Fear not and do not be de-moralized. This crap has been going on for a long time, certainly as long as I have observed the Matrix after, taking the “red pill” in 2005. The seller’s of gold in New York and the West are selling the only thing they can, paper. The buyers in the East prefer the real thing. As long as the paper system remains functional, there will always be a surplus of paper gold that can be sold. When the paper game is done, the West’s paper will become ash and the East will have their gold.
I offer charts for those who must trade. I am one of these people. I keep a core position and use analysis to choose entries. A small but important position is held segregated, one that I use to “play” with. I like to trade and it satisfies my need. I do not believe trading is for everyone. I urge the readers of this blog to think long and hard before they attempt to game this market. You are taking on an opponent that has infinitely deep pockets of paper. You must understand that the game can turn on you whenever your opponent desires. If you must trade, use real and tight stops to prevent catastrophic losses. Better yet, use your trading skills to enter and do not exit your positions, hold them.
Read and understand Freegold. Read FOFOA’s entire blog history. It will take a few weeks but will be well worth the effort. It will put today’s silliness into perspective straight away.
Here is Turd Ferguson on today’s slap down:
If you ever wanted to save a chart for posterity, here is one for you. A perfect, three-stage Cartel raid of the gold Comex.
With nearly infinite, Fed-supplied, taxpayer cash at their disposal, The Cartel can simply overwhelm the public bid whenever they desire. They can’t and don’t do this everyday as blatant, daily manipulation would draw too much heat and leave them with too sizable of a short position. However, when an operation is needed to clip price or paint a chart, you can bet that The Wicked Witch will spring the monkeys from their cages and send them forth to inflict pain and suffering.
So, what did today’s mission accomplish? Take a look at this 4-hour chart:
All that work over the past week suppressing price under 1550 has painted a nearly perfect, head-and-shoulders top on this chart. After waffling a bit yesterday, it is quite clear to me now that gold will be contained by the EE through the summer, in a range from roughly 1460-1550.
Silver still has the potential to break free of its current shackles and run to 42 or 43 by the end of the month but time is, unfortunately, running out. It is still within its pennant formation and may present a buying opportunity around 36 but anyone buying there must have a pretty tight stop. While a break of the pennant to the UPside would indicate a run to 39, 39.50 and even 42, a break to the downside could take it all of the way down to 33. Yikes.
Keep checking back today as we are in the final stages of preparing the new site and I hope to have it ready later on. It’s a great new playground for us. Not the fanciest thing ever created but it will widen our conversations and provide some fun, new wrinkles, too.
Hang in there today. TF