"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

Trader Dan's Work is NOW AVAILABLE AT WWW.TRADERDAN.NET



Tuesday, December 17, 2013

Silly Season Silliness

I am strongly suggesting that parents still looking for last minute Christmas kids for their children, look no further than the gold market as it can quite easily be substituted for one of those new, sleekly designed yo-yo's. Yes siree Bob, it goes up and down, up and down, up and down, with hardly any hiccups whatsoever ( you know how annoying those strings can be when they get knots in them ).

Seriously, the Silly Season Silliness was on full display today as the gold market gave back what it put on yesterday, which by the way brought it back to nearly where it closed last Thursday.

That is why I keep saying, do not read too much into any one day's price action. I marvel that all the usual perma-bullish players continue to come out of the woodwork whenever we get a strong move higher. Then they all disappear when the market gives it all back ( some of them blaming manipulation). When gold moves back up, they will come back. Count on that. I could also just as well say that the perma-bears are always growling whenever gold makes a move lower.

Here is the simple truth - gold continues to be stuck in a RANGE TRADE. That means it "ain't goin' nowhere" until it breaks out of the range in one direction or the other. The weekly trend is still down so the bears have a bit of an advantage but downside momentum has also been blunted so until they can force the price below $1210 and keep it there, they are not out of the wood yets either.

Until then, find something better to do with your life ( like going to see "The Hobbit- the Desolation of Smaug" - I LOVE HATING Azog and Bolg), instead of watching every single tick in price. As long as we are dealing with the vagaries of the Fed and the FOMC meeting, as long as we are dealing with year-end book squaring, and as long as we are dealing with pre-holiday thinning trade conditions, we are going to see volatility.

Since there is not much to say right now, I will merely leave you with a price chart noting the price action as it remains constrained within that broader range.


25 comments:

  1. Facebook now printing new lifetime highs.

    All that money printing has resulted in a huge increase in wealth creation in those who invested in social media stocks.

    Unfortunately the way gold is acting, looks like that support zone is going to break and we will see another huge down day which will wash even more CIGA's overboard.

    ReplyDelete
    Replies
    1. Nothing to see here. Just Mark and the typical BS propoganda that comes out of his mouth. Anyone ever notice when someone calls him out all we hear are crickets in return? I wonder if he will be around to spout his crap when we have a 1929 event evebtually.

      Delete
  2. Mark,
    Don't you get a time off for Christmas?

    ReplyDelete
    Replies
    1. Concord

      I was reading your comments on Armstrong and Sinclair. Armstrong just mentioned Jim Sinclair in a recent post. He stated that he believes Sinclair is NOT a paid shill for gold.
      He also stated that the ONLY difference of opinion between them is timing and reasoning.
      I have always pointed out that despite Armstrong's self fluffing ego he has never said that the Gold Bull is over.
      He (like many others) has stated that after a 12 year run a correction was both needed and NORMAL.
      So don't get too down on yourself…it is not over.
      A friend of mine emailed Jim Sinclair earlier this year and said "It is very hard to hang on in this gold market"
      Jim's reply? "Hard? try next to impossible for most people, there will be very few who will be onboard to ride the really big rise"
      Armstrong (among others) have echoed the exact same sentiment.

      Delete
    2. I agree. I have never thought Sinclair had anything but the best intentions for people invested in gold Dean. I think he should have commented though in the mess that has been gold the last eight months. I truly worry I will be one of those who misses gold due to the timing issue.

      Delete
    3. "I think he should have commented though in the mess that has been gold the last eight months."

      one of JS Greatest videos, if you have missed it: check
      http://www.youtube.com/watch?v=8IQ_TBJHrcU

      Delete
    4. He rarely talks of time and price anymore. Except 50,000 dollar gold that is no help.

      Delete
  3. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/12/17_Absolutely_Shocking_Developments_In_The_War_On_Gold.html

    I am not a fan of any particular website, nor prognosticator, but thought this story could be on to something. It sort of answers some questions I file away in my mental file drawer. They could be wrong answers, but worth a look.

    In order to get gold down to 1,000 on COMEX, the globalists are going to need a lot of physical. After the traditional holiday season, where demand falls, the time is right to make the attempt....

    ReplyDelete
  4. Saw Smaug at IMAX 3D. Freaking awesome movie!

    ReplyDelete
  5. in '59 it was Russia; in '89 it was Japan; in '09 it was China; wrong, wrong, and wrong. Staying short beans, corn, Yen, and gold. Waiting to get stk signals to go short but keeping my ego checked at the door. That is all from sparks

    ReplyDelete
  6. Bitcoin peirces through $500 like I predicted. Anyone who bought over $1,000 must've been born yesterday.

    I don't see the Fed tapering today either, gold will pop sucking longs in for the finale to under $1,000 for a bottom in January.

    ReplyDelete
  7. keep your physical hedged with enough leftover to pay the hefty cap gains taxes... I hope gold doesn't go down anymore this year. i have enough taxes to deal with already.

    I need to break up the profit into 2014.... Please hold here. The longer it holds in this bearish wedge, the harder the fall.

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  8. CIGAs better bend over and brace themselves in a crash position, platinum and palladium getting destroyed.

    ReplyDelete
  9. Gold looks like it wants to blow to the upside as we get closer to the meeting. Could pop $50 today.

    ReplyDelete
    Replies
    1. Likely Fed memeber's are already texting their friends to start buying gold.

      Delete
  10. Silver with an $18 handle = :-)

    Small Price to pay for Happiness !!!

    ReplyDelete
  11. gold to have short covering rally

    ReplyDelete
  12. Gold could be going to the moon any minute.

    ReplyDelete
  13. Prophet,
    This is a weird day. Last Sept. everyone expected a taper and gold shot up. This time it could be the opposite. I hope you are right.

    ReplyDelete
  14. Concord

    Tapering could actually be very bullish for gold. Rising interest rates will get the velocity of money going = inflation.

    ReplyDelete
  15. Hi ho Silver. Misfits on the ISLAND OF MISFITS ARE SINGING SILVER AND GOLD. Example of AN eventual loss of any credibility on part of the Fed. The it's a recovery crowd are going to get slaughtered eventually. That will include the 10 year yield which will force a larger buy in the market. About the time Ben's Benz tail lights go out of sight. Better start cashing out of this PONZI.

    ReplyDelete
  16. the bearish wedge is still in place. What caused me to fully hedge my physical at the 1632 bearish wedge failure is now setting up at the same level here at the 1232 level. The last two numbers is what I like to key on. Same chart formations and same last two dollar numbers. I thought there would have been more of a short rally. I see the stopping of gold by JPM as being supportive - until next month....

    I just unloaded some call options on the spoos at 1794 level. real run up here, but i see QE tomorrow and Friday helping to keep these levels though. shorted two gold eminis on this pop and am fully hedged again.

    ReplyDelete
    Replies
    1. bearish wedge about to break

      Delete
    2. got your selling shoes on, ladies? sparks

      Delete

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