Oct 1, 2011
The "2008 again" band, operated by the banksters' propaganda wing, plays on, like the Pied Piper of Hamelin with space age amplifiers, leading all the price chasers to the Great Photocopier In The Sky.
Meantime, GoldLion says this fine Saturday morning, "The Silver Cot ratio OFFICIALLY entered the MUST BUY ZONE as of Tuesday's numbers. The last time this alert went off to this degree was in the crash of 2008!!!"
I reminded the pros who are buying silver alongside the banksters (and you), that this COT report goes thru Tuesday, so the upside action from $26 to $33 is included. At the actual low point of $26, which occurred early Monday morning around 3-4AM, while the wiener ranch was asleep, the COT ratio numbers could have been almost off the charts!
By the time most of the gold and fund community climbed out of bed to begin their next round of loss booking and diaper purchasing on Tuesday morning, gold had already rallied $130 and silver had rallied a mind numbing $7 from $26 to $33.
The picture for wheat and corn is equally stunning. I bought more wheat into yesterday's shocking price sale, but trading positions only. I've already bought this range with core positions, something YOU need to focus on.
Don't rebuy a price area with new core positions if you already bought it, unless you have pre-set risk capital earmarked for the task, AND capital earmarked to buy below your lowest core buy. A lot of you have asked me if I'm buying individual gold juniors stock now. The answer is: NO. The reason is: Because I already bought these prices and took delivery of my positions in 2008. If price goes below my lowest buys of 2008, of course I'll be back on the buy.
If YOU didn't buy these prices, of course YOU should be buying. Rather than a question of action, I'd term it....Your "obligation to excellence". If you've gone down to 20% cash levels, or lower, you better cool it on the buying and go to massively spaced buy increments, or you'll send yourself into the pain zone, rather than the discomfort zone, if price does go down further. Given the price of gold now versus the price in 2008, gold juniors are "only" 10 times a better buy now, than they were at these prices then. The view that "since they haven't risen at $1900 gold, maybe they are a sell" is 100% lunacy, not analysis.
Now, while the banksters, the biggest pros, and YOU are on the "across the board" commodity and metals space buy here and now, IF the "unthinkinkable" happens, and the banksters decide that $1530 needs to be re-visited or pin-pricked, I have to believe that either they are simply pressing the point on margin-related liquidation, but the door to actual one-time revaluation of gold also opens up at that point.
Why? The answer is more related to why the banksters would want to see gold pressed down to a level that cuts the head of the golden price chasing goose that is the funds and gold community, rather than taking the eggs. A full leg down under 1530 would cause the virtual financial death of many funds and gold community investors, and could lead to the financial system being closed down.
The only gain I see from a major leg down on gold below 1530 is from those positioned for an actual presidential order to revalue gold higher. The bottom line is that if you are operating in that market to kill the cow rather than milk it, then the gain in doing that must exceed the gain in milking it, and only massive revaluation of gold, ordered by the President of the United States would fit that bill for the banksters, who are already buying massively now.
I've never believed one-time reval is going to happen, but it is of course possible, and the lower gold goes, the higher the odds of the system shutting down become, and therefore the higher the odds of gold being revalued by the President become, unknown to the wiener ranch who just received a fresh lobotomy and have their "2008 again" hats on, and their uniforms polished up and good and shiny, ready for the bread line, which is where they are going.
You CAN'T lose, if you keep your head, and your gold. If you join the Team Diaper, and many have, the risk you are taking, here and now, is "beyond astronomical". You are taking the other side of the trade against the banksters, and that's just for starters, if you are a seller of gold/silver here. Worse, you are betting that the entire population of India have suddenly lost all understanding of what gold is.
"Instead of buying massive amounts of 22k-24k gold necklaces for their wives, the entire population of India has this year decided to report to the photocopier and stand proudly beside the gold community's worst traders and scummiest top callers, and dress themselves in necklaces made of toilet paper, hot off the electronic photocopier press" - Joe Blow Top Caller, reporting from his outhouse, Oct 1, 2011.
We thank Joe for his vociferous analysis of what gold is, as does all of India. Let's now join India in giving him a standing ovation for his efforts, and for his bag of leveraged short positions he holds, in his outhouse. Then again, maybe we should just get back to... the party.
One of you asked about COT reports on crude oil. The COT reports don't work for all markets the same way, and there are dozens of energy contracts where the banksters operate with millions of contract combined.
First, let me say that some beginner analysts think the banksters are "in deep trouble" on silver and gold shorts, and the latest price sale was a "takedown" so they could escape new disclosure regulations and exit some shorts "before they blow up". That's been the story since gold $340, and it will be the story at gold $3400, and probably the story one day, at gold $34,000, and then at $340,000 an ounce.
Any day now, the billionaire banksters who make the rules because they have the most gold, would blow up. Sure they will, and any day now pigs will begin flying all around my room. The billionaires blowing up any day now show has become the trillionaires will blow up any day now show, and before this crisis is over, you can mark my words that it will become: any day now the quadrillionaires will blow up.
Let's see now, a trillionaire who owns a mountain of physical gold, cash, silver... and pennies in silver short contracts in a market where he makes all the rules, is going to blow up, "any day now", while a price-chasing idiot holding two SP500 short contracts with less than 10% of the contract in his account, put on after the Dow fell 5000pts, and the rest loaned to him by the banksters, and no physical metal to his name, who can't buy one ounce of silver at $26 on sale while the trillionaires back up the trucks on the buy here and now, is about to watch the trillionaires blow up, "any day now". What's wrong with that picture? Answer: Everything.
In regards to crude oil specifically, first of all, Mr. Macro's buddy, who is head technical analyst for a top 3 bank and thinks gold/silver look great here technically, and the stk mkt does not... he believes oil is preparing for a slingshot move to 140 and probably on to 200, while team 2008 again races to get to "maximum short" on oil before it is "2008 again".
The WTIC (west texas intermediate crude) contract is just one of a mountain of oil contracts, and I don't personally like to use the COT report numbers there, unless price has moved to extremes and I'm seeing extreme moves in the COT numbers, and even then, it's a small factor, because there are so many energy contracts.
The COT numbers are great tools for gold, silver, corn, wheat, and sometimes sugar. They work better in natgas than with oil. The funds are long oil, but oil is the main component of most commodity funds and indexes, and many unlevered funds hold commodity index contract weightings, so it makes sense to see an ongoing massive fund position in WTIC.
You are better off to watch just the fund action in crude, rather than looking for bankster action against the funds in that market, most of the time. If the funds are adding positions, you can be lightly booking profits, if price is rising of course.
The bottom line right now is that any 2008 again scenario has the highest probability of being followed by a closure of markets, banning of all shorting, and revaluation of gold, with you totally destroyed financially, if you've liquidated your positions or joined the team "I'll get it cheaper, later", and team "I personally saw everyone in India wearing toilet paper on their necks for their wedding, I promise, I swear it on my sp500 short position grave".
No, you won't get it cheaper, later. What you'll get is a spot in the bread line, and nothing more.
Report Card Day. What's YOUR bottom line? Are you standing beside GoldLion cheering the liquidity flows report with full understanding that any weakness only means gold goes that much higher, or are you in India handing out photocopied toilet paper, Dow put options, and short wheat contracts at the wedding, and then asking why you are being hung, drawn and quartered?
Thanks!
Cheers
S "the dollar bug hangman" t... out!