Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21
Dow Stock Market Trend Forecast 2021 - 3rd Apr 21
Gold Price Just Can’t Seem to Breakout - 3rd Apr 21
Stocks, Gold and the Troubling Yields - 3rd Apr 21
What can you buy with cryptocurrencies?- 3rd Apr 21
What a Long and Not so Strange Trip it’s Been for the Gold Mining Stocks - 2nd Apr 21
WD My Book DUO 28tb Unboxing - What Drives Inside the Enclosure, Reds or Blues Review - 2nd Apr 21
Markets, Mayhem and Elliott Waves - 2nd Apr 21
Gold And US Dollar Hegemony - 2nd Apr 21
What Biden’s Big Infrastructure Push Means for Silver Price - 2nd Apr 21
Stock Market Support Near $14,358 On Transportation Index Suggests Rally Will Continue - 2nd Apr 21
Crypto Mine Bitcoin With Your Gaming PC - How Much Profit after 3 Weeks with NiceHash, RTX 3080 GPU - 2nd Apr 21
UK Lockdowns Ending As Europe Continues to Die, Sweet Child O' Mine 2021 Post Pandemic Hope - 2nd Apr 21
A Climbing USDX Means Gold Investors Should Care - 1st Apr 21
How To Spot Market Boom and Bust Cycles - 1st Apr 21
What Could Slay the Stock & Gold Bulls - 1st Apr 21
Precious Metals Mining Stocks Setting Up For A Breakout Rally – Wait For Confirmation - 1st Apr 21
Fed: “We’re Not Going to Take This Punchbowl Away” - 1st Apr 21
Mining Bitcoin On My Desktop PC For 3 Weeks - How Much Crypto Profit Using RTX 3080 on NiceHash - 31st Mar 21
INFLATION - Wage Slaves vs Gold Owners - 31st Mar 21
Why It‘s Reasonable to Be Bullish Stocks and Gold - 31st Mar 21
How To Be Eligible For An E-Transfer Payday Loan? - 31st Mar 21
eXcentral Review – Trade CFDs with a Customer-Centric Broker - 31st Mar 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold and Silver Enhanced Investor Opportunities Loci

Commodities / Gold and Silver 2013 Feb 24, 2013 - 12:29 PM GMT

By: DeepCaster_LLC

Commodities

“Plus ça change, plus c’est la même chose.”           French Wisdom Nugget

 

“Federal Reserve Policymaker’s late last month expressed explicit and detailed squeamishness over their monetary stimulus, which might be scaled back sooner than the Fed’s own guidance suggests, according to Minutes released Wednesday.” (emphasis added) IBD, 02/21/13

 

All Investment Cognoscenti know that The Fed’s “Communication Policy” is aimed at Financial and Market Ends, not at Truth. (Here, should we rely on The Fed’s earlier expressed “Guidance,” or this week’s “Scaling Back” Hint? They can not both be True.)


Indeed that Policy could well be paraphrased “Tell whatever Lie you need to, to achieve your Goals.”

 

Those recently released Minutes, for example, achieved a Primary Fed Goal of blowing the Gold and Silver Prices down through Major Resistance, and a Secondary one of cooling somewhat inflated Equities and Commodities Prices.

 

As leader of The Cartel (Note 1) a Cornerstone of The Fed’s Policy is, and has long been, to suppress Gold and Silver Prices, lest they further devalue their Fiat Currencies and Treasury Securities, and so they will not alarm the Hoi Polloi about the intensifying Price Inflation (e.g., 9.24% in the U.S. – Note 2) which their Ongoing Monetary Inflation is increasingly producing.

 

But The Fed’s (and other Central Banks’) ongoing Monetizing and Dissembling creates Enhanced Investment and Trading Opportunities in Several Sectors.

 

Consider Gold and Silver

 

Extraordinarily low levels of Fear (reflected in an ultra low VIX), plus increasing (but unjustified) Bullish sentiment for Economic strength reflected by MSM Talking Heads, is facilitating Cartel success, for many weeks now, in keeping the P.M. prices (save Platinum) trending down to the bottom of trading ranges, and, now, below.

 

Just as we earlier Forecast The Cartel took advantage of the Lunar New Year to drive down P.M. prices. Thus Gold and Silver have traded down to and through Major resistance.

 

Unfortunately for us Precious Metals Partisans already holding positions, The Cartel has succeeded in breaking Gold down below its 50 and 200 Day Moving Averages – very Bearish short-term.

 

JBGJ confirms The Cartel’s recent successful Bear Raid:

 

“The CME Final for Friday confirms that volume was 283,225 lots. 4.7% above estimated. This means half the day’s volume was done in the 8am-9am period.

 

Open interest only rose 854 lots, 2.66 tonnes or 0.19%, to 445,413 lots. (The Preliminary had indicated 1.04%.) Nevertheless, any increase on a day in which gold was down 1.71% at the floor close, 1.63% at the stock market close and sustained so much technical damage is remarkable. Friday was a monster Bear raid.”

 

“Friday O.I. Increase Confirms Friday Major Bear Raid,”

John Brimelow, JBGJ, 2/19/2013

 

 

And The Fed’s Minutes (hinting at possible “Tapering” off of QE) released this week administered the Coup de Gras with the result that Gold and Silver have broken down through Major Resistance at $1600 and $30 respectively, The next Major Resistance is $1535ish for Gold and $26 to $27 for Silver. Given the breakdown we would not be surprised to see these P.M.’s taken down to these levels, short-term.

 

We reiterate however that, we expect these levels to be temporary because The Cartel is having increasing difficulty holding three P.M.’s down, given the unrelenting demand for Physical, especially Physical Silver.

 

In other words, Gold and Silver are likely still participating in the completion of their bottoming process and The Fed’s Action has created an Enhanced Buy Opportunity.

 

Thus, there continue to be increasingly Excellent Buying Opportunities at these levels in both the Bullion and the Shares and especially in Silver.

 

A similar Opportunity, but in Reverse as it were, exists in Equities.

 

Fed (and other Central Bank) Money Printing has kept Equities afloat on a Sea of Liquidity, resulting in an Artificial Rally, i.e., one not founded on Fundamentals.

 

But the slightest Hint of decreasing Fed support, such as in The Fed Minutes, gives the Equities Markets Serious Trouble, Trouble which Establishment Newsletter Writer, Dennis Gartman, has recently labeled a “Tectonic Shift”.

 

The Stock Rally which began last November reminds us that Stock Prices can stay divorced from Fundamentals for a long time. And, fundamentally, the OECD (Developed) Nations’ Economies are still Shrinking. The USA’s Real GDP is already a Negative -2.20% per shadowstats.com.

 

So it is no surprise that the Top of this Artificial Rally (yet to arrive) would complete the Ominous Hindenberg Omen Pattern, and that that top will likely be followed by a cataclysmic multi-leg, multi-year crash—the impending Mega-Move of which we have spoken, and which we think is highly probable.

 

We emphasize this scenario is consistent with the Real Numbers. For example, just 4.9% of the companies which have reported have raised guidance. This is the sixth quarter in a row in which more companies have lowered guidance than raised it and that is the Trend – ever lower earnings guidance, which signals lower Equities Prices dead ahead.

 

Moreover, the Economic Fundamentals including Debt Saturation, Ever Higher Unemployment, and Economic Stagnation, including the OECD’s outright contraction referenced above, have not disappeared, but have, overall, worsened.

 

Thus, we reiterate: it is  very important to bear in mind that the Equities Markets are not being impelled upward on Fundamental Strength but rather on The Fed-provided (along with other Central Banks) Tide of Liquidity… and that is a Dangerous Situation which will likely lead to a Crash.

 

This is what the multi-year Hindenberg Omen Chart Pattern is telling us.

 

But this eventually will provide us with Great Opportunities to Profit on the Short Side, when the time is Right, a Time which we forecast in our latest Alert, “17.97% Yield Buy Reco & Remarkable Forecasts: Equities, Gold, Silver, U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates, & Crude Oil” post in ‘Alerts Cache’ at deepcaster.com.

 

Similar Short side Opportunities exist in the $US and U.S. Treasury Securities over the long term, where The Fed is creating The Mother of All Asset Bubbles.

 

The $US Moving Averages Chart has recently generated a “Death Cross – the 50 Day Moving Average has crossed below the 200 Day Moving Average. Not good, but not surprising, given The Fed’s ongoing $US Destruction Derby.

 

The $US Action since mid-November (and notwithstanding the recent pop up) appears to be the first leg down of what will become the long-term trend we have earlier forecast – the Destruction of the $US as the World Reserve Currency, and its replacement by a Gold-backed Yuan.

 

In sum, the $US Action since November is the beginning of a chopping long term down trend for the $US, interrupted by spikes up (as we are seeing this week) on Eurozone weakness and/or an Equities Crash, and/or Risk-off Moves.

 

Indeed, there is an increasing Threat of that Massive Sell-off in the U.S. Dollar, especially vis-à-vis Real Physical Assets, beginning any time in the next very few months notwithstanding what the Central Banks do; that is because of The Orgy of Fiat Currency Printing The Fed (and other Central Banks) is unleashing, coupled with increasing and unpayable U.S. Debt.

 

That is, The Biggest One, Rising Interest Rates aka The Bursting Treasury (and other) Bond/s Bubble, has just begun, as we earlier Forecast. It is no secret that yield on the U.S. 10-year has shot up over the past few days and is now bouncing around 2%.

 

Thus $US Treasuries will offer an excellent short play as well provided the timing is right.

 

In sum, even though Fed (and other Central Banks) Policies are quite destructive to U.S. National Economic health (as well as to the health of other Nations, and to Individuals, such as Savers and Retirees) via Inflation, The Fed’s Money Printing does offer Opportunities for The Prepared.

Best regards,

www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation         Wealth Enhancement

© 2013 Copyright DeepCaster LLC - 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.

DEEPCASTER LLC Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules