Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Global Banking: Some Sectors Look as "Precarious as Ever" - 28th Oct 20
Silver Price Minor Dip Possible Before 2nd Major Upleg Starts - 28th Oct 20
�� How to Carve a Simple and Scary Pumpkin Face for Covid Halloween 2020 �� - 28th Oct 20
Gold Price One Last Dip Likely Then Major Upleg to New Highs - 28th Oct 20
Smart Money Is Going All-In On This New Gold Frontier - 28th Oct 20
Gold Stocks Still Correcting - 27th Oct 20
Gold and Crypto: Is This How Charts Look Before A Monetary Collapse? - 27th Oct 20
Silver's Coming Double Trigger Shotgun Price Explosion - 27th Oct 20
The $126 Billion Gold Opportunity in Australia - 27th Oct 20
Tips to Breeze through Your Spanish Classes Online - 27th Oct 20
Try The “Compounding Capital Gains” Strategy Today - 26th Oct 20
UK Coronavirus Broken Test and Trace System, 5 Days for Covid-19 Results! - 26th Oct 20
How the Coronavirus is Exacerbating Global Inequality, Hunger - 26th Oct 20
The Top Gold Stock for 2021 - 26th Oct 20
Corporate Earnings Season: Here's What Stock Investors Need to Know - 25th Oct 20
�� Halloween 2020 TESCO Supermarkes Shoppers Covid Panic Buying! �� - 25th Oct 20
Three Unstoppable Forces Set to Drive Silver Prices - 25th Oct 20
Car Insurance And Insurance Claims and Options - 25th Oct 20
Best Pressure Washer Review - Karcher K7 Full Control Unboxing - 25th Oct 20
Further Gold Price Pressure as the USDX Is About to Rally - 23rd Oct 20
Nasdaq Retests 11,735 Support - 23rd Oct 20
America’s Political and Financial Institutions Are Broken - 23rd Oct 20
Sayonara U.S.A. - 23rd Oct 20
Economic Contractions Overshadow ASEAN-6 Recovery - 23rd Oct 20
Doji Clusters Show Clear Support Ranges for Stock Market S&P500 Index - 23rd Oct 20
Silver Market - 22nd Oct 20
Goldman Sachs Likes Silver; Trump Wants Even More Stimulus - 22nd Oct 20
Hacking Wall Street to Close the Wealth Gap - 22nd Oct 20
Natural Gas/UNG Stepping GAP Patterns Suggest Pending Upside Breakout - 22nd Oct 20 -
NVIDIA CANCELS RTX 3070 16b RTX 3080 20gb GPU's Due to GDDR6X Memory Supply Issues - 22nd Oct 20
Zafira B Leaking Water Under Car - 22nd Oct 20
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold And Silver - Wall Street, aka United States, Pulls Off Another Destructive Coup

Commodities / Gold and Silver 2014 Dec 13, 2014 - 06:23 PM GMT

By: Michael_Noonan

Commodities

The clichéd definition of insanity is doing the same thing over and over and expecting different results.

There is no room for sanity in the United States, anymore, and the public is sleepwalking through it all. Arguably, this has been carefully orchestrated by the elites over the past century, as in 100 years and not just in the past decade or so. Capitalism is dead in the US, and has been for decades. Ironically, China and Russia are far more capitalistic. Once the elites took over the money supply, with the passage of the Federal Reserve Act in 1913, there was a concerted effort to take over all media and start a propaganda scheme that is far superior than any other country in effective population control.


What did Wall Street just do? It guaranteed that any losses from all derivatives that arise within the bankrupt banking system will be passed onto the taxpaying serfs called United States citizens. When Congress just passed its bill allowing the [bankrupt] government to keep spending with abandon, attached to the bill was a portion written by Citicorp that allows financial institutions [read that as Wall Street banks] to trade in certain derivatives that are insured by the FDIC. What it means is that taxpayers will be responsible for all losses resulting from theses derivative contracts.

The US debt is now at $16+ trillion dollars, thanks to "I-will-cut-the-deficit-in-half-if- you-elect-me Obama." Trillion dollar deficits were unheard of before Obama was elected. What is the potential loss exposure by these bank's derivative gamblings? $300+ trillion. The banker-caused crash of 2008/09 was nothing when compared to what will happen when these risky derivative deals fall apart, as they will. With losses socialized, there is no incentive for bankers to be careful in crafting their derivative deals that are created solely for the purpose of generating huge fees for them. If a deal happens to work out, it will have been by accident.

How much insurance is there within the FDIC [Federal Deposit Insurance Corp]? About $25 billion: $25,000,000,000.

How much in deposits are there in US commercial banks? About $9,300+ billion: $9,300,000,000,000.

One more time: what is the derivative risk exposure now written into law" $300+ trillion: $300,000,000,000,000.

When the banks lose on their derivatives, and after allowing for $25 billion in FDIC insurance, the public now is on the hook for the remaining $299,975,000,000,000. This makes the current deficit of $16 trillion look more like petty cash.

Where is the public outrage over this? The short answer: There is none.

This is on top of yet another non-public outrage announced at the end of the G20 meeting in Brisbane, back on 16 November. Legislation is to be written that all bank deposits, [hint: this means anyone having any of their money held by a bank] are considered a part of a commercial bank's capital structure. If there is a bank failure, the "value" of deposits within a failed bank will decline in line with the bank's failure. In other words, large-scale depositors will find themselves in the BK court system for years before the bankruptcy court makes a final determination as to the scope of any depositor's losses. What was once called a "deposit" is now just a "part of the bank's capital structure,' as in "It ain't your money any more, Fool."

Where is the public outrage over this? See above the last paragraph.

Now US banks are telling depositors that they will be assessed a fee for keeping deposits in banks. The banking system as it was initially set up in this country no longer exists. It used to be said of gold by bankers [and still is], that it does not pay any interest. Well, with certain banks, that now holds true for "cash." [Four legs good, two legs bad."]

How does this relate to silver and gold? Neither have any counter-party risk. An ounce of gold or silver will always be the same ounce. The only factor that will change is how that ounce is "valued" by a different medium of exchange, almost always some form of fiat that has no intrinsic worth. The insanity of ongoing central bank suppression of gold and silver to levels that defy the unprecedented demand world-wide will come to an end, which always comes back to the "When" factor. When it happens and not a day before, is the best answer we know.

Gold just took a turn for the positive, at least for now, when last week's rally went above the broken support of the 1180 area and held. We tend to be on the opposite end of the spectrum for making a "call" on the gold and silver markets. Most others want to be first to say PMs are going to rally and have their market call be timely, but their timed "call" is usually one that has been made on several previous occasions. Our take on the market comes from the market itself, and unless a bottom has been confirmed, and none has since the highs of a few years ago, then we get to deal with what is. Unlike Clinton who said, "It depends on what the definition of 'is' is," our definition is confirmation.

There is a potential for gold to be forming a bottom, based on the explanation provided on the chart below, but there are a few steps that must be met before anyone can say, "The bottom is in." If these simple but important steps are not met, then there is the likelihood that yet another low can occur.

"ESF" on the chart refers to the Exchange Stabilization Fund, ironically.

Gold Weekly Chart

If you look at the weekly and the daily chart you will continue to see a series of lower highs and lower lows. We have yet to see any definition that incorporates that kind of activity to define an up trend. The current rally in gold has not yet surpassed the mid-October swing high.

What to look for in order to say the daily trend is up [which may not necessarily change the higher time frame weekly chart]? Gold needs to demonstrate stronger EUM [Ease of Upward Movement], evidenced by wider range bars with strong closes and increased volume. Call that part 1. Part 2 consists of a market correction that shows a weak reaction in the form of smaller ranges, positive closes, and decreased volume, indicating selling has dried up. Part 2 is what confirms part 1 that enables one to say with more authority that a trend change has taken place.

If the part 2 correction takes the form of wide range bars [showing ease of movement], closes on the lower part of the range, and increased volume, either a new low can occur, or it is a sign that price has more work to do before turning stronger, and being long could prove costly.

Gold Daily Chart

Despite silver's chart structure being much weaker than gold's, and it requiring a lot more effort to change its down trend, silver has been performing slightly better than gold, using the gold/silver ratio as a gauge. It is presently just under 72:1 where in recent weeks it had been consistently running between 73:1 and 75:1.

With that observation, nothing much further can be added until the chart structure improves.

Silver Weekly Chart

The immediate band of resistance from October will provide important feedback by the manner in which silver negotiates it. A strong rally above 18, followed by a weak correction would go a long way to improve the odds favorably for silver. Until some more visible sign[s] of strength enters this market, it will continue to meander.

Beyond the chart reads, we remain staunch advocates for buying and holding either or both metals. The criminal enterprise federal government has clearly demonstrated that the American people are the enemy, and that began by declaration from FDR back in the 1930s when the Trading With The Enemy Act made US citizens enemy of the State. To trust anything other than gold and silver against the federal government's actions that clearly demonstrate the bankers are in charge is pure folly, plain and simple.

Silver Daily Chart

By Michael Noonan

http://edgetraderplus.com

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.

Michael Noonan Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules