08 July 2013

Gold Daily and Silver Weekly Charts - Fasten Your Seat Belts

Bernanke speaks on Wednesday, and the banks report earnings on Friday.

Let's see how this progresses. The inventory levels on the Comex are quite interesting.

I am holding both gold and silver from last week.  I did pick up a bit of volatility today.

Mr. TFerguson has some interesting comments to make tonight on the Bank Participation Report and the 'big short' held by the Banks.

Expert market structure analyst Ted Butler also notes that the banks have covered their big gold short from November last, and gone net long. He adds:
"Making the gold report even better was that speculators in the managed money and other reportable trader category did all the selling, both long liquidation and new short selling (as opposed to the non-reportable traders). The tech funds’ gross short position grew to a new record, as did the total speculative gross short position. This should provide more than ample fuel when we turn up and violate the moving averages to the upside."
The current structure of the precious metals market is interesting.   What is considered to be the smart money is flush, and the momentum money is caught hanging out rather short.  It does remind one of The Reeve's Tale.   Or as George Takei would say, 'Oh my!'    

As you know I also have been watching gold's 50 DMA for some confirmation that a bottom to this selling is in.  I do not wish to presume, but it does seem rather likely, if not now then soon.  After all, this is a currency war, with betrayal and deception as the order of the day.  And that is from your own side.

Stand and deliver.

I found a rather nice illustration of the credibility trap today in a BBC panel discussion that includes Russell Brand. You may wish to take a look at the whole thing in addition to the short clip.

In times like these, only comedy can dare to speak the truth to power.