are saying, in the interim.

    The timing for the end of the central banker's world as we
    regrettably know it will always be in doubt. Time weighs more
    against the Masters of Fiat than it has been in their favor for the
    brief time since the April 2011 highs. The fact that price rallied to
    $50 is evidence that bankers are on the losing end of this battle,
    and the correction that has been overly exaggerated to the
    downside is but a temporary respite, their own illusion of "victory"
    that is massively failing.

    The gap breakout to the upside was seen as important when it
    happened, as we said at the time, [here, 4th chart]. The lower
    time frames show more important detail.

    SI W 5 Oct 13

    What appears to be more positive about how silver has been
    developing in its current TR, [Trading Range], is the fact that it
    is developing on top of the last TR. The upside breakout gap in August was just successfully retested in another attempt to push
    silver lower, yet price is showing some resiliency. The rally of the
    last 3 TDs has upper range closes shows buyers won the battle,
    but the decline in volume indicates it was a result more from a lack
    of sellers.

    The failed probe lower, as it occurred further along the RHS, [Right
    Hand Side], of the TR also adds to the positive aspect of the its
    development. What we need to see from here is a test of the failed probe. The last 3 TDs may be that retest, and if so, what is also needed is a strong wide range rally on increased volume above
    resistance.

    SIZ D 5 Oct 13

    The 90 minute chart shows a D/S bar, [Demand over Supply], which often acts as support, and price has held the lower level of that
    bar. There was a smaller S/D bar on 1 October, and it led to the
    recent failed probe. It is possible it is a probe to see if there were
    any appetite to take price lower. The fact that the gap held
    suggests not.

    In the long run, silver is going higher, much, much higher. In the
    short run, anything can happen, but silver's ability to withstand
    selling assaults is growing. Getting long a proven retest of last
    week's low makes sense.

    SIZ 90m 5 Oct 13

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