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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 And Gold - Potential For Change. Central Banker Collusion/Delusion Notwithstanding 0 comments
    Jun 11, 2012 4:40 PM

    Sunday Evening 10 June 2012

    In keeping with our on-going analysis of the gold and silver charts, we opted to take a light long position in silver, last Thursday in the evening session. Price was 28.55, several minutes before a decline set in, thank you timing. Of course, that possibility, although not expected so immediately after, was the reason for taking just a partial position. We start a new week and take a new look, and this week gold charts are included.

    Just for drill, we start with another look at the monthly. It is difficult not to have a bullish bias in light of the darkness the New World Order/Central Bankers/ Puppet Governments continue to enshroud the gullible public. [As an aside, here is a link worth reading for those who may be unaware of being unaware, for later: http://www.zerohedge.com/contributed/2012-06-07/criminal-banking-cartels-end-game-100-digital-monetary-system, courtesy of Zerohedge. For those who watch the ass-kissing shills on regular
    financial "reporting" programs, this may be a shock, as well it should be. Again, we digress].

    One fact that stands out in monetary history is that the "printing" of fiat destroys the currency, which is actually the end game for the NWO, so a replacement of their making will be accepted. Another fact that is undeniable is how gold has maintained its value as a store of purchasing power, for centuries. It is true that one cannot eat gold, as mainstream media likes to point out, but we doubt any of them have ever eaten any fiat, and a shill is a shill is a shill. Hence the bias toward the metals and the primary reason for exhorting EVERYONE to buy and hold physical silver and gold.

    It is also a fact that China and India continue to amass gold by the tonne, as do all central banks. After all, what is their purpose to loaning digital fiat to countries already choking on debt? To have them all "pledge" their gold holdings, just as the United States did in its bankruptcy back in 1933. Banana Republics do come in different sizes.

    We see bullish spacing still holding steadily on the longer term chart, and that is very positive. Typical of uptrends, corrections are more labored and take more time than rallies, and we see the current
    correction is in its fifth month of decline, following a two month rally. This does not guarantee that the recent lows will hold, but for now, the market is saying that the underlying strength remains, despite the over lying by the Powers That Be.

    A cautious edge to the bulls.

    1

    (click to enlarge)SIA M 10 Jun 12

    The weekly continues in a sideways trend, since the September 2011 low. The only other point to make is to draw attention to the five weeks of clustered closes. This typifies either a change in trend or a resting spell prior to resuming the previous trend. The previous trend has been sideways, so a change in its direction would likely mean another probe lower to wash out as many weak longs as possible. The only holders of gold and/or silver who would be unaffected would be the holders of the physical metals, and the best way to participate in either market.

    Another cautious tip to the bulls. [Remember, we admit to a bias]

    (click to enlarge)SIA W 10 Jun 12

    There can be no doubt that the daily trend for silver is down. With the clustering of closes on the weekly, which translates into the current trading range since mid-May, there is a weakening of the down trend, and that can lead to a change, but it will take time.

    The apparent highest volume has been noted by the down arrow, asking "Where are the results?" For all that effort from the purported sellers, why didn't price go lower? We see it as a subtle changing of
    hands from weak holders to strong, and here is why.

    Look at the other high volume red bars. [The bars are red because price closed lower than the previous day, ostensibly giving sellers control.] Let us start with the one at the low, in the middle of May. There was a sharp increase in volume, but the close was closer to mid-range the bar than the bottom of the bar, so we know there were buyers present. We get confirmation of that next day when there is zero down side follow-through.

    Four trading days later, we see another sharp increase in volume on another down day, a retest of the low. [Let us add here, markets are constantly testing and retesting highs and lows, resistance and support, and from this constant testing and retesting, we get important market information.] We see a mid-range close on this retest, confirming the previous observation that buyers are scooping up what the sellers are giving, and the buyers are beginning to take control.

    On the first trading day in June, there is another spike in volume, the recent highest yet, and it is to the upside with the widest range bar to the upside in several months, and a strong close, erasing the three highest sell volumes, making all those who went short have a losing position...in a down market! That day also broke above the supply trendline, telling us the down trend has weakened. But we had evidence of that from what we just observed. This is how the market tells its own story, in price and volume.

    We come back full circle to last Thursday's high volume effort, with volume higher than 1 June, but with no results to show for it. Must be buyers stepping in to take all the offerings and prevent price from going lower. That is why we stepped into the long side of the market, and we remain cautiously long.

    (click to enlarge)SIN D 10 Jun 12

    The comments on the weekly gold chart tell the story there. Gold is locked into a trading range, but at a relatively high level, and we see that as HOW the gold market is correcting. Gold remains relatively stronger than silver.

    (click to enlarge)GCA W 10 Jun 12

    Evidence to the last conclusion comes from a visual comparison of the daily silver and gold charts. Gold has not declined as much as silver. While a few Wall Street firms can manipulate the silver market with some degree of impunity, the gold market has a much wider world participation, yet it is still manipulated by the London Metals Exchange owners.

    A similar analysis holds true for the daily chart as we just did in silver. Note the very strong bar on 1 June, with a very strong close on exceptionally high volume. Last Thursday and Friday were retest days of that bar, and Friday's close was at the high end of the bar, buyers won that day's "battle," and a touch higher that Thursday's low end close. We pointed out the retest volume, lower than the buy day, telling us there was less selling pressure that day.

    One can never overestimate the staying power of the NWO and their henchmen central bankers, along with their ability to keep the lie alive. At times, it makes participation in the futures market akin to minnows swimming amongst whales, Orca whales, at that.

    All charts say more work needs to be done for buyers to eventually establish a strong base from which the next leg up is sure to follow. This is an election year, and there will be untold promises made and
    more "printing" of money to keep the debt lies perpetuating, until they inevitably collapse in tsunami proportions. Those unaware will suffer. Those who hold silver and gold will fare far better.

    History is firmly on the side of gold and silver, as should you be.

    (click to enlarge)GCQ D 10 Jun 12

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