What Happens To Gold And Silver Next? Look Out Below?

Oh I agree 100% JSH I am just curious if this so called meeting they speak of on lead page is really gonna happen as they claim on Wed?

Silverhawk jr. is into everything driving me about the the rest of the way toward insanity and I gotta go ship some packages, but when I get back I will copy and paste the lead page from the email.....

Another sensationalism article. A good motto I've followed for quite awhile (one of my own).

"Beware anyone telling why you need to do something, and providing the means to achieve it."

...then again, maybe not...

http://www.gata.org/node/13010

Hi yup! I have a serious question I'm hoping you will answer;
Can you correlate your statement here from last Monday with the fact that the market acts, reacts to every little bitty tiny winy scrap of news that comes out,
(even) as we saw here in the after hours of yesterday's close with gold moving up $20 and a few hours after the Andrew Maguire interview bringing to the
forefront 2 more high profile JP Morgan whistleblowers and their (proof) of PM market rigging?
And how about that price and volume action at the end of the day?

Jim, I'm sure you're right about the usual Friday blip as its been described.
But the unusual occurrence here is that the "blip" came in the after hours of a Friday
Obviously, I'm no expert and hopefully yup can fill in more details

Egon Von Greyerz said;
"This is at a time when Europe is closed and the Far East is closed. I cannot remember the last time the market moved up this much in after hours on a Friday evening."

And M.Pento;
My thoughts are that any entities which are naked short gold, and don't have the ability to deliver the underlying commodity, now have to be a very nervous group of individuals. And anything that exposes their highly tenuous position makes them want to cover.

This also makes entities which have been on the sidelines, waiting to buy this artificially manipulated price of gold, want to come in to the market on the buy side because when you see entities which are that naked short, and unable to deliver, they want to bring them a lot of pain.

This means the price of gold could skyrocket. That's what I think the after-hours action was about, money beginning to position itself accordingly, as well as some short covering."

Ok, lets first look at price action for the past week. Sorry I been falling behind here.

The 4/15 gap. Thats what your eyes should be on to cut the noise and chop out. Why is this gap important? Because its the major spot where heavy volume came in to sell gold and silver. Major institutions used this date to really unload big positions. Therefore, this area is one key area that gold and silver must trump before they can even consider going higher.

Last week we saw gold and silver turn away from this gap after one try to get into it. Do you also notice the series, in a short time frame, the successive lower highs and lower lows in price? As they built up, it cascaded down.

Friday also saw gold running lower until it reversed near the EOD. Ok so what can we make out of this?

A. I know a lot of folks think Friday is a key date because there's been bounces and its been green. In the longer picture, Friday is not a big deal, just another day in the trading world.

B. We saw a reversal last Friday. Why? As a trader, to me it seems like a logical place for a bounce, after all gold was down for 4 days in a row and came into support. Simple. Common to see this.

so, to me, as a trader, I am looking for that 4/15 gap to be filled. That would change my mind. Until then, I come to the conclusion based on price action that gold and silver, going forward, at BEST are broken assets. They either trader either lower or FLAT at best. Eventually this trading action will be broken, but it will need time.

I will keep posting daily to keep this going, you have to remember that as a trader there's many trends going on and this one doesn't interest me at the moment as it doesn't make me any money. However, I am more happy to keep this updating even we essentially chop around and do nothing.

I also want to make this note. Commodities, the vast majority are broken, trading in a narrow range, or going lower. Oil is moving higher, and cocoa... but thats pretty much it. I can tell you that other base metals are at yearly lows and sinking, and others such as the grains are low and going lower. Softs such as cotton, sugar, coffee also are going lower or at near lows, doing nothing.

Whats going on? First thought is deflation. But the more stronger conclusion is overwhelming supply of these items. That said, this is yet another obstacle for gold and silver to achieve higher prices, they will trade lower, in tandem with lower commodity prices.

You have to also remember that all assets come in cycles. Commodities have had a good run, silver and gold were part of that. But when the cycle or trend comes to an end and reverses, it is a long term process.

@Miggs

Yea I just don't see that any sort of allegations by anyone really would impact the price of gold. I say that because the second that was to be true, I am sure the price action would spike big time.

But as far as that interview, I don't know about that all, in fact, not to be aloof but its really all irrelevant to the PM market, no big waves were made.

As far as the price action from Friday, nothing really to see. What you are seeing is a 5 minute chart with its individual sticks. If we look at the total volume that Friday, it was nothing spectacular. If we were talking 50, 100 million shares on that day, then I would say wow thats a lot of fund buying.

You;ll also notice that Friday, GLD still made a lower high and lower low, not indicative of a move higher. Then if we fast forward to the action today, and we see GLD trying to open higher, and it did but reversed lower and is currently stuck at the low of day (LOD).

SO whatever was said on Friday was of no interest to the markets and didnt matter one single bit.

BTW, everyone here should be aware Michael Pinto is another big time shill, a talking head. Listening to such an individual would have you underwater in gold, and hes mostly missed the stock market moves. Hes just as bad at Peter S. Here's something to keep in mind- for the most part, 99% of people you see talking on financial news networks such as CNBC or Bloomberg are only talking their book. Most of their wealth and income is not by having their personal money in the markets but by client money, thats where they make their big $$$$.

So again Miggs, whatever was said on Friday, didn't mean a single thing. Market doesn't care about whistle blowers or allegations of price fixing, it means nothing at all.

If theyre saying it publicly its not something theyre doing themselves or theyve already made their move.

Buffets made some remarks in the past about how he doesn't share what hes doing because when hes buying he wants to get it as cheap as possible.

The other thing too is when your playing with the money level those types have you can miss a lot. You just have to make more than you lose. For us it may be you lose a few hundred on a couple things but make a couple thousand on others. For them its like they lose a few million on something but make a 100 million on something else. Berkshire misses on things, but their hits make so much money it just really doesn't even matter.

They dont even have to be right most of the time since usually the losses arent huge compared to the types of gains they can get. For example if you had 200 million to pump into Mastercard 2 years ago youre now at almost 700 million from that alone. Thats covers a lot of mistakes