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Is it the Fed leading these markets?

January 29, 2015

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125 Comments
    Jan 29, 2015 29:54 AM

    NO THEY THE FED ARE RIGGING THE MARKETS………………..THIS IS CRIMINAL !!!!!

    THIS IS REALLY A JOKE…………………

      A flock of BLACK SWANS will be swarming…….as the result of 100 years of Central Fed BANKING………………kwn has a nice piece on this farce………….

        It is AFTER HOURS……….GOLD UP 1.30…….that is strange……

          JOKE JOKE JOKE………….GOLD UP ….MARK WAS RIGHT………options……..is the name of this Game…………….

            Jan 30, 2015 30:42 AM

            That is a pretty predictable move after yesterdays declines, Jerry. Go and look at the hourly chart though and you will get a gloomier picture of what is coming.

            Jan 30, 2015 30:44 AM

            I think the most important is notification for delivery. Manipulation for opinion expiry is for bankers to fleece speculators. Manipulating price before the last day of the contract expiry is for poeple to get scared so they will not take delivery. This can ensure the game lasts longer. I tried for a period and it is not 100% but chance is very high

            Who is going to waste their time looking at hourly charts……..that is a total joke….there is only one game in town……..and that is GOLDMAN AND THE BOYZ.
            I THEY are not going to sink the ship…..while they can make all the commissions and trades front running …………….Check out the S AND P ….GOLDMAND IS AT THE TOP OF THE HEAP…………………….

            Jan 30, 2015 30:13 AM

            I look at hourly charts every single day, Jerry.

            LOOKS LIKE 1271……..on the HOURLY…………………J

            Jan 30, 2015 30:58 AM

            And 1278 now but its posting an inside reversal. Same on silver. Anyway, the Dow was down more that 250 points today and we know by now that volatility is on the rise and gold goes up when the indices fall. I would not get too excited yet…

            Unless the DOW breaks down.

            Jan 30, 2015 30:18 AM

            Jerry, we can expect prices to rise above 1200 before reversing down again. Check the chart.

            Jan 30, 2015 30:48 AM

            Scratch that…should have said 1285. Sorry, it was a typing error.

            Bird……don’t you mean 1308…instead of 1200…….., ..The shock and aull….from yesterday……..is strictly Manipulation of the contracts being dump as pointed by MARK.
            I Predict next Friday is will be at least 1300..and the war will be for the over 1300 mark. I doubt we are going to see 1200… , per kwn…..the battle for 1250 in in play, and the orders need to be filled, per kwn. We have punched thru 1308 and the play I believe will be the push up…..not down………….jmho.

            you reposted as I was posting…..so, we are closer than stated…….

            AS far as the break down in the Dow……..the FED IS GOING to keep the DOW as close to 17000 as possible…….or should I say support it ,so it does not go below 17000

            btw……….just looked 1281…..heck we might get 1285 tonite…………………

            Man this is a STRONG MOVE…………………..jmho

            Jan 30, 2015 30:16 PM

            Yeah, about the typing…. I get distracted sometimes that’s all. It’s old age maybe…the mind is getting soft! About gold….sorry, but it is trending down. Today is just a bounce back but won’t hold. I expect gold to fall Monday again and flow with the larger trend which is actually bearish. Stock markets should rise.

            I think you are correct on MONDAY………..BUT FRIDAY……….1300 PLUS, …

            btw……..Bird……….do you still have that lucky turtle…………?

            OH MY……………1283 1284………with a few min. till close……………….

            Jan 30, 2015 30:46 PM

            Yup, still have the turtle. We added three new dogs. It feels like a farmyard here. Maybe I can get these pups trained properly for a change. They are better than people when it comes to security. More loyal too and of course, dogs never sleep on the job. But they sometimes accept food bribes if the training is no good.

            Ditto on the dogs………………btw……….look 1285…………

            btw………I am starting to LIKE THE HOURLY CHARTS……………….lol

    GLOBAL growth will not help the middle class………..wage warfare……is at the middle income’s door step……………per FITTS………….

    The FED……the fed can not raise rates…………………..

      Why would the central bank raise rate against themselves…………and pay for something they have manufactured from a piece of pulp. The pulp was not even used but a series of zeros, FROM a BUNCH OF ZEROS…….ZEROS , ZOMBIES,,,what we need is ZORRO……………………..

        Jan 29, 2015 29:08 PM

        Jerry, it’s the government that doesn’t want to pay a fancy rate for the money they are borrowing or already hold as debt.

          and who is the custodian for the money……..govt and fedsters are one and the same., the govt has sold out a long time ago………..1913….and has sold out back in 1830, befdore JACKSON PUT THE HURTS ON THEM……..

            Jan 30, 2015 30:45 AM

            Jerry, don’t you think it is kind of interesting that we are getting the same outcome for the business cycle whether on or off a gold standard?

            Bird………..before we were off the gold standard………I think historical the business cycle was a correction for misdeed, overspending and over excitement , was every FOUR YEARS…………..or so my memory serves me……………..j………..

    Jan 29, 2015 29:16 AM

    Of course all the figures are massaged. This point is made in Paul Sandhu’s wrap-up relating to the report on new homes data. 13 and 1/2 mins into interview.

    https://www.youtube.com/watch?v=5_-LRixWmDY

    Jan 29, 2015 29:18 AM

    THE BALTIC DRY INDEX SAYS IT ALL………THE INDEX IS AT 666……….IN SEPT 2008 THE INDEX WAS AT 647, that was the start of the GREAT RECESSION. We are just 19 POINTS AWAY !!!! THERE IS NO, I MEAN NO REASON FOR THE PRICE OF GOLD AND SILVER TO BE DOWN………………………we are only 19 POINTS AWAY FROM THE GREAT DEPRESSION PART 2 AND THEY KNOW IT……………so again forget about using charts and graphs, this is now CRIMINAL ACTIVITY………IN YOUR FACE !!!!!!

      Jan 29, 2015 29:26 AM

      We have collectively turned from analyzing fundamentals and technicals to analyzing the psychology of sociopaths manipulating PMs down.

      Jan 29, 2015 29:34 AM

      Mark if there are margin calls everything will go down no matter what.Imo if stock market goes down usd will appreciate more because usd is still regarded as safe haven and traders will park their money in us treasuries.Stronger usd is deflationary and gold eternal enemy is deflation.Besides that the ecb will be introducing its version of qe next march and fed rates are very close to be raised .These two factors are gonna strengthen even more.Long term gold is gonna drop much further.

      Mark…………it has been criminal activity for well over 20 years………Fitts, points this out in her post at usawatchdog……After all She has seen the inside, Just like STOCKMAN, PAUL, ROBERTS………….THE FED IS SICK, and needs to GO…..PERIOD.

        Jan 29, 2015 29:26 AM

        OH………..they’re all gonna go when this system COLLAPSES.

    Jan 29, 2015 29:24 AM

    Since September of 2012, the Fed has essentially purchased all mortgage backed securities (MBS) issued.Who knows maybe now the fed will start purchasing the oil fracturing junk bonds too.Little by little the fed is getting bigger and bigger.Other central banks are doing the same.The ecb has commenced now but it has the same strategy.Central banks are capturing all valuable assets.Give me control of a nation’s money and I care not who makes it’s laws” — Mayer Amschel Bauer Rothschild

      Jan 29, 2015 29:02 AM

      Don, you seem to believe the strong dollar will inflict no wound on US economy. It is very damaging to US manufacturing and trade. Even before the rise of dollar, US already hit all time highs on trade deficit ex oil. When oil is down so much, US oil production will be down dramatically. US trade deficit will rise and manufacturing exit will worsen.

      I feel only exporting countries like Canada remember how important to stay competitive. US is ignoring fatal impact of its dollar. It is dangerous.

    Jan 29, 2015 29:35 AM

    OBAMA AND HIS CREW ARE NOTHING BUT PURE EVIL………..AND THE WHOLE WORLD KNOWS IT !!!!! REMEMBER we are now only 19 POINTS away on THE BALTIC DRY INDEX from the COLLAPSE OF 2008/9 that ALONE speaks for itself.

      Jan 29, 2015 29:52 AM

      You are right mark.Baltic dry index is close to 2008 lows and oil price is almost at 2009 lows.If this is not deflationary tell me what it is then.Stock market is held up to the sky thanks to the fed and his ppt minions not to mention the buy backs from the listed companies themselves and the central banks.When you have zirp all hell breaks loose and speculators will do a mess out of the economy.Who wont borrow at 0% to get a dividend of 3% and over.This is insane and the bigger it grows the more noise it makes when it comes crumbling down.

        Jan 29, 2015 29:15 AM

        Don, deflation would ultimately destroy the system. What would the paper of the system be worth if the system is destroyed? You guessed it, I hope. That is why deflationary forces are always met with printing/currency debasement.

        The economy has been in deep trouble for years, yet everything still costs more. This is NOT the 1930’s unless you measure it in GOLD.

        Jan 29, 2015 29:23 AM

        Anyone who understands what’s going on can see that the intention is not really to get the economy going, but to crush it and use the situation as an excuse to redistribute wealth and balance things at the expense of the people (half of whom deserve it).

        The USDX can plunge a long way from here without losing its longer term bullish bias (bullish in terms of other currencies, NOT purchasing power), and I believe it will.

          Jan 29, 2015 29:19 AM

          matthew usd is gonna get much stronger.Imo eur/usd could easily fall at an accelerating pace to 1985 lows i.e. 0.6455.Greece is gonna raise havoc within the eu/ez.If the rst of the piigs countries citizens see that greece has done the right thing by electing a far-left party they will do the same and that would be the demise of the eu as we know it today.It is a matter of time.

            Jan 29, 2015 29:26 AM

            Strong dollar is very bad for US economy. It weakens its export and increase import. It also result in manufacturing exit. Don’t celebrate it yet.

            Jan 29, 2015 29:15 PM

            If gold continues to hold its own, it will mean that the dollar isn’t strengthening but that the euro (and others) are weakening. This is so confusing for so many, that it would provide the Fed with great and much needed cover for even more “printing.”

            John Exter’s pyramid is correct in my opinion.
            https://livinginabubbleblog.files.wordpress.com/2013/03/exter-inverse-pyramid.jpg

            Jan 29, 2015 29:02 PM

            Atm the usd is stressing out that it is still valid as the worlds reserve currency.The euro was the only that could stand a chance against the usd but looking at how things are developing in the eu its chances are diminishing.If third of greece debt is written off then who guarantees you that other countries like spain,ireland and italy to name a few wont jump.The usd is the preetiest pig in the barn and as long as it remains;commodities will remain subdued.

            Jan 29, 2015 29:41 PM

            Gold is still beating the dollar by 6%+ this year even with the pullback. It is still up 4.5% since the first of last year.

            Jan 29, 2015 29:25 PM

            The euro is weakening. It is weakening against the dollar. And the dollar has strengthened versus gold since the peak near 1900. I don’t see any confusion here at all. The measurement is about what USD are doing. That is the only currency that matters right now for gold.

            When I look at a five year chart XAU / USD it is very clear that the bear market in gold is still alive and well. We turned down right on the technical high point traced from two prior peaks.

            Three lower lows are already printed between middle 2013 and now and there is virtually a 100% guarantee we get one more lower low on that channel. Matthew, go look at it as this is an easy read. You can predict the next major lows will arrive in late 2015 (or more likely early 2016) by following through the trend channel.

            This is not an optimistic picture for the precious metals bulls. But it is realistic. The odds of us going to 1550 in 2015 are very slim. Actually I think that estimate is out of the question for this entire coming year.

            Jan 29, 2015 29:01 PM

            And gold is still beating the dollar by 6%+ this year even with the pullback. It is still up 4.5% since the first of last year.

            Jan 29, 2015 29:00 PM

            Man, you are utterly fixated. Did you put that 6% in your pocket? Hold onto it if you did because its peanuts relative to the declines since the peak. The point of my post is we are still in a gold bear. It is clear as a bell on the five year, chart-boy.

            But you know that. It is why you repeated your prior post. You can’t answer what I wrote (as usual).

    Jan 29, 2015 29:46 AM

    ………THEY ARE WATCHING THE BALTIC DRY INDEX, AND THEY KNOW………..THAT THE BALTIC DRY INDEX IS ONE MARKET THAT THEY CAN NOT RIG !!!!!!!!!!!!

      Jan 29, 2015 29:29 AM

      Mark, look at the tanker cancellations….6 LPG tankers cancelled because of the shipping outlook….2 ship yards laid off hundreds because of the cancellations…. shipping lines are rapidly becoming unprofitable….

      tHANKS FOR THE INPUT………..Mark and Gator…………..

      Jan 29, 2015 29:51 PM

      http://davidstockmanscontracorner.com/david-stockman-trashes-the-fed/

      Today on CNBC, Stockman also referred to the 28-year low of the BDI

        Jan 29, 2015 29:54 PM

        Well I got a laugh when he said the Fed was neither Dovish or Hawkish….because the statement was all Gibberish. But he’s spinning his tires blaming the Fed or anyone else. Just look at the very long term interest rate chart and the message is clear. This is all part of a money pricing cycle and it would not make any difference who was at the helm when rates fell to these lows. Because the same thing happens again and again throughout history. There is something else we need to know about how the business cycle itself plays out over time. I mean to say we need to dig deeper instead of bothering to engage in the blame game. Maybe its just human nature at work in which case the players of the day are really not that important in the bigger scope of things.

    Jan 29, 2015 29:56 AM

    19 POINTS AWAY…………..!!!!!

      Jan 29, 2015 29:10 PM

      I don’t get a doom signal from the Baltic Mark. It has passed 666 several times on the way up and the way back down. But it is interesting to me that the Canadian dollar is now back at 2009 lows on its way to an almost certain destination of 77 versus USD we last saw in 2008. Where it finally bottoms is pretty important in my books because it could signal the end of the commodities collapse. In this case that includes copper, crude and gold amongst the key markets we all follow. The thing is that when the CDN bottoms should be critical because it will also signal that capital is in flight out of financial instruments and most particularly debt. Why else would commodities rise at a time when the globe is suffering an historical slowdown? That is about fear of danger arising in the financial system. So we are now sitting at a little more than 2 cents above that 77 target now….but will it hold? I also watch wheat (because I am crazy) and it sure looks to me it wants to retrace right back to its 2009 / 2010 lows which could coincide with the Loonie finally bottoming. These all appear linked. Not perfectly mind you, but something important is building on the charts which is visually apparent when you scan across the commodities and currencies. Something major seems to be impending.

        Jan 29, 2015 29:47 PM

        The index plunged from 11,793 to 663 in 2008. It is now at a new record low at 632 and you don’t understand the implications?

        At least you admit you’re crazy.

          Jan 29, 2015 29:01 PM

          You have not got the faintest idea what the Baltic is about, do you? Ha Ha Ha!!!!!

        Jan 30, 2015 30:43 AM

        Bird, I guess I said Canadian dollar would go down with oil and commodities when you were complaining having been killed by Canadian. This may or not be market behaviour. If I am Harper I will find a way to get cdn$ down. This is probably only thing government can do at the moment. I am glad we have this choice. In this price war , whoever survives prosper in a later day. US shale gets the biggest hit by default. I guess bail out is in the making. However , if a country relies on bail out for everything it is dead.

          Jan 30, 2015 30:53 AM

          I looked at that a little closer Lawrence. Turns out almost all the declines I suffered are due entirely to changes in the US dollar. It’s just that I notice it more than if I was back home because I need to convert daily. About Harper…i don’t know that he is exerting any influence over the Loonie right now. That’s BOC territory and they are doing fine sending it lower with that rate hike. Sounds like two more 1/4 point cuts might be planned.

          you really think there is going to be a bail out for Shale?

            Jan 30, 2015 30:07 AM

            Bird,
            By Harper I mean government of Canada and BOC. I don’t have the illusion that they are separate entities. If FED is not independent as Greenspan pointed out, much less of BOC.
            As for bail out, I feel there could be many forms. If Canadian oil gas with much lower cost and much more mature operation plus loonie devaluation still cannot prevent hardship, the high cost shale producers are doomed. There is no way they can survive for long. One way or the other, government has to subsidize the shale oil/gas industry. It could be straight bail out, or provide long term loan or buy their junk bond, etc. The worst case is to subsidize large companies to take them over, like what happened for Bear Stern. I don’t see US government lets them hang out dry and go bust. I could be wrong but not likely. We can tell at this time next year.

    Jan 29, 2015 29:08 AM

    Mark, any thoughts on the Baltic Dry Index? 😉

      Jan 29, 2015 29:24 AM

      I was wondering the same thing Bob. lol.

      Jan 29, 2015 29:32 AM

      YEAH……………………..KEEP YOUR EYE ON IT. (smile)

    Jan 29, 2015 29:10 AM

    Has someone got wind of Amazon’s results and, because no one is buying stuff, that Amazon is another deflation indicator?

    Jan 29, 2015 29:40 PM

    We have have a bearish head and shoulders top pattern within a (potential) much larger bullish inverted head and shoulders pattern. I have my doubts about the bearish one reaching its target. It wouldn’t surprise me if it was painted by big money bulls in need of shares. Regardless, I think there will be plenty of buyers.
    http://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=1&mn=0&dy=0&id=p95038385460&a=387247512

      Jan 29, 2015 29:17 PM

      Awesome chart Matthew! Yes, the larger inverted head and shoulders pattern in GDXJ was the one that I was referencing earlier today on Gary’s daily editorial.

      On January 29, 2015 at 9:19 am,
      Shad says:
      GDXJ almost looks like it has put in a reversed head and shoulders pattern with the upside down head being on Dec 16th at $21.47. that could put Matthew’s target of $22.91 into play, as I was using the lower Nov 5th target of $22.71 as the other reversed shoulder point.
      If GDXJ gets below $23 then I would be a strong buyer of JNUG for the leverage back up into February. Just a thought.

      After reviewing the charts a little longer I sent this update, because the other inverse shoulder being at 22.71 doesn’t mean this one that is being finalized has to necessarily drop that far. There is another interesting point at $24.79 that if hit could accelerate the move lower.
      ** Here is that post from the other blog rather than retyping it all.
      On January 29, 2015 at 11:27 am,
      Shad says:
      I am not sure if below $23 will be reached either, but it does look like a reversed head and shoulder pattern is playing out in GDXJ so I do expect it to go lower than $26 (maybe $24.79) with the lowest target at $22.71. At the $24.79 – $22.71, personally, I’ll be buying JNUG aggressively.

        Jan 29, 2015 29:25 PM

        Once the down-leg of this shoulder is finished (in about a week), then there should be a healthy and abrupt leg up for a few weeks. I believe this thrust up out of the finalization of the reversed head and shoulders should take us through Feb. Again, March is typically a rough month seasonally for Gold, so that may cap the move up for a while in the spring. It will be interesting to see if that scenario plays out.

          Jan 29, 2015 29:09 PM

          I was looking at JNUG to get back into trading shares. I reproduced the GDXJ chart, by Matthew, for JNUG and it looks like the neckline slope is angled differently. I guess entry point for JNUG would be around $23/24?

            Jan 29, 2015 29:31 PM

            Brian, the GDXJ pattern with the higher right shoulder is more bullish than the drooping right shoulder of JNUG’s pattern. It’s also more bullish than a symmetrical pattern.

            The difference is probably mostly due to JNUG’s 3x leverage (decay).

        Jan 29, 2015 29:19 PM

        Shad, that smaller H&S Matthew notes is the same one I was pointing out yesterday. The larger pattern is not complete though and you should not conclude that it will become valid with bullish implications. I can tell you with a fair amount of certainty that your inverted pattern is going to fail as GDXJ falls lower than most here think is possible. My opinion is to exercise caution. I think Matthew is getting way ahead of himself with the labeling of the Right Shoulder that does not yet exist. He should have put a question mark in there if he was being more honest.

          Jan 29, 2015 29:39 PM

          Did you see the word “potential” in my post, Bird? Why aren’t you embarrassed about trying to correct me for the same thing that I recently had to point out to you?

          “if he was being more honest.” ???

          You’re just a little troll, Bird.

            Jan 29, 2015 29:08 PM

            You are the one who did the mislabeling and are trying to dupe people here with your chart magic. I am just calling you out because its BS. I see that you woke up and checked what I wrote about the small H&S yesterday. So you are paying attention to me some times even while you keep playing chart games with the bulls on the site.

            Jan 29, 2015 29:12 PM

            You’re pure scum, BM.

            Jan 29, 2015 29:25 PM

            You have really fallen to a new low.

    Jan 29, 2015 29:42 PM

    Maybe the Baltic Dry Index is so low because they are now using fewer but enormous container ships?

      Jan 29, 2015 29:13 PM

      I know nothing about this index. Is there any index for oil tankers? I don’t see oil included in the index.

        Jan 29, 2015 29:28 PM

        It is an index that tracks the cost of shipping Lawrence. There is currently a huge oversupply of ships that have caused rates to fall. So its not about any commodity in particular but about the rates for shipping. When it gets low enough companies fail and then older ships get cut up for scrap. Supply of cargo space will fall and rates will go back up again. This drama has been going on for some years now without a resolution but I think we are getting close to the time some of these shippers can’t hold on any longer and an increased slowdown in trade as an outcome of the global contraction will be the nails in the coffins.

          Jan 29, 2015 29:56 PM

          The oversupply of ships was the result of a bubble economy. The oversupply was only recognized as oversupply after the economy collapsed. The BDI is down 94.64% from its high due to economic collapse.

            Jan 29, 2015 29:22 PM

            Is the economy down 94.64% too? Freight rates talk about the shipping industry and massive distortions in the physical capital build out in Asia where subsidies were supporting excess construction. That is not exactly the same as talking about the world economy. They have ghost cities over there too you know. The BDI does not give us good information about where the world is headed therefore because the declines in the index were far in excess of what happened elsewhere on a relative basis. So it is an outlier indicator at best, not what we look at for guidance on trends.

            Jan 30, 2015 30:50 AM

            I haven’t seen the trade number going down. I actually see bigger total trade from us and China numbers for the last few years. Can we say that a low BDI is good for trade since it gets the cost of transportation down? I say again I know nothing about it.

            Jan 30, 2015 30:54 AM

            It might be that the rate was too high before 2008 and popped and return to normal. The graph looks like it. This is same with base metal price. High profit margin brings more suppliers and price comes down.

            Jan 30, 2015 30:29 AM

            Trade volumes crashed during the GFC, Lawrence and that set off some serious discounting in freight rates from which there has barely been a recovery despite the fact global trade volumes have fully recovered and are growing.

            So it was competition between carriers that kept the pressure on plus the introduction of fleets of spanky new ships that had been contracted for before the crisis.

            Below is an article linked with a chart of the Global Trade Index going back to 2005. So you can easily conclude with a quick review that the problem is over supply in the industry, not a major problem in world trade volumes…….obviously a few facts help!

            World’s Biggest Cargo Shipper Says Trade is Back – 2013
            http://qz.com/128697/the-worlds-biggest-shipper-cargo-says-trade-is-back/

            Jan 30, 2015 30:10 AM

            Make sense Bird.

            Jan 30, 2015 30:14 AM

            Just like copper, world demand increases 1-2% a year, except 2008-2009, but supply increases by 4-8%. I am surprised the price can hold this long even.

            Jan 30, 2015 30:55 AM

            Lawrence, long term, I’m a copper bull. Real money is extremely undervalued relative to paper currencies and copper is undervalued relative to real money. I think it is being hoarded.
            I think its downside is about 10 or 15% versus the dollar but it could briefly go much lower versus gold.
            http://stockcharts.com/h-sc/ui?s=$COPPER:$GOLD&p=M&yr=20&mn=11&dy=30&id=p63201425177&a=385074126&listNum=1

            Jan 30, 2015 30:58 AM

            Nickels (75% nickel/25% copper) are tomorrow’s “junk silver” in my opinion.

            Jan 30, 2015 30:10 AM

            I would consider copper and nickel raw materials. They are not that hard to produce. Off course, they will rise with inflation. You would not lose by hoarding it. But the current over production has to be worked out. It is due to the sudden and unprepared rise of China. World producers were so unprepared for the change and caught off guard. Price went sky high. Due to the fact that it takes long time to go prodution, when most new mines or production are online, they are not needed anymore. I hope I understand it right. This is the reason that I stopped involve in copper after 2007.

            Jan 30, 2015 30:21 AM

            I agree that both are industrial materials but I remain bullish because Gresham’s Law is working its way down the food chain, so to speak. I also think that demand for copper outside China will continue to grow. India is just getting warmed up.

            Jan 30, 2015 30:57 AM

            Matthew, I heard a few years ago from my Chinese investment site that a lot of people in southern China were hoarding copper in anticipation of a price rise. These poeple are gambler like and are smart. Even farmers would have a few tons in their backyard. They told me this inventory have to come to the market because there is no way to hoard them for long term and there is no other uses but selling it.

            Jan 30, 2015 30:07 AM

            Aside from financial hardship, I don’t know why they would have to sell anytime soon. I’m happy to know they’re smart. 🙂

            Jan 30, 2015 30:28 AM

            They bought it just to flip to make profit. These people definitly have no desire to store it. If they do, they will store gold and silver. They are in the richest regions in China. If they have hardship other would be suffering. No, there is no hardship. However, if you leave copper in the backyard, some one will steal it or it will rot. Copper does not stay long under those humid whether.

            Jan 30, 2015 30:58 AM

            Considering that copper has been falling for four years now and is down 50% in that time, I think it’s safe to say that such people sold out long ago and might even be on the buy side again. We’ll see what happens.

            Jan 30, 2015 30:59 AM

            Just to add, when copper double every year, it makes sense to store it. If it starts to go down like for the last couple of years, they still can make profit by selling. These people are not only flipping copper, they mostly flip houses. They will gather the money from everyone in the village to build buildings in large cities like Beijing and sell the apartments to locals. These guys always laugh at our northerners thinking we are stupid not knowing how to make money 🙂 and we northerners usually admit it. They call this type of flipping “炒”pronounced as chao -meaning fry something. So based on the culture I know, they are pretty early most of the times and take big risk. They only failure I heard was some of the rich ones was flipping houses in Saudi Arabia and got caught by the financial crisis, ha ha.

            Jan 30, 2015 30:06 AM

            If my information is right, what they do is there is a leader in the village. He recommends people to buy something. When he feels it is the time to sell, he will contact everyone and most people will sell since it is the most cost effective. In Chinese it is called “Neng Ren”, meaning capable person. I think most of them would have sold by now. This is something I don’t know. People no longer talk about it. Also I am from the North so we have different culture. Northern people are more war like.

            Jan 30, 2015 30:05 PM

            Thank you, Lawrence.

    Jan 29, 2015 29:49 PM

    ‘If the Greece of history still existed, the EU and the private banks would be cowering in fear, because the EU and the private banks have ruthlessly exploited the Greek people….’ Craig Roberts.

    http://kingworldnews.com/paul-craig-roberts-eu-banksters-threaten-defy-us-will-destroy/
    .

    Jan 29, 2015 29:20 PM

    I believe something bad is happening in China, that is what is causing the imbalances we are seeing.

    Jan 29, 2015 29:32 PM

    Cory
    This week is drawing to a close and the gold market has gone down, the complete opposite from your statement last week, stating that gold is set to go higher next week.
    What’s your prediction for the gold market next week. Here’s your chance to redeme yourself. Put that newly aquired technical knowledge to work, or better yet put some of your hard earned money behind your words. After all words are just words.

    Peter

      Jan 29, 2015 29:53 PM

      Peter, its kind of funny but you have been badgering everyone about not getting with the program and buying gold and now here you turn around and blame Cory’s call after the gold falls.

      If you were so confident of your position it seems odd Cory would even be mentioned.

        Jan 29, 2015 29:58 PM

        Unlike you BM, Peter knows what the hell he’s talking about and is not a pretender.

          Jan 29, 2015 29:23 PM

          Really? Well Peter went long and I went short. Guess who won?

            Jan 30, 2015 30:13 AM

            Thanks Matthew, what Birdman doesn’t know won’t hurt him.
            Correction Birdman. Peter is long and Peter is staying long until stopped out 🙂

            Peter

            Jan 30, 2015 30:46 AM

            Birdman check the blog I stated I was long back since Nov.12th and i have stated long since then 🙂
            That’s been my offical position BM. It just so happens that the bulls have been in control since Nov. and this little pullback is a liitle pullback. Until I get stopped out I assume the bulls are in control.

            Thank you for your thoughts anyway BM.
            Be civil 🙂

            Peter

            Jan 30, 2015 30:48 AM

            Yes Peter. We know you are long. That is what my post stated.

        Jan 30, 2015 30:22 AM

        Birdman
        I have no issue with Cory, however when he tries wear a technicians hat and throw his opinions around like a seasoned technician well then he should wear the critisism. Cory’s a big boy he can take it where as you i don’t think you can 🙂

        Peter

    Jan 30, 2015 30:32 AM

    Birdman nothing wrong with trying to educate ones self that’s a good thing. However looking a chart and THINKING you know and knowing something from the school of hard knocks is totally different.
    Cory thinks he knows, he admits he’s not a trader. Thinking and knowing are two different things in trading. The trading account is your report card 🙂
    So when Cory starts flapping like a technical trader I feel he has to be brought back to earth and smell the coffee 🙂

    Peter

    Jan 30, 2015 30:52 AM

    Matt,

    What do you think of today’s action thus far?

      Jan 30, 2015 30:02 AM

      I like it. This is the action I was hoping for. Like I said yesterday:
      “It would be great/bullish if gold can manage to consolidate above 1255…”
      and “it is typical of strong bull moves to have sharp pullbacks that reverse just as sharply before hitting their expected targets.”

      Jan 30, 2015 30:04 AM

      I also said: “I just want to be clear that I do not think 22.91 will be reached. So if it is reached, I’ll be wrong.”

      I don’t think Stewie is going to get his $23 GDXJ today! 😮

    Jan 30, 2015 30:12 AM

    Well gold keeps climbing and it is not showing signs of slowing down. It doing a step latter climb as to not show it’s hand.

    Do you have a possible target for Hui today/resistance?

    I will be honest I have missed this move up today thus far. Scratching my head. Maybe sold to early..LPG timed it really good. I guess your still in with peter and its down to the two of you left lol.. Hoping for lower prices next week but not sure it will come around. I will not chase at these prices. As much as I really want to, was happy to get out of my trading position. Now back to the drawing board.

    cheers and good luck 🙂

      Jan 30, 2015 30:20 AM

      Just like I thought, the price starts to rise. They have squeezed out as many people as they can and they need to front run speculators. This might also mean that the major effort to push down PM price is over so they return to use this small trick to fleece investors. I saw this all the time when the price was ‘Normal”

      Jan 30, 2015 30:26 AM

      Thanks, yes I am WAY in. I think Doc and LPG were expecting lower lows. Who knows, maybe they’ll still get them next week.

      I think the HUI is setting itself up to challenge last year’s high at the 260 area (believe it or not), but I’ll let the market tell me.

    Jan 30, 2015 30:15 AM

    I think at some point in every traders/investors career there will come a point where you feel if I chase it goes down on me and if I don’t chase it goes up. That is why the best time to always buy is when there is blood on the street. Red Red Red across the board. Yesterday and day before may have been that day. Let’s see if we get gary’s 1240’ish or 1220ish next week. Looks highly doubtful?

      Jan 30, 2015 30:23 AM

      Glen, absolutely right. Now it is the time that you are not fighting with market but fighting with person in control. You will never know what he wakes up and decides to do.

        Jan 30, 2015 30:08 AM

        This is true Lawrence..