Monday, December 23, 2013

Gold Manipulation is outed!

Those of us that can read a chart already knew of this action in the commodity world.  It extends to all commodities but the gold manipulation is pertinent due to its monetary value.  The banks, just like we would if we had unlimited funds, buy and trade the commodities like currency.  The mere fact that position limits seem non-existent for the banks give them the advantage on both sides of the trade.  Here we have the media and a professor chiming in.

Wednesday, December 11, 2013

How Often has the Fed Tightened in December?

Even if the Fed chooses to reduce stimulus this month, it still leaves monetary policy extremely accommodative. So while history suggests that the central bank will prefer to wait until after the holidays to reduce monthly bond buys, knowing that they are delaying the inevitable, December tapering is still on the table.

How Often has the Fed Tightened in December? | BK Asset Management

Is Bitcoin a Viable Currency?

With JP Morgan patenting their "payment system", it seems that BitCoin may be coming into its own.  Many are saying that BitCoin may be the "NEW CURRENCY" of the future financial system.
Imagine that there was a payment system that allowed you to instantly move money anywhere on the globe, between any currencies, securely, at virtually no cost—and without reliance on intermediaries, like banks. Now imagine that system only accepted one currency to mediate these transactions. Surely, that currency would have value, and, in turn, each unit of that currency would have value. Well, that payment system is the bitcoin network, running the bitcoin software, and the currency unit is bitcoins. Because bitcoin (the software, payment system, and network) has value, bitcoins (the currency units) have value.

Read more:

Friday, November 22, 2013

Dollar's 30 Year Slide May Be Gold's New Life: 2014 Outlook

While many are scratching their heads, I continue to stack and position myself with leap options.  These temporary noise situations are nothing more than diversions.  While we know that the "bull" will always shake the weak investor off his back, those that are not on margin, will be able to withstand whatever the market will provide.  Reserve some cash in case of further take downs and even place good til cancel(GTC) orders on leap options below the market.

Many traders and investors are still scratching their heads at the peculiar gold trading Wednesday which pushed gold below the important technical level of $1,250/oz. Support at $1,250/oz has been breached and gold is vulnerable of a fall to test support at $1,200/oz and the June 28th low of $1,180/oz (see charts below).

Dollar's 30 Year Slide May Be Gold's New Life: 2014 Outlook

Thursday, November 21, 2013

COMEX Halts Gold Trading Twice In One Day After $200 Million Sell Trades

As hard as it is to trade the artificial pricing, we traders must step aside at times.  Remember no position is a position.  Hold your cash until the noise stops and then be ready to trade the trade of the century.

COMEX Halts Gold Trading Twice In One Day After $200 Million Sell Trades

Monday, November 18, 2013

Rigging the Gold Market

Thanks to Pinnacle Digest for this concise look at the blatant manipulation of the metals markets.

While the exact amount is unknown, paper gold supply greatly exceeds physical. The fact that we have a paper gold system tells you just how distorted things have become.  In reality, the paper gold market is no different than a fractional reserve banking system, where there is many times more paper contracts in circulation than there is actual physical gold.

Rigging the Gold Market -- via Pinnacle Digest

Wednesday, November 13, 2013

Andrew Huszar: Confessions of a Quantitative Easer -

The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn't getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.

Andrew Huszar: Confessions of a Quantitative Easer -

Tuesday, November 12, 2013

Demise Of The Dollar: Canadian Province Issues Off...

Sufiy.: Demise Of The Dollar: Canadian Province Issues Off...:   

At the first glance you can ask yourself why on earth BC is issuing its debt obligations in the currency which is getting strong...

Thursday, November 7, 2013

Regulators "TRY" again on commodity limits

I have to believe the key word here is "try".  They love to regulate the individual but seem to balk at the so-called "market maker".  They ought to restrict the amount of trading the "market maker" does on their own account.

Tuesday, October 29, 2013

Dr. Antal Fekete on Real Bills, Quantity of Money Theory and the New Austrian Economic Manifesto

The rising of the gold price in reality is the irreversible long-term decline in the value of the dollar; the falling of the gold price in reality is a temporary strengthening of the dollar for whatever, mostly irrelevant, reasons. There is absolutely no symmetry between the two events. Moreover, this is as it ought to be, since the dollar is nothing but a dishonored promise to pay gold.

Wednesday, October 23, 2013

The Free Silver Movement

The Free Silver Movement: The Free Silver Movement was a political coalition of Western silver miners and Midwestern and Southern farmers who supported an inflationary monetary policy by using the free coinage of silver for a bimetallic standard for U.S. currency.

Monday, October 21, 2013

Silver’s Message: The Bull Is Alive and Well

"the evidence clearly suggests that the bull market in precious metals is far from over—in spite of the mainstream media ignoring the strong trends underpinning this market. If it were time to exit this industry, we wouldn’t see SLV holders refusing to sell, Indians buying record amounts of silver, and retail investors hoarding silver bullion at historic levels."

Friday, October 18, 2013

Ted Butler: JP Morgan’s Perfect Silver Manipulation Cannot Last Forever

Ted Butler has his finger on the pulse on this one.  He as documented this for many years already and has the respect of many traders.  Besides that, what he says is true, "Simply put – if JPMorgan doesn’t add new short positions in silver, the manipulation is over. Someday, JPMorgan won’t add to silver short positions and there are indications that day may be at hand."

Gold breaks out of Short-Term Downtrend

by Alasdair Macleod - Head of Research

The news that dominated the week was the eleventh-hour decision by the Republican Party to back down from its game of chicken against the President over Obama-care, the budget and the debt ceiling. The debate now continues facilitated by the debt ceiling being temporarily abandoned until February, when presumably the game of chicken will be run for a second time if nothing has been agreed. Understandably gold, along with other markets, was victim to rumour and counter-rumour emanating from Washington with few traders prepared to commit themselves until Thursday morning.

Within this context, the previous Friday (11th Oct.) someone clumsily dumped a big sell order on the futures market ahead of the US opening, which drove the price down $25 to $1262. On Monday this price drop was fully reversed before the market drifted lower again under persistent selling of futures to a low point of $1252 on Tuesday. On Thursday morning, just before 9.00AM UK-time gold suddenly took off, gaining $40 as the US dollar moved sharply lower, in a considered response to the suspension of the debt limit the night before. That sale a week ago, insofar as it has not been closed out is now showing a large trading loss.

This could turn out to be a major turning point, illustrated in the chart below. There is little doubt that the bears, having failed to see selling materialise on the opening mark-down of $4 on Thursday, suddenly realised how exposed they were when the US dollar suddenly weakened.

The result is gold has now broken up out of its short-term downtrend (the dotted line). More importantly, the bears failed to push gold down below the June lows under $1200; so gold looks like it has established two rising low-points, confirming that gold is in an uptrend. This being the case, after a brief consolidation gold has the potential to move swiftly higher to challenge the $1350 level and above.

Gold chart
Behind this turn of events is a weaker dollar. There is little doubt that as a brand the US dollar has taken a beating. Not only did the US suffer the indignity of airing its washing in public, not only did a ratings agency threaten to downgrade US Government debt, but also the Chinese through their official news agency Xinhua are calling for an end to dollar and US supremacy. They have backed this up by freezing New York out of the internationalisation of the renminbi, choosing London instead. The full implications of all this have not yet been reflected in financial commentary and will no doubt be debated in the coming weeks.

This is generally bad for the dollar and good for gold.

Wednesday, August 7, 2013

Believe It or Not: Gold's 8-Year Cycle Still on Track - The Gold Report

A Unique Moment in History
Never has there been a time in the past when central bank policies so obviously determined market movements. And this past month provided an extreme example.

Believe It or Not: Gold's 8-Year Cycle Still on Track - The Gold Report

Sunday, July 28, 2013

What is happening in the Gold Market?

This youtube link from the Kaiser Report with  Alasdair Macleod of Macleod Finance and Goldmoney about gold backwardation, GOFO and the 1300 tonnes of gold missing from the Bank of England!

Thursday, July 25, 2013

Gold and $ilver to rally after monthly options expiration

“We are having a nice rally off the lows this morning in both gold and silver.  Silver is back above $20 and the gold price is nicely over $1,300.  As we are speaking gold is roughly $150 off its lows and I don’t think gold will see those lows again....

Monday, July 22, 2013

Trading Just Got Simpler

Trading the Markets

For many years I have searched for a viable way to predict patterns that would allow me to trade futures and future options successfully.  That is to win.  Not necessarily always winning but winning consistently, able to trade with confidence in a system that allows me to put my capital at risk.  Well, after many years of searching I have found just such a vehicle.  Of course any trading platform is subject to  “traders’ preference” as to the trading risk amounts.

Equity Management Academy, EMA, has developed a predictive model that constantly provides a platform that wins.  With the various levels that I will describe, traders are able to execute trades, place protective stops and close out winning trades.  Whether you are selling short or going long.

Basically there are 3 points to the code.  The “VC” is the trigger level to determine a long or a short trade.  The “B” levels are either the open long or close short and the “S” levels are either close long or open short.  Both the “B” and “S” levels have two components (B1, B2, S1, S2).  The positions are updated daily before the NY Comex open.

I use these levels for multiple trades and risk points.  If you are counting, you can see there are actually 5 levels of predictability that we can trade.  An example would be multiple contracts on say the mini-Silver (YI).  If our starting point has the contract trending above the “VC” code, I will but to open (BTO) 2 contracts at or near the nearest time period where the contract is trending above the “VC” code.  I will place one sell to close (STC) at the “S1” trigger and another at the “S2” trigger.  I, again “Traders’ Preference”, will place a buy to close (BTC) at the “B1” level for both contracts.  You obviously have to understand the “VC” trend in order to properly place your trades.  

At “EMA” you can actually follow “live” trades for a nominal fee.  There is an introductory price of $1 / day for the first month.