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Why 95% of Traders Fail

Gold And Silver Nearing “Crunch Time”

Commodities / Gold and Silver 2013 Jan 20, 2013 - 02:59 PM GMT

By: Michael_Noonan

Commodities

“…Oh! What a tangled web we weave
When first we practice to deceive…”
From Marmion, Canto VI, Stanza 17, Sir Walter Scott

What does this have to do with gold and silver? Everything! We are in a
trench warfare with central bankers, hellbent on destroying capitalism,
sovereign nations, currencies, all in the service of achieving world dominance,
via deception, letting nothing and no one stand in the way. The importance
of gold and, to a lesser extent, silver are the Achilles Heel of the Bilderberg
Clan’s largest Ponzi scheme ever. Whatever one may think of the Mafia, they
are bit players in contrast to the central banking clan, the most ruthless
collection of individuals ever assembled.


The Bilderbergers do not break legs or use baseball bats against their intended
victims. No, they are far more sinister and lethal. They use money, instead.

That’s it?! That’s all you got?!

Yep. That is all they need. Never forgot those hauntingly and deadly accurate
prophetic words of Meyer Amschel Rothschild: “Give me control of a nation’s
money, and I care not who makes the laws.” Nathan A Bauer sure knew what
he was doing. He also had his name changed to “Rothschild,” German for red
shield, a sign he hung over his coin store in the 1740s. Vanity plates have been
popular for centuries.

What Mr Bauer learned is that it was far more profitable to lend money to
governments who wanted to finance their wars. The loans were not only bigger,
they were more secure, backed by a nation’s taxes. The dynamic secret of N A Bauer
was that he loaned whatever the governments wanted, and demanded gold as payment
in return of the debts. His basic game plan has not changed, but it has now reached
its zenith. Control of the world’s gold is at stake. [Charts are coming, we promise.]

Deception runs center stage for the central bankers. The United States is a prime
example. The US has been in bankruptcy since 1933, owned by its creditors. Who
are those creditors? Central bankers, run by an unseen elite, like the Bilderberg
Group. What do they control? The money of the world, and by extension, the world.

Who elected The Basel Committee, the Bank of International Settlements, the
International Monetary Fund, central bankers, including the US Federal Reserve?
Answer: themselves. Did you ever vote for any of them? Do you know of anyone
who voted for them? Do you even know who they are? Yet, they run the world via
fiat currency lending, actually now reduced to computerized clicks on a keyboard.

Need $200,000 billion? Click. Viola! What backs it? Nothing. Who owes it?
Ostensibly, governments, but they just pass it on to their “constituents,” people
like you and me. What is demanded as payment? Gold, first and foremost.
Despite central bank claims that gold is anathema to their fiat currency[s], that
non-tungsten metal is what central bankers covet the most.

What was the target for Greece, Ireland, Italy, Spain? Their gold reserves. “Sure,
we will lend you whatever you need. Here is a blank check. Tell us what you want.”
When it is payback time, naturally, those countries are unable to pay back. In fact,
they need more. “We will take your gold as payment.” The Rothschild way, by
design. Create non-existent money out of thin air and demand hard assets in return.

When you run out of gold, we will bankrupt your country and take it over, as silent
partners of course, vis-a-vis the United States, since 1933. Who are these people,
again? No one you know, but they run your lives.

Why do you think Germany and the European Parliament are pushing so hard for a
unified Europe? The United States is their boiler plate model. Unify Europe under
a single currency, then everyone will come under their thumb. Tick tock!

“Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed. Money is so noble a medium that does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot”
Ayn Rand, Atlas Shrugged.

Leave it to a foreigner, and a woman, to describe the future course of the United States
in a single, cogent paragraph. What an aside piece of irony that Alan Greenspan was
once in her company, embracing her ideas, [and her, literally], a Gold-Bug, of sorts, that
is before he went to the Dark Side of central bankers. They are after your gold, and it is
getting near Crunch Time!

The above prologue may not seem directly related to gold and silver, especially for
those who do not pay attention to what is going on, globally, or fail to see the links
between global events, the United Nations becoming more pervasive, but the struggle
for gold’s ownership is critically important to those who want to rule over your life. It
is a form of wealth and independence. The New World Order hates independence.

For the benefit of several of our foreign readers, “crunch time” is a reference to that
period just before something important needs to be completed, and full effort is required
to meet the pending deadline.

Finally, to the charts. Whenever you see price locked in a trading range, TR, the farther
it moves toward the Right Hand Side, [RHS], of the chart, the closer it is to reaching a
resolve, hence the reference to crunch time. This is seen most clearly on the monthly and
weekly charts.

Regular readers know we assert that all known information is contained in the charts, and
being able to read them is a distinct advantage. The best way to achieve that advantage is
to learn to make distinctions contained in the charts from one day/week/month to the
next.

You can see how price moves farther along the RHS of the now 16 month TR. A resolve
is not apparent at this point in time, given the location of current price, not near the
upper or lower breakout area on the chart. Still, it is important to observe what is going
on, looking for clues of change.

One important change evident is how price is laboring as it moves lower, relative to
the rally, and this will be better seen on the weekly chart. It is too early to draw a
conclusion on a monthly chart, with almost two more weeks to go before month end,
but we can make observations and see if/how they play out on the lower time frames.

The month opened at 1676 and moved lower. The net low under the December low is
not very great. This tells us the effort of sellers has been limited. After moving lower,
price has rallied to the current high area of 1687. With the large degree of bullish spacing,
we can reasonably expect to see more bullish behavior over bearish signs. The inability of
sellers to move the corrective TR lower is one such indication.

The more detailed weekly allows for even more distinctions. The importance of making
quality distinctions is a better read of what the developing market activity has to impart
to any discriminating observer. The ones we see as pertinent start with the May through
August smaller TR at support lows. For four months, sellers were simply unable to break
the bottom barrier. When compared to the spike lows of September and December 2011,
the smaller TR is a change of behavior worth noting.

The breakout from the smaller range is a wide range bar up, strong close, and at the time,
increased volume, all classic signs of strength, whatever the direction. Seven weeks later,
price stops at resistance, to be expected in a TR. What next stands out is the relatively
labored decline, mentioned on the monthly chart, 13 weeks, almost twice as long, in time,
as the rally, and the correction did not come close to reaching the lower support TR.

The clustering of closes for four weeks can mean a resting area, prior to resuming the
preceding direction, or it can lead to a turnaround. It turned out to be the latter, at least
for now. The clustering also stopped at/near the breakout bar of last August. Markets
are continually testing and retesting previous support/resistance areas. As in life, there
are no accidents in the markets.

Ratcheting the focus more so, using the daily chart, we see the high/low of the mid-August
2011 breakout bar, and we extended horizontal bars to the right as potential future support
if price were to retest it. That retest evolved from December into January, and we are now
able to see even more distinctions. We start with volume at A and B.

The volume and price bar at “A” relate directly to the established low from late December.
It says quite a lot. First, note the decline from the last swing high, two days earlier. It is a
quick and sharp drop, telling us sellers have buyers on the defensive. But… Note the
location of the close: it is just above mid-range the bar. For all the evidence that sellers
were in control, the close says otherwise.

What makes the message of the close critical in content is the sharp increase in the level
of volume. Large volume increases tell us there is a lot of activity going on, many times
denoting a possible change of risk, from weak hands into strong hands. Price broke hard
and fast, but held, and held strongly. Relating this activity back to December, it was a
price probe under that low, and we learn important pieces of market information from it.

The 4 January failed probe lower tells us that any sell stops under the December support
low were wiped out, and more importantly, there was no appetite for sellers to press price
lower. Their energy was spent. What followed was a controlled rally leading us to last
week, and volume/price bar “B.”

Last Thursday’s rally was a wide range, high-end close bar and on very strong volume.
Volume is the driving energy behind any market move. The two highest recent volume
bars carried price upside, a sign of market intent. We see remaining layers of overhead
resistance, and how price reacts/responds to them will give yet more market insight.

Looking at the location, still at the lower register of the TR, gold needs to show continued
positive market activity to sustain the current rally. For now, central bankers and talk
show lackeys may say that one cannot eat gold. At some point, they will eat those words.

We took a probe to the long side of gold on Thursday’s strong bar.

Silver, step-child to gold, has enormous upside potential. The bullish spacing is not as
great as gold’s, and gold remains relatively stronger. We treat it separately but view it
as an equal alternative.

There is the same, more labored decline relative to the previous rally, a positive sign,
especially where current price is, for now, showing a degree of strength after a four
week drop.

So similar to the gold analysis, it would belabor the point to repeat what has been stated.

The good thing about the gold analysis is that it allows a short-hand version for silver,
due to the close similarities. One slight difference is the stopping activity in silver on
20 December. Volume increased sharply. Here is another look at how high volume is
a likely sign of risk transfer from weak hands into strong. While the range down was
large and the close weak, indicating sellers in total control, it was volume that warned
of a potential red flag. Price stopped dead, and so did the effort of the sellers. The
stopping point was also from a previous support area, noted. This is how the market
“speaks” to everyone who wants to take note.

We see a similar failed probe lower with a higher end close on a sharp volume increase,
another market message. These are the distinctions of which we spoke, earlier, for they
lead to likely conclusions for understanding market direction. What they do is decrease
risk exposure, removing “guesswork,” “gut-feel” decisions. It is much better to base any
market decision[s] on facts over guesses/gut-feels, both proven to not work, over time.

While gold has been relatively stronger than silver, silver’s rally over the 3 January swing
high was much strong than gold’s performance. We also took a long position in silver,
based upon the strong market indicators of that day.

We remain very bullish on gold and silver as both remain in respective trading ranges.
Continue buying the physical for both metals as a “wealth accumulation” move. To
anyone questioning the decision to buy, or not, which would you rather own, given a
proven history that ALL fiats fail? Rock breaks scissors, and paper covers rock, but
the cover is merely packaging for the shiny stuff contained within, and the paper gets
thrown away.

By Michael Noonan

http://edgetraderplus.com

Michael Noonan, mn@edgetraderplus.com, is a Chicago-based trader with over 30 years in the business. His sole approach to analysis is derived from developing market pattern behavior, found in the form of Price, Volume, and Time, and it is generated from the best source possible, the market itself.

© 2013 Copyright Michael Noonan - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Michael Noonan Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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