I'm running behind schedule this morning and now my printer just ran out of ink. Par for the course and it looks to be another "one of those days".
Sorry for the late start but things have been busy this morning. If you have kids, I'm sure you've noticed that this parenting stuff just never seems to get any easier. Part of me keeps expecting it to but it never does and, frankly, it seems that 7th and 9th grade, especially for girls, is particularly challenging. You try to teach and shape and mold and yet, adolescent girls seem determined to make things as dramatic and challenging for themselves as possible. As a man, this is sure tough to take sometimes. As a man who doesn't like to manage and who tends to see things in black-and-white, this age is enough to drive you crazy.
So, if I seem a bit testy with you, my dear reader, I apologize. I'm doing my level best to "manage" this place and its mission. Yes, it's still fun to trade a little. (I currently have one Feb13 gold call and 3 Mar13 silver calls. I do this for fun and, more importantly, I've found that I need to have some skin in the game in order to stay focused for you.) However, we must, as a group, move away from the apoplectic angst that appears here with every sustained set of downticks. The world is changing. The current, global financial system...the one you've grown up with and lived with your entire life...is passing away and a new system is slowly emerging. To protect your wealth and your purchasing power through these events, I've begged pleaded asked you to purchase as much physical gold and silver as personally prudent.
{So, I just paused and re-read everything I've typed so far. It seems that I have just compared many of the users/members of this site to adolescent girls. This was not my intention but, now that I've done it, I think I'll stick with it. Though it's never a good career move to insult your audience, in this case, a cold slap across the face and some tough love may be cathartic.}
Anyway, back on message...As stated above, my printer ran out of ink this morning so I had to stop at just two charts. That's OK. I don't want to read too much into today's action anyway. First, for perspective, here's a reprint of a chart I posted back on Saturday morning:
As clearly stated on Saturday, the action last week made the gold chart look pretty nasty. Frankly, I was surprised that this ugliness wasn't seized upon by the momo-junkies yesterday. Apparently, they were just waiting for a bounce before they attacked. I posted several charts intraday yesterday that showed a clear capping effort at $1722. From there, the HFTs attacked and down goes gold. At this point, we are once again in the situation where the algos are driving paper price lower but the bullion banks are using the selling to cover paper and bid for physical. This will, eventually, put a floor under this drop. IF gold can reclaim 1705 by the close, chances are high that the rest of the week will be positive. IF NOT, then I would expect a trip down toward 1675 before we see a recovery.
Again, though, unless you are trading paper all by your lonesome (which I've made every effort to dissuade you against), why the angst? Screw 'em! Let The Cartel jam price back and forth. If paper traders are stoo-stoo-stoopid enough to continue being led by the nose to the fleecing shed, then so be it. Your stack and my stack of metal looks exactly the same today as it did yesterday, paper price be damned. One day very soon...VERY SOON...the truth will finally emerge regarding the nefarious manipulation of paper price. WHEN that happens, the fiat-conversion value of your stack will skyrocket and days like today will be a distant, forgotten memory.
And let me just say this: I sense a growing disenchantment that my "historic and explosive" change of fundamentals has not yet occurred. I suppose that I could battle each and every detractor that shows up here but what would be the point? Fighting everyone would only give a sense of desperation and deception. Why would I do that when I am not desperate and I am not deceiving you? I know what I know and I, like everyone else, am simply waiting for all of the shoes to drop. WHEN they drop, the embarrassment and indictment of everyone and everything related to the manipulation will be clear. Everyone from Heads of Global Commodities to politically-appointed bureaucrats will be exposed for the corrupt narcissists that they are. Until then, we wait and stack.
Try to have a good day. Step away from your computer for a while. Maybe go out and perform an act of charity. You'll feel a lot better and you'll help someone else in the process.
TF
