Gold Daily and Silver Weekly Charts - Metals Rise in a Flight to Safety - Refuse to Lose

“Yet while the rest of the populace was suffering, the rich just got richer. In 2009 and 2010, years in which millions were unable to find work, the top one percent reaped 93 percent of the 'recovery' income, and corporations are making more than they ever did. And the Republicans can still propose even further cuts in the taxes of 'job creators' whose only job creation has been for their own lawyers and lobbyists."

Garry Wills


"The terrible, cold, cruel part is Wall Street. Rivers of gold flow there from all over the earth, and death comes with it. There, as nowhere else, you feel a total absence of the spirit: herds of men who cannot count past three, herds more who cannot get past six, scorn for pure science and demoniacal respect for the present.

And the terrible thing is that the crowd that fills the Street believes that the world will always be the same, and that it is their duty to keep that huge machine running, day and night, forever."

Federico Garcia Lorca

It turned out to be a good day to be long bullion and short stocks if you ignored the price gyrations caused by obvious price manipulation and speculative excess fueled by hot money and loose regulations.

Greek elections which are on Sunday 17 June are overhanging the markets this week. The trade going into the weekend could be interesting.

If Spain takes the money from the ECB and uses it to bail out its banks, leaving the people with austerity and the debt payments, then the government will be on the path to self-destruction.

The economic recovery in Iceland looms large, where they rejected the banks' fraudulent legacy, and jailed two of the bank execs this week.

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained growth and recovery.

"It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better.

The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat."

Theodore Roosevelt, The Man in the Arena,, Paris, April 23, 1910


The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will.”

Vince Lombardi

Never give in to fear. Refuse to lose.

SP 500 and NDX Futures Daily Charts - Rough Day for the Bulls, Tyranny of Money

"There have been tyrannical gods, and there is the God who makes us free.

Tyrant gods, nowadays, do not, as a rule, assume the names of gods. They prefer pseudonyms. But their tyranny remains the same."

Henri de Lubac

There was euphoria to the upside in the overnight futures as the Spain bailout cheered the markets.

The reality of the situation and the impending Greek elections chilled the markets during the day, as stock went out near their lows in a big reversal.

The hysteria and mood swings will become worse as the year goes on.

Caption Contest

Playing with the big buoys.

Ben 'Big Ones' Bernanke

The Fed has a printing press, but it takes a pair of these to use it.

Ben is always ready for the next tsunami.

Thanks for the loan Jamie!


What do you think?

Gold Daily and Silver Weekly Charts - Monkey Shines

“What happened yesterday in the gold market was very interesting. One full hour before Bernanke's testimony, the bullion banks started selling. Over the next 4 hours, the bullion banks sold the equivalent of 515 metric tons of paper gold. This was in just 4 hours, and again, the selling started one hour before Bernanke’s testimony...

The real question here is, how could an entity begin selling such a massive amount of paper gold when there hadn’t been any news? (starting to sell before Bernanke's testimony)...

The bullion banks are ringing the register at both ends, while trying to extricate themselves from their short positions in the paper market. They are attempting to do this before transparency comes in to the market. They do not want a situation where the aggressive hedge funds actually get evidence that these bullion banks are naked short.

They are concerned that if it is discovered they are naked short gold and silver, those hedge funds will aggressively target those banks. This is what happened to JP Morgan, recently, when the London Whale got caught. As soon as Jamie Dimon was forced to admit a $2 billion loss, the sharks realized they were vulnerable and came in to attack. That has greatly magnified the size JP Morgan’s loss. The last thing powerful entities want to see is for this to occur in the gold and silver markets.”

London Trader at King World News

One has to consider information such as this as input to be compared to other things, since we cannot directly view what the unidentified source is specifically seeing.

However, having watched the tape in real time and looked at the changes in Open Interest, it seems to be a credible description of what happened.

It also tracks closely with my own view of the game which we are in.

So as a further word of caution, if you cannot bear irrational volatility, do not trade the paper gold and silver markets. Take your positions according to your investment plans and then sit and wait.

I am perhaps not so sanguine that an end to the manipulation will come anytime soon as the London Trader seems to imply. Or perhaps this is just how I interpret what he says.

While Bart Chilton and the CFTC promise change and reform, it seems unlikely to happen anytime soon, at least before the national elections.

Still, one never knows.  Change is in the wind.