Long Term Gold Daily Chart

To understand where you are going, it is useful to know where you have been.

What I am showing here is the very long consolidation and trading channel from which gold has broken out.

Stocks and Precious Metals Charts - Non-Farm Payrolls, Again - The Mythical Recovery

"There is no clean way to make a hundred million bucks. Somewhere along the line guys got pushed to the wall, nice little businesses got the ground cut out from under them. Decent people lost their jobs. Big money is big power, and big power gets used wrong. It's the system."

Raymond Chandler, The Long Goodbye


"I’ve seen it for years. I’ve seen a media, which has basically ignored the declining middle class, that doesn’t talk about poverty at all, and has no sense of what is going on in the minds of millions of ordinary Americans.  They live in a bubble, talk about their world, worry about who’s going to be running 18 years from now for office.  Meanwhile, people can’t feed their kids."

Bernie Sanders


"There is no trap so deadly as the trap you set for yourself.”

Raymond Chandler, The Long Goodbye

Most of the adults are on a long holiday weekend, so the trading was light, and fairly predictable.

And the weather here is just steamy!

Gold and silver and stocks were all smacked down hard by a stronger than anticipated Non-Farm Payrolls Report.

All recovered somewhat into the close.

All in all it proved to be a decent opportunity to replensih the short term gold positions that I sold into that last try at 1440. Not all. Now is not the time to have no longs in gold. Or too many longs in equities.

The charts seem somewhat straightforward.

I am concerned a bit about the future, and the failure to achieve a sustain recovery and meaningful reform.

The elite continue to pursue their unjust privileges, and deny their felonies and insults to justice and office with a comfortable pride and smug, habitual deception.

Although this is nothing new, we have not seen the magnitude of this sort of reckless greed in over a hundred years.

"The US labor force has actually contracted by more than 600,000 workers this year via Bloomberg opinion. Household Survey jobs down this year by almost 200,000, while twice as many who were earlier unemployed have given up looking for jobs. Every time the Fed has embarked upon a rate cutting campaign on average you get about 23 and a half basis points of cuts per month…which suggests the markets pricing in 3 to 4 rate cuts in the next 12 mos might not be aggressive enough.  Another piece of the puzzle...multiple job holders...why doesn’t MSM at the very least try to give people a real sense of where this economy is...these jobs numbers are so misleading."

Danielle DiMartino Booth

I am watching The Big Sleep, the later version with Robert Mitchum and Joan Collins. I am going to watch the classic with Bogart and Bacall later on this evening.

Need little, want less, love more.

Have a pleasant weekend.

Stocks and Precious Metal Charts - Wild, Wild Life

“Some madness doesn't act mad to begin with, sometimes it will knock politely at the door, and when you let it in, it'll simply sit in the corner without a fuss — and grow.”

Nathan Filer


"And this is the judgement, that the light has come into the world, and people love the darkness rather than light, because their deeds are evil."

John 3:19


"The ultimate purpose of crime is to establish an endless empire.  It seeks a state of complete insecurity and anarchy, founded upon the tainted ideals of a world thought doomed to annihilation.

When humanity, subjugated by the terror of crime, has been driven mad by fear and horror, and when chaos has become the supreme law, then the time for the empire of lawlessness will have come."

Friedrich Rudolf Klein-Rogge, Das Testament des Dr. Mabuse


"At that time many will turn away from the faith, and will betray and hate each other.  And false prophets will appear, and deceive many.  And because of the increase in wickedness, the love of most will grow cold.  But those who stand firm to the end will be saved. And the gospel of the kingdom will be preached throughout the whole world, as a testimony to all nations.  And then the end will come."

Matthew 24:10-14

The overnight action in the Globex gold market was wild once again, to say the least.

After the close gold started rising again, after an amazing rally from the smackdown the day before.

At one point gold was threatening to break through the 1440 level. Silver was following.

But today it managed to finished unchanged, around the 1417 mark.

This is the second night in which we have seen these violent swings in a commodity that has been held in check for a few years now.

Things are not what they seem.

Stocks managed to close out on highs in a holiday shortened trading session.

The US markets will be closed tomorrow in observance of the 4th of July.

The rest of the world will have to carry on without the guidance of Wall Street.

See you on Friday.

Have a pleasant evening.

Stocks and Precious Metals Charts - Spokesmodels Left Speechless - Gold Rockets $33 Higher

“There are two ways to be fooled.  One is to believe what isn't true; the other is to refuse to believe what is true.”

Søren Kierkegaard


"Beware the leaven of the Pharisees, which is a pious, hollow hypocrisy. For there is nothing covered that shall not be revealed, or hidden, that shall not be made known.  Whatever has been said in the darkness shall be heard in the light: and what has been whispered behind closed doors shall be shouted from the roof tops."

Luke 12:1-3


"A sentiment of trust in the legal money of the State is so deeply implanted in the citizens of all countries that they cannot but believe that some day this money must recover a part at least of its former value.

To their minds it appears that value is inherent in money as such, and they do not apprehend that the real wealth, which this money might have stood for, has been dissipated once and for all.

This sentiment is supported by the various legal regulations with which the Governments endeavor to control internal prices, and so to preserve some purchasing power for their legal tender.

Thus the force of law preserves a measure of immediate purchasing power over some commodities and the force of sentiment and custom maintains, especially amongst peasants, a willingness to hoard paper which is really worthless."

John Maynard Keynes, Economic Consequences of the War

That last quote by Keynes is one of my favorite quotes about fiat money. Modern Money is a mix of force and fraud. As the fraud grows thin, the force must increase.

Gold rocketed $30 higher today, gaining back everything it lost on Monday, and then some.

This violent snapback rally lends itself to the theory that the smackdown of the past few days was designed to reduce the open interest in the August futures contracts.

It may also be significant that gold was pummeled down to its 50% Fibonacci retracement on the latest leg higher, but they could not make that stick— and got it stuffed back in their faces.

If gold can hold 1400 through the Non-Farm Payrolls nonsense, and make a higher high, this is very bullish action. 

The spokesmodels were chortling when gold was smacked lower yesterday, and forecasting even lower prices down to $1350.  But they were silent about its vicious snapback rally today.   How unusual.

I find it a bit odd that with these price fluctuations there is zero activity being shown out of the Hong Kong comex gold warehouses.   This is a dog that is failing to bark.

Rumors of a bullion bank being caught with its pants down have been making the rounds. I wonder if it involves a physical delivery.

Oil dumped today.   This was particularly odd given the recent strong statements from the latest OPEC meeting.  Well, they can reduce supply, but they cannot create demand.

Stocks caught a strong bid into the close.  It looks like another blow off top is in the making. I am getting my bear claws ready.

They'll never learn.  Why should they, when their paydays from this have been so personally fulfilling.

Someone is in trouble somewhare behind the scenes.   Who or what it is, we do not yet know,

But it may very well involve a difficultly in meeting one's obligations.

Have a pleasant evening.

P.S. Gold exploded even higher after hours, rising $17 to 1436. It is hovering below 1430 now. Odd.