Bearish News

By Jesse of Jesse’s Cafe Americain

[Note from admin: Jesse nailed this run in PMs, particularly silver. Read his stuff. If you aren't familiar, the "Blythe" he makes reference to is Blythe Masters, head of commodity trading at JPM. It has been alleged that they're short quite a bit of silver.]

Gold Daily and Silver Weekly Charts – Blythe On Her Own In the Cold, Après Ski

Yesterday was options expiration and the precious metals were clubbed mercilessly and clumsily, with little attempt to hide it.

Today the metals markets rebounded strongly after a somewhat weak start.

As I had mentioned I came out of cash and bought the dip in the precious metals sector yesterday, rather heavily, running cash to effectively zero. There was picking up the fallen among those wild tigers, the silver miners, and in some size. Their beta is pretty impressive, and nice when it runs your way.

The buys in the stocks that had fallen to long term support were big fat targets. And they bounced with a vicious flourish today, gaining momentum steadily after the FOMC announcement.

I flipped the hedges early, and just let the metals run into the afternoon, trimming back into the close to raise some cash back again for more opportunistic buys. I like to get my money off the table and let the profits run.

So what next? The formation on the gold chart looks good, and the support on the correction helped to draw the cup of the inverse head and shoulders a little more firmly. Yes there will be draw downs and corrections along the way, but gold looks headed for 1590 and probably beyond, but one leg at a time.

Silver is a juggernaut. I had to force myself to buy heavily in that rugby scrum of a market yesterday and it paid off extraordinarily well.
If they want to be really Machiavellian they’ll hit the metals tonight and tomorrow again, but its getting so old it might not work, and they’ll have to retreat to try and defend another level higher.

And thanks Blythe. You’re the best, baby.

Gold:

Young whippersnappers have giggled and snickered at guys with metal detectors for too long. Uh… Tiff, what is that weirdo doing with that thingy?

Well, well, well. How the tables have turned… 10 years later, silver and gold – BAM.

Most of those irreverent youngins are probably caring for snot-nosed kids at this point. This dude? Muaaaaahahahahahahaaa. Cackling his ass off. He’s probably still retired, in an undisclosed location. Sitting on a warchest of silver toe rings, gold necklaces, and other misc booty.

Explanation: I stumbled across a treasure-hunter’s forum in a Google image search today. All sorts of interesting stuff, like this thread titled, “PAPPY’S BEEN DIGGING” by long-time user Pappy, of course. Apparently back in 2004 Pappy found an uber-rare slave tag worth $3,000. Ick, but wow.

Lots of rare coins reported in the your finds section. Cool historical relics too (musket balls, medals, firearm parts, medallions, necklaces, seals, belt buckles, signet rings, etc). Plenty of silver coins, and some gold too. Plus, I would imagine that when one makes a really nice gold find, one does not usually post it on a message board and alert the horde.

Disclosure: I have been shopping metal detectors on Amazon. I wonder if my wife will sit with me at the beach this summer…

MR. BEACH METAL DETECTOR GUY
Presented by Bud Light

(Real Men of Genius)
Today we salute you Mr. Beach Metal Detector Guy
(Mr. Beach Metal Protector Guy)
Some seek their fortune on the stock market, others in real estate, but you look for loose change in the sand
(I’m hitting the jackpot)
Armed with a 5 foot geiger counter, and the worlds largest set of earphones,
You live your life with a simple code of honor: Finders keepers, losers weepers
(Finders Keepers)
Sure people mock you, but he who holds 92 cents, a gold plated earring, and a stealed toed boot gets the last laugh
(Whos’s laughing now)
So crack open a ice cold Bud Light O Sultan of the Sand, we’d give you a medal, but you’ve probably already found one.
(Mr. Beach Metal Detector Guy)

Rogers’ market wisdom is on full display in the clip below.  He says if silver keeps going at this rate, and hits $100 this year, he will “have to sell”, as “parabolic moves always collapse”. Like many others, he’d prefer a slow steady move. The commodities guru dishes on how it’s impossible to time a sale perfectly, and necessary to sell into parabolic moves. Even though the price may go higher after you think it has topped.

Guest post by Jesse, who I’ve found to be spot-on with his trading and market analysis – Adam.

A rather volatile day to say the least, particularly in silver.

If you are an intraday trader there were numerous opportunities to make money and take positions. As noted in the intraday metals commentary, I took positions at what I considered throwaway prices in the metals, while flipping out of some of the short stock positions I had carried into the weekend.

Now there might be a better case for a short term correction or consolidation, but its all contrived really. The trends are clear and intact, and the fundamentals are aligned for gold and silver to go much higher.

There is extended comments on what is happening in the gold and silver markets posted today here. I strongly suggest that you look at it.

As I noted last week, there was something on the tape, an indication of an approaching event. I think it was the SP downgrade, and that word had been quietly leaking out to insiders.

Gold:

Silver:

More at Jesse’s Cafe. Re-published with permission.