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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 - Bankers Can [Will] Steal Your Cash But Cannot Take Your Gold/Silver

    Saturday 15 February 2014

    Bankers can and will steal your cash, but there is no way they can
    take your personally owned and personally held gold and silver. The
    ongoing plan for 2014 is to buy and hold even more gold and silver
    and reduce your exposure to cash held in any bank. Just keep
    enough to cover week by week expenses, and keep the rest of your
    cash at home, under the mattress, in a safe, buried in the backyard,
    anywhere but in a bank.

    ANYONE who keeps money in any banking system in the Western
    world is sending an RSVP to bankers to access your funds, and they
    will not disappoint. The confiscation of Cyprus banking accounts was
    bandied about as a template for other countries. "No, that would
    never happen," was a constant refrain. Well, it was just the
    beginning.

    If there is one thing about which you can be certain, concerning cash
    held on deposit, the government, [pick a country], has plans to steal
    it. The bankers new motto: "What's yours is ours."

    You think Cyprus was a single event? It was an elite trial balloon.
    The blowback from it? Not much, really. Financial shock and awe,
    to be sure, especially for Cypriots, but just like every other banker-
    created scam, there are no real consequences. The elites carefully
    monitored world response and learned one thing: more of the same,
    in some fashion or similar form will work, and we
    [the bankers] will
    get away with it.

    Another example: Read this excerpt from the IMF October
    publication "Taxing Times" which states on page 49: A One Off
    Capital Levy
    :

    The sharp deterioration of the public finances in many countries
    has revived interest in a "capital levy"- a one-off tax on private
    wealth-as an exceptional measure to restore debt
    sustainability. The appeal is that such a tax, if it is implemented
    before avoidance is possible and there is a belief that it will
    never be repeated, does not distort behavior (and may be seen
    by some as fair).

    The cunning and planning goes on behind closed doors on an ongoing
    basis. Then there was this article from Reuters: EU Executive See
    Personal Savings Used To Plug Gap
    .

    "the savings of the European Union's 500 million citizens
    could be used to fund long-term investments to boost the
    economy and help plug the gap left by banks since the
    financial crisis,
    an EU document says.

    In other words, all of the trillions of $$$ used to prop up every single insolvent bank in the Western world has failed to boost any
    economy, and the reason why it has failed is because the bankers
    are keeping the money for themselves, not lending it out. Every
    economy is being starved of capital.

    The solution? "The Commission will ask the bloc's insurance
    watchdog in the second half of this year for advice on a possible draft law "to mobilize more personal pension savings for long-term
    financing
    ", the document said."

    Doesn't that sound economically viable?! It is EU doublespeak: to
    mobilize more personal savings,
    in normal words means "confiscate,"
    or more to the point, "steal." The central planners never stop
    planning, and your savings and deposits are in their crosshairs.

    The bankers are not stopping there, however. The ultimate goal? All
    pensions, IRAs, 401ks, whatever form your retirement funds are in
    will be switched, for your own good, of course, to the safety and
    guaranteed security of government bonds. You will be assured of a
    few percentage points of interest. What, 1, 2, 3 percent? With
    inflation running at 8 to 10 percent, minimum, at least in the real
    world? Such a deal.

    Obama has introduced the MyRA account, and just like Obamacare,
    it is for the "benefit" of the public good. It is the prelude for
    eventually taking over the country's entire pension programs, taking
    over all the accounts, [stealing your lifetime savings], and
    exchanging them for the US Treasury Bonds the Fed cannot sell to
    countries anymore. This is the only way the US government can
    cover its trillion $ [and growing] deficit spending.

    What is wrong with this picture?

    Who elected the bankers? Who elected the EU members that run
    Europe like their own ATM? They all are empowered by the elite
    shadow rulers. What is worse, people are not rebelling. Instead, all
    acquiesce to the whims of the central bankers.

    "All" is close but not quite accurate. There are the relatively few who
    own and hold silver and gold, immune, to that extent, from the theft
    of banking funds/pension funds/ mutual funds/corporate and
    government bonds, any form of paper thought to have value.

    Rest assured that those who impose [steal] "special situations" are
    exempt themselves. All of your hard-earned money and life savings
    are needed to prop up the insolvent banks, pay for all the banker
    bonuses and lavish lifestyles, because the bankers will never be held
    accountable to the financial problems they created, and you must
    now pay for their mistakes for no bankers are ever held accountable, just you and your neighbors.

    We are all free to make choices. From what we can determine,
    financially smart people own and personally hold, and continue to
    buy gold and silver, the most durable "wealth" preserver of all. The
    word "wealth" is used for lack of a better choice in the asset class
    of precious metals. There has been no wealth preservation owning
    gold and silver for the past few years, stated and acknowledged.
    However, that is a very short time frame from which to measure.

    The choice is simple: paper or hard assets? Owning gold or silver
    ETFs or futures are paper and not a claim on the physical. Accept
    no substitutes. For those who choose to remain within the banking system, the risks are known, and if accepted for what the central
    bankers are planning, made public by the way, there can be no
    complaining when funds are lost.

    The charts remain the most viable way of keeping a pulse on the
    price of gold and the gold price. Some make a distinction, but the
    effect has been of no consequence from a pragmatic point of view.
    Our weekly charts and assessment follow:

    As a reminder, the charts are in contradistinction to physical gold and silver. Everyone should be buying physical gold and silver as often as possible, and price is not the most important issue, owning it is. The
    charts reference the paper form of gold and silver, but they relate to
    the price of the physical, by extension, as a general guide.

    The past two weeks have been the best for gold in several months.
    We maintain the belief that extraordinarily higher prices for gold and
    silver are not going to happen, in the near term. Maybe sometime in
    2014, it is too soon to tell. What is more important are the events
    like those discussed above that are setting the stage for eventual
    higher prices.

    What should be of primary concern for buyers of the physical is the
    availability. It may not always be readily available, as it is now, and
    that should be a driving motivation for their acquisition. For those
    who already own PMs, particularly at higher prices, do not fret.
    Their value will go back to levels paid, and much higher. Just be
    patient. It is short-sighted to measure one's holdings based on price as opposed to the reason for buying them in the first place.

    If you do not complain about paying for car or house insurance that
    does not get used, why complain about PM holdings from higher
    prices? Stay focused. Events are unfolding in an alarming manner,
    and people should be very worried about what is going to happen.
    Look at Cyprus, Greece, Venezuela, Ukraine to get an idea of how
    ugly things can, and will get.

    The weekly chart shows the current down trend weakening but not
    ending. As is pointed out in the weekly silver chart, one only need
    look at the rally that began in June, 2013. If anyone thought the
    breaking of a TL [Trend Line] meant the end of a bear market, look
    again. It takes time for a trend to change, and with the exception of
    a "V-Bottom," there are a few phases that mark trend changes.

    The Bearish Spacing still stands out for what could be formidable
    resistance, yet to be determined. As a reminder, bearish spacing
    exists when the last swing high, August 2013, fails to reach the lows
    of the last swing low, May 2012. It indicates sellers did not feel the
    need to see how the swing low would be retested. They aggressively
    embarked upon their selling campaign certain that lower prices were
    next.

    The August swing high will be defended by those who sold at that
    level, which will make it resistance. There is a relatively smaller
    resistance level, marked on the chart, at 1360.4, a smaller swing
    high. How the market responds to the known resistance levels will
    give an indication of the character of the existing trend.

    GC W 15 Feb 14

    The daily trend is up, as defined by a two higher highs with a higher
    low in between. Once price rallied above 1280, it formed a higher
    high and confirmed a change in trend on the daily. Once that was
    confirmed, it was then easier to put the previous market activity
    into a context that supported the change in trend. Sometimes,
    recognizing changes can only be determined in hindsight.

    The two wide range bars, with arrows under each, anchored the rally in gold. There was no way to know beforehand that gold would make higher daily lows for 10 days straight, and that left no [normal]
    reaction in which to buy. This is a decided change in market
    behavior, and if sustained, will continue building on the up trend just
    under way.

    The primary resistance at 1360 is the same on the daily and weekly,
    giving greater weight to the daily chart. A lesser, potential resistance level is also shown by the dashed line from a failed retest rally,
    marked on the chart.

    Money is not made buying potential resistance, which the 1280 area
    represented, and for that reason, we were not buyers and missed
    the last half of the rally. We did catch some of the earlier portion of
    it, however.

    What we know for certain is that every market will have a normal
    correction, and it is at that point one can take a position with a more
    clearly defined risk. For now, we remain on the sidelines in the paper futures.

    GC D 15 Feb 14

    Pointing out the importance of not jumping to any conclusion that last week's strong rally has change the trend, a look back at the first
    arrow shows an earlier strong rally that did not change the trend.
    Everything needs to be confirmed, and the rally from the first arrow
    was never confirmed as a change in trend. Patience is a virtue in the
    markets.

    SI W 15 Feb 14

    Friday's rally in silver was impressive, coming out of the protracted
    TR, [Trading Range]. When you measure from point "A" to point "B,"
    that "stored energy" accumulated during the trading range reveals
    that the upside rally potential can carry silver to the 25 area, and
    even challenge the all important 26 resistance.

    Silver also has bearish spacing, shown on the weekly chart, but it is
    not as great as the gold bearish spacing. There is a good possibility
    that silver can outperform gold, on the next important rally.

    The "D/S" designated Demand overcoming Supply, and the sharp
    volume increase is very supportive of the rally. A great place to get
    long is on the retest of the breakout, and we will be watching how
    the next retest unfolds.

    SI D 15 Feb 14

    Feb 16 8:28 PM | Link | Comment!
  • Stock Market - Fat Lady Has Yet To Sing. Some Questions About YOUR Stocks?

    Sunday 9 February 2014

    The opposite sentiment of "gold fever" has been apparent in the
    stock market, of late, with so many calls for a top and/or a crash.
    Gold has not rallied to higher levels called for, and the stock market
    has not fallen to levels that resemble a crash.

    Trust in the Fed a little more. That criminal body is not about to let
    the market go down without more of a taper fight. It is not yet
    game over, at least for the market in general. The same may not be true of individual stocks within one's portfolio, and that is where the
    focus should lie.

    It is no secret that the stock market has been kept alive buy the Fed feeding the market intravenously through paper derivatives. This
    does not mean individual stocks are the recipient of the foreign,
    corporate-owned Fed's fiat financial largesse.

    IF you happen to own those stocks that are on the plus side of the
    indexes, you should be doing well. However, if your portfolio
    consists of any stocks that are weighing on the down side of the
    major indexes, it may be time to take some action similar to those
    contestants on The Biggest Loser, [A weight-loss reality show], and
    shed some unwanted losers that reduce the value of what you hold
    because you want to only have gains.

    Ask yourself a simple question: What was the purpose of investing
    in the stock market?

    Was it to make money, or to lose it?

    If your objective was to make money, ask another simple question:
    Are your stocks showing a positive return?

    To the extent that there are profits, ask yourself another question:
    Do you have a plan to protect those profits?

    On the flip side, if you have stocks that are showing losses, the
    obvious question is: Why do you still own them?

    The most important question of all: Do you have a plan to limit your loss exposure?

    The approach to the stock market does not have to be very
    sophisticated. Just asking a few pointed questions helps develop
    a context for taking control of your own financial well-being. Trust
    yourself to have the greatest interest in your own money and how
    it is handled. If you cannot trust yourself and place that trust in
    someone else, ask those same questions of that someone else, and
    do not take equivocation in response. The last thing you want in your financial corner is ambiguity.

    We will start with a review of the market, using the widely followed
    S&P.

    All of these calls for huge drops in the stock market are attempts to
    grab attention just from their headlines. What it says to us is that
    the authors do not understand market turns, for there has been no
    market change that would prompt one to run for the doors. That
    being said, there is every reason to be reviewing each and every
    stock owned in one's portfolio, which is precisely what we advocated back in December, and even before that, as a matter of form to
    protect one's capital. To do otherwise is simply financially irresponsible.

    The monthly trend remains up, [not shown because it is too early in
    the month for the chart to be otherwise meaningful], but the weekly
    trend has weakened. A weakened trend does not mean it has
    turned down, at all. It takes time to reverse a trend, and with the
    stock market being Fed-driven, we suspect central planners will drag this one out before being forced to abandon their "plan."

    What to watch for now, after reading the chart comments, is toobserve the character of this developing rally, and just as important,
    the next reaction lower. The market has already shown strength in
    the recovery that began Friday. Can it be sustained is what to watch for in the next several TDs? [Trading Days]

    The next reaction, if the market is to continue higher, should show
    smaller bars and declining volume, indicating sellers are not that
    strong. Should the next correction lower show increased EDM,
    [Ease of Downward Movement], poor close location on the bars,
    and increased volume, especially if the Friday low is taken out,
    this market is in trouble.

    The character of this current developing rally will give us a more
    immediate clue. If price makes a lower swing high and then turns
    down, or makes a new high that is a failed probe and immediately
    sells off, this will be a huge warning that the market highs may be
    in.

    ES W 9 Feb 14

    In the chart "Additional comment," "Ais" should read Axis.

    The daily chart is a perfect example of the importance of waiting for
    confirmation. For a few days, the market looked like the bottom was falling out, but it stopped on Wednesday. We missed monitoring the intra day activity, that day, and did not review it until the evening,
    but there was a clear buy signal, based on specific rules we have set up, that indicated a rally would follow. The buy signal trigger was at 1742, as an indication of how sensitive the intra day reads can be.

    The kicker is where developing market activity was at the time: at
    potential TL support, and at the Sept '13/Nov '13 potential support
    area. Missing good trades is part of trading. It is the penalty for not
    being prepared. The offset to that is: good trades come along all
    the time. We never know when, like last Wednesday, but there is
    always another one.

    As with the weekly, we need to see where the current developing
    rally ends, and then pay close attention to how the next reaction unfolds. The weaker the reaction the better. Weak reactions lead
    to higher prices. That is a market message axiom to keep in mind.

    ES D 9 Feb 14

    We posted a Commentary, Rising Market Does Not Lift All Stocks,
    on 7 December 2013. The opening paragraph stated:

    We advocate a proactive stance in managing one's stock portfolio
    as the most
    prudent way to preserve and grow capital, by capturing
    gains and limiting risks.
    The days of buy and hold are finished, at
    this stage of a central bank propped-up
    market, fed by fiat and
    highly questionable reports issued by the Bureau of Lies,
    which
    seems an accurate assessment.

    Certain market observations should be translated into rules, not to
    be broken, in order to preserve gains and limit losses on stocks
    already owned, and rules to limit exposure to risk that will prompt
    a sell whenever a stock does not perform positively.

    TJX was used as an example of how to buy proven performers in
    a trend, [4th chart in the above link], and the buy area is shown
    below, along with an update.

    We do not trade stocks, but a chart is a chart, and the comments
    on the chart are exactly how we would trade any market. When
    reduced to price and volume, all markets are the same to us.

    The November high was followed by a normal correction. A dashed
    horizontal line was drawn to the right, using a dashed to show that
    it was extending into the future, prior to when price was to subsequently develop, after that high. You can see how price
    stopped at the same level in late December, early January.

    The OKR, [Outside Key Reversal], noted by the down arrow was a
    red flag, maybe even sufficient to exit and take profits, or at least
    partial. For sure, when TJX began to sell off more, circle area, the
    general market was rallying, and this would have been enough
    reason to exit the trade.

    The point of doing this review exercise, and with the next two charts to follow, is to get you to actively manage your stock portfolio to
    preserve gains, but more importantly, to reduce risk exposure.
    Professional traders are more concerned with risk exposure than
    with taking profits. If you have a set of rules to participate in a
    trend, you will hold only those stocks that show greater ability to
    outperform the general market.

    The problem with many stocks in many portfolios is that they are
    underperforming the general market, but they are not being sold
    out, reducing risk. Why not? In the minds of many inexperienced
    investors, they hope their underperforming stocks will catch up
    to the rest of the market. There is a valid reason why stocks are
    underperforming, and that is a very clear message from the
    market!
    Ignore it at your own financial peril.

    TJX D 9 Feb 14

    AAPL is a great example because its performance is not just up, then a sell signal, and down. Markets unfold in an infinite number of
    ways. The boxed activity from last Fall was how we saw the market, same link above from 7 December 2013.

    Not marked on the chart are two Red Flag days in December: the
    high, 4th bar of the month. It was a new high, small range and a
    poor close on fairly high volume, at the time. Four bars later, there
    is a similar bar, but wider, indicating more selling, and a poor close.
    If one did not exit then, there was every reason to place a sell stop
    just under that low. It would have been triggered, two TDs later.
    Stopped out with a profit.

    This is just our way of approaching the market. We use it because it works for us on a consistent basis. There are many other ways,
    and however one chooses to participate in the markets, it has to
    suit your own personal risk/reward factors.

    Price did go lower and then had another rally, but the rally failed to make new highs. The Red flag, starting in late December early
    January, was due to the fact that AAPL was under performing the
    general market, a sign of weakness, and a reason to be alert for
    change.

    If you cover up the rest of the chart, from January on, you can see
    where decisions to buy and sell were made, based upon developing
    market activity, information generated by the market itself, [always
    the best, most reliable source]. There were signs of weakness that
    indicated how to respond, and we knew that in present tense time.
    We did not have to know what would happen in the future, from that point on.

    Uncover the rest of the trading activity from the beginning of
    January to now, and you can see how paying attention to the
    messages of the market has its rewards. It may not be perfect, no
    trading plan is, but it is profitable, on balance, and being profitable
    is the main objective, is it not?

    If you hold any stocks that are underperforming the general indexes,
    you do not have a plan, and you do not have any rules that will
    protect and grow your capital. If you do not have both a plan and
    rules, you should not be in the market. Better to write a check for
    $500 or $1,000 to your broker, and keep the rest of your money out of the market. At least then you cannot lose any more money.

    No offense to anyone not making money in the markets during the
    biggest bull move in history, [except the Nasdaq]. Losing money is
    easy. Making money is not always easy, but with a market plan and a set of rules, one can consistently be profitable. These few charts,
    and the reasons for participating in them, illustrate that point quite
    clearly.

    It is not magic. There is no guess-work, no hoping the market will
    do one thing or the other. The markets are neutral. It is not what
    the markets do to you, it is what you do about what the markets are saying, at any point in time. The markets are always sending a
    message.

    AAPL 9 Feb 14

    This is not to imply that the markets are an easy read. We wrote
    about Facebook on 29 December, A Shot Across The Bow. RIP?.
    The stock was not an easy read, and we had a negative bias toward
    it as a social media phenomenon that was subject to social whims as its business model, i.e. advertising as it source of revenue.

    The caution, noted at the time, was well taken. Watching the stock
    occasionally since then, to see if it would fail, there was never any
    downside confirmation. It was close, in late January, but the close
    of the new low that day was at the high, much like the S&P close
    last Friday, and FB did an about face and rallied to current highs.
    Would we have bought it?

    No.

    The gap opening created too much risk to the downside to warrant a long position. There are also some trades we do not mind missing.
    FB is one of them.

    We provide individual stock analysis, for a fee, just as the ones we
    post in all our commentaries. Contact mn@edgetraderplus.com, if
    interested.

    FB D 9 Feb 14

    3

    Tags: S P, NAS, Dow, TJX, AAPL, FB
    Feb 09 7:27 PM | Link | Comment!
  • Gold And Silver: NWO "Problem-Reeaction" Ploy Stronger Than Fundamentals

    Saturday 8 February 2012

    The fundamentals for gold and silver worsen with each passing
    week, it seems, yet the price for gold and silver still languish in
    down trends. If everything is as precarious as is depicted in so
    many other articles citing how PMs are in dire straights, for the
    same deteriorating reasons presented with pinpoint numbers, as
    in reduced stocks of deliverable metals, increased transfers from
    West to East, why are gold and silver still near recent lows for the
    past two years?

    No one has offered answers to such a glaring fundamental
    discrepancy of excessively low supply, exceptionally strong demand
    and totally manipulated price.

    We remain of the mind that the elephant in the room that no one
    sees is the reason why PMs continue to be held hostage: the all-
    powerful elites, the New World Order, call them what you will. There is a seemingly invisible hand directing world affairs in ways few
    people can comprehend, and it is that inability to connect the dots
    that keeps the elites in power and the remaining people in the dark.
    This is an over-simplification, but on point.

    The modus operandi of the elites, grandfathered by the House of
    Rothschild, fathered by Mayer Amschel Bauer, who adopted the
    better sounding name "Rothschild," for the red sign that used to
    hang over the entrance of his house. No one has practiced the art
    of deception more than the group that sprung from the cunning
    mind of this man who understood the power of interest and
    translated into practice to gain control of the European
    governments, and ultimately, the entire Western world.

    Fast forward to today with total control of money, via central banks,
    that dictates to Western world governments. The elites have
    unlimited numbers of important heads of governments, unlimited
    numbers of agents to do their bidding and create problems on
    demand. The Arab Spring, the theft of money from Cyprus, Greece,
    Ireland, being the most obvious. How about the ransacking of the
    United States for the past 100+ years? The US is a hollowed out
    version of what it once was as a result from control of the elites.

    What is transpiring in Ukraine, since the president decided to not
    join the European Union, has been brought about by elite agents
    organizing a disorganized population to rise up against the
    government. It is widely known and acknowledged that Ukraine
    cannot afford to join the EU, in order to have the privilege of being
    financially raped once a member and controlled by the elite banking
    cabal.

    Ukraine is an effort to keep Putin from gaining control of natural gas
    pipelines that are a source of heat for much of Europe. It was the
    impetus behind the Obama regime to declare war on Syria, for
    similar reasons, only to have the war-driven leader dressed down by Putin.

    The elites create problems everywhere, but under the radar, mostly
    undetected, unless one begins to see how they operate and can then better understand why problems arise where they do and when.
    These are carefully planned operations. Once trouble develops, the
    elites then gauge how the public reacts and then offers solutions to
    the problems they purposefully created.

    The reaction to 9/11 in the US? The public was driven into fear, [the created problem], and the reaction was to embrace the solutions
    offered by the elite-controlled federal government, giving up
    "freedoms" for greater "security" against "terrorists." America has
    not been the Land of the Free for decades as a result of the true
    shadow rulers.

    Why did the popular Occupy Wall Street movement all of a sudden
    disappear? It ran the risk of putting the spotlight on that cesspool
    known as the venue for central banker control. How was the
    movement put down? By police force under the direction of the
    bankers, [who in turn are under the direction of the elites that keep
    themselves a few steps removed from any direct involvement, but
    always directing it]. Did the elite-controlled media ever question
    why the New York City police force was under the control of private
    banks? Former mayor Michael Bloomberg is an elite acolyte.

    The governments are controlled, the media is controlled, the legal
    systems are controlled, agriculture is controlled, [think Monsanto],
    the pharmaceutical industry is controlled, drugs are controlled, etc,
    etc, etc. All because of Rothschild's discovery that when one
    controls the money, one controls everything.

    What the arrogant elites did not expect was the rise of China and
    Russia, [after being dismantled and now put back together, again],
    as opposing forces not in control via the Western central bankers
    and their endless issuance of worthless fiat. All of a sudden,
    actually, over the past few decades, China and Russia, plus the other BRICS nations, have called the financial bluff of the moneychangers
    and demanded payment in gold for all the toxic U S Treasury bonds,
    [worthless, except in one's mind, just like the Federal Reserve
    Notes, erroneously called "dollars,"], and to keep the elite's huge
    Ponzi scam from being revealed, they have been selling every ounce of gold the have and also those they did not own but had under their control.

    It is all about power, the ultimate fundamental that drives
    everything, and gold has always been the Achilles heel for the elites, which is why they have always marginalized it in the public's mind.
    There is no gold in Fort Knox. It is gone. There are no silver stocks
    in the US. Gone! Roosevelt used an Executive Order, stating all
    "persons" must turn in their gold or be penalized an exorbitant
    amount.

    First of all, Executive Orders issued by any President only apply to
    Federal officers of the government. That is it! People did not know
    that, and the elite-controlled federal government made no effort to
    dissuade anyone of that misconception. [There are so many, many
    others.]. Secondly, the definition of a "person," according to laws
    passed by the federal government, includes corporations. A
    corporation is a "person." All corporations are created by statute,
    making them fictions of law of the state in which it is incorporated.

    When Roosevelt issued his Executive Order, it did not, by law, apply
    to individuals as persons, but to corporations as "persons." Any
    individual who considered him/herself as a "person," made that
    [uninformed] choice freely. Things have not changed. How does
    Obama rule? He passes Executive Orders and by-passes Congress,
    a puppet clan, anyway.

    The end game is not totally in place. China has no interest in having the "value" of its ever-increasing gold hoard rise, not while it can
    acquire it at current low prices. Remember the sale of JP Morgan's
    crown jewel office building, One Chase Plaza, to China, for $750
    million? That is probably less than half of its market value. It also
    housed the world's largest gold vault, directly connected to that of
    the Federal Reserve, across the street via and underground tunnel.

    To keep China from dumping all of its worthless Treasury paper, and
    destroying the "dollar" and ruining the elite Ponzi scam, China is
    being accommodated by the US elites via half-price sales of coveted
    assets. China is buying both gold and America on the cheap.

    Russia is not quite secure in total control of the natural gas pipelines that are being opposed by the West, particularly the Nobel Peace
    Prize president that is conducting more wars than any other leader
    on the planet. Ukraine is pay-back to Putin by the elites, trying to
    divide Ukraine into EU submission and away from Russia. This is
    why Ukraine "opposition" to the government has been so strong and
    persistent. It is the work of the well-paid agents on the payroll of
    the elites. Many of those same agents were at work in Egypt and
    other Arab countries during their "staged" uprisings.

    The point to be made from these somewhat broad assessments, any of which can be verified by doing one's own due diligence, is that
    gold and silver are being held hostage by the elites to keep their
    world power alive. It has not yet been determined how those in
    power will survive, and they are likely working fast and furious
    behind the scenes with China to keep the gold/silver scam alive,
    making whatever deal[s] they can to keep control over their flagging Western empire and crumbling fiat scheme.

    Last Fall, we said the rally in PMs would take longer than most
    expect. Expectations were unmet in 2013, and it is possible that
    2014 may be no different. So far, the charts give no hint to the
    reality of the gold/silver situation. We also know of no other source
    of market information that has been more in sync with price as it is
    and for whatever reasons.

    Gold is well under a 50% retracement between the last swing high
    and low. This is just a general guide to indicate the strength or
    weakness of a market. The farther away price is under the half-way area, the weaker the market. More of an issue is the bearish
    spacing. Whenever there is a space between the last swing low and
    the next swing high that fails to close that space, it indicates that
    sellers are more aggressively in control.

    Based on the weekly chart, gold give no indication of beginning a
    strong rally that will change the trend, any time soon.

    The trend is always treated with respect as the most important
    first piece of information because it captures the prevailing price
    momentum. The best way to trade successfully is in harmony with
    the trend. Regardless of whatever information that portrays the
    reality of dwindling supply for gold, the reality of the charts takes
    preference because the charts are more driven as to timing, and
    now is not the time to be long futures, just yet.

    The reading of charts is always in opposition to the ongoing
    purchase of the physical metal. Given the circumstances driven by
    central bankers, at some point, reality will rear itself onto center
    stage, and the physical will outperform almost every other asset
    class, and just as importantly, availability may not exist. Keep on
    buying the physical.

    GC W 8 Feb 14

    The charts keep the paper market in context. At some point, the
    price expectation that actually reflects true supply and demand will
    align, but now is not that time. For as long as the trend remains
    down and price is well under a 50% retracement, the market is
    weak.

    There has been a series of overlapping bar, seen in the box.
    Overlapping bars indicates a struggle between buys and sellers for
    control. There is a temporary balance, and it will eventually lead to
    an imbalance as price next moves directionally.

    The lack of downside follow-through, after the highest volume bar 7 TDs ago, has been an anchor for the current rally, of sorts. The
    caveat as to which way price will move from here is the trend, which favors lower price behavior until there is an indication of change. Right now, such an indication is absent. Of minor concern is the
    location of the closes for the 3 bars at the end, tending toward the
    lower range of each bar. The offset is the fact that despite apparent
    weakness, price did not move lower.

    If gold trades higher next week, the daily trend will turn up, and
    confirmation will come from a lower swing high on the next
    correction.

    GC D 8 Feb 14

    The same applies to the buying and accumulation of physical silver.
    Based on the ratio for gold/silver, strongly in gold's favor, the next
    sustained bull market may well favor silver outperforming gold. We
    strongly advocate the buying of physical silver.

    The silver chart is similar to gold but more compact, and weaker, in
    general. Comments on the chart explain our view of that developing market.

    SI W 8 Feb 14

    Silver has been "looking" like it could be forming a bottom, but the
    fact that price is so far not showing any ability to rally, and the
    continual hugging of this low area may mean that there is insufficient demand. In order to find demand, silver may have to
    go lower before it can go higher.

    We will just have to wait until supply and demand are resolved.

    SI D 8 Feb 14

    Feb 08 6:37 PM | Link | Comment!
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