Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No
Commodities / Gold and Silver 2014 Sep 27, 2014 - 03:37 PM GMTBy: Michael_Noonan
As we near the end of the 3rd Q for 2014, time is running out for all the 2014 enthusiasts that are calling for higher prices by year-end. The lessons learned from 2013 have been forgotten as not only are not prices beginning to move higher, they are making new recent lows. Incredibly enough, many of these prognosticators are paid pretty well by their subscribers. Lesson to be learned? Absolutely no one can divine the future.
Here we are, in the cheap seats, showing our unadorned, simple charts each week, repeating the most basic advice possible: The single most piece of information one can have is knowledge of the trend. If the trend is down, do not be long, [at least not in the paper futures market]. Buying and holding physical gold and silver is a totally different issue.
It may be evident, at times, that we have no pre-determined agenda for each week's article. Already, we are far away from what we thought we would write just as of last night. A function of this more stream of consciousness weekly endeavor is that we are no locked into maintaining a false hope, pitching something that is contrary to what the market is advertising.
Last year, there was "hope" when news would come out about record coins sales, huge Chinese lines queued to buy gold, record tonnage purchases by China, Russia, sometimes India. We are amused to see similar articles appearing again, recently. Does that information really matter? Is it impacting the market? Not in the least.
We could be wrong, at least about our "story" that attends the charts, but we are not wrong about reading the chart direction. There is a reason why we keep saying to stop listening to what others are saying, and pay attention to what the charts are saying about those others who actually participate in the markets. Once more, there is no better source for what is happening in the markets than the market itself.
Our story is that the precious metals[PMs] markets will not turn until the US and the UK lose their control over the money markets. It could not be any simpler. When will that control be lost? Not any time soon, and 2014 could very well bleed into 2015 and 2016 just as 2013 did in 2014. It could all change next month or sometime thereafter, but until it does, no change is happening, yet.
The UK is less problematic because it does not have the military might that the US has, the Empire of Chaos, led by the Nobel Peace Prize winner ***** War Lord of the Flies, Barack Husain "Obomba" "If we do not have a coalition, we will not bomb Syria." He had no coalition because his "closest allies" bailed on him. True to form, he bombed anyway, and he was joined in a last-minute "coalition" of other Arab nations that want to get rid of Bashar al-Assad, president of Syria, at all costs.
No one can stop the United States from inflicting its debt pain and military might against those who do not go along with the NWO [a wolf in US clothing], or "you will pay the price by having your country wrecked." In the world of international laws, none apply to the US when they get in the way, and there are no consequences. Did international law stop the Obomba administration from backing a coup against a sovereign Ukrainian president, kicked out and replaced with a puppet loyal [at the end of a gun barrel] to Washington? It used to be only Mao Tse Tung who ruled with power from the end of a gun barrel.
Why Ukraine? An effort by the NWO to keep Russia from supplying gas to Europe. [Always follow the money]. Ukraine is a way to disrupt the flow of liquid gas, but Russia made a huge deal with China, last May, and has its biggest partner and recipient of Russian gas ready and willing to deal with each other, and without using the petrodollar! The pillars are crumbling for the debt-laden, gasping for life petrodollar [the US "dollar" used for all international trade contracts, at least until recently].
Why Syria? Certainly not ISIS. ISIS is a product of the CIA, just as al-Qaeda was. These were anti-Bashar fighters trained and armed, even financed by the CIA. Because the CIA does not understand Islam and the too-many different factions, most of whom do not get along with each other, these newly armed and trained fighters decided to go their own way according to their own version of Islam. Kind of like Obama: If you do not agree with us, then like Alice in Wonderland's Queen of Hearts, "Off with their heads!"
Syria is an important end route for planned gas pipelines from Russia en route to Europe. The West will not tolerate competition from Russia, a country unwilling to relent its national sovereignty and cater to the NWO and their bearing-gifts-of-debt to overtake any country willing to accept such "gifts," not with any strings attached, but chains and no hope of escape. It is just like the Eagles song, Hotel California, "You can check out any time, but you can never leave."
For a point of clarity, to not be misunderstood, when we talk about the US, Obama, UK, or any other country, we talk about the government in charge and not about the people being governed. Americans, as individuals, are a fun-loving people, so are Brits, Russians, Palestinians, Chinese, almost every culture. People just want to get along and be content living their lives. The problem is the governments that control the people.
The federal government is in charge of the US, but only as a corporation, doing everything possible to enrich those who control and are a part of it. The US, all Western countries, are under total control of the moneychangers, the elites, a handful of people who control the entire central banking system, which in turn, controls the governments. None of these governments, none, care about the people being governed, except for lip service. BFD.
The Empire of Chaos war machine is in full gear, and it will go after any country, any people who get in their way, and that includes going after Americans in their own country. The NSA, FEMA, TSA, Homeland Security. All of these organization have one purpose and one purpose only: Protect the interests of the banking system that controls the nation. If you think hell hath no fury like a woman scorned is something to be avoided, try getting in the way of the elites. Lincoln and Kennedy did. Bang Bang, [My Baby Shot Me Down - Cher]
That is the war side, and we are just scratching the surface. Always remember, gold and silver are the antithesis to the elites fiat paper, now computer blips. Central bankers are suppressing the PMs to eliminate any competition to their paper debt Ponzi scheme that is beginning to unravel, thanks to China and Russia, now BRICS and a larger number of countries willing to tie their future to the growing prosperity plans of China and Russia. Both countries are always engaged in deals to foster growth, constructively utilizing their energy or making deals with, and not bombing, other countries with their own energy sources willing to cooperate without having to give up their sovereignty or become debt slaves.
Germany flinched after asking New York to return its gold. [Gone, Germany, long gone by the same powers with whom you continue to deal.] Bush, Clinton, Bush II, now Obama have done the bidding of the elites and traded away or sold all the gold for money and power. Germany stopped asking for the return of its gold, most likely under the threat from the elites to back off, or else. She backed off. There is no gold.
If Germany, considered the sole powerhouse of the EU, will not stand up, what country will? Maybe the AfD party, Alternative fur Deutschland, will embarrass Merkel into doing the right thing for Germany and her people. The AfD is a new party that wants to leave the EU and stop funding the other parasitic EU countries. As long as countries are willing to sacrifice their economies, crippling companies, hurting the economy, and harming the economic viability of their people, gold and silver are not going anywhere.
What about Switzerland? There is a gold referendum on 30 November that would require the Swiss central bank to keep at least 20% of assets in gold. The Swiss people want this, but the Parliament [government] opposes it. Why? It would "impinge on the Swiss National Bank's ability to conduct monetary policy." In other words, it would stop the Swiss economy from being more "fiatized" [our word], to being less "fiatized," or less burdened by debt. The Swiss Bank would not be able to "print" [digitize] more fiat. The gold-asset holding right now is at 8%. It used to be higher, but the Swiss caved-in to the elites and joined the fiat crowd, as demanded.
What people want does not matter. What the elite-controlled Western government sycophants want is what the people will get.
None of these stories are news-headline-grabbing, but they are pieces of the puzzle that, when put together, a picture of how the elites run the world suddenly appears. They are in control. No one can oppose their power. China and Russia are opposing them, right now, and their strength, backed by huge natural resources, [Russia], and massive amounts of gold, [China and Russia], engaging and encouraging other countries to build and grow from within, may very well win the day and be the catalyst to bring down the Empire of Chaos, led by the evil cabal of debt serpents, the elites.
Neither China nor Russia are in any hurry to see gold and silver rise, as long as they can continue to buy both at absurdly low, artificial prices. In fact, low PM prices are a huge leveraging source for China to continue to buy up the United States assets as this country self-destructs into Third World oblivion. The elites are encouraging this process for they have bled this country dry of all its wealth. Now they just want control of the carcass and its military capabilities.
We received many positive feed-back e-mails, lately. Thank you. Our inbox was also inundated with an abnormal amount of spam. In the process of erasing the spam, we also erased several e-mails before we could respond. Our apologies to those who did not receive a response after sending such kind words. Any time any of you have some tips or information not being reported, do not hesitate to send it along.
The charts:
Something happened to our chart sizing, and our computer guy is unavailable to make the changes. Apologies.
The strong rally on the monthly chart says to pay attention and do not ignore this higher time frame. Volume was the highest up volume, and it erased the higher volume when price sold off in 2013, first arrow. The ease of upward movement shows no sign of any stopping activity, so all one can do is watch and let it play out. Despite detractors on the future viability of the "dollar," and we are one, the elites are not about to let it roll over and die without a strong fight. PMs are likely to remain weak with a strong dollar.
Expect more of the same from the war-monger US, and if things get more desperate, there could well be another 9/11-type event to scare people into accepting more and more governmental control, and the government using such an event, [created by the elites, of course] to blame its failures on others. Anything to deflect the blame away from the bankers who created all the economic problems, and continue to do so with impunity.
The chart comments are self-explanatory. The smallness of the weekly range is like a shot across the bow for the bears, at least seemingly. It acts as an alert, as opposed to a signal upon which to act. What we want to do now is see how the market responds/respects what could be the start of the end of the bottoming process.
Keep in mind, it takes markets longer to bottom or top than most expect. This market is already two years in process, so as price moves farther along the RHS [Right Hand Side] of the trade range, it is closer to a final resolve.
The high volume from Monday, 5th bar from right, explains why the weekly bar was so small. It could be that Monday is a form of stopping volume, and Thursday's lower bar on increased volume without continuing lower adds credence to how Monday's bar is viewed. NMT [Needs More Time]
Any time you see a market making lower highs consistently, as gold has done, it is a sign of weakness. Where silver had a small range bar, gold's close is barely lower from the previous week, and that indicates a loss of downside momentum. Is it enough to say the market is turning? No. NMT.
We often mention clustering of closes as being either a resting spell before resuming the trend, or a possible turning point for a counter move of some kind. The lower volume when price tried to rally, during the clustering, was an indication that the downside was more than likely to resume.
The holding of price, at 2, after a new recent low, and the strong close are positives, as is the holding of Friday's decline on lower volume, but these are observations that need to be watched for confirmation that a potential rally may develop, [a bias here], or more sideways activity, possibly eventually still lower. As always, let the market declare itself more conclusively, as it always does.
The market will turn when it is ready, and not a day before. Understand that.
By Michael Noonan
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.
© 2014 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.
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