Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
Stock Index Trend Trade Setups for the SP500 & NASDAQ - 22nd Jan 18
Stock Market Deceleration / Distribution - 22nd Jan 18
US Markets vs Govt Shutdown: Stock Markets at all time highs - 22nd Jan 18
Land Rover Discovery Sport - 1 Month Driving Test Review - 22nd Jan 18
Why should you use high-quality YouTube to mp3 converter? - 22nd Jan 18
Silver As Strategic Metal: Why Its Price Will Soar - 21st Jan 18
Stocks, Gold and Interest Rates Three Amigos Ride On - 21st Jan 18
Why Sometimes, "Beating the S&P 500" Isn't Good Enough - 21st Jan 18
Bunnies and Geckos of Sheffield Street Tree Fellings Protests Explained - 21st Jan 18
Jim Rickards: Next Financial Panic Will Be the Biggest of All, with Only One Place to Turn… - 20th Jan 18
Macro Trend Changes for Gold in 2018 and Beyond - Empire Club of Canada - 20th Jan 18
Top 5 Trader Information Sources for Timely, Successful Investing - 20th Jan 18
Bond Market Bear Creating Gold Bull Market - 19th Jan 18
Gold Stocks GDX $25 Breakout on Earnings - 19th Jan 18
SPX is Higher But No Breakout - 19th Jan 18
Game Changer for Bitcoin - 19th Jan 18
Upside Risk for Gold in 2018 - 19th Jan 18
Money Minute - A 60-second snapshot of the UK Economy - 19th Jan 18
Discovery Sport Real MPG Fuel Economy Vs Land Rover 53.3 MPG Sales Pitch - 19th Jan 18
For Americans Buying Gold and Silver: Still a Big U.S. Pricing Advantage - 19th Jan 18
5 Maps And Charts That Predict Geopolitical Trends In 2018 - 19th Jan 18
North Korean Quagmire: Part 2. Bombing, Nuclear Threats, and Resolution - 19th Jan 18
Complete Guide On Forex Trading Market - 19th Jan 18
Bitcoin Crash Sees Flight To Physical Gold Coins and Bars - 18th Jan 18
The Interest Rates Are What Matter In This Market - 18th Jan 18
Crude Oil Sweat, Blood and Tears - 18th Jan 18
Land Rover Discovery Sport - Week 3 HSE Black Test Review - 18th Jan 18
The North Korea Quagmire: Part 1, A Contest of Colonialism and Communism - 18th Jan 18
Understand Currency Trade and Make Plenty of Money - 18th Jan 18
Bitcoin Price Crash Below $10,000. What's Next? We have answers… - 18th Jan 18
How to Trade Gold During Second Half of January, Daily Cycle Prediction - 18th Jan 18
More U.S. States Are Knocking Down Gold & Silver Barriers - 18th Jan 18
5 Economic Predictions for 2018 - 18th Jan 18
Land Rover Discovery Sport - What You Need to Know Before Buying - Owning Week 2 - 17th Jan 18
Bitcoin and Stock Prices, Both Symptoms of Speculative Extremes! - 17th Jan 18
So That’s What Stock Market Volatility Looks Like - 17th Jan 18
Tips On Choosing the Right Forex Dealer - 17th Jan 18
Crude Oil is Starting 2018 Strong but there's Undeniable Risk to the Downside - 16th Jan 18
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18
How to Know If This Stock Market Rally Will Continue for Two More Months? - 14th Jan 18
Everything SMIGGLE from Pencil Cases to Water Bottles, Pens and Springs! - 14th Jan 18
Land Rover Discovery Sport Very Bad MPG Fuel Economy! Real Owner's Review - 14th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

Gold And Silver - Shanghai Exchange Effect On Silver?

Commodities / Gold and Silver 2016 Mar 19, 2016 - 06:09 PM GMT

By: Michael_Noonan

Commodities

The trend for silver remains down, for now, but there is something going on within this market that does not confirm a change in trend but "appears" to be indicting a one. It has been acknowledged that the fundamentals for both silver and gold are overwhelmingly positive, yet price has not responded. More accurately, price has not been allowed to respond by the globalist's manipulation via their central banks, in general, and specifically by the both military and money might of the also manipulated United States, the federal corporate government version.


The question that arose in our mind for the past few weeks has been: are we seeing the effects of the Shanghai Exchange on silver? In other words, while the belief that the East is now overtaking the West in financial power, in the form of acquiring gold and silver, has been widespread, it has not yet been reflected in price behavior.

Everyone knows that the effects of manipulation, now being countered by the rise in power of China, and even Russia, had to lose its grip against the undeniably strong fundamentals for both silver and gold. With the blatant exercise of market/price control by COMEX and LMBA not even being cleverly disguised, China, having the loudest but silent voice, indeed now even control over what goes on in PMs, is taking a page from Theodore Roosevelt's foreign policy by "walking softly and carrying a big stick" and China beginning to exert its influence.

COMEX and LBMA, once the pillars for precious metals, have now decayed into a Comedy Central tag team that has lost its audience and credibility. China does not play, nor does it tolerate, that kind of low-level display of incompetence masquerading as authority.

Both exchanges have been derivative-driven, doing everything [un]imaginable to protect their excessively hypothecated Ponzi scheme and no longer function as legitimate sources that stand ready to deliver gold and silver on their futures contracts. They offer digital "currency" instead of actual delivery of any physical metal.

再见 COMEX, 再见 LBMA. [Bye-bye], your days are coming to an inglorious end. 你好

Shanghai Gold Exchange, [Hello], where physical metal is actually delivered and just as importantly, price will reflect real supply and demand, that is once the switch is fully implemented and China pulls the switch on COMEX and LBMA. Sum Ting Wong with the way you do business.

This is our sense of why silver refuses to be pushed lower with impunity by globalist interests and why silver has begun to exhibit a change in behavior that, while not being definitively seen as a change in trend, it may now be recognized as what so many have been so eagerly awaiting for: reality to come center stage for gold and silver. It further explains what we have been saying for the past few years: fundamentals are not what are moving the PM markets. They should be, and they have been relentlessly bullish but with no bullish impact.

One thing about reading developing market activity, via price in volume depicted in a chart, is that one does not always have to have an answer for what is going on. In fact, when the market "story" is not clear, that is a sufficient message in itself. It suggests change, transition, and the process takes time and may not be readily defined from time to time. It is okay not to know.

Markets, even manipulated ones, are organically undergoing change in process at all times, and when clarity is not apparent, wait for it to sort out, as it always does.

Silver's refusal to break lower in July through August of 2015, and then again from October through December of 2015 looks like an expression of market change not yet completed, hence the lack of clarity. Our "The Fundamentals Do Not Matter" mantra, at least for the past few years, may be coming to an end, and the globalist's banker's paper market, where "the paper holds their folded faces to the floor, and every day the paperboy beings more." [From Pink Floyd's appropriately entitled song, Brain Damage.], is coming to an end.

Weekly Silver Chart

The daily chart is least conclusive, at least for us. The current rally stalled at a prior failed swing high from last October. Yet, the market, as of last Friday, just made a higher high, however tenuously, after having formed a higher low last month. While Friday's activity could be a red flag leading to a correction, we see no [overt] supply entering the market. The two high volume days are not supply, so much, but neither high volume effort has led to further upside, so it can be sellers still present meeting the efforts of buyers, where sellers may eventually losing their control without having fully lost it.

Change takes time. Silver is looking better. The gold/silver ratio peaked at 83+:1 in the past two weeks and closed around 79:1 on Friday, as silver held better than gold. We still see silver outperforming gold to the upside, and the ratio does not stay over 80:1 for very long before realigning to a lower ratio, and that favors silver.

Daily Silver Chart

While gold is obviously at a resistance level from the failed rally of January 2015, what stands out is the strength of how gold reached that level: in a very strong manner, and that speaks to the character of a market. Bars have been overlapping for the past five weeks, and that reflects a battle between buyers and sellers. By contrast, the three-weeks just before the five weeks just mentioned shows EUM [Ease of Upward Movement], where there was no battle waged between buyers and sellers. Buyers took control and ran with it.

Weekly Gold Chart

The chart comments express our take on this market. The potential failure of a swing high, as noted, has to be respected. What may weaken its impact is how price moved strongly to get there, and while the bars have been overlapping since almost mid-February, there has been zero evidence of a strong reaction lower. Weak reactions, as gold is showing for now, usually lead to higher prices.

It appears gold may also be transitioning in its trend, stopping the downward trend and moving more sideways in preparation to go higher.

This is the Chinese Zodiac Year of the Monkey.

The monkey is a clever animal. It is usually compared to a smart person. During the Spring and Autumn Period (770 - 476 BC), the dignified Chinese official title of marquis was pronounced 'Hou', the same as the pronunciation of 'monkey' in Chinese. The animal was thereby bestowed with an auspicious meaning. We shall see.

In reference to last Wednesday's strong rally bar, the goofs at COMEX "fixed" the settlement price $30 lower from where price was at the time of closing. This is another example of why we say the attempts to manipulate the market are not even disguised as this was an obvious effort to cater the globalist's bank's derivatives positions. Bankers have no shame, just pure greed.

Keep buying physical gold and silver. We favor silver for the extreme ratio status, at present, but if one prefers gold over silver, just keep on buying and personally holding.

Daily Gold Chart

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.

© 2016 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

© 2005-2018 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