FOMC takedown

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DSAbug

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Incase anyone was wondering why gold sold off.. Looks like the Fed minutes repeated exactly what everyone else already knew.. No stimulus unless we see signs of slowdown.

I just guess we keep stacking till the insanity ends.
 
"Yesterday" = QE3 hinted at. Markets levitate.

"Today" = QE3 not immediately imminent. Markets tank.

What a farce.
 
Funny thing is that gold is down the most amoung pms:
sp_en_6.gif
 
Sinclairs 'coiled spring' just got a bit more coiled then (-:

Just not quite enough capitulation for the final bottom .......

one more push ?
 
$ 1630 is a key support which shouldn't be broken. Otherwise we might see the december lows again.
 
I forgot to add to my last post...

"Tomorrow" = QE on the table again.

Wash, rinse, repeat.
 
With the release of the Fed minutes creating havoc in key markets, today King World News interviewed Peter Schiff, CEO of Europacific Capital. Schiff told KWN the knee-jerk reaction in markets which took place as a result of the release of the Fed minutes is off base. He said the Fed is going to come in with QE3 and noted the Fed even stated in their own minutes they stand ready to come in with more QE if the economy needs it. Here is what Schiff had to say: “People that are assuming it (QE) is off the table based on these minutes are wrong. I would really fade this trade. I don’t see why gold would be getting crushed based on these minutes. I looked at the minutes and yes, the Fed didn’t come right out and say QE3 is coming. They are not going to do that. They are never going to do that.”
...
Click to expand...

More: http://kingworldnews.com/kingworldn...tion_to_Fed_Minutes_Wrong,_QE3_is_Coming.html

On the heels of the release of the Fed minutes, today legendary trader and investor Jim Sinclair told King World News the release of the Fed minutes and subsequent market reaction in gold was orchestrated. Sinclair also said this is government manipulation against the tide of the bull market and it will be overrun. Here is what Sinclair had to say about what transpired today in the gold market: “The tactic is always the same. The gold banks enter the COMEX and offer more gold for sale at the market than has been mined in the last five years. Immediately, the locals (pit traders) try to run in front and hit any bids they happen to have on their book or are out there in order to get the price down.”
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Click to expand...

More: http://kingworldnews.com/kingworldn..._Minutes,_Gold_Manipulation_&_Fools_Play.html
 
On the now infamous Ron Paul/ Bernanke silver raid of February 29th, we documented how 225 million ounces of silver were dumped on the market over a span of only 30 minutes, smashing silver $4 from $37.62 to $33.68.

In a sign of the diminishing returns of paper market manipulation, on the heels of today's Fed minutes disappointment, beginning at 2pm EST, over 127,000 contracts, or 637.535 MILLION OUNCES OF PAPER SILVER were dumped on the market in only 1 hour, resulting in a massive silver decline of.... $0.65.

You read that correctly.

Nearly 80% of ENTIRE ANNUAL WORLD MINING SUPPLY was dumped on the market (during the thinly traded Globex session), over a single hour, and all the cartel could muster was a lousy .65 decline in the paper price of silver!
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More: http://silverdoctors.blogspot.com/2012/04/6375-milion-ounces-of-paper-silver.html
 
I suspect there will be no easing, just the usual bullshit hints that they have "the necessary tools" and will "utilize them" if and when the need arises, but for now, things will remain unchanged. I don't see anything happening right now to catalyze a radical move. Even if they took the dramatic step of doing something big, like 750 bbn in easing, all it would do is artificially jack stocks some more, guaranteeing they will fall that much harder when this thing blows up.
 
Silver is also doing relatively well. Basicly no leverage to gold's downtake. That's good to see.
 
GDX has been down 5 days down and corrected 10%. If we can manage a reversal day to end the down run, it should mark a low of some kind. The strength of the decline should our odds of it being a meaningful low sooner rather than later..
 
Watch out for the FOMC minutes release today at 2pm ET. Should cause some volatility. Depending on some textpieces, markets could fall somewhat if there isn't enough QE hopium inside.
 
Obviously someone got an early copy of the notes as it's only 1:30 and gold just went straight down.
They don't even try to hide the corruption anymore.
 
Looks like the intention of the 1:30 pm raid was to cap gold's 2 pm spike below 1644, the 200 dma. The goal was to create a buffer zone... which FAILED as gold trades at 1646 as I'm writing this...

1650 is the next resistance...
 
29.6 is a longterm resistance for silver, also taken out.

If we close US trading above 1644 for gold and 29.6 for silver, we have much more rally fuel.
 
Gold clears 1550 and now it's time for silver to clear 30. That would cause some fireworks...
 
So, SA, you think the guys over at COMEX have more power over prices than the other 90% of us (or whatever the numbers are, I truly don't know) - such that at their next open, they can perhaps easily wipe out this gain we just got? Just curious here.

Sure, they "fix" the price of gold, but then we all also get a crack at it, which obviously is affecting the price now that they aren't trading there. Or are they just trading on some other platform now?
 
They have the power to cause these short term moves (the bullion banks). But they usually excercise it intraday, so they would have to conduct a raid before today's close which is unlikely to happen. My guess is that they already prepared themselves with short coverings since early August which I described in a different thread.

Bill Murphy called this August breakout weeks ago claiming that JPM is in major trouble, especially in silver. If he's right then they're about to lose control big time.

Gold/silver manipulation has historically been happening at the COMEX with some assistance of the London OTC market. That's the current scheme (2000s)

Before the COMEX became dominant, (physical) leasing and central bank sales were the weapon of choice (especially during the 1990s).

In 1980/81 interest rates were the weapon when Volcker decided to fight in inflation. Interest rates were way above inflation rates, peaking at 21%! Imagine the FED funds rate at 21% today. Every financial institution out there would be bankrupt.

During the late 1970s, the US government publicly announced and undertook gold auctions to suppress prices, similar to the UK government in 1999.

The late 1960s were the era of the London gold pool.

The 1933 gold confiscation was also a price manipulation attempt (combined with an overnight devaluation).

What do all these manipulation schemes have in common? They failed :D
So DCF, I absolutely agree: In the long run markets always win.
 
The FOMC meeting announcement is at 12:30 ET, FOMC forecasts at 2 pm, Ben's press conference at 2:15 pm.

Get your popcorn ready. If the FED disappoints, pms will get slaughtered...

:popcorn:
 
swissaustrian said:
The FOMC meeting announcement is at 12:30 ET, FOMC forecasts at 2 pm, Ben's press conference at 2:15 pm.

Get your popcorn ready. If the FED disappoints, pms will get slaughtered...

:popcorn:
Click to expand...

I thought friday had all the makings of a short term top. Probably till October.

Problem is the whole damn market seems propped up right now. Regardless of Fed.. We NEED a pullback so the move is tradeable. If history is any indication, the move up probably WONT be tradeable.
 
typical to see moves like this ahead of the announcement. I'd prefer we consolidate for a little before heading higher..
 
QE to infinity
40bn of MBS (securitized mortgages) purchases each months - open ended!
ZIRP until 2015.
Moar if needed. PMs love it. EUR/USD not so impressed, seemed to be priced in.
Let's see if pms hold the gains during the 20 minutes or so.
 
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