You play the stock market, We play the stack market.
Saturday 7 November 2015 There are two things we know for certain about gold and silver: 1. Fundamentals do not apply [currently], and 2. There are no signs to indicate an end to this half-decade old bear market. There have been many calls for a turnaround in gold and silver since 2013. In fact, the…
Saturday 7 November 2015
There are two things we know for certain about gold and silver: 1. Fundamentals do not apply [currently], and 2. There are no signs to indicate an end to this half-decade old bear market.
There have been many calls for a turnaround in gold and silver since 2013. In fact, the calls were not just for a turnaround, but also calls for $10,000+ gold, and $400+ silver, starting in 2014. It became apparent to us in the first half of 2014 that it would end with a whimper, just as 2013 did, and as 2014 continued, it seemed equally as likely that 2015 may not fare much better, and it not only did not, but it got worse with lower prices and the prospects for still lower prices to come. This puts the first part of 2016 in question.
We chose to comment on the Syria situation over the past few weeks because it seemed
to address the fact that gold and silver would not show any signs of a turnaround for as long as situations like Syria exist with zero fear impact to move gold higher. We say fear impact because there is a greater probability that the Middle East, and Syria in particular could ignite WWIII.
It makes no sense to discuss fundamentals as applied to PMs because they are inoperative at the present time, thanks to globalist US central bank manipulation, [throw in the UK].
It is taking far longer than most expected for gold and silver to reflect the incredible world imbalance between issuing endless fiat, corrupting bonds, and hiding everything behind a shadow derivative market. There can be no doubt that ownership of physical gold and silver will reward their holders. It has been proven so throughout time, and it will prove to be the case this time around, as well. Keep buying, keep holding.
The Obama administration is doing everything it can to create the potential for eminent disaster on top of the disaster it has created in creating ISIS as a means of unlawfully getting rid of an elected president in Assad. Saudi Arabia, Qatar, and Turkey are also doing their part to make a bad situation worse to make sure Shiites do not gain any more power or control in that trio’s backyard.
If these unfolding events cannot bring to bear any impact on the price of gold, then gold and silver will remain as mired down at low levels as much as the US has remained mired down in its failed policies throughout the Middle East in its destabilization efforts to being about change. Russia’s support of Assad has exposed both the duplicity and ineptness of the US trying to get rid of the Syrian president.
Americans live in a media bubble that precludes them from hearing what is actually going on in Syria, even Yemen. Let us back track about 6 or 7 months ago. Russia had proposed a UN Security Council resolution prohibiting the use of Space/Cosmos for military purposes. Guess which country vetoed it? A few weeks later, Russia renamed its Air Force to Air-Cosmic Force. There was zero media coverage. Absolutely none! Then, just 2 weeks later, a US satellite was blown up, ostensibly because of a “sudden temperature increase.”
We will never know what the purpose of the satellite was, but it is odd that this happened, and it is an example of the subsidiary events that do not seem directly linked to the Middle East, yet the common denominator linking the US is Russia. The globalists want Russia subdued into submission, and Obama is doing what he can in the service to the globalists to bring Russia to her knees, but Putin has become an embarrassing thorn in the sides of the globalists and Obama.
Recently, Laura Seal, spokeswoman for the US State Dept, said Russia was bombing Syrian hospitals and killing civilians. When pressed by two reporters, one from RT [Russia Today], she refused to give any specifics. [Hard to justify lies when pressed for the truth.] However, the US has admitted, on record, to bombing a hospital in Afghanistan, a Doctors Without Borders hospital, killing 30. Further, civilians fleeing the hospital on foot were shot down by the planes, according to surviving witnesses.
Not only has there been no US media coverage keeping the American public [un]informed of events, there has been no accountability for the Nobel Peace Prize recipient Obama’s failed intervention in Syria being responsible for the loss of over 300,000 lives and the displacement of over 4,ooo,ooo refugees. Instead of trying to defeat ISIS, which the US claims is one of the worst imaginable terrorist organizations, [created, financed, and armed by the CIA], Obama is ramping up ammunition drops to ISIS and other terrorists and sending more troops to Iraq to halt Putin’s momentum. The chance of a major war increases everyday.
Syria has officially asked for Russia to intervene, and Syria has also told the US it is neither wanted nor needed. That has not stopped Obama as he and his neocon advisers have decided to put 30 – 50 special ops advisors in Syria, aka boots on the ground, something Obama promised not to do on at least 16 recent occasions. Of course, Obama has an unblemished record for not keeping any of his promises.
[Neocons are all for curtailing civil liberties, free markets, and want to see national identity cards introduced in the US to easier track people].
It is no coincidence that just a few weeks after Russia began bombing ISIS strongholds and killing large numbers, embarrassing the US again, a Russian commercial jet airliner mysteriously exploded in mid-air, killing all aboard. Interestingly, it was the US that was first to claim that a bomb had been placed on board the flight. As another aside, it should be noted that Israel is in charge of Egypt’s airport security. [What could go wrong there?]
What led the US to express that conclusion? It had a satellite thermal image of a bright flash occurring just as the plane was destroyed in the air. How interesting the US would be following by satellite a Russian commercial flight out of Egypt that happened to capture the explosion in real-time. Why would the US be following a routine commercial flight out of Egypt by satellite?
Recall how last summer, 2014, when Malaysian flight MH-17 was shot down while flying over Ukraine. You can bet that the US was closely following this war region by satellite in an area where it had an active interest, yet for some reason, it never spoke out about having satellite images of that flight when actual thermal images existed. For those with short memories, the day after the downing of flight MH-17, Obama announced that the plane was downed by Russia, accusing Putin of being involved. There is a reason why Obama never uttered another accusatory word since, and he certainly never retracted his accusation against Putin.
With the downing of the Russian jet, killing all aboard, how does Obama respond?
On Tuesday November 3rd, U.S. Defense Department spokesperson Laura Seal announced that twelve F-15C air-to-air combat planes are being sent to the Incirlik Turkey Air Base for deployment in Syria against Russia’s Su-30 air-to-air combat planes. Neither the F-15C nor the Su-30 can destroy ground-targets, only air-targets — enemy planes.
It is important to understand that the F-15C planes cannot destroy ISIS ground targets. Rather, the planes are solely for air-to-air combat. Guess which is the only country authorized to fly in Syrian air space? Yes, Russia. So Obama is deliberately sending in planes that may eventually be used against Russia’s Su-30 fighters.
Can there by any doubt in anyone’s mind that the US and the Obama regime are deliberately interfering in another sovereign country’s affairs, especially after being told the US was not welcome there? The US has been doing everything possible, for decades, to subdue, and destroy, if necessary, Russia? Why else would the US be doing everything possible to place NATO bases as close to Russia as possible?
If, and everyone hopes it remains “if” and not when, WWIII is started, it will be from the direct actions taken by the most aggressions/suppressive nation on the planet, the corporate federal UNITED STATES, owned and directed by the globalists.
Many, if not most Americans still believe the federal government is there to protect them, in some way. We always advocate that people do their own due diligence and not take our word for anything said in these commentaries. Every US citizen was declared to be an enemy of the federal government by an amendment to the Trading With The Enemy Act in 1933. It is harder to verify now on the internet because a lot of information is being “sanitized,” but persistence will pay off. The federal government is not why people think.
It was a matter of time before the Federal Reserve fiat issue “dollar” would renew its upward pressure. The Fed is irretrievably caught in its web of fiat self-destruction, at least for the US and a good part of the EU. More than likely, the globalists are grooming the Yuan to replace the “dollar,” but China is not prepared to take over that role of the world’s reserve currency.
It is not impossible to say China may never take over that role, but if it is to be the globalist’s Special Drawing Rights [SDRs] that become the next de facto world currency,
China will want to and will play a more important role and have a greater say. Russia and its Ruble remain a question mark.
As we have noted all year, the currency correction has been relatively weak, and weak corrections auger for higher prices. There is no way to know how much higher the deception of the fiat “dollar” will go.
In any/all TRs, a resolve is reached as price moves farther and farther along the RHS of the TR [Right Hand Side]. There will inevitably be signs of some form of ending action that declares the down trend to be finished. We have not yet seen any such sign. The sooner price can make a new recent lower low, the greater the probability that the down trend will end. In that regard, everyone who wants to be bullish should cheer on lower prices, for now.
If the daily chart conveys any message at all, it says the down trend is not over, and the probability of a new recent low is greater, as of last week. The EDM [Ease of Downward Movement], since the mid-October high is an overt statement that sellers remain in full control, and buyers remain unable to help their own cause.
The trend is down, and knowledge of any trend is a one of the most important pieces of information one can have. We have been making this point for the past few years and will continue making it until a change has been confirmed.
Never fight the tape, an old saw that will always remain true.
Compare the TR section from June 2013 through October 2014, with the lower TR from November 2014 to date. The latter, lower TR has smaller ranges and is more compact. This is the market advertising the fact that sellers, while still in control are finding it more difficult to push price lower and faster over the past year. It may be a clue that the end of this protracted TR gets closer to ending. All that is needed is a form of ending action, and there is none.
The false breakout, 8 TDs ago, looked promising because of the relatively weak correction following the rally at the start of October. We took a small position on the breakout and
experienced a small loss. No one can be blamed for getting long, based on developing market activity that had a positive formation, for there was really no way to anticipate the manner in which price did ultimately reverse so quickly.
The use of stops kept exposure at a reasonable level, and stops are a necessary requirement. Anyone who trades without stops is asking for a shortened trading life.
More patience is required in holding gold and silver. Buying and holding still makes sense. The fiat “dollar” cannot and will not survive.
Saturday 24 October 2015 There are far bigger concerns about which Americans remain woefully unaware, even within the Precious Metals community. How much demand there is for silver coins, how low is the supply for silver in contradistinction to an insatiable demand, China supposedly to set the price for physical gold to reflect reality once…
Saturday 24 October 2015
There are far bigger concerns about which Americans remain woefully unaware, even within the Precious Metals community. How much demand there is for silver coins, how low is the supply for silver in contradistinction to an insatiable demand, China supposedly to set the price for physical gold to reflect reality once the Shanghai gold exchange got up and running, which it has been, etc, etc, etc, are not the most relevant factors, right now.
Almost all of the so-called PM experts/bloggers who report detailed information, and many available articles on the web focused on gold and silver, have collectively been untimely as to expectations in the ‘meteoric’ rise in prices that are supposed to reflect the realities of actual supply and demand. China will not be the country [even including the BRICS nations collectively] to rescue gold from the fiat-driven Western global elites who do whatever possible to make gold economically irrelevant on the world economic stage.
There is no one who has yet made a cause/effect argument for how gold and silver have been priced over the past five years for the simple fact of the proactive suppression by the central bankers acting at the behest of the globalists. Price suppression is artificial. It is impossible to reconcile fundamental realities to intangible artificialities. The two do not intersect, yet almost all interpretations/analysis/understanding of pricing gold and silver have been in vain because of unnatural existence of an ongoing circumstance that has no definable measure.
If, and it seems more probable when, the elite’s corporate operations, known as the federal UNITED STATES, fall apart due do the unsustainable debt creation, and the launching of so many regional wars around the globe in the service of maintaining the fiat Federal Reserve Note, “dollar, as the world reserve currency, then, and only then will we likely see the end of the decline in PMs and some degree of higher prices.
China’s emerging global power, along with the BRICS purported opposition to the elite’s IMF/BIS monetary stranglehold on how the world functions economically, plus Russia’s defending Syria’s Assad, defeating the US-created ISIS via Russia’s air force, and forging a renewed alliance with Iran to replace what appears to be the crumbling House of Saud and its partner in crime, Qatar, all of these events, as a current counterpunch to US destructive control over the Middle East, have not yet altered the suppressed prices for gold and silver,
as one might reasonably expect.
Americans, especially, have greater issues over which to be concerned but appear to be totally unaware. This unawareness is also important for the PM community as it may affect their holdings of physical gold and silver. The elites have taken over this country, and it should be taken as a done deal. There are so many examples bearing this out, and in each and every instance, the American public remains clueless.
The Trans Pacific Partnership, TPP, and the Transatlantic Trade And Investment Partnership, TTIP, have been forced down the throats of the completely unaware, unknowing, and even uncaring American public, including all the politicians who voted for the passage of both. We have covered these insidious trade agreements, previously. No need to give more ink for topics over which people have little to no interest.
We have also mentions the UN’s Agenda 21, exhorting people to do some research on how their lives are going to be intractably altered. The UN, in effect, already controls the US
corporate government, another fact most are unaware of and would not believe, anyway.
For the uninformed, Agenda 21 takes away private property ownership, single-family homes, private car ownership, individual travel choices, and privately owned farms. All will be under the control of the UN, and this last sentence is just the tip of the iceberg.
There was an article put out by the Rutherford Institute, last week, by John W Whitehead, its founder, Things Are Getting Scary; Global Police, Precrime And The War On Global
‘Extremists.’ It is another prime example of how the NWO is in control and [secretly] operates in the open because most do not care enough to be aware of how their lives are being dictated, let alone do anything about it.
Essentially, this is another step taken by the UN to get local police under direct UN control. No, it is not overt, [it never is, which is how the elites work], and it will occur slowly but inexorably. From the article:
“Under the guise of fighting violent extremism “in all of its forms and manifestations” in cities and communities across the world, the Obama administration has agreed to partner with the United Nations to take part in its Strong Cities Network program. Funded by the State Department through 2016, after which “charities are expected to take over funding,” the cities included in the global network include New York City, Atlanta, Denver, Minneapolis, Paris, London, Montreal, Beirut and Oslo.
“Working with the UN, the federal government will train local police agencies across America in how to identify, fight and prevent extremism, as well as address intolerance within their communities, using all of the resources at their disposal.”
It is expressed in a benign manner. “The Obama administration has agreed to “partner”
with the United Nations…” Then adding, “Working with the UN, the federal government
will train local police across America…” Since when have local police been accountable to the federal government, and now, they will even be accountable and under the direction of the UN? This is absolutely incredible!
…“The government’s war on extremists, of which the Strong Cities program is a part, is being sold to Americans in much the same way that the USA Patriot Act was sold to Americans: as a means of combatting terrorists who seek to destroy America.”
Earlier in the article, you get an explicit explanation as to who are the “terrorists.”
“If you believe in and exercise your rights under the Constitution (namely, your right to speak freely, worship freely, associate with like-minded individuals who share your political views, criticize the government, own a weapon, demand a warrant before being questioned or searched, or any other activity viewed as potentially anti-government, racist, bigoted, anarchic or sovereign), you have just been promoted to the top of the government’s terrorism watch list.”
- Are you afraid that the government is plotting to confiscate your firearms?
- Do you display an unusual number of political and/or ideological bumper stickers on your car?
If you answered yes to any of the above questions, you may be an anti-government extremist (a.k.a. domestic terrorist) in the eyes of the police.”
“As such, you are now viewed as a greater threat to America than ISIS or al Qaeda.”
This information is not new, and there are many articles of this nature available, but you will nervier hear or read about it in the mainstream news that owes its allegiance to the global elites that own the media, or shall we say whose owners are indebted to, if not an active player with the NWO.
“In other words, police—acting ostensibly as extensions of the United Nations—will identify, monitor and deter individuals who exhibit, express or engage in anything that could be construed as extremist.”
It gets repeated again…your local police will be acting at the behest of the UN, and it is the globalist’s UN’s sole mission to get a one world government where people do not own land, have no say about their own affairs, even as to where they live. All of that will be determined by the UN and its Agenda 21. It is all there, in plain site that very few take the time to see. Take a few minutes to read the UN’s website about Agenda 21, if you harbor any doubts how the federal government never acts in your best interests, ever.
It is about money and power, and the globalists want it all.
The UN and all police will be like the Thought Controllers, monitoring every aspect of your life, circa Orwell’s “1984,” but squared. If you do not believe that, then you must be clueless about the NSA, Homeland Security, FEMA, and a number of “camps” around the country where people who are determined to be anti-government, [we would call them truth-tellers], could very week be ‘relocated’ at the whim of police and federal government.
“For example, in 2009, the Department of Homeland Security (DHS) released two reports, one on “Rightwing Extremism,” which broadly defines rightwing extremists as individuals and groups “that are mainly antigovernment, rejecting federal authority in favor of state or local authority, or rejecting government authority entirely,” and one on “Leftwing Extremism,” which labeled environmental and animal rights activist groups as extremists.
“Incredibly, both reports use the words terrorist and extremist interchangeably.
“That same year, the DHS launched Operation Vigilant Eagle, which calls for surveillance of military veterans returning from Iraq and Afghanistan, characterizing them as extremists and potential domestic terrorist threats because they may be ‘disgruntled, disillusioned or suffering from the psychological effects of war.’”
If you like preserving the environment and like animals, you qualify as an extremist, aka a home-grown ‘terrorist.’ Sound silly? Then why would the corporate federal government send Americans to fight foreign wars, and when they return as veterans be characterized as potential extremists?
How does all of this pertain to gold and silver? Potentially immensely. For those who know STASI and East Germany, where family members would turn even on other family members, and no one trusted anyone, how do you think you will be viewed by anyone with whom you might want to exchange your gold/silver for something? The government will have no need to confiscate your gold and silver. Dutiful, brainwashed citizens will rat you out for defying the government in using something other than whatever paper-denominated “currency” is to be used at all times for all transactions, if everything has not already been digitalized and reported immediately.
Food for thought, for those who chose to think for themselves.
Speaking of fiat, fictional “money,” the federal “dollar” appeared to be headed lower, only to wash out stops and weak longs, trapping new shorts, in the process, to stage a very strong rebound rally. What difference does it make if the federal government debt is now over $19.5 trillion, and counting? What difference does it make that NO paper currency has ever maintained its violability and ceased to exist?
The globalist’s central bankers continue to muscle up the dying “dollar,” as it wrecks the US economy, along with that of Europe, in order to install its new fascist one world government. There is certainly no opposition to be found in the US, and none in Europe. It was thought Germany would be smart enough not to let its economy be ruined by the US, but that US satellite “state” is going along with the kabuki theater directed by the US.
Germany stands to lose its strong business ties to Russia by bowing to US pressure to
unjustifiably, and illegally we might add, sanction Russia and ruin Germany’s economic growth. [Maybe not ruin, but certainly harm growth.] Russia simply turned to China, and it is a reasonable question to ask if Russia will need German business in the future? Merkel has dome that country no favors by kneeling at the alter of political stupidity.
With the manipulated markets, the globalist’s central bankers are doing what they can to prop up the failing “dollar.” Within the space of a month, the fiat dropped from 97 to 94 and then rallied back above 97 for no discernible reason, surely not one that made sense. For as long as the chart of the sickly fiat “dollar” can give the appearance of ‘health,’ gold and silver are unlikely to rally. That said, anything is always possible, so gold and silver should be treated independent of this development.
It used to be when price broke above an area of resistance on a weekly chart, like gold did two weeks ago, it would lead to a rally of substance. However, in today’s central banking-controlled markets, such a breakout cannot be viewed as reliable anymore.
Still, market activity has to be respected, and the weekly development means it is now more important to watch the daily for immediate direction.
The chart explanation succinctly captures the potential for a further rally, if the current reaction can hold without going much lower, if at all, and we can see the resumption of another rally on increased volume. It would warrant taking a small position to take advantage of the developing market momentum to the upside, for now.
Silver does not ‘appear’ to be as strong as gold, chart-wise, but the gold:silver ratio has come in from 78:1 a week or two ago, the around 73.5:1 currently, saying silver is holding its own.
The overlapping bars and clustering of closes over the last 3 weeks has taken on a more positive character, since last week’s analysis. The daily now needs to be monitored with a view for immediate direction.
The sideways developing activity over the last 13 TDs [Trading Days], is a weak correction, relative to the rally leading up to it. Weak corrections tend to lead to higher prices. It is
also encouraging that the sideways correction held above 15.50, a recent resistance area.
A strong intra day turnaround, next week, would warrant a small position from the long side.
It has been quite some time since we have made such a statement.
Saturday 17 October 2015 Obama is ultimately bullish for gold and silver. His erratic and often incompetent decision -making can only cause both PMs to rally. Here is part of the reason why: Russia’s entry into the Syrian conflict to fight real terrorists is as much a side-show as it is a pivotal power play…
Saturday 17 October 2015
Obama is ultimately bullish for gold and silver. His erratic and often incompetent decision -making can only cause both PMs to rally. Here is part of the reason why:
Russia’s entry into the Syrian conflict to fight real terrorists is as much a side-show as it is a pivotal power play and game changer for Putin in the Middle East [ME]. We continue to report on this for diametrically opposed reasons. It puts a glaring focus on Obama’s political inabilities, similar to watching a satirical comedy sketch, while at the same time, there is the potential for WWIII, mostly due to the instability of US policies. This is a tragicomedy unfolding before us on the world’s stage.
Putin is playing his cards exceptionally well, while Obama plays a Joker’s hand. From being a dominating factor in the ME for decades, Obama and his team of neocon misfits have turned tail, slinking away from what power it once exercised. If events continue as Putin has been directing, even Saudi Arabia and Qatar will suffer financially, much more than imagined even from as little as a year ago.
Coat-tailing off of Russia’s new-found force, Iran has been a background player throughout the Syrian civil war, [started at the behest of Obama wanting to oust Syrian President Bashar al-Assad, to be replaced by a Western-selected puppet.] Since the Russian air attacks, Iran now openly sends its troops to fight along with Syrian forces and those of Hezbollah. There are implications that a Russian-Iranian axis could challenge the dominance of the Saudis and their control over oil pricing. Russia and Iran would love to see oil back at the $100 mark, and greater control by them can only add pressure to the existing Saudi corner on pricing oil.
As if Obama’s decision-making could not get any worse, after openly refusing to join Russia in a coalition to fight the same ISIS the US has been purportedly fighting for the past 14 months, and without success, after consulting with a few of his advisors, Tweedle Dee and Tweedle Dum, he decided to air drop 50 tons of ammunition into middle of the terrorist fighting with the “hopes” that the ammunition will be found by the good terrorists and [unsaid, used to fight and defeat Assad].
Turkey becomes another bit of US collateral damage-by-betrayal. There are plans for Russian air attacks on an ISIS stronghold near Allepo, near the Turkish border. If there is anyone Turkish President Rycep Tyyip Erdogan [and the Turks] hate more than Assad, it is the Kurds, located all along Turkey’s southern border.
It appears the ammunition may have fallen into the hands of the Kurds, arch-enemy for Erdogan who is now extremely upset with the US for inadvertently helping to arm the YPG
fighting forces [Kurds]. Erdogan is up for re-election in a few weeks, and this will not help him. He allowed the US to use Turkey’s Interlik air base in return for giving him air support in bombing the Kurds, and he does not like this “payback” by Obama one bit.
The Kurdish forces hate ISIS and have been indirectly helping Syrian forces. The Kurds see Russia’s intervention as favorable for YPG forces. Turkey wants to destroy all the Kurds. We have the situation where the US and Turkey are preventing the anti-ISIS YPG from fighting against ISIS. Europeans see this and smell a rat in US policy.
Any degree of Russian-Iranian success fighting ISIS near Allepo will lead to an attack on the ISIS capital, Raqqa. Once Raqqa fails, it is good-bye ISIS and hello to an almost assured restoration of Assad. It also adds to Kurdish strength and influence in that area, and Turkey will feel even more betrayed by the US. These interlocking pieces of the Syrian puzzle all come together in a way opposite to [unwanted] US intervention, backfiring in a manner that could not have occurred had it been planned any better.
Question for Mr Obama: Why do you prevent the Kurds from fighting ISIS terrorists?
Response: It depends on what the definition of ISIS is.
Question for Mr Obama: Why would you drop 50 tons of ammunition into the middle of a war zone, and at the same time, try to enforce gun control on US citizens?
Response: I want to stop the senseless killing in the US.
All of this is going on because the Saudis, Qatar, and the US want a gas pipeline from Qatar through Syria to ship to Europe and reduce demand for Russian supplied gas.
Assad opposes this, and so by Obama’s reckoning, Assad must go.
By opposing the US and in calling the US bluff, Putin gains international respect at the expense of a lying US administration. This also strengthens Iran’s influence over Assad and Syria, plus Iraq. At the same time, it puts the Saudis and Qatar into a compromised position. The remaining question is, will the Saudis, Qatar, and the US quietly stand by while Russia takes control over the ME, or once backed into a corner, will those three come out fighting, potentially leading to WWIII?
This is not yet over.
Ironically, we see Obama as a positive influence on gold and silver, for none of this will end well as the increasingly internationally shunned US tries to make the changes it wants to see, when such misdirected efforts backfire and only add fuel to the fire.
Gold has had stronger rallies, such as starting from the end of June 2013, to keep a perspective on current market activity and not get overly swayed that a final bottom is in place. What bears closer scrutiny now will be the character of any reactions. If the sell off bars are relatively smaller and on less volume, that would be more positive than bars that are wider and greater in volume. The latter would indicate sellers are still in control.
The current rally is the second strong rally since the August low. There still needs to be more positive market activity as just described in the weekly comment. A correction that holds the 1135 area will add to the recent bullish development. Forming a higher low that leads to another higher high, above 1192, will strengthen the scenario for gold.
Last week’s small range is inescapably a caution sign for a correction to follow. The bar two weeks ago represents a breakout above the narrow TR from late June to October. Now, how well that potential breakout holds will be important to augur higher prices.
The chart comments are apt and support the conclusions drawn from the weekly chart.
Saturday 19 September 2015 To almost all Americans mentioning Ufa will bring a blank response. What is Ufa? None would ask, “Where is it?” for there has been no mention of it anywhere in the mainstream media. Does Ufa matter? Yes, but in this country it does not. Here is a primer on understanding many…
Saturday 19 September 2015
To almost all Americans mentioning Ufa will bring a blank response. What is Ufa? None would ask, “Where is it?” for there has been no mention of it anywhere in the mainstream media. Does Ufa matter? Yes, but in this country it does not.
Here is a primer on understanding many acronyms the average American has no clue even of their existence. First of all, Ufa is not an acronym, it is the capital and administrative center of Bashkortostan Republic, Russia. It is one of the largest Russian cities with a population over one million people. It was founded in 1574. Now you know more than 99.9% of the average American, with just two sentences.
On to the acronyms: BRICS, Brazil, Russia, India, China, and South Africa, the core nations creating an alternative to Western [destructive] domination. SCO, Shanghai Cooperation Organization, originally organized as a military cooperative in Asia, akin to NATO, but has since taken on some additional economic importance, as well. EEU, the Eurasion Economic Union, akin to the EU, European Union. [This may begin to seem like a refrain from the East to the West: “Anything you can do, we can do better.”] AIIB, Asian Infrastructure Investment Bank, and NDB, the BRICS’ New Development Bank, counterparts to the IMF and World Bank, but without the required onerous debt burdens. Finally, CRA, Contingency Reserve Agreement, yet another layer of reducing the importance of Western financial domination.
It would not be an unfair comparison to state that next to world chess player, Vladimir Putin, Barack Obama is an ordinary checkers player with just moderate skills. In mid-July, while Obama was forcing an unnecessary nuclear restraint against Iran, a country with no nuclear capabilities, except according to the neocons in the United States, Putin convened a summit of the BRICS members, [while 5 nations, it has associate members in excess of 100, those tired of the American version of how the world should be run, or better said, ruled.], combined with the EEU members.
It marked the official launch of the NDB, providing a unified economic lending benefit outside of the Western banking stranglehold, bypassing and making irrelevant the fiat “dollar.” The BRICS also established the Contingency Reserve Agreement [CRA], with
an additional $100 billion available to member states and effectively renders the overly stringent requirements of the IMF and World Bank as superfluous and makes for new competition to Western dominance, which continues to weaken.
The combination of the NDB and CRA bolsters economic ties with BRICS members, making it easier to obtain loans to strengthen national reserves, if needed, all without
using the Western International Monetary Fund [IMF] and World Bank. Perhaps more importantly, there is zero need for using the US fiat “dollar” as the now mostly Western
world’s reserve currency.
Why was none of this reported in the US press? “Keep them stupid,” is probably the simplest response. What people do not know cannot hurt them, and it allows the elites
to do everything and anything they want with little repercussion from a unknowing mass
of ignorant citizens. Essentially, Western financial dominance is being displaced, and
this will critically harm US interests, especially for the unsuspecting inhabitants who question nothing the [non-representative] US government does.
The summit at Ufa spells the eventual demise of the US fiat “dollar, ” which, in turn, will produce major financial disruptions to all Americans [Wall Street bankers and immune politicians excluded], when the fiat Federal Reserve Note [blindly accepted as real
“money” by Americans and others throughout the world], loses half of its value,
or more. If the implications behind Ufa are still not clearly understood, the Eastern
powers have already been doing business without the fiat “dollar,” and Washington is
helplessly beside itself as it loses control. [Expect more [smaller] wars, and do not rule
out a big one.]
The world is fast changing, and while Ufa is not a dominate feature on the world stage, it
is an important one of so many, unnoticed by so many American, so unaware. Those unaware are unaware of being unaware. So true.
As we approach the last Quarter of 2015, what changes failed to develop in 2013, 2014,
and now 2015, [so far], could conceivably extend into, even beyond 2016. The US has sponsored numerous proxy wars, Ukraine being one, and the Middle East being the center hotbed for so many more, all diversions to keep people’s minds preoccupied with minor
[relatively speaking] skirmishes, [not to diminish the tragic loss of so may innocent lives].
These distractions are meant to detract from the Globalist’s stripping the wealth of the Western world, QE-Forever, ZIRP, negative rates, banning of cash, and the biggest and least acknowledged war on gold and silver, anathema to printing infinite amounts of fiat
to finance the theft of people’s wealth.
The National Security Administration [NSA], [the larger and true-to-life-version of George Owell’s “1984”], the ongoing militarization of police around the country, confiscation of all wealth via fiat-issue, the destruction of the middle class and elderly, actually, the American way of life, are visible [but often unseen by the public] signs of the end of this country as the US, as a nation, continues its unabated slide into Third World status.
Will gold and silver accumulation save you? That has been the conventional wisdom. Is
it still valid? Yes and no. Yes, in that one will be far worse off without either, and being
prepared is more than half the battle, and make no mistake, people are in a battle against
the corporate federal government [for many, unknowingly and inconceivably].
What about the “No” part? No one knows the extent to which the government will clamp down on the citizens over which it rules. Banning cash becomes more vocal, to wit, the
Rothschild’s Bank of England just made such an announcement. It will be the end of financial freedom and make owning/dealing in/with gold and silver more problematic.
In banning cash, and while not a done deal [the US survives on the narcotics trade which uses only cash, so that has to be solved, first], the government will be able to monitor every single transaction by citizens who must rely solely upon digital currency. Buying gold or silver may well be viewed as a “terrorist” act to subvert the “legal” digitalized “currency system.”
With relatively few American owning either gold or silver, with whom will you be able to interact buying/trading/bartering in exchange for your gold/silver. Plus, you run the
very real risk of being “ratted out” by someone who would be more than willing to do his or her [un]”patriotic” duty to inform authorities, maybe even receiving some kind of reward for doing so. It will not be easy to transact or trade in PMs.
That said, black markets have always existed, and oppressed people will always find a way.
To be without gold or silver is an invitation to be fully shorn by whatever existing powers that be. The fact that PMs have been so artificially suppressed; the fact that the elites demand payment in gold/silver first and foremost is another message of the importance of owning same. Do what they do, not what they say.
The end game is at hand. It can and will go on for much longer than most people expect,
as the passing of 2013, 2014, and most of 2015 have amply demonstrated. Do not allow yourself to be distracted, not by events, not by suppression, and not by the passing of time.
Stay focused and continue the accumulation of both gold and silver. We reiterate that the gold/silver ratio favors accumulating silver over gold, at this point.
A look a the charts…
We include the fiat “dollar” due to its perceived importance and stating it is the enemy of the enemy, in that gold and silver give lie to the lies of the central bankers who use fiat to confiscate your wealth as well as of nations. The undeniable and observable fact is that the “dollar” is acting relatively well. If you note how little the current trading range has retraced gains from the 2014 lows, it speaks to how the probability of the “dollar” prices going higher remains high.
For as long as this controlling fiat stays strong [for how much longer?], it is hard to see how gold and silver will be able to recover from current levels, even slightly higher levels.
Where “pictures” say a lot, there is little reason to add more, and the chart comments are on point.
Do not be taken in by the rally of last week. There have been larger ones, January comes to mind, that have failed, over the past 5 years. Markets take time to bottom, and we do
not see a bottom in place. Patience remains the watchword, as if there were a choice.
You can see how slight progress has been, even to the downside, since October ’14.
Until there is a conclusive washout, lower, or a more substantial rally on volume and
with demonstrated staying power, expect more of the same.
If more could be said than that which already has, we would say it. Nothing more can be
added, at this point, for more needs to happen.
Friday 11 September 2015 The events unfolding around the world, or perhaps better expressed, events unraveling at such a rapid and confusing pace can only be a prelude for the disastrous consequences that inevitably will follow. While it may be hard to reconcile, all of this has been orchestrated by the global elites who fully…
Friday 11 September 2015
The events unfolding around the world, or perhaps better expressed, events unraveling at such a rapid and confusing pace can only be a prelude for the disastrous consequences that inevitably will follow. While it may be hard to reconcile, all of this has been orchestrated by the global elites who fully intend to create as much havoc and destruction as possible, the Problem. They then monitor the Reaction, now around the world and not just confined to specific countries and regions, and what everyone is seeing is chaos, but it is an intended chaos that will lead to a Globalist’s Solution.
What might that Solution be? The final rise and control of their vaunted and planned New World Order. Nation states are being weakened, if not destroyed. In the Middle East, the destruction is literal. In many European and South American countries, the destruction is the result of financial attacks, weakening a country’s ability to exist, the preeminent example being Greece. There are similar prospects for Spain, Italy, Brazil, constant attacks on the Russian economy, and now China
The globalists are operating behind the curtain of the corporate federal United States, Oz, if you will, with the elitists as the Wizard. Any American who believes the United States has their best interests, as citizens, simply do not comprehend how detached the corporate United States is from its citizen serfs. “How can that be so?!” most citizens would incredulously ask. Yet, they refuse to consider the pieces of the puzzle in plain sight but invisible to their captured minds.
It all started with the takeover of the US money supply, culminating in the Federal Reserve Act of 1913, a fact to this day lost on most Americans and their inability to comprehend the implications, making no connection to today’s resulting financial ills. Another is the Patriot Act. What American does not want to be “patriotic,” and isn’t that what the
Patriot Act “sounds” like? Yes, intentionally so, but its contents belie the title, and again, people are purposefully being misled.
The UN’s Agenda 21 does not even exist on the radar of most Americans, even though its consequences of stripping American of all rights and land ownership in its crosshairs. FEMA, TSA, Homeland Security, the NSA are all administrative creations. Few American have any clue that administrative agencies function and operate outside of the Constitution, not that the Constitution has any relevance, today, except in the uninformed minds of Americans who unwittingly cling to it.
These are a handful of the more overt circumstances designed to intentionally erode the right to exercise any independence from the federal government, the primary tool used and controlled by the Globalists, yet Americans continue to believe voting matters. All politicians are bought, paid for and controlled by corporate interests. If Americans do not see the insidious nature of these obvious circumstances, trying to explain the more subtle ones, such as propaganda and mind control, becomes an absurdity in their minds. Call that a total victory for the Globalists, operating behind the curtain most Americans refuse to inspect.
These are broad strokes that have been important elements leading up to today’s chaotic existence around the globe. No country remains unaffected. Everything going on is being directed with the intended consequences of controlled destruction soon to be replaced by controlled construction of the New World Order. Now being added to the mix are the immigration problems of displaced Middle Easterners flooding into Europe, and Europe doing everything possible to stem the tide.
Chaos everywhere, in as many forms as possible to keep people distracted, wearing them down, tiring of the Globalist-created Problem, with Reactions being played out in as many global arenas as possible, setting the stage for the final Solution, a NWO, that will be ironically welcomed to escape from never-ending problems. “We want a solution!” will be like a battle cry, and the Solution will not be the solution people expect. Checkmate by the Globalists. Welcome to their New World where all problems are seemingly solved, and everyone lives under single world rule, using a single currency as control. What did George Orwell know, anyway?
It is now more important than ever to stay focused on the markets, the best and most reliable barometer to see the distilled consequences evolving everywhere. Smart money always has a large degree of control over the markets, and if you want to have a read on the intentions of the Globalists, pay close attention to what the markets are doing.
The stock markets around the world are reeling from the effects of out of control central bankers trying to hide their behind-the-financial-scenes dirty derivatives laundry. You have all head about them, these “Too Big To Fail” banks. They will not be allowed to fail because they are owned by the Globalists, their ATMs at the expense of the public. The Globalists have been preparing for the ultimate failure of the financial world, as it exists,
with a new plan waiting in the wings, behind their Curtain. For now, Special Drawing Rights [SDRs’] appears to be their choice, but China is a wild card, so we all just have to wait and see how their plans for destruction play out.
Markets never change. They are always the means for money powers to distribute their gains to the unsuspecting masses, and like the markets, people never change, always set up for being fleeced. One of the most important markets to watch is FX, foreign currencies, for that is where the demise of the Federal Reserve’s fiat Federal Reserve Note, more commonly accepted as the “dollar,” will play out. FX is very much controlled by the central banks, and no individual can stand up against the bankers and survive. Some may think of Soros, but he is very much a part of the Globalists playing within their arena.
When we say markets never change, by that we mean they trend up, trend down, and move sideways, periodically, and they can be monitored to detect critical turning points to not get caught in the wrong direction. Will the “dollar” disappear? Absolutely. When and how are the primary questions, and by watching the developing market activity via charts, we do not need to know the answers to any questions. The Globalists will provide them. All we need to do is follow the financial “footprints” they leave behind.
The “dollar” is in the process of losing its decades-old status as the world’s reserve currency, meaning that all trade amongst countries has to be settled using the “dollar.”
Now, most of the trade with China is starting to be settled using the Yuan, replacing the “dollar.” Russia and the remaining BRICS nations have been following suit, and they are being joined by many other non-BRICS nations that want out of the inflationary-causing fiat “dollar” that has been harming other nation’s economies.
This is a leading cause of all the stepped-up chaos around the world as the US defends the indefensible viability of the fiat “dollar.” More and more local wars are resulting, literally and economically, as the US tries to exert its muscle to keep countries from abandoning the “dollar.” Some, a number hard to define but growing, believe the US will start another world war to maintain its no longer tenable financial existence. This country is in worse economical condition that Greece, in many respects. The difference is the US has the biggest guns and willingness to use them.
Watch the charts as the game of Three Card Monty is being played out. If the “dollar” is going to disappear, and if not disappear simply become a Zimbabwe-like currency, then why is it not going down? Who cares, [with regard to knowing the unknowable]? Simply follow what the market is telling you because trust us, the market is fully controlled by the central bankers, all in trouble, and all hiding their money problems. Those problems will eventually be played out and visible in the charts.
The news is designed to confuse, a fact many ignore. Charts are reality, but most find them confusing, and so they are ignored in favor of the fiction espoused by the elite’s news media: radio, television, and print.
While price did break 93.50 support, the break was brief and a strong rally followed. This points to what we keep harping on for which many have no patience: wait for a move to confirm itself. The overall structure of the Fed’s fiat “dollar” remains in its uptrend, and the corporate federal government will do everything possible to support its fiat Ponzi scheme to the bitter end. Do not factor out more and more war “skirmishes” around the world as globalists play out their hand.
The recent explosions in China are an example of what can be considered war skirmishes, for they were not mere accidents but planned detonations. It has CIA fingerprints all over it. The fiat “dollar” is not ready to fade away.
We are writing this on Thursday, so Friday activity will not be incorporated or even known to us, which is not of much concern. Gold remains in a down trend, and within its down trend, it appears to be basing, but what we know for certain is that market bottoms almost always take more time than and duration than people’s patience. Gold has been no exception.
There are so many market “footprints” that are always visible, just not always seen. We always ask why price stops or fails to stop at a particular area, and the hindsight answer is clear. Hindsight because we did not notice, but the gap lower as price broke under the TR
Markets are always testing and retesting support/resistance areas. The key is to be aware of as many as possible for the market will respond whether the points are “seen” or remain
visibly unnoticed. This is what makes reading developing market activity so challenging.
The area of support that developed at the swing bottom served to halt the current decline of a few weeks ago. Here is an example where the highest volume occurred near the low, and this is more suggestive of short-covering and/or buyers stepping up their activity, and it is different from silver’s decline on increased volume starting near the high, for a comparison on interpreting volume activity.
The developing activity on the weekly looks more encouraging than not, which is how we viewed and expressed it. Things have a different tone when viewed from a daily POV.
POV =Point Of View
When price drops on increased volume starting near a swing high, it is an indication of sellers overwhelming buyers and remaining in control. There is a similar gap area but not as pronounced as the gold situation. However, resistance kept looking like resistance throughout mid-August leading up to the failed probe higher, trapping new buyers and stopping out weak shorts. This is a function of normal market behavior.
It is still a possibility that the increased volume that drove price lower with EDM,
[Ease of Downward Movement], was short-covering because no further down side
followed. This is why we keep saying a market needs to confirm its intent, and that confirmation may take several days, even weeks, to become clearly understood.
What everyone can agree on for certain is that the trend is down [almost everyone…
we still see some market “wizards” calling for the bottom..again]. Until there is a
confirmed change, one cannot trade safely from the long side. Of course, we are not
talking about buying physical gold and silver from current levels, just the manipulated paper market.
Saturday 22 August 2015 Last week, we lamented how difficult it was to get a fix on the so many things going on in the world, and going wrong. It occurs to us that we are all in the midst of the New World Order going about business as usual, creating Problems, and the bigger…
Saturday 22 August 2015
Last week, we lamented how difficult it was to get a fix on the so many things going on in the world, and going wrong. It occurs to us that we are all in the midst of the New World Order going about business as usual, creating Problems, and the bigger the better, then watching reactions of the masses, even governments. The worse possible the problems, the more horrifying the Reactions the better. For waiting in the wings is their planned Solution, all leading toward global takeover under a one world rule, like the UN.
One of the more fractious plans has been the destabilization of the Middle East. Think of all the “problems” [real as they are, but planned], festering throughout that region. The Arab/Muslim world is reacting, ISIS, US proxy plans for destabilizing Syria, Turkey now in turmoil, Libya gone [along with all its gold, the plan all along], ongoing problems in Egypt, Saudi Arabia attacking Yemen [Sunni v Shiite, keep them divisive, the plan]. Globalists want the entire region warring with each other and in a weakened state, [Problem].
As the Middle East, and the rest of the world, reacts, [Reaction], the Globalists will step in with a solution to stop all the fighting, being peace, to a certain degree, and have the factions somehow come under a Globalist’s “unified” umbrella where they are now in control, [Solution, their solution].
This Problem, Reaction, Solution blueprint happened in Cyprus, now Greece, setting the stage for bail-ins throughout the Western world, in order to save the banks that created all the financial mayhem from the beginning. Guess what plan is waiting in the wings for the masses now?
The European Commission, those unelected bureaucrats that all work for and are paid by the Globalists, recently told 11 countries to adopt new EU rules on propping up failed banks [bank bail-ins], or face legal action. After the last 11, there will be 28 countries with bail-in rules. The EU [European Union], has been the Globalist’s artificial creation to destroy individual country sovereignty. It may yet fail, but at such a huge cost during the entire process, that is, if it does fail. In the interim, Globalists are destroying Europe
It should be no surprise to Americans, but it will be when it happens, that there are bail-in rules already waiting to be executed, at Globalist banker will, and they will. The Problem created has been the financial collapse crises since 2008. The Reaction has been a worsening financial crises for the entire Western world, destroying the middle class, now
in the process of destroying all elderly who depended on interest income for retirement.
Now certainly in America, public pensions are grossly underfunded and undermining individual State’s financial existence. Insurance companies, the entire industry is being destroyed, unable to get the anticipated 8% returns expected, impossible in a zero interest rate environment. The situation keeps getting worse for everyone. Fear and financial panic are setting in [Reaction]. Bail-ins will help solve the problem, at least for the Globalist’s banking interests. As for the rest of the people, sorry you have to lose 30% of your deposits in the bank, but the banks need to survive, [30% is just a random number].
Remember, Obama had the rules changed, something he did not tell you. Any and all “money” you deposit in a bank is no longer your “money.” It belongs to the bank, and you are now a creditor, a very special one. How special? In the event of a bank failure, you stand last in line to make any claim against the bank. Who is first in line? Banker’s derivatives, their high-risk insurance bets being laid off on you. How special do you feel as a bank depositor, now?
Here is the deal: We now live in a nation where banks destroy the economy, lawyers destroy justice, the press destroy information, doctors destroy health, universities destroy knowledge, religions destroy morals, and governments destroy freedom. Welcome to America, everyone. Europe ain’t any better.
What is the Globalist’s aim? Destruction of all forms of government to be replaced by the New World Order.
While there may be questions about a bottom forming in gold and silver, there can be no question about what lies in store for any and all paper assets. For those who still mistakenly believe paper fiat Federal Reserve notes, aka “dollars,” are assets, they are not.
All Federal Reserve Notes are debt instruments. Debt can never be money. It is the very opposite. Let us remind once again, MONEY DOES NOT EXIST, [Hot link to article]. We did a follow-up article, The Dollar Does Not Exist, to prove our point about money and the so-called “dollar.”
The point is, all fiats will reach their intrinsic worth [which is zero], sometime in the next several months to maybe a few years. Who cares if PMs are bottoming, or not? [It’s a rhetorical question. We know everyone cares.] Owning physical gold and silver is such a simple yet superior alternative to the impending collapse of fiat currencies. Only the Globalists know the full plan. The rest of us are left to guess. Anyone who wants to be left to the vagaries of guessing is toying with financial suicide in the total loss of “value” in any form of paper assets.
What is the number one asset sought after by central bankers? Gold! One thing the Globalists are not is stupid. Do you think for a moment they want their own assets tied up in worthless paper form? Hell, no. They will take gold, silver, land, anything tangible. You should be doing the same. Buy and hold physical gold and silver. Do not, do not store it in any banking institution, and for sure, not in any safe deposit box, easy targets for confiscation.
Last week, the world is seeing more and more cracks in the existence of the Western financial world. The fiat Federal Reserve Note, “dollar,” took a drubbing. Trends always take time to turn, and all of these seemingly chaotic events are being orchestrated by the elites, not fine tuned, for that is impossible, but generally carefully planned. There may be shakeups in various markets, but there is always a degree of control by powerful forces.
It is too soon to say the “dollar” is topping, at least not until the 93 area is breached to the downside in a strong manner. These are games being played behind the scenes, and if you choose to believe all things are random events, that is a choice. One thing is certain, whatever one believes, randomness or Globalist manipulation, there can be little doubt that paper assets are in trouble.
We are including a chart of the S&P E-Mini to illustrate why things have “seemed” so chaotic and fast-paced in the world for the past few months. Here is more concrete evidence of how precarious events have become. We see last week as a game changer for equities. More attention will be paid to the stock market. In fact, we almost did a story last week, depicting how the S&P has been locked in a 100 point TR, but within that TR, price swings up and down have covered over 1,450 points! We see this as a distribution top forming.
The world is in a financially precarious position, a Problem created, more Reaction is to follow, and expect the final Solution to be loss of freedom to the Globalist world order.
As to China, Russia, BRICS, an alternative to the failing West? Folks, China is a new coat for old NWO owners. The other parties are bit players. We will delve into that, at some future point.
The Globalist antidote: gold and silver. They are certainly far better than the fiat hemlock the bankers want everyone to have. One must now consider the plan to go cashless and deal only with digitalized “currency.” Once that happens, kiss your financial freedom good-bye.
This is another high stakes game being played out by the Globalist criminal elements determining your future, your children’s and their children’s future. We have spent the last two years advocating the purchase of physical gold and/or silver, at any price, even during those time when both were much higher than where they are today. That has not changed.
There is nothing to indicate a change in trend has occurred. Before the price trend in gold and silver can go up, they have to stop going down. Is a bottom in? Too soon to tell, for even if a bottom formed last week, which we doubt, there will still have to be confirmation.
For those too impatient to wait for confirmation, think of all the bottom callers over the past few years who did not wait for confirmation and ended up losers [in the paper market].
Last week was an impressive rally, given rallies have been so few and far between. Friday’s activity, with it mid-range close on increased volume suggests the rally may have peaked or is close to peaking, at least temporarily. Chart comments explain.
Silver remains the step-child to gold, in a manner of speaking, as it failed to show a similar run up. The gold:silver ratio is just above/around 75:1, and we remain of the belief that silver will outperform gold, moving forward. 75:1 or greater is a worthwhile area for transitioning out of some gold in exchange for silver. Perhaps we will do another gold:silver ratio article to illustrate the value of the profitable exercise.
If silver does not perform better, soon, or if it trades back under the 14.60 area, the odds favor lower lows to follow. Of course, it depends on how price acts if it retraces lower. The bottom line for both gold and silver is that the elites may not have finished their game plan, and if true, PM prices can continue to languish at these lower levels in the months to come. We do not know but mention it as a possibility. In the interim, we let developing market activity do the “talking.”
Saturday 15 August 2015 The developing events over the past few months are so varied, seemingly unrelated but are all tied in, just not in a cognitive manner that makes sense, and almost all them are based upon lies by one government after another, the worst offender being the US. We find it hard to…
Saturday 15 August 2015
The developing events over the past few months are so varied, seemingly unrelated but are all tied in, just not in a cognitive manner that makes sense, and almost all them are based upon lies by one government after another, the worst offender being the US.
We find it hard to make a cohesive explanation as to their impact. This increasingly maze
of events is mean to confuse, to deflect. It is a key element of the elites creating problems,
reactions [usually confusion or panic by the masses], and offering solutions. Cyprus and Greece are similar examples. The Ukrainian coup by the US, sanctions against Russia that have so badly backfired. China an added part of the SDR, then maybe not. The list is much longer.
Because we cannot make a hand-to-eye conclusion as to how the unfolding event affect the ongoing suppression of the prices for gold and silver, most of the world’s unfolding events
are directly or indirectly tied into PMs as they relate to the increasing currency wars, now
being stepped up by China.
When in doubt, we always revert back to that which cannot be denied: the reality of price.
Stories cannot be made up or twisted in an infinite number of self-serving ways to hide the truth. What cannot be hidden is price and what it reveals. For that story of greater certainty, we look to developing market activity and how it reflects the character of any given trend and where price fits in within the developing trend.
That cannot be hidden.
As an aside, we just posted an article by a man identified only as Hugo, entitled, Europe’s Crises: a Dutch Perspective. It is the kind of information we like to present, but Hugo did it better. A good read, from our “Anything Goes” section.
The charts for the fiat Federal Reserve Note, [FRN], are included because they are the antithesis of real money, gold and silver, and the fiats, in any form, are how the globalists maintain their debt enslavement over an unsuspecting, [certainly unbelieving] and willing public.
The resistance at the 98.50 area remains intact. The price rejection of two weeks ago could be a more temporary stopping point than a similar one from four weeks earlier. Four weeks ago, the reaction last only one week, and price closed near the high of the range. Last week the range down was much wider, and price closed nearer the low. This makes a weaker statement, especially since the rally high of two weeks ago was a probe higher than the one of four weeks ago, making nit more of a bull trap for those who thought they may be buying into higher highs that failed to develop.
Last week’s reaction can be seen more clearly on the daily. The lack of downside follow through after Wednesday’s break under 96.50 recent support, 3 bars ago, shows two rally attempts with upper range closes, a plus statement for buyers. However, it is negated by the lack of further upside, making that two-day rally effort a relatively weak one.
Even if price continues lower, in the next several trading days, price would have to decline under the 93.50 area before one could say the bullish scenario has been altered. There is obvious potential support at 95.50 and again at 94.80.
Everybody knows the incredibly bullish fundamentals for gold and silver. Not everybody is paying attention to developing market activity, which is diametrically opposed to the fundamentals. The break of support, four weeks ago, occurred on wide-spread and increased volume, and that speaks to weakness, not a market that is about to undergo a major rally.
The past three-week rally attempt was unable to retrace the single week decline, and that, too, speaks to overall weakness. It shows more clearly in the daily chart.
The wide range decline bar was addressed a few weeks ago when we said that type of bar tends to contain price activity for several periods going forward, and that was prior to the most recent 10 additional TDs.
Initial resistance is the high of the wide range bar down, at the 1132 area, and yet stronger resistance at broken support, the 1145 area. It does not matter how much gold China has
bought, and continues to buy [you can include Russia and India, they make no difference], the globalists want the price of gold and silver suppressed as much as possible, and we include China as being a part of globalist ambitions, just in the early stages of participating with the elites.
China has no interest in wanting to see gold rally during its accumulation phase. Her time frame is not the same sense of urgency for that of Westerners who want everything done as soon as possible.
Gold and silver are real money. Any form of fiat is not. The elites are not about to give up their cash cow of creating infinite fiat in favor of controls that would be required using a gold standard of some kind.
Decide for yourself. Do you see anything ins developing market activity that suggests an imminent rally is at hand? Keep in mind, these charts do not show how price is at the lowest lows since the highs of 4 – 5 years ago.
The story for silver is thought to be even more compelling than for gold, and the ratio between the two supports the prospects of silver outperforming gold to the upside, at whatever point the upside begins, after a low is confirmed. Yet, developing market activity is diametrically opposed to the fundamental prospects, evidenced in the charts.
The early January rally failed to close the gap from the earlier 2014 swing lows, and that gap is an indication of weakness. It shows sellers were willing to sell without waiting to see how the prior lows may be retested. The gap left is what is called “bearish spacing,” and it becomes an area of resistance.
While price has held the TR lows, and not very impressively, until silver can mount a more accountable and sustained rally, the odds continue to favor yet lower recent lows. It does
not matter how much gold China is hoarding. It does not matter how bullish is the story for silver. People can believe the stories being touted about how gold and silver are about to rally substantially higher. What these individuals are failing to recognize is the price is the final arbiter.
Early July is a bull trap because those who bought, anticipating higher prices were proven immediately long and wrong as price dropped quickly. It did stabilize at the lower end of the newly developed TR, and note how volume was relatively stable. Then, note how volume picked up on the rally that has so far failed again at the same area as in January.
What adds more question to the viability of this current silver rally is the increased volume. Typically, strong hands buy at lows, not on rallies after a recent low has been established. It could be a combined form of short-covering and also selling to weak handed buyers on the way up. Then note how the bars overlapped at the high of the rally. This indicates balance between buyers and sellers, and it culminated with a reversal day on Friday that just about erased the increased volume buy day on Wednesday.
Believe whatever hype you will about gold and silver primed for a major turnaround, and we are in the camp wanting to see higher prices, but we remain pragmatic in putting far greater belief into what the market is saying, via developing market activity, a much more reliable indicator of the character of the trend, and both trends for gold and silver are decidedly down.
By all means, buy whatever physical as you can, and hold it. As a not so inconsequential aside, the holding time frame may be longer than most think, which has already been true. As to buying any form of paper gold or silver, it is a fool’s game for longs at current prices.
Saturday 1 August 2015 Not in 2013, not in 2014, and so far, nothing positive for the price of gold and silver has developed in what looks like for the balance of 2015. Most of the highly regarded gold and silver sites and bloggers have been expecting an upside breakout, some even saying an explosive…
Saturday 1 August 2015
Not in 2013, not in 2014, and so far, nothing positive for the price of gold and silver has developed in what looks like for the balance of 2015. Most of the highly regarded gold and silver sites and bloggers have been expecting an upside breakout, some even saying an explosive breakout. As we have been saying for the past few years, the “eyes” have it. Just by following developing price activity, in chart form, it is more than obvious that price continues to languish at recent 4 -5 year lows with NO signs of ending.
It does not matter how much gold China has bought, how many gold/silver coins have been sold to the public, even record numbers. It does not matter how low is the existing supply for silver and its excessive and growing demand. So far, it has not mattered how the miners have been suffering and are closing down operations.
What does matter is the proverbial 800 pound gorilla in the room, the globalists, elites, central bankers. They are so controlling that the natural laws of Supply and Demand have been subverted, temporarily corrupted that speaks to the entirely subversive and corrupt nature of the globalists, those who are the controllers behind a New World Order, pretty much in place with little to no opposition.
Those who have been “long and wrong” the physical from much higher prices have not been “wrong.” The reasons for buying and physically holding the physical metal have not altered one iota, and, in fact, what we just said is the good news. Let us remind again how the laws of action and reaction, while temporarily suspended, albeit in a prolonged time frame, the opposite reaction will come into play. The not so bad news is no one knowswhen it will come into play.
The number of mostly negative events dominating the Western world hve been accelerating at an alarming pace, one right after the other, none of which make any economic sense, save for the globalist’s news media ever putting a positive spin on the negative, feeding lie after lie after lie. Sadly, too many have come to always believe in the lies because they come from the “government,” a [mis]trusted source.
As Obama and the equally corrupt supreme court have made clear, political lying is truly a protected form of speech. As a consequence, the only statements made by politicians are lies. Believe them at your own peril, and whenever politicians are in control, you can believe your economic life is in peril.
It becomes clearer that the globalists have just about finished draining all of the wealth from Western governments, the US being the biggest [stolen] jewel in their crown, and are in the end game but not quite finished. All of the hidden, least understood derivatives have to be unwound. Once that is accomplished, and Western people have been stripped of what little wealth and freedom they have left [Greece, coming soon to your neighborhood], the switch to the East will begin in more earnest.
It is worth mentioning that maintaining control over a blatantly broken financial system can explode the the elites lying faces at any time. That is a lower probability, but one that grows with each passing month.
For the past few decades, the globalists have been preparing to take over the Eastern world and plunder Eastern wealth over the next 100 years. China, Putin/Russia, BRICS, AIIB, NDB, et al, are not going to defeat the West. Quite the contrary, the parasitic globalists have already defeated the West, sucked it dry of its wealth and gained total control over every aspect of people’s lives. China, Putin/Russia, BRICS, AIIB, NDB, et al, are next up on their agenda, so do not expect the Eastern “good guys” to put the Western “bad guys” in their place. The globalists are pulling the same strings in both arenas. Do not doubt that for a minute.
It is harder to make the story for an Eastern takeover by the globalists, at this point, but when it was happening to the US, well over 150 years ago, it was hard to make that story then. It was beyond sane comprehension, but all the signs were there. Many still do not believe or accept an elite global takeover of the Western world, so it would be an even harder story to “sell,” at this stage.
The manipulated suppression of gold and silver is the most revealing final stage of how the central bankers have been in total control for the past century, not just the past decade or two or three. There is no other power on earth that can account for the corruption and suspension of supply and demand for PMs, and that should be your clue as to how vast and deeply penetrating the elites are able so exert such influence, unopposed.
Once they are able to more viably make the transition from West to East, then the price of gold and silver will move to the upside. Will it be as explosive as so many, including us a few times, have conjectured? Maybe, maybe not. China is looming largest in this global transition of shifting powers and economic control. That country has a decidedly different approach in both method and timing as to how she wants to see the new Eastern world develop. A rise in the price of gold to $10,000, or some multiple, may not be how China wants the price of gold to be valued. That country takes a more deliberate and controlling stance on everything.
From all indications, China is willing to be a part of the existing globalists’ fiat money power control structure, via the IMF. While the New Development Bank [NDB] is supposed to be a replacement or competitor to the IMF, and the Asian Infrastructure
Investment Bank [AIIB], a total turn away from the US fiat petrodollar, all that is going on behind the scenes may not be known for many years to come, so everything is speculative.
What is the least speculative are the charts for gold and silver. All of the fundamentals for PMs simple do not apply, at present, and all of the stories coming out of the gold/silver community are based more on sentiment and belief in the fundamentals while ignoring the reality of price, which is telling a completely different story.
Hold whatever physical gold and silver you have, and make sure you physically have it.
If you do not have it, more than likely, you will never own it. That is how events have been proving out. Do not hesitate to continue to buy and hold more, regardless of price and even if price is to go lower. Access to buying physical PMs may dry up. Governments will surely make it much harder to buy, as controls can easily come into play.
Gold and silver have been one of the most reliable and proven forms of wealth preservation. The globalists want people to become disheartened in owing silver and gold. Yet, gold is the most coveted form of wealth by the globalists since the days when the Rothschilds took control of Western world finances and governments, along with every thing else.
The charts continue to paint a different picture from what most are told in the media and different from what most in the PM community have come to expect and believe, as well.
We start with the fiat Federal Reserve Note, called the “dollar,” because it is the antithsis for gold and silver.
The monthly chart shows a very bullish developing scenario, despite the call for the demise of that worthless fiat. Its “value” derives from the faulty imagination of its users, which is most of the real world. However sadly true that may be, a billion wrongs will still never make a single truth wrong. Again, this shows the power of deception and influence the globalists have maintained for the past few hundred years, for it is not a recent phenomena.
We often advise to watch how price acts/responds to obvious resistance or support.
98 has been a resistance area, yet there is no apparent selling overtaking buying at resistance. This suggests price will continue to move higher. That conclusion is also
in line with knowing the most important market information, the trend. A trend will persist longer than most expect.
“Trust your eyes.” However much gold China has been buying, however much the demand has been from countries and individuals, however much supply appears to by drying up, the power of control exercised by the elites remains unparalleled in history. Price is a function of elite control and nothing else. Believe otherwise, if you chose, but there is no arguing with what is, regardless of how much you believe it should otherwise be.
There is a small area of bullish spacing that corresponds to the touted 1035-1045 support level that appears valid. While most people look at daily and intra day charts, this time frame is more in line with what smart money watches, while ignoring daily charts.
It takes more time and effort to change a trend on the higher monthly time frame, a simple fact. Given the decline to recent lows, the probability of a slingshot turnaround to the upside is very low. It can happen, but the odds are low, and money is best made being in sync with the higher probability odds, another fact.
Last week’s attempt to rally looks rather feeble, relative to the prior down week that broke support. If price does not continue lower, next week, even the prospects of a rally have a series of overhanging resistance areas along the way. A lot of damage has been done to this market, and it will take time and effort to repair it.
As things stand, the prospects for a turn in the gold market are small. It can change next week, but next week has not happened, so all we can do is deal with what is known and change only when what is known has changed.
Market assessments always need to be confirmed by price activity. The higher volume days are occurring on lower closes from the prior day, but price is not making further downside progress. That would argue for a rally. At the same time, with the increased volume, price has not made any inroads to the upside and remains under a 50% retracement, typical in a down market, and that would argue to continuation lower.
Is the glass half-empty or half-full? This is where one needs to let the market develop more and confirm its next direction. An inability to rally away from 1080 support, with sustainability, suggests support will likely give way. The lower probable event is a rally,
next week. Let the market confirm its intent and then react accordingly.
We will always maintain that charts are the very best source for the most accurate price information and intent available. That not a lot of people know how to read charts does not diminish their reliability. Of course, we are not talking about the use of mechanical aides like moving averages, RSI, MACD, Elliott Wave, etc. The combination of price and volume, sometimes with Time added, is most reliable.
The easiest read for silver and gold is to recognize their trends remain down. More money is lost trying to pick bottoms [and tops], so do not fall into that money-losing ego trap.
While price and volume are the most reliable indicators, it does not mean there is 100% clarity at all times, such as now. Realize that the trend has been down and developing activity has also been in sync with the down trend. There will be periods where it may be hard to read what the market is saying. This is yet another reason to let the market confirm its intent.
If one were trying to make a first time decision as of last week, having not participated in the down trend of the last several years, that would be a difficult call to make, based on the two very small range bars. Trend and probability favor the downside.
The chart comments are fairly conclusive. The trend is down, price is not exhibiting strength, so trying to buy in the paper market makes little sense. If we were to focus on the last bar on the chart, in context with what precedes that bar, the conclusion would be to expect more downside.
Volume increased [effort], the highest volume for the week. Price made a slightly higher probe above the last 10 TDs, but note where it closed: mid-range the bar. On increased volume, the mid-range close tells us sellers were aggressive and overcame the effort of buyers sufficient to push price down from the high of the day. In a down trend, the onus is on buyers to effect change. Buyers are not meeting that burden. It is tough to change a trend. Respect it, at all times, until a change has been confirmed.
Saturday 24 July 2015 Truth does not exist in the world of politics. It is reasons such as these, below, that drives the importance of owning and holding physical silver and gold. The fundamental reasons everyone already knows exists but do not apply are important, but the power of the elites to rule over all…
Saturday 24 July 2015
Truth does not exist in the world of politics.
It is reasons such as these, below, that drives the importance of owning and holding physical silver and gold. The fundamental reasons everyone already knows exists but do not apply are important, but the power of the elites to rule over all [at least Western] governments, write the laws, deceive everyone, and now with the evidence of how much influence the bankers can exert over the manipulation of PM prices, is why you need to protect yourself from the evil nature of their control.
The elites want to destroy your belief in the value of owning golf and silver, and they have reenforcing price down despite the overwhelming demand for both. That should embolden your resolve even more. For how much longer this can go on, no one knows. What you can know with a great amount of certainty is that Newton’s 3rd Law of Physics will kick in: for every action, there is an equal and opposite reaction.
This assures you that the distorted action to the downside will reward the faithful with an equally distorted reaction in the opposite direction. It is a matter of time.
“All the perplexities, confusions, and distresses in America arise not from the Constitution or confederation, not from want of honor or virtue, as much from
the downright ignorance of the nature of coin, credit, and circulation.”
John Adams, 2nd President of the United States
Section 16 of the Federal Reserve Act of 1913 at 38 Stat., 265, will not be found doing a simple search. What the federal corporate government does, over time, is make changes, often changing words ass “surplus,” which actually hides what the government does not want you to see or know. A search will send you to Title 12 section 411, and even that has been “cleansed” of a damning admission, a similar but different story for another time.
What one must learn is that the government uses terms for words that most take as used in everyday life. When a word is used as a term, its definition is clearly explained, and the term definition will not be what is understood as every day usage. A bit off topic, but it illustrates how important words and spelling are used by the federal government.
“Person” is a TERM and is a word of art and does not pertain to Man. Man is never referenced in any tax code; only “person” who is a Man that has taken on the artificial character of a legal entity subject to the tax. That Man is an artificial person and to define him as such they use the term of art “natural person” to separate him from a paper corporation such as IBM who could never be a “natural person”, just a “person” as defined in the 7701(a) definition. So, now the man who is not a taxpayer, in the sense we know, actually makes the IRS presumption stick when declaring he is a “natural person.” Remember, in law, and nowhere else, the word “person” means a legal entity of artificial character. So you state you are a “natural” artificial (person) compared to a fictional corporation (person).” The Informer.
Back to 38 Stat, 265, which states: [Pat attention to what is capitalized for all references to the Federal Reserve and notes/Notes.]
” SEC 16. Federal reserve notes, [observe: small “r” reserve, small ‘n”note] to be issued at the discretion of the Federal Reserve Board for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth, and for no other purpose, are hereby authorized, [emphasis added]. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and for all taxes, customs, and other public dues. They shall be redeemed in gold on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or in gold or lawful money at any Federal reserve bank.”
Pay close attention to what is authorized: Federal reserve notes of the small “r” in reserve and small “n” in notes. Further, they are to be issued at the discretion of the Federal Reserve Board, NOT by Congress or any banking institution. The notes are issued for one purpose only, making advances to Federal reserve banks…and for no other purpose.”
These notes were NOT issued for general public circulation, and the only notes authorized were Federal reserve notes.
It was in 1933 when Federal Reserve notes were first made legal tender. Now you see Reserve has a capital “R” as distinguished from the 1913 Act that authorized Federal reserve notes, small “r.”
From the 73rd session of Congress, June 5, 6, 1933, [HJR -192]:
“All coins and currencies of the United States [including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations] heretofore or hereafter coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties, and dues, except that gold coins, when below the standard weight and limit of tolerance provided by law for the single piece, shall be legal tender only at valuation in proportion to their actual weight.”
The above comes from a Resolution to amend a statute known as the Agricultural Adjustment Act of 1933. Interestingly, in BUTLER V U S, 296 US 1, , the Agricultural Adjustment Act of 1933 was declared unconstitutional and void.
Prior to the Act of 1933, there was no such “legal tender status” for Federal Reserve notes of the “R” type. The deception is more apparent when you consider that coins minted by the US were already lawful money, via the Coinage Act of 1792, so there was no need to confer the unnecessary “legal tender” status upon them.
Here is where the deception is less clear. HJR-192 [House Joint Resolution] included the statement that Federal Reserve notes shall be legal tender for all debts public and private…” If you look at any fiat Federal Reserve Note, [FRN], you will see those same words included on the face of the fiat. That wording comes from a Resolution that has already been declared unconstitutional and void, so where is there any authorization for any of the fiat FRNs in circulation, today?
In 1982, Congress re-codified 31 USC 5103 to redefine what is legal tender of the US:
“§5103. Legal tender
“United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.”
Source: Article on FRNs by Clarity
If you click on the link for Title 31, above, you will see “Historical Revisions And Notes” as examples of how lawmakers make words disappear and often change the meaning of the current, altered Title.
What Tile 31, section 5103 does is re-establish Federal reserve notes, the ones not issued in general circulation, as the only authorized form of legal tender in the US, current. That means any other form of “notes” or even “Notes” issued by the US are unauthorized, or, in a word, fraud. There is no lawful, not even legal, authorization for those FEDERAL RESERVES NOTES in circulation, none, zip.
Has anyone from the private corporation Federal Reserve or corporate federal government ever informed the public of this fraud? Of course not! Neither will ever admit to the largest Ponzi scheme ever devised by the elite’s banking cartel. They do not care that you do not know. They do not even care if you DO know.
ALL Federal Reserve Notes in circulation are commercial debt instruments. We have already covered the fact that they are NOT money. [See previous article, MONEY DOES NOT EXIST, paragraphs 7 and 8.]
Here is another deception found in HJR-192:
“Whereas the existing emergency has disclosed that provisions of obligations which purport to give the obligee a right to require payment in gold or a particular kind of coin or currency of the United States, or in an amount of money of the United States measured thereby, obstruct the power of Congress to regulate the value of the money of the United States, and are inconsistent with the declared policy of the Congress to maintain at all times the equal power of every dollar, coined or issued by the United States, in the markets and in the payment of debts.”
Article 1, section 8 of the Constitution says, in pertinent part: Congress shall have the power:
“To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;”
Why has HJR-192 clearly misstated what the Constitution explicitly provides? Nowhere does that sentence in section 8 say Congress has the power to regulate money. It says, “To coin money, regulate the value thereof…”
What people fail to understand about the non-existent Constitution they claim to value and protect is, Congress only had the power to coin money, and regulate the value thereof. The only money that is current as the money of account of the United States, to this day, are coins of gold and silver, as expressed on dollars, [Coinage Act of 1792, section 20]. In order to regulate the value thereof, it meant Congress had to ensure the coins were of the specified weight, and nothing else.
Where does it say Congress will at all times maintain at all times the equal power of every dollar, coined or issued by the United States. Utter nonsense! That means the value of a $5 gold piece, issued by the United States, should equal the “value” of a [worthless] fiat $5 Federal Reserve Note.
What was written in HJR-192 was written by the elites in control of the government and fully written to deceive a public willing to be deceived, to this day. ALL, repeat, ALL FRNs are a worthless scrip issued by a private international banking cartel.
We bring this to no pointed conclusion because few, if anyone, will change their habits and or beliefs about using imaginary money, despite the fraud. Too inconvenient.
Without natural predators, the stupid are far outnumbering the more intelligent, not just here, but in every country.
We had a now resolved issue not being able to receive e-mails since 18 July. If anyone sent an e-mail that was returned, it is okay to now resend. Apologies. mn
Despite another so-called “smash down” of gold and silver, having an awareness of the direction of the trend, as we have been advocating for the past few years, one cannot be surprised by the drop as much as one can be verily surprised by the extent to which the central bankers have had such a relentless stranglehold on gold and silver, and it appears that they have not yet finished playing their manipulated hand.
All anyone can do is to stay with common sense and not be led astray in their thinking by the uncommon willingness of those in control to go to whatever extremes necessary to ultimately fail in their perverted agenda of trying to save an unsaveable, worthless fiat.
While not apparent on the weekly, the daily chart does show a degree of short covering, especially on Thursday and Friday, even Monday’s wide range slam lower. To alleviate one’s anxiety level, do not expect a quick recovery. We are inclined to say even until the end of the year, but that would presume we know something no one can know. All anyone can do is let the market, and the central bankers, run their course. Gold will not turn around a day sooner than the day it does make a turn, and even after that day, it will require more time to confirm a bottom is in place.
Many people have little patience with simple aphorisms, like respecting the trend as the most important piece of market information one can have, for it puts price direction into a context that can prevent undue losses by not going against the trend. We have made this point several times, and one should never take it as a trite expression.
For those wanting to be on the long side of the paper market, the trend has been very trying of one’s patience, granted. From all appearances, expect more of the same.
Can silver still go lower? Yes, it can. The probability of lower prices remains higher than not going lower. We keep repeating to trust your eyes in what you see in the charts and to not listen to the hype about silver being ready for a huge upside breakout. It is a well
intended sentiment by some, and a wanting to be first to call a bottom by many others, but the net effect is very misleading to the obvious and unfair to those who may believe the hype.
We have no qualms about buying physical gold and silver, at any price, and especially at these exaggerated lower price levels. Once a bottom is formed, given the negative character of how price has been so severely repressed against an historic and unabated demand for the physical, it may become incredibly difficult to buy physical as price starts to turn, whenever it does, and what may be available will be at prices much higher than now.
Stay away from being long anything in paper. Be patient. You have no other choice.
The central bankers have more than made their case about keeping price suppressed.
Saturday 18 July 2015 Step back for a moment and absorb what just transpired in the ongoing Greek tragedy that refuses to go away. Greece, with no possibility of ever repaying its fictitious debts to the EU, and the EU, in all of its greed and avarice, for no wisdom is to be found within…
Saturday 18 July 2015
Step back for a moment and absorb what just transpired in the ongoing Greek tragedy that refuses to go away. Greece, with no possibility of ever repaying its fictitious debts to the EU, and the EU, in all of its greed and avarice, for no wisdom is to be found within that body of elite-pushing bureaucrats, it determined that the best and ONLY solution for debt-laden Greece was to LOAN MORE “MONEY.”
Need anything more be said about what is going on in European politics?
In the real world, if you cannot repay your debt[s], your car is repossessed, your house undergoes foreclosure, you cannot get credit, your credit cards get canceled, your debt-
burdened ass is hauled into court, often times, your family falls apart, etc, etc, etc. Not
so for Greece. She gets offered even more debt from her creditors. Only in politics.
We covered this ground before: Greece was loaned nothing of value. Nothing. Just fictitious digitalized numbers created at the whims [actually the purposeful direction of the elite’s bankers] of the IMF/EU, [off by one letter, the “E” should have been an “F” to more accurately describe what happens to the populations of member countries]. [See 17th paragraph from article Elite NWO Checkmate.] Now the bankers want to be repaid in tangibles, like the country of Greece itself, the Greek banks, and whatever else can be siphoned from the economically broken backs of the innocent Greek people.
Where will the billions of new loaned money to Greece go? Not to the people, not to rebuilding Greece. It will be recycled back to the creditors to keep the facade of bank solvency alive. This is a joke that is not laughable.
Lend nothing, take back everything not nailed down. It has been the Rothschild formula for centuries.
Pay attention. We have said this before: the elites and their bankers take no prisoners. They could care less about people. All the elites care about is taking total control of the currencies of every country in order to bring that country to its financial knees and totally beholding to the dictates of the moneychangers.
The obvious, unstated and perhaps unnoticed point is the the Euro currency is a total fiat totally controlled by the bankers. Hello, Europe?! The sole purpose of the EU is to enslave all Europeans. Is everyone oblivious to the obvious?
All politicians are lying whores, with apologies to whores for making the connection.
Tsipras just sold out the Greek people to a deal worse than the one initially presented months ago, and more importantly, against the referendum held to vote no for the EU’s [mostly elite sell-out Merkel and Germany] austerity program.
Greek banks closed, [the elite’s way of forcing people into financially hopeless situations to get what they want]. People who stupidly still kept their money in the elite’s banking system were denied access to what they thought was theirs. Two lessons: people who keep money in any bank anywhere in the world are now considered creditors, not depositors, and you can, and will be denied access to what you “believe” to be your funds at the dictates of the bankers. Secondly, anything people keep in the form of paper, or worse,
digitalized entries on their accounts, are discovering the true “value” of paper. [None.]
Those who had gold and silver were able to use their own form of wealth to acquire whatever they needed, assuming items were available, and more is available when gold or silver is the basis for the transaction, although alcohol, coffee, cigarettes, even sex facilitate trade exchanges.
If you have no gold or silver, you will be “Greeced,” “Cyprused,” financially screwed for not taking responsibility for your own economic future. Those who already own either or both gold and silver know this, [but still complain about the paper price continuing to decline.]
Precious metals have always been a store of value and always will be. One of the main reasons for FDR’s Executive Order for US “persons” to turn in their gold was to strip people from being independent of the government. Those who had gold and silver did not need to be reliant upon the government for their economic needs. Take away their most reliable form of wealth, substitute it for fiat paper, and now people had to rely upon the government to survive. To paraphrase Chuck Colson, Nixon’s aide, “When you have them by the financial balls, their hearts and minds will follow.”
That was the plan all along, starting from when the Federal Reserve Act of 1913 was enforced on the country by the foreign banking elites. First, gain control of the issuance of a nation’s currency, [again, the classic Rothschild formula] then the rest falls into place: control of the government, control of business sectors, and the media. The public hears only what the elites want them to hear and [falsely] believe.
We have mentioned Agenda 21 several times and always exhorted people to take some time and research what this insidious UN-sponsored agenda is all about. In a nut shell, Agenda 21 is the UN takeover of all local governments in order to corral the masses in whichever direction the UN decides. One of those directions is to ultimately prevent people from owning their own land, water rights, etc…total enslavement.
Here is a small example. In 1998, the Montana Fish Wildlife and Parks approached local county commissioners to persuade them with a proposal to cooperate in driving rural residents out of the Montana countryside into cities. Why? People in rural areas were pretty self-reliant, as a matter of necessity. These people have no need for government support and would highly resent and oppose any government interference. If the government could get people more centrally located, people can be more easily controlled.
The point, beyond the obvious deceit? This is an Agenda 21 scheme, and we are talking about 1998, in a seemingly innocuous location, sparsely populated Montana. Note that the same agenda is being plied throughout the United States. It is a bit like the 1956 movieInvasion of the Body Snatchers. One thing is certain, the elites are taking total control of you and your life right under your unobserving noses.
Read the brief but informative article by Joshua Krause, Agenda 21 Under A New Name,
from which the above comes.
We have also covered how Obama has sold out America and Americans, at the behest of the elites, lately through TPP, TTIP, and TISA, in our widely read article, Obama, Western World’s Worst Enemy for Freedom. This, folks, is how the elites work and why all politicians are pathetic as a puppet ruse for the NWO.
As an aside, for more about the US decline under the directed hands of the president, you may find this interesting to read, Freedom or the Slaughterhouse, American Police State
from A to Z.
The larger point to be made is for those who are myopically focused on the current price for gold and silver, all of the news-related stories about how much gold China owns, how
many coins are being bought in record quantities, etc, etc, stories everyone has heard for the past three years, that focus is grossly misplaced.
First Cyprus, now Greece, and it will not stop there. The entire corrupt Western banking system is bankrupt, a fact few people are willing to accept. The entire Western banking system is corrupt. PMs people have a greater appreciation for that repeated statement, but most people simply cannot comprehend the weight of that situation.
The price for gold and silver is being artificially and purposefully suppressed by central bankers. The Western world is falling apart at the fiat financial seams, and those in control will resort to whatever means necessary to remain in control, evidenced by the unending proxy wars and Middle East disruptions started by the US. A Third World War cannot be taken out of the equation as the bankers are scrambling for their greedy lives, stealing as much wealth from people as possible.
That is where everyone’s primary concern would be well-served to know and continually be aware of what is going on, because when this banker-created financial disaster comes to it sordid end, and it cannot be avoided, owning and physically holding/controlling gold and silver will be one of the best means of surviving financially.
How and when things unfold, no one knows. All one can do is to be informed and prepared, and of the two, being prepared is more important than being informed.
For as long as the corporate federal government can keep its unwanted “dollar” moving higher, it is an apt barometer for the opposite direction of gold and silver. Chart comments pretty much cover the salient features.
NMT = Needs More Time. Gold continues its decline in a snail-like fashion, despite the obvious intended assaults to drive price lower. Those efforts continue to succeed, but it appears with decreasing effect.
Last week, we commented there was little reason why gold could not go lower, and it did. The same still applies until there is some sign of ending activity.
In addition to the chart comments, Friday’s close touched the lower channel line, and that puts gold in an oversold condition. We hasten to add, oversold very often becomes moreoversold, so it should not be taken as a potential trade from the long side. You will see how silver reached an oversold condition. While gold is clearly in a similar position, it does not mean it will react in a similar manner, a mistake too many make in reading charts.
Every situation is unique, regardless of any past similar formations.
Just as we cautioned to obverse how gold reacts to its just breaking an obvious support area, the same holds here. Both silver and gold can move sideways, continue lower, or rally in response to broken support. The absolute lowest probability is a rally back over support that can hold.
“A” is a wide range down bar on sharply higher volume. Last week, we mentioned how the daily chart was not very encouraging for a sustained rally. That conclusion was made from simply reading developing market activity conveying a message. Note how it took four TDs to retrace the one-day decline, “A.” The ease of movement is to the downside, and recovery rallies are more labored. Plus, the small range of the rally into the previous Friday, 5 bars ago, the 4 day “B” rally, was an obvious indication that buying was weak, otherwise the range would have extended higher.
At “C,” we see a slowing of the decline as it retests the low area at “D.” Friday’s small range is the opposite of the small range rally bar, just described. Plus, Friday’s range mostly overlapped the previous bar, showing less ease of downward movement. Despite these potential caveats, the most important factor is the prevailing trend, down.
You can also see when “D” developed, it reached an oversold condition similar to what was described on the daily gold chart. An obvious reason why gold may not hold as silver did is seen in how silver is holding in the middle of the down channel, where gold was easily under the middle of its down channel, making gold relatively weaker in character, given the two similarities.
The trend for both metals remains down, and from the last two lines to Ode On A Grecian Urn:
“Beauty is Truth, truth beauty,—–that is all
ye know on earth, and all ye need to know.”
Saturday 11 July 2015 All the world is indeed a stage, and what is unfolding is a worsening tragicomedy, and it is under the direction of the elites through their debt enslavement [un]known by the world as fiat currency. The unelected “officials” in the EU are the equivalent of Keystone Kops. In fact, that is…
Saturday 11 July 2015
All the world is indeed a stage, and what is unfolding is a worsening tragicomedy, and it is under the direction of the elites through their debt enslavement [un]known by the world as fiat currency. The unelected “officials” in the EU are the equivalent of Keystone Kops. In fact, that is also true even of elected officials. They are all a bunch of clowns in charge of the circus called government.
There is a very high probability that what has been unfolding in Greece will eventually be in your own government, so pay close attention to the outcome of how the bankers are choking the economic life out of the Greek people, and as events have unfolded, it appears that Tsipras has caved into the moneychanger’s demands in exchange for a bailout. This is totally contrary to the outcome of the referendum wherein Greeks voted OXI for accepting the unacceptable financial impositions on Greek citizens.
One huge obvious lesson that escapes people throughout the Western world is that voting does not matter. In the end, the bankers rule and get their way, and people have no say.
What is always at the bottom line for all decisions? Money, and guess what? Very few people have the slightest clue what “money” is. That is the central tragedy around the globe.
Here is a legal definition from Black’s Law Dictionary, 4th Edition: Money –
In the usual and ordinary acceptation it means gold and silver, or paper money
used as circulating medium of exchange, and and does not embrace notes, bonds,
evidences of debt or other personal or real estate. [Emphasis added]
We have covered this before, but people prefer to believe in the lies fed to them instead of the truth, when actually the truth to them appears to be a lie. The elites understand psychological programming and have used it quite effectively for the past few hundred years, for they have created the lies taken as “truth” by those unaware who are unaware of being unaware, i.e., most people.
Here it is again: Federal Reserve Notes [FRNs], are not dollars! [Same applies to Euros, Pounds, Yen, et al]. FRNs are debt instruments issued by the private corporation called the Federal Reserve, which is not a part of the corporate U S federal government. For anyone who believes otherwise, you are laboring [unaware] under a dysfunctional belief. A belief held will always be defended. People go to war over beliefs. What people do not realize or refuse to accept is the beliefs are not necessarily reality, which is what makes a mistaken belief about reality so dysfunctional.
FRNs are debt instruments issued by the Federal Reserve. Refer back to the definition of money from Black’s Law: “…[money] does not embrace…evidences of debt” Can that be any more clearly expressed? A FRN is a debt instrument, and debt is the opposite of money. While the definition included “paper money,” it pertained to paper money that was then backed by gold and silver, not fiat.
Credit cards are not money, although people use them to purchase things. When you use a credit card, you are incurring debt. Checks are not money. They are a paper form instructing banks to move checkbook deposits, considered money, from one account to another, but all within the banking system of what is now mostly digitalized currency.
Money is not the currency. Money is an intangible, an abstract term for a medium of exchange.
Everyone who carries FRNs thinks they are carrying money, but that is not true. [Reread the above few paragraphs for you will never learn this in any school.] In the United States, a dollar is money. “Wait, wait, wait! FRNs have the word “dollar” printed on them, isn’t that true?”
It is true that the word “dollar” does appear on each FRN, but that does not make a FRN a real dollar. If you “believe” a FRN is a dollar, it is a dysfunctional belief based on the elite’s Federal Reserve deception.
“This is so confusing.”
Actually, no. It is more of a function of cognitive dissonance. The lie fed to everyone [by the FED] since its inception has become the wrongful belief that is taken for the truth, and when told it is not the truth as believed, it creates confusion in one’s mind, which is understandable, but still unacceptable. Think of it as a bait-and-switch Ponzi scheme on the grandest of scales that few people can comprehend, at least until told otherwise, and even then, many refuse to believe or accept the real truth.
Let us repeat: A Federal Reserve Note is not a “Note,” even though the word appears on each FRN. It cannot be a Note because it does not stipulate payment of anything, to anyone, at any time. It is a purposeful deception to get people to believe that which is not true. Most people would call it a lie.
A FRN is NOT a dollar. What is an actual dollar in the United States? A dollar is an expression to describe a quantity of silver or gold in coin form. By law, a dollar is still the current account of money of the United States today. “The money of account of the United States shall be expressed in dollars.” Section 20 of the Coinage Act of 1792. This law has never been reminded, but it is being totally ignored by the de facto corporate federal government which remains in bankruptcy since 1933 and under the full control of the elites, the moneychangers.
No one has to agree with us on this, and we always urge people to do their own due diligence, and when you do, it is impossible to come to any other conclusion. Facts are always facts, and they override dysfunctional beliefs about reality.
What one will ultimately conclude is the realization that there are no lawful dollars circulating in the United States, today. They were removed from circulation by the Federal Reserve and destroyed during the 1920s and 1930s. At one time, Federal Reserve Notes were specie-backed, just like real United States Notes that were backed by silver and gold.
However, the specie backing was removed and all that circulates are fiat FRNs that still bear the word “dollar” on them, when by existing law, they are not dollars in any way shape or form.
This is why we said in our heading, Money DOES NOT EXIST.
While money makes the world go around, very, very few people understand what money is and what money is not, and that is purposeful on the part of the elites and every government. When you can begin to grasp the importance of the lies that are used to control the world’s population by the elites, it is not that hard to better understand how and why gold and silver continue to be manipulated and suppressed. It is all in defense
of the US fiat “dollar” as the world’s reserve currency, fast losing its status on the Eastern world’s stage, and it is why the US is engaging either directly or mostly indirectly in wars wherever they can.
More at another time…
Developing a healthy respect for the prevailing trend is very important. Trends take more time to change than people realize or expect. The relatively shallow correction in the Fed’s fiat “dollar” strongly favors the continuation for higher prices. Of course, that could change next week, but next week has not happened, and all we can do is rely on the present tense market information which remains constructive.
As the antithesis to the fiat “dollar,” gold and silver should remain on the defensive for some time to come over the next several months, at least.
The $18 Axis Line remains an important test for the ability of silver to prove it can turn direction from down to up. Forget about fundamentals. The wants of the central bankers override the legitimate laws of supply and demand. For now, the only thing that matters is price, and it is lower in 2015 than it was at the same time in 2014. That is your message.
The broader weekly TR is a down trending channel on the daily since the mid-May swing high. When you view the reality of the down trend and where price is, for silver, you have to question the validity of those saying there is an “imminent explosion to the upside for silver” ahead. Really? Then why does price act so poorly on an ongoing basis, flying in the face of all the positive fundamental news?
We keep saying, trust your eyes, do not believe in the hype.
As strong advocates for the value of buying and personally holding gold and silver, we continue to acknowledge the superior forces artificially holding down price. It is an indication of exactly how influential central bankers are, and they take no prisoners when they act in force.
The whole world sees the potential of a “double bottom” forming [in silver, as well]. If anyone is buying in the paper market anticipating it will hold, the probabilities are less than favorable, and making “bets” against the odds is an expensive way to flex one’s ego, pitting it against the market forces.
The rally response of Thursday and Friday, last 2 bars, is less than impressive. Until there is a change to higher swing lows form the current lower swing highs, trading paper is a fool’s game in gold, [and silver].
Continue to buy and accumulate physical metal. There is no way to know when the trend will change and when the availability of the physical could dry up and/or become very difficult to buy. There is a certainty of its availability right now.
If you are not getting the drift that banks are in the process of stealing whatever “money” you have on deposit, and anything deposited in a bank is considered theirs, and you are an unsecured creditor, better to buy and hold PMs with no third-party risk and no fear of banker confiscation.
Wednesday 1 July 2015 While not many pay any attention to these two larger time frames, especially the Quarterly, both are more controlling and receive greater attention from smart money players. These time frames are not at all used for market timing, but they do show the dominance of a trend. It also takes considerably…
Wednesday 1 July 2015
While not many pay any attention to these two larger time frames, especially the Quarterly, both are more controlling and receive greater attention from smart money players. These time frames are not at all used for market timing, but they do show the
dominance of a trend. It also takes considerably more effort to effect changes on either
There is no need to reference any news events because current events cannot alter the established trends, and the collective current events of the past several years have done nothing to change the trend. We take that back. For the last year, while the overall trend has been down, price has been relatively neutral in the sense of moving sideways instead of lower. That noted aspect is actually a change in behavior, and it is more evident on the silver chart.
As an editorial aside, while most of the world is focused on the Greek debt farce, what is not grabbing anyone’s attention is the much, much bigger farce known as the EU, now being exposed for its empty threats against Greece for that country’s refusal/inability to repay its purported debt. Tsipras is exposing the toothless Wizard behind the [debt] curtain, huffing and puffing meaningless demands, “or else!” [The “or else!” especially coming from Merkel, day after day, again to no effect.]
What the world is not seeing is exactly how the Debt Emperor is wearing no clothes! There is no way these bureaucratic clowns can enforce anything, and if they cannot control a tiny, defenseless country like Greece, then for EU, BIS, and all other alphabet-types that are a part of the debt meister’s enclave, it is game over. The only reason why it is not game over is the public does not get it. They do not understand all the banks are bank-rupt, and Greece is exposing the Ponzi scheme. Take a closer look at what is going on, [Greece], and
what is not going on [EU’s inability to do a damn thing about getting “repaid.”]
Repaid? What did they lend to Greece? Imaginary digitalized fiat [as in not real] “currency.” If Greece were smart, it would repay what was received…simply send back the full amount, plus interest, in the form of digitalized blips to the EU. That would balance what the EU/IMF “loaned” to Greece and getting what was “loaned” returned in full.
Play the same game, Greece. No bank in the Western world has anything of substance to lend, except digitalized computer entries created out of thin air. Greek people [and the rest of the debt-enslaved world] are suffering financially over computer entries? Come on, world, Greece is pulling back the curtain and no one is looking!
If you grasp the significance of this, you have every reason to be worried. The elites have been running the biggest con game ever, and it is accomplished by keeping people ignorant. Of what?
Where to begin? Everything and anything that is real and important. Take money, and the elites especially want you to take theirs because it is imaginary and worthless, and they demand substance in return payment. That is the “money” game in a nut shell. Very few know what money is, and just as importantly, what it is not.
Money, in the ordinary acceptation, means gold or silver. It can be paper currency as a medium of exchange IF the paper is backed by gold or silver, otherwise, it is simply fiat.
Money cannot be notes, bonds, or debt. What is the ONLY thing issued by every bank in the world? Fiat notes, actually debt instruments, and that is exactly what Federal Reserve Notes are, commercial debt instruments. They are not Federal; there are no reserves; and they are not notes. There is no promise to pay anyone anything at any point in time.
All fiat issue, regardless of source, BIS, IMF, central banks, et al, are simply either worthless paper, a very small percentage for circulation, and the largest form is the much more easily created computer entries, blips that magically appear in one’s account. All of whatever is created is debt. We have said this before, and we repeat again, DEBT, by its very definition CANNOT BE MONEY. It is the opposite of money. What you have in your pocket that you THINK is “money” is debt, pure and simple.
The bankers have conned the world for over a century in the US, a few centuries in the UK and now the EU. By default, [by accident], Greece has become the tip of the debt iceberg by going into actual default.
This does not show up in the charts, for nothing of news substance that is obviously favorable to both gold and silver [like the unprecedented demand side for both and the precarious supply side especially for silver], none of this has impacted the market as would be expected, i.e., higher prices. No, no. The bankers have even openly admitted to actively suppressing the price of gold for at least the last 50 years.
How much lower can price go? $15.50 for silver, and $1,175 for gold. Will either go that low? The probability is next to zero. How high can either go? If the bankers ever lose control, and they are on the precipice of doing so, the upside potential can be staggering. Will this happen? Probably not. People are satisfied to have their fake money believing that everything will be okay. At least, that is what they are told by the bankers, and they believe it.
The monthly silver chart shows how the effort to keep price suppressed is reaching or has reached a breaking point. The net gains to the downside are smaller and smaller as can be seen by comparing the 3 different TRs [Trading Range].
We are huge advocates in understanding and appreciating the power of a trend, and the trend is down for both silver and gold. However, the transition from a clear trend down, seen in TR 1, is vastly different from the non-trend of TR 3, where price has moved sideways for the last 9 months, and counting. The closes have also clustered.
What we know about closes that cluster is they represent one of two possibilities, moving forward. The first is a pause before continuing the trend, which would put silver lower, yet again. The second possibility is for a reversal of trend. It is a way for buyers to absorb all the selling, which prevents price from going lower. Because it takes time for buyers to overcome the downward momentum of the trend, they need time to reverse the trend, and that is why price moves sideways to accommodate the pending shift in direction.
Price has returned to the LLBH [Last Low Before High], and we drew a horizontal line from the swing low and referenced it as support. Markets are always testing/retesting all support/resistance areas, regardless of time. Last December, 2014, price retested the low from 2010. You can also see it on the Qrtly chart, at “10.” What is important is to observe HOW price responds to the test/retest. In this instance, price broke support around 18 in October 2014 on the way to the December retest. What happened on the retest? So far, price has held. It stopped going lower and has moved sideways. In a down trend, one would expect support to not hold. Support did not hold in TR 2, which led to the current lower TR 3, but the lack of sellers to take price lower stands out when comparing the 3 TRs.
Looking at the Qtr closing for 30 June, the range is small, directionless, and just think of the news events that have transpired each day, each week, each month, so much bad news, so much negativity, world stress, etc. If you knew nothing about the news and just looked at the small range, you would surmise that all must be tranquil in the world to have so little impact on price for the past 3 months.
We do not guess or “predict” what may happen in the future. Anyone who does is selling snake oil under the guise of an informed/educated guess, and more than likely prior ‘informed/educated” guesses have been wrong, so stop falling for the “predictors” and their nonsense, no matter who the source, no matter how well intended. Let the market go where it will and follow its lead. That way, you are following a proven fact.
For now, buyers have not yet met the burden for a change in trend. At the same time, sellers are at risk of losing control to the buyers is the sellers cannot move price lower and keep it lower.
The discussion in silver equally applies for gold. the chart is slightly different, a little more positive by not having formed a lower third tier TR as silver has.
What we know about TRs is that the farther they move along the RHS [Right Hand Side], the closer the TR is to reaching a directional resolve, higher or lower. We do not yet see a tipping point, but the tiny range for the Qtr just ended more than likely will lead to a much broader TR for the next Qtr. The tight clustering of closes on the Qrtrly chart is of interest, and especially so because of the failed rally attempt in the previous Qtr that closed near the low [2nd bar from end], but failed to have any downside follow through, and led, instead, to the small range just ended, could lead to change, but any change needs to be confirmed because price can still go lower.
The question to be asked on the silver chart, where are the sellers, goes back 9 months. On the gold chart, where have the sellers been since mid-2013 in light of all the downside manipulated selling pressure? The central bankers have exerted a vast amount of pressure on the gold market. Given the effort expended, the payback has not been that great. Yes,
price declined from 1,400+ to 1,100, but look at how long the effort has taken.
We are getting yet another peek at the “Wizard” behind the curtain. [For our foreign readers, when we reference the Wizard, it comes from the Wizard of Oz where the so-called all-powerful Wizard hidden behind a curtain was a fraud, apparent to all, once the curtain was pulled back. Somewhat akin to the emperor wearing no clothes.
Because we do not predict, all we can say is the charts are telling you to be prepared for change. Once it begins, it could develop momentum that would be unstoppable.
The next Commentary will be Saturday, 11 July 2015.
Saturday 27 June 2015 Last year, the rage was the record-setting number of coins various mints were selling to the public, such an incredible demand that would surely impact the demand factor for gold and silver. Then the focus changed to how many tones China and Russia were buying each and every month, scooping up…
Saturday 27 June 2015
Last year, the rage was the record-setting number of coins various mints were selling to the public, such an incredible demand that would surely impact the demand factor for gold and silver. Then the focus changed to how many tones China and Russia were buying each and every month, scooping up all available supply with their insatiable demand. Gold and silver responded by going lower.
The most popular gold/silver sites, the most respected gold/silver analysts from around the world all chiming in how gold and silver will go through the roof while both metals continue to still languish in the basement, as it were.
Who has not heard $5,000 gold, $10,000, even $50,000 gold by an exuberant few? Same for silver, $200, $400, $1,000. During all this time, gold has yet to hold above $1,230, silver above $18. There is a huge gap between current prices and unfulfilled pie-in-the-sky price projections. This has caused much disappointment, even delusion by some because the sum of their purchases were often under water. Huge imagined profits actually became real [unrealized] losses. [This does not mean they cannot become profitable]
We wrote a little in-house commentary, last week, Adapting To Changing Markets, to reflect how we have chosen a more focused approach to the short-term aspect of the markets, questioning the validity of the existence of free-trading markets, anymore.
The elite’s central bankers have virtually taken over almost all the Western world’s financial dealings and markets. A few, like crude oil, have become political tools.
The article is worth a read to understand the context of this commentary and how one should be in greater control of their financial destiny in these markets. The situation being what it is for the PMs crowd, there are three simple choices available. For those unhappy where the price for gold and silver are trading, sell, get out. Take a loss and move on and quit complaining. Life is too short, [unless you remain long gold and silver and have been awaiting a rally, then life has been long for the longs.]
You can hold what you have and remember the reasons for buying and accumulating either metal, or both. Attendant with the hold strategy is to keep on adding at these low prices, while recognizing that low can still go lower. The reasons for buying have not changed. In fact, they have gotten worse, and the ultimate outcome is a virtual guarantee that prices will go higher. What has been so difficult for most is the no guarantee as to when, and this gets into the context of our little commentary about adapting to market changes.
For the past few years, we have refrained from the long side of the PMs market, at least the paper portion. We have not hesitated to recommend buying and holding the physical metals for many cited reasons. As buyers, we are still long physical silver from as high as $47, and gold from as high as $1,800. Are we satisfied with our purchases? Definitely. Are we concerned/disappointed about some purchases at much higher prices? Not at all.
The reasons for buying were to protect against what seemed to be the shortening prospects of a collapsing fiat Federal Reserve “dollar” and the Western banking system. It is no different from buying home insurance to protect against fire/water/natural forces. Do you get upset when you look at your canceled checks and bemoan how you spent money on insurance and did not get to use it? Enough on the issue of holding PMs.
What everyone could benefit from is developing a set of rules for engaging in the markets. Why have rules? Rules put a market into a defined context. They serve as a guide to becoming successful in trading, and is that not the primary purpose for trading in the various markets? More importantly, having a defined and written set of rules will remove you from the emotional element of the markets few consider. Markets Are Neutral!
Almost all traders/stock participants develop some kind of emotional relationship with the markets. Many have a fear of them, cannot understand them, worry about what a market can do to them. “The market stopped me out.” “The market took my money.” “The market was rough on me, today.” You probably have your own similar kind of sentiment. All are wrong! It is the driving factor why rules are so necessary.
What is a market? It is a clearinghouse of information of the interaction between all buyers and sellers. All a market can do is generate information in the form of price and volume. That’s it! The markets are neutral, devoid of feeling. Does the market know or care what you buy/sell, when you buy/sell, and at what price? Absolutely not. You are the one that makes these determinations. They may result from the market information you see, but the decisions made are your own interpretations/perceptions and resulting beliefs about your expectations of what will develop, and that is where dysfunctional emotions get attached.
If you are experiencing fear of loss, disappointment in how the market is “behaving,” and the market is neutral, then from where are those feeling coming? From you! Any kind of emotional attachment is self-generating because the market is in control, you are not. The question is, why not?
What if you had a set of rules for participating in the market. Let us start with just one, a simple one: Rule 1: “I will only trade in the direction of the trend.” If the trend is down, my rule says I cannot buy. If gold and silver have been in a down trend, I cannot be a buyer, period. On that basis, one could not have traded in the futures for the past four years, and it is this reason why we have kept advocating not to be long futures. It does not get any simpler.
“This looks like a great buying opportunity.” “The market is oversold.” “It has to go higher from here,” etc, etc, etc. What is the trend? Down. Who cares if it looks like a great buy opportunity? Who cares if it is oversold? It does not have to go higher from a certain level. Ask how many thought gold and silver could not go lower three years ago, two years ago, a year ago, a month ago? Anyone buying had the weight of market momentum going against them and the greater likelihood of taking a loss. Was it the market’s fault for those making a bad decision to buy in a down trend?
Let us look at more complex issues but all based on the premise of the necessity of having a clearly defined set of rules.
How many have been saying the Fed’s fiat “dollar” is going to collapse, become worthless? Maybe the “dollar” will collapse and become worthless, but what do the charts say? The trend is obviously higher. The flip side of Rule 1 is, if the trend is up, I will not sell [short].
In recognition of the trend, our comments from two weeks ago, [1st and 2nd Chart] were to focus on how buyers were keeping sellers from pushing price lower and opening the door for a rally. We said the daily told a clearer “story.”
Markets are constantly testing and retesting support/resistance areas. With this knowledge, one can devise more rules that give rise to trade opportunities that are in harmony with the trend, [which vastly increases the odds of a successful trade].
On many occasions, we have mentioned how a market reacts to support or resistance will provide important information. Price retested a swing low from May. How did it respond? Volume remained relatively high, the close was near the high of the day, and this tells us buyers overwhelmed sellers at support setting up a buy opportunity.
Note that bar at support [arrow]. You will see this kind of pattern repeat in the markets over and over and over. All you need to is to develop a set of rules for how to enter into a trade under these market conditions: up trend, support tested and held, increased volume and a strong close. The probability for price to go higher under these and similar conditions is greater than not.
How do you think your trading results would be if you traded nothing but this kind of pattern set up with the trend? What you would quickly realize is that you would be in control, not the market. If the market does not show you this kind of pattern, you do not make a trade. What can the market do to you otherwise? Nothing. You have nothing to fear from the market because the market activity is not what you require.
Not every trade will necessarily result in a profit, but over a series of trades you will make money, guaranteed. But you must have a defined set of rules that captures these kinds of trading opportunities.
There also has to be rules for exiting. Trading multiple contracts, one can scale out of a position and lock in profits to reduce risk exposure. The reason for taking partial profits on the rally that followed the pattern buy signal came from a resistance area where we added a horizontal line that show where/why the rally stopped/paused. The last two small range bars show how the sellers are unable to push price lower, and the reaction, so far, has been weak. Weak reactions lead to higher prices. The trend favors higher prices. It is not a guarantee, but the odds of continuation are greater than not.
You always want the odds in your favor. How do you get the odds in your favor? Have a fixed set of rules to take advantage of market set ups, and there are so many kinds, and they all repeat over and over and over. We cannot say that enough, so we repeat.
Unusually large spikes in volume are generated by controlling interests, smart money, however you want to reference these monied participants. They are typically a transfer of positions from weak into strong hands. The public it too disparate to unify into a collective pack and move volume in a concerted effort, so it is always smart money doing the moving. Also, note where the volume spike occur…almost always at market tops/bottoms, swing highs/lows, important support/resistance areas.
This volume spike is near an important low, and more importantly, in this particular instance, it is occurring at the RHS [Right Hand Side] of a protracted TR. The farther price moves along the RHS of a TR, the closer it is to resolve [ending]. We may be getting an important clue here. Will the daily provide more detail?
There are several things going on here. First, let us acknowledge the potential for a set up that is very similar to that discussed in the fiat “dollar” chart, above. Prior week’s support is what we showed in the prior week’s chart. Another horizontal support line was added, [dashed line], to show how support is an area, sometimes layers and not just a single price, as many opt to use.
Price spiked lower, last Friday, retesting the March low and briefly going under the retest from late April, but note how price rallied strongly into the close on higher than average volume. Tuesday had a larger spike volume to the downside, but the close of Friday was higher than the close from Tuesday, and we infer from that that the Tuesday spike volume was strong hands buying, weak hands selling.
Everything needs to be confirmed, which means Friday’s bar where buyers overwhelmed sellers and took control needs to have a positive retest. It could be brief, subtle, and on occasion, not at all. One can never know, nor does one need to know. Just follow the established rules, and everything will work out.
Silver’s positively developing activity yielded a closer look at how gold was developing, and we took a more focused note that the TR since the end of March has been holding like a rock above the March retest swing low. The entire TR is a retest and one that is holding well, under the circumstances.
It is possible gold and silver are starting to see a change in sentiment.
Gold daily shows what we keep saying and something of which you should always be aware: markets are always testing and retesting, and in the process, these test can leave behind important clues. There was a retest of the recent low in May and a lower retest in June, but the June violation of the May swing low was brief. In fact, maybe you can recognize the character of the June retest. We did not label it as a retest pattern as was noted in the “dollar” and silver charts, but that is what it is. You can see how not all retests are exactly the same, but they respond similarly.
What makes gold’s retest from Friday of greater interest is the manner in which is was much more obvious in silver. Lastly, the spike in volume, arrow bar, ostensibly shows a strong rally and close on strong volume, collectively a positive statement. Sometimes, the volume can have the opposite effect where sellers have “hidden” in the rally but really took control from the buyers, and price moved lower, at leaf for a bit.
The net effect has been to show how one should always be reading the market from its perspective, based on the market’s activity and what message[s] it may be conveying. Then, armed with a set of rules, impose them on the market and decide not to engage unless and until your rules of activity are being respected, presenting you with an edge.
Trading is a business and needs to be treated like one where you are the center of every decision.
Saturday 20 June 2015 Obama is fast-tracking the Western world’s freedom out of existence. If ever anyone questioned who this person works for, and it would be the elite’s world bankers, here is solid proof of where Obama’s loyalties lie, and when one thinks of the word “lie,” his name immediately comes to mind. The…
Saturday 20 June 2015
Obama is fast-tracking the Western world’s freedom out of existence. If ever anyone questioned who this person works for, and it would be the elite’s world bankers, here is solid proof of where Obama’s loyalties lie, and when one thinks of the word “lie,” his name immediately comes to mind.
The first question to ask is cui bono? [to whose benefit?]. Listening to Obama, “There will be 100,000 jobs created by the TPP [Trans Pacific Partnership, which just happens to exclude two of the world’s largest economies, China and Russia]. Bear in mind, Obama is not just focused on TPP. Also on his agenda to serve the elite’s interests – for sure not yours, as you will soon learn – are TTIP [Transatlantic Trade Investment Partnership], and TISA [Trade in Services Agreement], the latter two are proposed treaties between the US and the EU, both de facto corporate governments in the service solely for the elite’s NWO agenda [New World Order].
Here is what Obama is not telling you: each of the trade deals has within them a provision called ISDS [Investor State Dispute Resolution], an innocuous enough sounding title that actually strips away the sovereignty of each participating country.
Tell us more, Obama. “Sorry, no can do. Everything is top secret.” Not even Congress is permitted to know what the contents of each trade pact entails, even though that ignorant body of “elected” [euphemism for bought-and-paid-for] officials officially have no clue for what they are passing into law.
Beyond the paltry 100,000 jobs that would purportedly be created, here is some of what Obama is not telling you. The ISDS will give private corporations the ability to sue nations over “lost profit potential,” and/or for violating the corporations “rights” that prevents sovereign governments from protecting their own natural resources, to include the interests of that nation’s own citizens. It is also a one-way street. No nation has a counter-
right to sue an offending corporation.
What Obama is not telling you is that stockholders in these international corporations will now have greater power over any existing government. Need we remind anyone that the largest and most powerful international corporations are elite-owned or deeply indebted to the elites? Are you beginning to better understand why Obama is fast-tracking these trade pacts shrouded in utmost secrecy?
Cui bono, Obama? Certainly not American citizens. Whenever Obama shouted out, “Yes, we can!” during his campaigns, stupid Americans thought he was addressing them. Hell no. He was talking to the elites but just not telling anyone.
What happened in Ecuador, as a result of such a trade pact? [Here is an article describing the plight of a number of countries that have become financially obligated to foreign corporations]. That tiny nation was forced to pay Occidental Petroleum [Houston-based],
$1.8 billion, even though Occidental broke the agreement with the government of Ecuador. El Salvador is on the hook for $284 million to a Canadian company when that country wanted to protect its water against contamination from Pacific Rim, now owned by the Australian company, OceanaGold. [The article link gives you greater insight as to what is going down. Worth the read.]
In an ironic twist, Moonberg, Germany is under suit for 1.4 billion Euros initiated by Swiss energy giant Vattenfall. The irony stems from the fact that this idea of corporate interestsuber alles began in the 1950s by a group of German businessmen. Vattenfall sued Hamburg because the locally imposed environmental conditions were so strict that it made the Vattenfall plant in Moonberg unprofitable and that “constituted acts of indirect expropriation.” In other words, the environmental self-interests in Germany were interfering with corporate profits. In the Obama world of TPP, TTIP, TISA, et al, fascist corporate interests prevail over nations and its people.
Western world, meet Barack Hussein Obama and his fast-track Trojan Horse pacts, coming soon in your own neighborhood. Bow down to elite corporatism, Y’all.
Remember, he promised there would be 100,000 new jobs created in passing his pacts. Add that promise to the ones he made while campaigning, and he will be batting 1,000 in promise-making and lack of keeping. Obama’s agenda is just another way of getting Americans to sacrifice yet more of their jobs, their homes, financial security, freedoms, and principles so we can be protected by those stealing everything from us.
This also gives credence why China and Russia have been buying as much gold and silver as is available, and available at prices that defy logic, and more importantly, the laws of supply and demand. Of course, in the world of Obama and the elites, no laws apply, [unless you happen to break one of theirs].
To our way of thinking, events like these are far more important reasons for buying and holding PMs than how many ounces of gold/silver have been sold to the public, or how many ounces have been mined v available demand, none of which have impacted price, anyway. When your most basis freedoms and liberties are at stake, all that matters is what you have and how you can best be in control of your own destiny. Does how many tonnes of gold China actually owns really matter to your own survival?
We will now leave the world of don’t-believe-a-thing-you-hear, and enter the world of trust -in-what-you-see. In the world of charts, when the question of cui bono is posed, at least you know the answer is your interests, for a change. This does not mean you will necessarily like what you see, but no one can tell you what you see is not true or real.
When we talk about reading charts, it does not include using or imposing artificial factors like RSI, MACD, Moving Averages, Bollinger Bands, etc. They are past tense factors being imposed upon present tense charts in the [false] hopes of diving the future. Can’t be done.
Any time you see charts with arrows at the end pointing the direction of where the chart presenter “thinks” price is going, a ridicules exercise, send a note to the presenter and ask to see the chart and future arrows from the highs at the time of 5 years ago, or any chart that shows a sideways arrow from the lows at the time a few years ago? Then you can better appreciate the validity of the goofy arrows pointing in the next projected direction.
Charts do provide the best and most reliable present tense information available. The trend is the key takeaway information from any chart. When you can learn to be a follower of an established trend, that is when one can consistently make money. Emphasis is on the word “follower.” We know of no one who can successfully lead the charts ahead of time, consistently, or even inconsistently.
The imaginary fiat Federal Reserve Note, aka the “dollar,” has not given up its reign despite many calling for its demise, and if not many, more than a few. The trend remains up, and that remains the prevailing factor in reading developing market activity.
Last week’s lower low and lower close do not tell the whole story, and for that reason, we include a daily chart to focus on some more detail not as apparent from the weekly.
The horizontal line drawn from the mid-May lows should offer support on a retest, and this retest did not disappoint. Note how the lows of Thursday barely penetrated the mid-
May lows. What this tells us is that there were almost no sell stops resting under the previous low, otherwise, the low would have extended further down. Also, note the location of the close, on the upper range of the bar. Despite Thursday being a lower high, lower low, and lower close, buyers emerged and ruled that day.
Friday, last bar, turned out to be a non-event with no upside follow through. A small down channel has been drawn to reflect the short-term trend being down, but within a higher time frame [weekly] up trend. If the next swing high fails to exceed 98+, then we can say the daily trend could be in trouble.
Realistically, and why bother with anything less, neither silver nor gold are showing any evidence of a turnaround to the upside. There is a minor series of higher lows, recently,
but there is no upside progress. Last week’s weak performance indicates a lot more patience will be required for stackers. Given the character of the overall news, and none of it is positive, the artificially suppressed prices continue undisturbed.
We had a small commitment to the long side, last week, given the analysis, but the spike volume at the high of the rally was enough to take profits and stand aside. Price could rally more, but it would not be a rally to trust, at least not for long, as the location of the current activity is near the TR lows, and that is a message in and of itself.
NMT = Needs More Time
While we could say the TR is not making much downside progress, it could also be said price is not making any upside progress, either. Patience is required during a TR, and
this one shows no sign of ending.
The last 13 weeks are holding above the March swing low. With the lack of down side follow through, following the high volume effort of four weeks ago could mean there is an effort being made by the buyers to absorb sellers and take price higher, but that is just
conjecture which remains unconfirmed and nothing worth positioning, at this point.
The spike volume stands out on the daily, and intra day, much of the increased volume occurred near the high, usually an indication of sellers actively challenging the effort of buyers. You can see the rally stopped at recent short-term resistance. We added a few more horizontals lines to show how there is more potential resistance overhead that could cap additional rally efforts.
Friday’s small bar, mid-range close and close under the opening sends a weak message.
What will be key, moving forward, it to watch how the 1190 are is retested to see if it can offer support and hold given the six days of overlapping bars just before the rally.
Saturday 13 June 2015 We live in a dysfunctional world. The entire United States media, TV, radio, and print are massive purveyors of misinformation and lies. The truth is not allowed to exist, which is incredibly ironic, for when the public is told the truth, it is not believed for the truth does not reconcile with…
Saturday 13 June 2015
We live in a dysfunctional world.
The entire United States media, TV, radio, and print are massive purveyors of misinformation and lies. The truth is not allowed to exist, which is incredibly ironic, for when the public is told the truth, it is not believed for the truth does not reconcile with all of the media-fed lies. Truth is non-existent in politics where lies are protected by the Supreme Court, [if you did not already read it, see Barack Obama – Liar In Chief, Backed By Supreme Court].
Ever since the Constitutional United States of American was taken over by the de factocorporate federal government, aka THE UNITED STATES, spelled in all capitalized letters to denote its status as a corporation, the elites have been in charge of all politicians, and in a news flash for the vast uninformed public, that includes the president. We drop these occasional gems on the uninformed without providing in-depth explanations because they have been a waste of time on a public adamant in their desire to remain politically challenged.
A corporation is a fiction. It is created by state governments, and as just mentioned, all corporations are spelled in all capitalized letters. Have you ever noticed how your driver’s license has your named spelled in all capitalized letters? Voter registration? Birth/death/ marriage certificate? Because all governments are corporate fictions, they can only deal with other corporate fictions. Whether you know it or not, believe it or not, as far as any and all government are concerned, you are a corporate fiction, not human. You lose that form when dealing with government on any level.
The corporate government is answerable to the moneychangers, the banking elites who own and run this country, the UK, EU, Canada, Australia, et al. Voting is an illusion for the masses who believe otherwise. Who is really in charge? A relatively small number of faceless people who own and are behind the entire world banking system.
Obama forced his Obamacare through against widespread public rejection. It is nothing more than giving the medical industry, Big Pharma, total control over the healthcare system and total control over what you will be charged, and one of the largest increases in family expenses over the past year or more has been the skyrocketing costs of healthcare, coupled with a commensurate decline in actual health care by doctors/hospitals. Do you still think Obama had the US public in mind? His sole purpose is to serve corporate interests.
On a smaller scale, last week, Texas police shut down a lemonade stand run by two sisters, ages 7 and 8. They wanted to earn some money to buy their dad a father’s day gift. They did not have a license permit to sell lemonade.
The Obama Department Of Justice has been unable to find any wrongdoing in all the Too Big To Fail Banks since he has been in office, despite all the massive mortgage fraud, the displacement of countless millions of homeowners that resulted, but two kids got nailed for not having a permit to sell lemonade.
How about the 11 year-old boy whose parents were delayed getting home? He did not have a house key, so he played basketball in his back yard for about 90 minutes. Some neighbor called the police. When the parents arrived, they were arrested, strip-searched, and finger printed, spending a night in jail for child neglect. It was almost a month before the boy and his 4 year-old bother were reunited with their parents. Both kids were taken by Child Protection Services.
How about that neighbor? Why not go over and ask the child if he were okay, or invite the child to stay at the neighbor’s house until the parents arrived? Nope. The idiot called the police and created havoc for this family that is still on-going. This is life in America.
No one, or very few have any direction. Politicians are directed by money-interests, fed by the elites.
On a global scale, the IMF, Germany, EU are playing Greece in order to strip that already impoverished country of as much of its remaining assets as possible. It is our mistake to call this Kabuki theater. It is simply the theater of the absurd.
Germany’s Machiavellian position to publicly huff and puff over Greece’s unwillingness to repay debts and engage in yet more austerity, over the past several months, has helped to
keep the Euro dollar low, thereby making its exports cheaper. With the recent announcement of Deutsche Bank’s leaders resigning, like rats deserting a sinking ship, their escape may be tied to the “Grexit” situation.
Deutsche Bank has over $75 trillion in derivatives exposure, which is 20 times larger than the German GDP. All banks are unofficially bankrupt with their Ponzi fiat schemes and run amok financial wheeling and dealing, especially in off-balance sheet derivatives that have no hope of ever being resolved.
If it takes a Greek default to force Deutsche Bank into public insolvency, “Go Greece!”
Push those bankers into bankruptcy. Start the domino-effect of bringing down the bankers like a house of cards. May they all rot in hell for the damage they have wrought on the rest of the world. None of them cared about the path of destruction being left behind, as long as they got their bonuses and added wealth in the process.
People should also stop blaming the Greeks as freeloaders, unwilling to pay their debts. The “money,” actually digitalized “currency” created out of thin air by the IMF, never existed until it was “loaned” to Greece. Greece received Ponzi fiat and has to pay back
actual real [still Ponzi fiat] money, with interest, to elite’s IMF that created the fiat as a bookkeeping sleight of hand. The EU, IMF, and Germany all knew Greece would never be able to pay back what was “loaned.” The whole thing was a charade to enslave Greece, and not only Greece. Think PIIGS.
Always, always follow the “money.” The entire Western banking system, from the BIS, IMF, and every other member central bank is the NWO master plan to enslave the world under a single digital currency. Cash will disappear. Everyone’s financial records will be known by the banking elite. This is Big Brother squared by a factor of 100, 1,000, pick a number, it does not matter.
The plan is to make the overtly aggressive and war-minded corporate US, and by extension the lap dog EU, ultimately the major problem creator, a task already accomplished, while China, Russia, with all of their financial dealings, plus their acquisition of vast amounts of gold and silver, establishing the Asian Axis, Silk Road, AIIB, BRICS and its Development Bank, etc, appear to be the new takeover winners. All of this is being orchestrated by the elites through the BIS, IMF to complete the takedown of the fiat US “dollar” to be replaced by a new monetary system, maybe Special Drawing Rights [SDRs]? Who knows? One thing is certain: it will lead to the establishment of a One World Currency.
Check mate, by the NWO.
As of today, there is a small wrinkle in the NWO progress of their head pimp, Barack Obama, for passing the Trans Pacific Partnership [TPP], Transatlantic trade & Investment Partnership [TTIP], and Trade In Services Agreement [TISA], just got derailed and the
Obama full court press to pass his agenda on a “fast track” basis, meaning no one could know what the contents of the deals included, was slam-dunked against him.
The TPP does not include China or Russia. How can there be a “Pacific Partnership” without the two largest economies? The TTIP is purportedly a “free trade” deal with the crumbling de facto EU. The Obama administration is ever so clever in its diplomatic idiocy to try to pass these deals without public knowledge/consent because if the details were known he would be impeached for his attempted treason against this country. As a purported constitutional lawyer, Obama has to know that each of his proposed trade deals would give corporations the right to sue any individual, federal state, county and/or municipality for loss of potential income if that corporation were prevented from conducting its unwanted business. This completely violates Article III of the Constitution.
This is the dysfunctional world created by the international bankers who control everything, money, governments, media, all major corporations, and the mess keeps getting messier and decidedly worse.
If you do not own gold and/or silver, the above are some of the best reasons for pulling a China or Russia and buying as much as you can reasonably handle. When the Western world unravels economically, and it is in the process, already, one of your only means for financial viability will be having gold or silver to sustain you as others see their paper fiat and other “paper assets” become worthless.
If you do not think that is the direction in which this world is headed, watch programs like CNBC or Bloomberg News. They tell you what you want to hear about how wonderfully well the UNITED STATES is prospering.
Buy silver. Buy gold. It may take longer than you think before the SHTF scenario comes into full bloom. You have a choice. Put your faith in worthless fiat and other worthless paper assets, or put your faith and future into hard assets that have a proven history of wealth preservation.
Governments and all politicians lie, the media lies, charts do not. Why not? Charts are comprised of all the trading activity that develops each day. They accurately chronicle all buying/selling activity and nothing more. In that regard, charts are neutral, simply depicting the net results of all active participants.
It is important to understand that if a chart causes an emotional reaction: disappointment, fear, elation, unmet expectations, none of these emotions come from the charts but come, instead, from you as the observer adding your own interpretation/reaction. We do our best to present the observable facts, some of which may lead to potential conclusions, but at no time are charts used to predict the future, ever the unknown.
The fiat Federal Reserve Note, known to the world as the “dollar,” being more and more shunned by the more reality-driven, pragmatic Eastern world, is still in survival mode and will remain so until the elite’s BIS/IMF system is ready to fully let that fiat lose all credibility.
As an example of dealing with facts, note the sharp increase in volume, last bar, see arrow. Volume represents the effort between buyers and sellers. When a volume bar is red, it means price closed lower that the previous close, typically denoting sellers won the battle.
When the volume bar is green, price closed higher from the previous close, credit given to buyers for prevailing in that time period.
Last week was the highest down volume for the past few years. That is an observable fact upon which all can agree. However, note the impact of that volume [effort], on last week’s bar. The range was smaller than the week before, and the close was above the prior week’s low.
Armed with these facts, ask yourself, if last week was the highest volume for a down week, what was the payoff for the sellers? We do not really see one, for the reasons just cited. If all of that effort produced little in the way of results, what does that say about the selling activity? Their effort is being absorbed by the stronger buyers. Here it is important to remember the trend, which is up, because the trend tends to perpetuate until it changes.
Selling efforts tend to lose potency in an uptrend. This is the logical conclusion that can be drawn from the neutral information generated by developing market activity captured in chart form. Based on this read, it makes sense to say that the trend remains in effect, and for as long as it does, price will trend higher.
The chart cannot “predict” how the market will unfold higher, just that the probability of
price going higher is greater than otherwise. How to take advantage of this information is the art form of reading/interpreting a chart. That is an entirely different issue.
The dark horizontal line is called an Axis Line because price is respecting it over a protracted period of time, initially as support, now as resistance. It would not be unreasonable to say that until silver can regain above 18, it will remain in a down trend.
Of particular interest is the fact of how small last week’s range was, the smallest bar since last September. Here again there is logic in the market. The range was small because sellers were unable to extend price lower, and that is true because buyers were meeting the efforts of sellers in what was a stand-off. If sellers could not move price lower, then that opens the door for buyers to rally the market next week?
Will that happen? No one knows, but the odds are more favorable for that event to occur, but that does not mean sellers cannot step up and push price lower immediately, next week. This is why charts are not predictive in nature because anything can happen. All one can do is gauge the probability of one event happening more than another.
Note where the small up slanting line to show where higher lows starts. The swing low in March was also a small range bar where the same conclusion was drawn: buyers stopped sellers from extending price lower, and that opened the door for a rally. The odds favor a similar event for next week, but not one that is guaranteed.
If you note last week’s volume was still relatively high, it means sellers were making an effort, but buyers were overwhelming that effort, stopping sellers cold, at least for last week. Odds favor a rally, but one need not develop because sellers may come back in greater force and take back control. Anything can happen. It is a probabilities game.
We see the daily chart amplifying the odds for a rally next week. The first seven TDs [Trading Days] in June had the highest volume, the greatest selling effort, all but one of the TDs were red. Typically, smart money [controlling interests], sells highs where you would expect to see selling volume greater. When volume is noticeably higher at a swing low, it would be smart money doing the buying and the public selling their longs at lower prices before they [may or may not] go lower.
That increased selling effort stopped at previous support. Note the smaller rectangular bar inside the square box. There is a clustering of closes, in addition to the overlapping of bars. Experience tells us overlapping bars means balance between buyers and sellers, and from balance comes unbalance. The clustering of closes is another form of balance, a resting of price before resuming the trend preceding it or reversing direction.
The last two bars show high end closes. Closes in the upper part of a bar tells you that buyers were more dominant in that time period. If we connect these pieces of factual observations, higher volume at support, overlapping bars, a clustering of closes, upper range closes for the last two bars, the odds are more favorable for buyers over sellers.
It is a logical conclusion based solely on developing market activity.
We used it to take a small position from the long side recognizing a limited downside risk by using a protective sell stop [never trade without stops], and an unknown potential for a rally to the upside, a favorable risk/reward situation within a down trend.
Gold is slightly different, but not by much. The weekly close, two bars ago, on declining volume told us sellers were not as active as price moved lower. That opens the door for buyers to attempt to rally price higher.
In this instance, price is in a TR. Back in December 2013, there was a similar set up, but price had been in a steady decline moving into that swing low. Nothing is ever the same because the participants are totally different so price will develop differently. We just cannot know how, nor do we need to know. A trade based on favorable probability odds either works or it does not. It is that simple. Over a large enough sample of favorable trading odds, the net result will be profitable. That is the Law of Probability.
The biggest tell for us on the daily chart are the two high volume days at 1. That they occurred at the swing low, in a zone of support, is more indicative of buyers more active than sellers. The rally, last week, was weak, but that speaks to not being able to predict how a market will develop going into the future.
For disclosure, we also took a long position in paper gold, based on everything covered.
Time will tell. If it does not work, another trade potential will come along.