Our friend Turd from TFMetals is looking for a massive short covering rally in gold and silver to kick off with tomorrow’s April BLS report, after the cartel has openly and blatantly capped and suppressed both metals all week.  TF has a history for making great calls regarding bottoms in gold and silver.
Gold closed the month of April down for the 3rd consecutive month for the very first time in its 11 year bull market- a sign that a bottom is likely imminent if not already placed.  Look for silver to make a brief dip under $30 tomorrow prior to the BLS report, where we will be a ready and willing buyer.  As we have mentioned previously, extreme negative sentiment among the PM community is also indicative that a bottom is near.
Be right, and sit tight.

Here comes a stream of consciousness. Probably not a good idea but here goes.

I think this is all a big setup. However, this time, it’s an opposite setup to what we’re used to.

The action this week seems to be a coordinated effort to suck in and trap as many spec shorts as possible ahead of tomorrow.

Every headline this week that could possibly be used to raid the gold market has been utilized.

Today is the latest example but note that the dollar was declining and silver was flat.

The decline after the claims number was released was on less than 2000 contracts. The Cartel pulled their bids and allowed the WOPRs to quickly drop price through some sell stops at 1640. This process has continued to this moment as gold has now made a low near 1635.

This final drop was worked in around the London PM fix and now gold will likely trade sideways to higher the rest of the day as WOPR positions are squared before the close.

The stage is now set for a massive short squeeze tomorrow. Look, I have no idea what the BLSBS will be. How could I know? Maybe we’ll get 7.9%, 250,000 jobs and $100 down in gold. I have no idea. What I do know, however, is this: Today reeks of a final suck-in of shorts ahead of the number. Does The Cartel know what the number will be? Maybe. I can tell you this: The likelihood of them knowing ahead of time is infinitely higher than the likelihood of me knowing.

With so many weak handed longs stopped out this week, there are really none left. And now, all of the weak hands are on the short side. They look ripe to be squeezed

A spike tomorrow, post the BLSBS, looks likely. Just as how The EE allowed the final silver spec longs to be drawn in on Feb 28 ahead of The Leap Day Beatdown, The Gold Cartel has allowed the final gold spec shorts to be drawn in today.

A spike tomorrow will cause extreme pressure on the gold shorts. A move back toward 1660 and beyond will cause them to cover. London is closed on Monday. This may cause additional shorts to cover. Would you want to be short over the weekend if NFP comes in at under 100,000?
Read more from TFMetals:

  1. I like this guy.  Anyone with the nads to put it on the line and have a blog handle “Turd’ is all right by me.  Heck, I even fed the Turd a few oz of phyzz a couple of weeks ago.  If the BS of NFP can come in with something as pathetic as 100,000 jobs, we are really screwed.     job stats have been less than half of what is needed to drag us out of this Depression.

    There, I said it. Depression. 

     F me. If this gets any worse, and with Europe circling the drain it will get much worse,  we are in for a really rough patch    Hope and Change?  Uh huh.   Got you there Obama—good job and that goes for Bush, Baby Bush, Clinton etc etc.  This really makes me sick.   Silver is the bright light in this gloom and doom, if it gets a kick in the butt tomorrow. Stack high brothers and sisters, prep and get your troops in a row.  We will need it.  ISYN

  2. The manipulation and ‘downside volatility’ of gold and silver prices is becoming increasingly blatant and more widely acknowledged.  Under such conditions, there can only be two primary types of reactions to silver and gold as investments:

    1) Those who give up on anything related to gold and silver, because they see no end and no let-up of the manipulation.

    2) Those who recognize these blatant manipulative actions as signs of desperation on the part of the manipulators, and ‘go for the jugular’–ie, keep on stacking physical.

    Group 2) is all the people who understand what’s really going on.  Group 1) are people who will eventually join the Group 2) folks.

    The End.

  3. I hate to be the one frequently pointing out potential flaws in logic.  But generally speaking, short specs (weak hands or strong) have been the allies of the cartel.  To set up “an opposite setup to what we’re used to” with the cartel targeting overly exposed shorts would be to send a message to said shorts to think twice before going short again.  Why the heck would the cartel want to do that?  Again, the shorts do part of the work for the cartel.

    Believe me, I understand that the cartel has an interest in covering some of it’s short position on occasion after big declines like we have seen, and if in doing so they run over some spec shorts in the process, too bad, too sad.  That does indeed happen.  But to make an aggressive strategy of trying to scalp shorts?  That doesn’t make sense.  Afterall, the cartel is not doing this stuff to make a profit so they don’t have the pressure felt of a normal trader and they can (and currently do) sit and ride out totally uneconomic short positions indefinitely alongside the buy/sell trading they do to let off steam from time to time.  The cartel tends to cover their shorts after the price goes down from exiting longs.  That is the norm, even as Turd admits in his post here.  It does look like a higher percentage of spec shorts might be collateral damage this time around, but to say that’s the cartel’s strategy simply doesn’t make sense.

    As for a fast short squeeze bounce, I totally agree with that being imminent.  It’s totally insane out here.  The negative sentiment is about as low as I’ve seen it since the late 1990s in the PM sector.  The degree of outright lies and manipulation has never been higher across the board – everywhere and about everything economic and political, and a growing number of people know the global economy is about to pull a 1933 swan dive.

  4. A set up for a paper price smack around is likely very well be in the works… But who is to say there is only one set up taking place? How do these corrupt thieves all get on the same page as to not work against one another?? These would cancel each others manipulative actions out as we saw not to long ago with many thousand of contracts being sold off in a mere minute while almost at the same time the complete opposite action was happening likely from another group… This may have been a reaction to the sell off or just poor timing in an attempt to raise the spot price… We know beyond reasonable doubt that “they” use weeks like this to make there corrupt fiat using the fabricated jobs number as an excuse… Sending the price in a rocket launch upward or a bunker buster drill downward would either way generate the manipulators fiat… It is just a matter of a proper set up prior to there manipulative actions…
    I still believe that “glitch” we witnessed Sunday night is tied into what we are seeing this week…

  5. Hope silver climbs the wall of worry .   Thank you for your words of wisdom FW.  Butler has frequently noted that the weak hands are constantly getting run over  But he noted that JM made $500 million in the last bring forced drop in the price of silver.    I have to wonder why weak hands keep coming back to the well time and time again.  Some people never learn     But that’s not really important now since forces are in  play that might  make  the macro view of silver a bit different, giving us that elusive short bump.  Anyone with a lick of sense is buying at this juncture including our BRIC friends to the tune of 250 million oz this year.   Adios argentum. 

     PS Peru is expanding its silver mine prodution big time  Do they smell the shortage too?

  6. FW, AG, Danno, Ordinary Joe, Ordinkoroshi ya’ll made my day. Aragornsos, add to that stack. Bring on the BLS. I just added to my stack with the DOC and Bullrun. I think I’ve got to find a way to get more dry powder fast.

  7.  

    Doc,

     

    Again, you know who this is.

     

    As I have already predicted before anyone else with my comment from yesterday… Gold and Silver are going to get hit really hard tomorrow in addition to today. Everything is lining up. A classic cock block by the CME by doubling margins for non-hedged accounts and the historicity with the beginning of May being a great short week for the metals (see May 2010).

    My only recommendation is to get your pocketbook ready b/c tomorrow from my perspective is going to be one of those days where you can really pick up your favourite shiny schtuff at extremely manipulated levels. I am under the opinion that tomorrow will mark the official bottom and from here on out you could see ag move upwards of more than 40 an ounce. 2013 will be the year of the precious metals after oil makes its move in the next few months. Anyways, get ready for the fireworks tomorrow folks.

  8. I think TF is exactly right about this call.  All the indexes and indicators for PM’s are bloody, insanely low levels.

    I think this May Massacre will be on the shorts, and tomorrow could be the EE letting loose the dogs of war.  Let’s not get in their way.

  9. Hi SB,

    That is fine that you ask. I am not sure who he is but I am working with people that are extremely involved. Maybe I should get in contact with this Drake fellow….. We should arrange to speak on skype later this afternoon if you can help us get in contact?

  10. Everyone I know is Scared and Running out of the Market,
    I will do the opposite, I don’t care about short term moves,
    I can’t be forced out, in the investment world, its been my experience that the Majority is usually wrong.
    I try to take actions with the Minority. Right now it is exciting either way!

  11. Back in Jan. and Feb. we had one occasion each month when silver bounced strongly on the day of a traditional take-down fiesta.  One of them was an employment report and another was a COMEX expiry day.  These reversals were unusual, because the previous pattern of downside attacks on said days had mostly been in place without fail for nearly ten years.  No joke.  Back in Feb. I commented on the change at the time.  That was the reversal that lead to the run to $37, when the cartel said no mas.

    If the near-term historical pattern repeats, today’s dip below $30 was the low and we’re going to have a counter-intuitive (based on the old historical pattern) blast higher, partly fueled by short covering. 

    So, in essence, I agree with Turd’s directional call even though I think he’s wrong about the cartel taking on a new tactic about aggressively attacking weak hand shorts.  Some of those shorts due get squished from time to time, but those poor saps are the cartel allies and the cartel doesn’t want to kill them.  

    Bottom-line:  I think we hit a near-term bottom today.  Time will tell.

    Thanks all for the comments – great thread!

  12. Dry Powder, Wet Powder I dont cair, Waiting to buy in a dip? I never stop buying. We have been in a dip since last september. Although I dumped a ton of fiat on silver in december when it hit $27 oz. 

  13. Glad I could help 2oz!!!Hehehe… I myself am working on putting a LARGE deal together… I’m liquidating everything I can!!!
    427 I’m the same way… I haven’t stopped stackin… I ‘m just hopin to get a deal or 2 done in time to take advantage of short sharp dips…
    It’s just gonna be a bitch when I can’t get into the bunker cause it’s packed top to bottom with Phyzz, guns, ammo, and a couple Peanut butter and jelly samiches!! HAHAHA

  14. Hay Danno,

    What No Beer? Im going to 2oz’s then when the SHTF! Just sitting hear bord waiting for Doc to post. Looks like he is planing on shoving 5 post down our throats  at 11:58
  15. So Danno you have Pro Mods? I build Classic Mussel cars, not to much lately though. Im in the middel of a 64 Comet AF/X clone. Fiber glass trunk,doors,fenders,hood, 427 fe high riser, 4 speed top lodder, 9″ rear. 

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