SD Friday Wrap: Pressure was applied to gold & silver all week long, but the cartel was NO MATCH FOR gold & silvers’ RAW POWER!!!
What a week!
What a week it has been!
Silver withstood the pressure all week:
After spending a lot of time under $17 this week, that is, after trading with a 16-handle, we’ve really seen a nice move higher in price today!
I for one am surprised.
I thought the cartel would pound silver out of spite, but it now appears they simply can’t smash!
How did the cartel try to do it this week?
I think they tried to get the specs and the HFT algos to do it for them, feeding off of the cartel-induced downside momentum.
Looking at the 15-minute chart above, it is clear the cartel got the momentum to the downside going every day this week, including last Sunday night when the “markets” re-opened, with the exception of Tuesday.
They were relatively successful, and going into today, it sure looked like the momentum was set-up for the bottom to drop out of silver.
And then Trump happened.
Not once, but twice.
First, with his Public Enemy No. 1 Tweet:
Because everybody knows when Powell says the Fed will do whatever is appropriate to “sustain the expansion”, well that’s just not good enough for Trump.
President Trump wants MOAR!
And he wants it NOW!
Get to the choppa!
Cut now by 100 basis points Mr Good-For-Nothing-You-Ruined-It-All-Powell!
It’s too bad President Trump isn’t serious when he asks his only question (his qualifier, not mine), because, in my opinion, the Fed is a domestic terrorist organization which has, via their 97% debasement of what was once our sound, Constitutional money, directly murdered millions of Americans at an ever increasing annual rate.
Oh, the Fed murders them when they force the elderly to skip life saving medicine because they’ll die of hunger first if they don’t use what little fiat they have left to buy food, and so the elderly person dies a slow, painful death.
Or, the Fed murders them when they manipulate markets so a farmer here or a farmer there arrives at the edge and commits suicide so that the life insurance policy will kick in and his surviving family won’t be kicked off of their land and livelihood because they can’t get enough income from their harvests to pay down their debts because they’ve had to borrow more and more just to stay afloat due to soaring inflation.
Those are just a couple examples.
If President Trump was truly a “good guy”, he could do the right thing for the nation at any moment.
But he doesn’t.
And so the Fed will keep murdering the elderly.
And so the Fed will keep murdering the farmers.
And the government, MSM, and Wall Street et al. just let it slide at best, or at worse, actively participate in the murder.
Friends, stackers and trolls, there is a problem with all of this, and I keep saying it in my articles and during our live-streams: How in the world can President Trump claim to have a booming economy, in fact, the best economy, ever, yet at the same time need immediate emergency stimulus injected into the American economy?
It’s not 4-D chess: The economy is either in dire straights and collapsing and hence the need for emergency monetary stimulus, or there is no need for emergency stimulus because we have the best economy ever.
It’s either, or.
The American economy can’t be in the best shape of its life if it’s dead, and if the American economy is dead, it can’t be in the best shape of its life.
It really is that simple.
Second, we have a whole series of Tweets that got gold & silver moving yet again, today, Friday:
That’s some pretty heavy stuff right there.
Yet nobody calls him out on it.
Why does nobody call him out?
Well, the Unicorn & Rainbows Left actually think Trump’s not a Deep State Globalist, so they can only talk about how “crazy” he is, and the Red Hats cheer this kind of stuff on because, well, as my daughter would say, “duh”, he is, after all, the greatest President, ever.
Question: Can a direct order be given using a personal Twitter account, much in the same way Hillary conducted official Deep State government business with a personal email server?
Follow-up question: Even if a personal account could be considered official executive action, is what President Trump is ordering even legal?
Contrary to popular belief, there is still this thing called the US Constitution, which, curiously, he did take an oath to defend, but while the Red Hats would have everybody believe Trump is a Patriot, President Trump has just urinated on at least one Amendment (4th) in today’s Tweetstorm.
It’s all in the name of “national security”.
It always is.
Too bad people don’t realize it’s not China but the Deep State Globalists in America themselves who are the real perpetrators of the Fentanyl epidemic.
But I digress.
There is this specific name where the government is intimately involved in all manners of business, such as Trump is time and time again, but what is it called?
The name’s “fascism”.
I forgot for a moment.
That’s all I will say about President Trump today, and believe me, I had no intention of writing about him, but the government can only ever do one of two things – (1) get in the way or (2) get out of the way, and our President is not capable of number 2, so I am forced to address it as it does in fact pertain to the economy and the markets.
On second thought, there is one more point I’d like to make about President Trump and what he did that caused the markets to move today.
You see, he’s already come with the “cut interest rates like you’ve never cut them before” and he’s already come with the “we don’t need you China or your crappy things”, so now all that is missing for a trifecta of fundamental factors causing gold & silver to move higher would be President Trump to come with the whole “inject the US dollar with some highly virulent but not instantly lethal exotic bird flu because the dollar’s just too dang strong”.
Needless to say, we may have just kissed a 16-handle goodbye in silver!
Next week will be very, very important for the metals in general, and silver specifically.
We really need to break-out above $17.50 and close above $18.
It will be interesting to see how the cartel reacts to today’s market volatility in general, and the action in gold & silver specifically.
You know what it reminds me of?
You know that scene in that movie where the bad guy is lying there, mortally wounded, but instead of going quietly, there is hate spewing mixed in with the sound of gurgling blood?
Yeah, kinda like that.
Bitter until the very end.
Perhaps the cartel is mortally wounded right now?
Because instead of plunging to $16.50 as I thought we would, well, this:
OK, “Hey Half Dollar, you idiot, you’ve been talking about a cartel smash all week, and now you just look like a fool, and oh yeah, your forecasting sucks worse than my broken vacuum cleaner, and your calls drop worse than those calls made on my 1990’s Motorola car-phone-in-a-bag!”.
I’m not offering any excuses here.
I thought, and I was wrong.
That said, the cartel pressure on gold & silver was there all week long.
I’m liking the fact that not only was the cartel not successful, but they got their butts handed to them on the last trading day of the week!
The question is, are we now in the clear?
Momentum’s on our side now?
I’m not so sure.
I think it depends on what happens after the “markets” close and over the weekend.
Why do I say that?
Well, look closely at one of the things President Trump said in one of his Tweets from today:
Like on a Sunday night?
Need I mention what happens on Sunday Nights?
Gold looked really strong today as well, with two solid moves higher off of the early morning lows:
And really, what gold is showing me is that silver’s turbo chargers are about to really kick-in.
The gold-to-silver ratio looks very bullish for silver right now:
That dead cat bounce is nearly textbook, other than the cartel tried to keep it moving unnaturally higher.
To clarify what I mean if you may have heard me say that silver’s turbo charger is about to kick-in, like I’ve written about before or said during our live-streams on Wednesdays, I think silver will blow-by $17.50, $21, $26, $30 and $50, so think of it like cruising along at 55/mph on the interstate only to down-shift into 3rd gear to blow-by a slow moving car or two.
Yeah, kinda like that.
I don’t like drawing lines on charts, especially since I don’t think charts matter a whole lot right now, but I just couldn’t help myself on silver’s daily chart:
Gold nearly put-in a new multi-year high today:
Next week will be very important indeed.
Palladium is riding the underside of its 50-day moving average:
We’re in a broad sideways channel between $1400 and $1500, and we’re finishing out the week right smack-dab in the middle of the channel.
The more gold moves away from platinum, the more explosive platinum’s move will be:
Platinum is a true scrappy fighter hanging in there above its 50-day moving average.
The commodities are not fairing so well, however, which is another reason why I have been talking about the “fear trade” lately.
I have been looking for more downside price action in the short-term with copper, and that is exactly what we see:
I think we could go lower in the short term, but I don’t think it lasts for long.
Crude oil was rejected at its major moving averages:
If we get some sort of Trump Shock this Sunday, we could see crude oil moving higher in a hurry, however.
The stock market sure is poised to start plunging:
If I’m right about the Deep State Globalist plan to bring on economic misery and financial ruin to America, the plunge will start very soon as each passing day gets us closer to the 2020 election.
The VIX was worked lower as expected but reversed today:
A spiking VIX will only add more fear to the fear trade.
Yield on the 10-Year Note plunged back down below 1.6% today:
I was looking for more of a move higher than what we saw before today, but that move is now likely over.
I have been calling the recent strength in the US Dollar Index a bull trap:
Because of the recent strength in the dollar since mid-2014, the perceived loss of value has been a slow trickle, but once the dollar starts falling, the speed with which each dollar buys less and less will be quite the sight to behold.
And I wouldn’t want to be holding those dollars, but hey, it’s all in the eye of the beholder.
I mean, the dollar is king and will always be king forever and ever and ever and ever.
Well, that is what our politicians and central bankers want everybody to believe.
Bottom line as we find ourselves here this beautiful Friday in late August?
People who believe the politicians and central bankers will suffer.
To say they’ll be wiped out is putting it lightly to say the least.
When inflation runs rampant, all heck will break loose.
Entitled Americans won’t be able to take the pain.
So they will take to the streets with their rage.
Sadly, most have no idea what is coming.
Alarm bells are immediately silenced.
By the government and the Fed.
Both are equally at fault here.
Fed’s monetary policies.
What’s my policy?
Prepare for it.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.