Gold Daily and Silver Weekly Charts - Short Squeeze

"Oh what a tangled web we weave,

When first we practise to deceive!"

Walter Scott, Marmion, Canto vi, Stanza 17

Watching the trade in gold and silver last night was interesting.

Around midnight gold was smacked down seven dollars to about $1132 in the matter of a few seconds. That is customary since traders have to reset their stops after midnight, and there was a bit of the usual inexplicable 'gamesmanship' one sees in bucket shops, rigged card games, and for some reason the Comex.

But about an hour later the price rebounded back up sharply to the 1144 area and seemed to stick there for most of the trade, with a slight upward bias, until the US announced its Non-Farm Payrolls Report for October, which sucked out loud.

There is no recovery. And as that fantasy wavered, so did the dollar and both gold and silver traded higher throughout the day, as the spec who came for the usual NFP Day smackdown ate their shorts.

So what next. Gold and silver are still in bear markets. This is counterintuitive of course since in the case of gold especially there is a yawning mismatch between actually supply and real demand.

I took a look at the Sprott Physical Gold Trust and there it was, another redemption. I have not yet looked but I suspect we will see more sizable redemptions from the ETFs.

I have offerend some intraday commentary that may shed some light on this phenomenon. I encourage you to read it here.

That there is manipulation in the gold market is, in my mind and in accordance with the evidence at hand, strictly a rhetorical question now, argued by the bully boys and shills of the Banks, and those pit crawlers of the financial demimonde.

That is not to say that 'it is over.'   These things never end when you think they will end, but when the end comes, it tends to come with a vengeance.  So I don't think we will even have to ask the question when the answer is there. 

A good start would be for gold and silver to break these awful, grinding short sales and bear raids lower, and that means breaking the pattern of lower highs and lower lows.  That means taking out $1270 gold and sticking it to the bears, hard.

For now this is a big bounce off a grossly oversold condition.  So it is too soon to break out the balloons.  Even if you are a legend of the legendary legends.  Mere mortals must wait for a more solid confirmation of a sustained change in trend.  The powers that be never give up any shred of power easily, and that is what we are seeing: a shifting landscape of historic proportions. 

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Non-Farm Payroll Flop - FrankenFed

There was intraday commentary on the Non-Farm Payrolls report.

It was fine, if you want less jobs than expected at lower wages that can sustain anything like a recovery.

Things are not going smoothly for those required to live in the real world.

At some point, the pampered princes will have to notice that all is not well, and that the natives are growing restless. 

 

I think what we saw in the midterm elections is some disenchantment with the happy talk, and blowback on the party in power. 

 

The bloom is going to wear off the elephantine rose fairly quickly if the houses of Congress cannot do something a little more imaginative than trickle down, trickle down.

Do you think the powers that be are completely unaware?  Perhaps not.

 

It was common for people in old Russia to say, 'if only Comrade Stalin knew what was going on.'

George Carlin had a rather salty and somewhat pessimistic explanation for the lack of reform and recovery.   Caution language.

Perhaps the one percent and their burgermeisters will have a change of heart-- before the sight of villagers with pitchforks and torches comes cresting over the hill.   It might end up looking like the fall of Saigon.  Oh the bureaucracy!

Have a pleasant evening.

NAV Premiums of Certain Precious Metal Trusts and Funds - More Sprott Gold Goes Walkabout

It appears that some more gold has been redeemed from the Sprott Physical Gold Trust in this last paper push lower in price.

There were a total of 27,911 ounces of gold redeemed from the Trust with a corresponding number of units turned in for them.  

Given the pressure on physical supply in this last paper bear raid, it is not all that surprising.

No wonder the powers that be are so nervous about the 30 November Swiss referendum.

I will have to do another look at the big ETFs to see if they have been bleeding bullion.

Here is a chart showing the previous level of gold in the Sprott Physical Gold Trust

Democracy Now Interview Matt Taibbi and the JPM Whistleblower

You may read a transcript of the interview on DemocracyNow here.

I wonder who Amy will interview when the currency markets go sideways, and gold and silver go rocketing higher, with Banks whining for bailouts as 'they stare into the abyss,' and the walking talking banalities called bankers are pontificating that they were merely following orders from their economic models and saving The System when they sold off their nations' wealth, and destroyed the middle class.