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As Fed Allows Red Close, And All Time Record High Close In Gold, Is JPM's Commodity Trading Desk In Need Of A Bailout?
Since it is now obvious that the Federal Reserve treats the market as its plaything, it is refreshing that even Brian Sack's henchmen throw stocks a bone. Today it was in the form of a triple whammy: i) a red close (yes, imagine that), ii) on a POMO day, iii) as gold surged to fresh all time record highs. And while it is unclear or not if this was an orchestrated red close (as the Fed has now confirmed it does all it can to push stocks higher, various "conspiracy theories" as to why the market may ever go lower may emerge), the short covering squeeze that the LBMA is undergoing right about now as margin calls flood, are all too real. Forget Bank of America. Pretty soon the real bail out target will be JP Morgan's commodity "trading" desk.
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how soon shall we start looking to take profits......short covering won't last forever........right?
I keep thinking now is a good time, that is, until the next buying schedule is announced.
when gov't and fed collude to pay people to take thier debt, then start shorting BAC. j/k, or am i?
A little birdie told me that it took Sprott over a week to locate only 65 MM worth of silver. Another 200 MM worth came from Europe ( massive shipping and insurance costs associated). Most of the rest he had to transfer from his other funds which held physical ( essential a paper transfer). He basically cleaned out alll that was left in physical in North America and Europe. Hence silver has run up dramatically in the last week as there is absolutely nothing left.
Got Silver
Profits in gold or stocks? Gold - I've been in a long time and will stay in a long time. Stocks will meander through the end of the year now. Probably close up around 1250-1275 EOY.
Mining stocks have only just started to catch up to the gold/silver price. I wouldn't cash out at this time. In fact.... who knows when this bull run will end; we are coming up to November-December seasonally strong time right now.... I'm keeping mine.
Bulls have been kicking a$$, I should have looked at the tape and not gotten swept up in the problems in the economy, Prechter / Mish and other doomers, and just chased price with leverage.
Seriously, Wanger, Robo & co. must be laughing at all of us as they ring the cash register and we cover our smoldering shorts, again......
T minus 8 days and counting...
8 days until what?
Top call #203981048024 bitchez!
ALL AMERICANS SHOULD SHORT BAC. IT IS YOUR PATRIOTIC DUTY. A JOURNEY OF ONE THOUSAND MILES STARTS WITH THE FIRST STEP.
No thanks, I'll just go long the metals. After all they will get a bailout anyway. Go, go, infinite moral hazard!
YOU AGAIN!
GO BACK TO YOUR YAHOO BOARD!!!
BOA edges closer to tipping point...
http://www.bloomberg.com/news/2010-11-04/bank-of-america-edges-closer-to-tipping-point-commentary-by-jonathan-weil.html
let the den of iniquity collapse....i am furious that my tax dollars are bailing out a rico criminal operation known as jpm chase.
and for fuck's sake there is 10 more minutes till market close - get a fucking clue.
I applaud your passion and anger. It's good to see some anger and outrage. But your tax dollars are not supporting the bailing out of a Rico criminal operation. That bailout money is borrowed.
However, if it will make you feel better, your tax dollars WILL pay the interest on that borrowed money. And your children's future tax dollars. And your grand kid's future tax dollars.
Mission Accomplished.
You highlight something I find funny about people screaming about the waste of our tax dollars. Since the US is running a $1T deficit, in rough terms about a 30% deficit of revenue. The taxpayer is actually getting all of this headache at a 30% discount! All of these bailouts, war spending, etc which are off budget are free!! I do not expect the debt to be paid off and a default will occur. The tax payer obligations will reset.
I believe you mean taxpayer is working harder everyday to survive and pay taxes. All so that the owners of the fed and wall street ceos can mine the productivity of the taxpayer through the federal reserve system.
All of what you wrote is true. I do take issue of people claiming "our tax money" is being used for this and that, when in fact the gov is spending substantially more than we pay in taxes due to borrowing and off budget accounting. The FED is a double wammy by debasing the currency we use to buy bread with no oversight and without bounds.
The system will reset. The time line is getting long enough so the survial rate is getting smaller and smaller. The holders of bonds will not get the return they are expecting (in paper $$ yes, in purchasing power no).
The system will reset.
Indeed it will Doctor. It needs to. Those holding PM's will do well.
And you may feel even better knowing that the dollars don't even exist to cover the national debt. The national debt is always larger than the number of dollars in existence; this is how the system was designed, and it wasn't on accident...unless you believe JPMorgan and his banking cartel made this fortunate 'mistake' when designing this system at Jekyll Island.
Do you think that now we are in November, that the 2011 budget will just be wrapped in with the 2012 budget, or we will just do away with budgets and debt ceilings. No debt ceiling=no gold ceiling, yes?
In the end yes. There will be a debt ceiling increase burried in some no voice vote, pocket veto bill somewhere. "Cry me a river" Boehner wants the status quo. If you dont believe me, watch his teary eyed speech on why TARP is needed. Remember, he voted YES.
Yup
Remember?!
Your advice is a couple weeks late, Doc...they already dropped the ball.
What? The DOW closed DOWN? There will be hell to pay at the FED tonight...
POMO II needs to show some effect on wednesday ;)
Tomorrow is a risky day and wednesday morning also untill PII
The name of the game is plausibility. They gotta make the show somewhat believable......just as long as your doing lines and shots.
PS: I loved you in that movie PALIN POLE!! Great acting!
.
Hey President Palin, how come your state's poverty line is 25% higher than everyone on the mainland?
Why was your state #1 in earmarks per capita again? (hint: he's no longer in the Senate)
Having fun with that $3100/man woman and child from the stim-u-less, hypocrite?
Um, you are aware that a moniker and avatar on a website are not the Real/meatspace person, right?
I think we'll get a small pull back tomorrow or wednesday. It's all overheating a bit to much.
I personnally think gold and silver will go down 2 to 4% by weeks end followed by a new rally.
Uh oh, you insulted someones golden cow - pun intended!
every pauze creates a support for silver and gold.
I would like it to be a stable run.
I think you may be right about a pullback. Check the freaky flash prints on SPY tonight.
Sweet...to be able to set short positions above the HOD. Wish I had that club card.
Those 'flash' prints in afterhours are most likely dark pool crosses that weren't closed by the MM until after market close, when he's not busy making sure his book is properly aligned.
Its above the HOD if you notice right to yesterday's closing price. Not really irregular as it happens often when you have your algo set to trade the VWAP or previous HOD/LOD.
You do realize most people don't own gold or silver? I am not sure if overheating is the correct term. It may appear to be overheating but in reality it is just catching up , after some neferious dickhead banks have had to take the break off of the atmospheric climb that is now appearing finally after all of these years.
Bingo, not many understand the dynamic that is now in place. This is very different than what has gone on before. All the "conspiracy" crap is gone and the viel has been lifted. Gold could climb $100 in a day before too long. And I am not joking. On top of that the Gold/XAU ratio is still way too fucking high at 6.40. Miners are LAGGING big time.
FWIW, only 8 of 14 miners (HUI) hit 52 week highs today. Yamana, Kinross and Iamgold nowhere near their old highs. A lot of catching up to do as these margins and profits get big, and wide and fat.
If every person on earth would buy a equal part of silver from all the supplies. They could buy 0,47 OZ
I own +- 3780 Oz of zilver and 120 Oz of Krugers and I'm still loading up.
Even if it takes 5 years for silver to skyrocket. I'm prepared and I'm keeping! :)
Silver could and will even bypass Gold in the future.
SD, are you sure you want to post that on a public forum? I'm not responding to your message so that you can edit it.
I only have a couple of 1964 dimes and some gold fillings in my teeth.
I swear!
On our last visit to Colorado, I buried ALL my Gold and Silver in Aurora, I swear!
JP Morgan & HSBC can eat shit & die...all bankers r sociopaths & as such have destroyed the economies of the world while simultaneously destroying the savings & welath of the majority of humankind...while doing so they have sought to discourage and destroy those who have long recogzied the worthlessness of the debt coupon currencies...death and destruction of their positions is a just reward...
fuck a banker.....
Salute to all Comrades n physical Gold & Silver...
Senior VP there at JPM JonNadler (and his new sidekick Obama2012) better beat those PM prices DOWN BIG or no bonuses for you as JPM swirls down the bowl...
What's the matter with those clowns at the London Bullion MArket? Just tell them the gold is in a safe place, it's so safe nobody even knows where it is, and so it's theft proof (and say it with arrogance). You can't steal something if no person exists who knows where it is? If there's a ton of gold in a vault and nobody is thinking of it, does it still exist? You see? Come on you morons, use your imagination a bit here, look at the US, we got away with the Fort Knox BS for almost 50 years. Jamie, Jamie where are you? Oh my, I am alone
+1408
Au: 1409.00
Ag: 27.70
now whoever feels so inclined can junk this post as well...get busy
The realization that all your favorite company's profits are denominated in rapidly dying dollars can be frightening.
... along with my salary
Blythe better start making plans to set up her own hedge fund... hmmm... how long did Meriwether wait before opening his doors after LTCM?
Would that be before or after prison time for manipulating the precious metals market?
This is all part of the theater called The virtual Stock market. It closed red because The machine has to show the world that its a good machine and there's a little humanity going on in its I5 processor. The factory programmed it that way. It dosent know its a bad machine, But the Factory knows. Thats why they sent it here.
Aw poor babies. Are they getting their little shorts squeezed? Damn, couldn't happen to bigger bunch of dickheads.....
So is wed a POMO day, I know they are releasing a new schedule then, but is it also a POMO day.
Thanks!
Ill put 200 on Amazon in the fourth race.
Amazon is running against "Can't lose" and "A sure winner"!
You sure about that bet?
is wed a POMO day?
It's the BIG Pomo day.
It's not a good day to be a bad guy.
hmmm a slightly down day today= a monster move (up) tomorrow
:-/
Well Silver should hit 28 and Gold 1425.00 at the minimum.
Someone make sure to keep Blythe away from shoelaces and sharp objects, mmkay?
Nah there probably won't be a margin call for JPM, they will call in their CIA or whomever else they own to pull a false flag nuke, or virus, or computer virus by Obama oh I mean Osama that pulls down the system. They will have their scapegoat and a lot of gold (i.e., GS has lots of gold) for system reset.
Just want to make sure I am following this correctly. The speculation is that JPM had to use the POMO money to cover commodity shorts instead of bidding up securities, and that they might have even sold some securities to cover commodity shorts?
Doubtful it is speculation. They are getting hammered up the ass on those massive shorts.
Whoever is forcing their hand I applaud you. I hope they burn to the ground.
Anyone with some hard figures (ie what is their cost per each $ uptick in silver and gold) ?
I read somewhere an estimated 13 billion underwater before todays' bloodbath.
See, there you have it folks, God does exist !!!
What are people's thoughts on tomorrow, a mild sell off or monster up day because of the Fed letting the indexes close in the red today?
I'd bet that JPM hasnt even begun to cover yet it's probably the smaller players thinking that they can roll with the big boys that have been getting squeezed out.
They'll engineer some kind of washout before finally getting out of the way.
In the meatime i'd still buy the dips lol.
Ironically this morning, as I watched my morning turd get flushed down the toilet, spinning ever faster and faster as it reached the apex in the center vortex, a picture of JPM's massive derivatives emerged, as the two images blended into one. Alas! They were the same rate of velocity and color. In an instant, the turd was sucked into the vortex, but JPM remained, spinning nearer and nearer as the clock ticks...
JLR ..... Fucking Awesome! Two thumbs up
wreynol4, unlikely that Wednesday is a POMO day given that the Fed will release the new schedule Wednesday afternoon. all the POMOs take place in the morning, so i doubt they will do a POMO that hasn't been released formally on a schedule.
Thursday or Friday will probably be more likely.
which means we have no major economic releases Tues/Wed and no POMOs. and an RSI on the SPY that is ~80. ripe for a 2-3% correction in the next couple days.
if we're looking at the next POMOs being 3-5x the size of previous POMOs, i wonder if we can expect 3-5x the intensity in money flowing to the "hot" assets like gold, silver, NFLX, AMZN, etc. if that is the case, we're going to see some monster moves, and eventually volatility will come back in spades because these moves will have no fundamental basis.
thanks eric I appreciate it, I'm usually short, but I'm hoping for an up market tomorrow.
You just wait till Bernanke grows some cojones and starts raising interets rates, gold will surely plunge below 200. Wait til then to buy, don't buy now, no really He will raise interest rates one day! Be afraid gold cocaroaches, be very afraid HA HA HA
2015 maybe interest rates will raise....
Jim Rickards discussing this very scenario.
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/11/6_Jim_R...
Kudos! Yes, I saw/heard that and follow Rickards
He has a good handle on all the moving parts
He war-gamed monetary crises scenarios with the DOD
Bernanke seems to be choosing door Number 1, closest to him
Bernanke is pot committed and 2000 is the new 200 in real terms
I noticed the price of PMs really started to take off around 11:00 EST
Wasn't that the time of the POMO? Coincidence? Naaah!
Attention: Two large swams of Black Swans were seen flying towards Washington DC and Wall Street. These swans were of the genetically modified size, roughly the same size as a baby hippo.
Looks like mr J.Turk was spot on with
his prediction in silver.Glad I listen to
great man like him for fin advise.
ZH gives real good financial education
even while I can not understand all the
articles.Tnx for that ZH
Ode to HSBC and JPM:
I met her once, Miss G.L.D;
She had a sister. S.L.V
The threesome was great
but it was my fate
to find oh too late
that doing such whores
can lead to gross sores
and the inability
or the facility
to properly urinate.
Johnny Bravo....where are you ?
Shiva H Vishnu! Even hamburgers are talking to me! :>D