Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
Americans Don’t Grasp The Magnitude Of The Looming Pension Tsunami That May Hit Us Within 10 Years - 20th Sep 17
Stock Market Waiting Game... - 20th Sep 17
Precious Metals Sector is on Major Buy Signal - 20th Sep 17
US Equities Destined For Negative Returns In The Next 7 Years - 3 Assets To Invest In Instead - 20th Sep 17
Looking For the Next Big Stock? Look at Design - 20th Sep 17
Self Employed? Understanding Business Insurance - 19th Sep 17
Stock Market Bubble Fortunes - 19th Sep 17
USD/CHF – Verification of Breakout or Further Declines? - 19th Sep 17
Blockchain Tech: Don't Say You Didn't Know - 19th Sep 17
The Fed’s 2% Inflation Target Is Pointless - 19th Sep 17
How To Resolve the Korean Conundrum  - 19th Sep 17
A World Doomed to a Never Ending War - 19th Sep 17
What is Backtesting? And Why You Need Backtesting System? - 19th Sep 17
These Two Articles Debunk The Biggest Financial Nonsense I See In The Media - 18th Sep 17
Bitcoin Price Crash 40% In 3 Days Underlining Gold’s Safe Haven Credentials - 18th Sep 17
The Sum of Risks – Global, Strategic, Political, and Financial - 18th Sep 17
The Netflix Of Canada’s Cannabis Boom - 18th Sep 17
Stock Market Sentiment Speaks: Either You Learn From The Events Of The Past Week, Or You Are Hopeless - 18th Sep 17
SPX 2500 … At Last! - 18th Sep 17
Inflation Lies, Lies and OMG More Lies - 18th Sep 17
How to Choose right Forex Trader? - 18th Sep 17
Who Has Shaped the World the Most? The Dozen Greatest Achievers - 17th Sep 17
Riding the ‘Slide’: Is This What the Next Stocks Bear Market Looks Like? - 17th Sep 17
Gold Up, Markets Fatigued As War Talk Boils Over - 17th Sep 17
Predicting the Future of the U.S. and the World - 16th Sep 17
Deceit in the Financial Food Chain - 16th Sep 17
Gold GLD ETF Investment Resuming - 16th Sep 17
Extreme Weather & Energy Markets: What's Next? - Video - 15th Sep 17
Trump’s Path to IP Wars - 15th Sep 17
GBP USD Approaches Fibonacci Target - 15th Sep 17
Higher US Interest Rates May Force Higher Inflation Rates - 15th Sep 17
Stock Market Investors: Taking the Road "Less Traveled" Has Its Perks - 15th Sep 17
The 3 Best P2P Lending Platforms For Investors In 2017—Detailed Analysis - 15th Sep 17
The US Debt Bubble Will Soon Warrant Serious Measures - 15th Sep 17
Why it is Often Difficult to Sell a House Fast - 15th Sep 17
S&P 500 At New Record High, Will It Break Above 2,500? - 14th Sep 17
Capital Market Trends - 14th Sep 17
Mike Maloney: The Top 10 Reasons I Own Gold and Silver - 14th Sep 17
The Only Real Europe is Greece - 14th Sep 17
7 Security Tips for Online Traders - 14th Sep 17
5 Markets Ready to Move Before Year-End. Eexpert Analysis and New Trading Opportunities - 13th Sep 17
Massive Equifax Hack Shows Cyber Risk to Deposits and Investments Today - 13th Sep 17
Investment Advice for My Children & Grandchildren - 13th Sep 17
TRADE FOR A CHANGE - 13th Sep 17
The Stock Performance of Public Casino Companies in 2017 - 13th Sep 17
Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - 13th Sep 17
Precious Metals Bull Analogs Update - 13th Sep 17
Tip: When “This” Happens, A Stock Price Goes Up… - 13th Sep 17

Market Oracle FREE Newsletter

5 Markets Ready to Move Before Year-End. Eexpert Analysis and New Trading Opportunities

Sillver - QE4ever, POMO4ever, Nevermore4ever

Commodities / Gold and Silver 2013 Oct 06, 2013 - 01:22 PM GMT

By: Michael_Noonan

Commodities

The central bankers have no rudder, adrift in a sea of fiat, taking everybody with them. Witness Cyprus and Greece being forced to walk the plank. Those who choose to stay on this Ship of Fools will suffer the same fate, even worse as the growing panic emboldens banker reactions.

Unless one has become anesthetized to the proverbial handwriting on the wall, symptoms are teeming all around. Barack "Yes We Can" [more than double the debt] Obama told everyone, promised everyone that he would cut the deficit in half. What he did not say is cutting it in half would then be the measure by which it would multiply. Issuing fiat does one thing and one thing only: it robs everyone of whatever value they have. It is a hidden transfer of wealth from you to the government, plain and simple.


POMO, [Permanent Open Market Operations], with emphasis on Permanent, designed to maintain the illusion that stocks are in a healthy bull market, so all must be well...at least for the top 1%; for the rest, not so much. Everything the Federal Reserve does is an illusion, including its existence, but it has become the financial bully no one dares to challenge.

One of our favorite lines comes from Leonard Cohen's Anthem, "There is a crack in everything, that's how the light gets in." For all those in the Western world mired in the endless debt forced on by central bankers, silver is part of the light that gets in and provides an escape.

Some of the smartest people in the financial world are the Stackers. Bankers have been doing everything possible to squeeze the life out of Precious Metals, but those in the PM community are not in the least bit fooled by fiat money creation. Stackers understand there is no third-party risk owning the physical metal, and eventually price will adjust to reflect the massive distortions created by the Creatures From Jekyll Island.

While there have been projections for silver to reach $100 the oz, $200, even $300, it really does not matter. Whatever the price, it will justly reflect all the mishandling of the economy by the central bankers, and those who own and hold silver, and gold, will reap the benefits of their foresight learned from hindsight.

The day is coming when central bankers will lose total control, and the message to them will be clear as sound money is reestablished: Nevermore! 4ever!

A look at what the charts are saying, in the interim.

The timing for the end of the central banker's world as we regrettably know it will always be in doubt. Time weighs more against the Masters of Fiat than it has been in their favor for the brief time since the April 2011 highs. The fact that price rallied to $50 is evidence that bankers are on the losing end of this battle, and the correction that has been overly exaggerated to the downside is but a temporary respite, their own illusion of "victory" that is massively failing.

The gap breakout to the upside was seen as important when it happened, as we said at the time, [here, 4th chart]. The lower time frames show more important detail.

What appears to be more positive about how silver has been developing in its current TR, [Trading Range], is the fact that it is developing on top of the last TR. The upside breakout gap in August was just successfully retested in another attempt to push silver lower, yet price is showing some resiliency. The rally of the last 3 TDs has upper range closes shows buyers won the battle, but the decline in volume indicates it was a result more from a lack of sellers.

The failed probe lower, as it occurred further along the RHS, [Right Hand Side], of the TR also adds to the positive aspect of the its development. What we need to see from here is a test of the failed probe. The last 3 TDs may be that retest, and if so, what is also needed is a strong wide range rally on increased volume above resistance.

The 90 minute chart shows a D/S bar, [Demand over Supply], which often acts as support, and price has held the lower level of that bar. There was a smaller S/D bar on 1 October, and it led to the recent failed probe. It is possible it is a probe to see if there were any appetite to take price lower. The fact that the gap held suggests not.

In the long run, silver is going higher, much, much higher. In the short run, anything can happen, but silver's ability to withstand selling assaults is growing. Getting long a proven retest of last week's low makes sense.

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

© 2005-2017 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

Catching a Falling Financial Knife