Squeeze continues, but don't get carried away.....

thetrader's picture

 

 

By www.thetrader.se

Markets are moving very fast. Yesterday European morning we wrote of big squeeze set ups, in both metals and equities (mainly European equities). We have had a brutal squeeze to the upside since then (Squeeze Sign, Chartology). With everything having surged, even beyond our scenario, in a very fast move, we would be taking some chips off the table. Things haven’t changed fundamentally, but the extreme bearishness among inbvestors, had to create this move to the upside. We still believe the squeeze will continue, but at a “cooler” pace. With Roubini screaming Europe to go bust on a daily basis, and Barton Biggs dreaming of a ultrashort position at the bottom, we had the very much anticipated bounce. Now we need to wait for the pundits to become bullish and dreaming of being ultralong, before we start shorting the markets, once again.

SPX short term chart, soon to hit the first resistance levels.

 

 

 

 

 

Stoxx vs SPX 3 day chart below. For the brave, buy SPX vs short Stoxx set up coming up on a short term basis only though (not currency adjusted).

 

 

 

Silver has had a tremendous 24 hours.....

 

 

 

 

 

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Frankie Carbone's picture

Lo and Behold, the 2AM bandit strikes again! DOW futures start to skyrocket at 2AM and continue to wipe out a red overnight ticker, shooting up 150 points in a mere few hours. 

While 95% of the North American market is slumbering. 

Anyone else getting sick of this game? 

Robslob's picture

 

 

Good point...anybody remember who or whom invented cheating?

Stuck on Zero's picture

Adam was the first to cheat, with Lilith.

foofoojin's picture

dont' you mean with eve?  I thought adam cheated on lilith with eve.

zorba THE GREEK's picture

Investing in this environment is like gambling in a casino where every game

at every table is rigged. 

clones2's picture

dollar and long term bonds might close right at the 10dma today... weak market close.  Looks like it may setup up for down market tomorrow with a bounce in the dollar and bonds again...

Robslob's picture

 

 

To steal from the people 1st by Inflation then through deflation...what they left out was Rinse & Repeat until there are no more people...

AdahPrice's picture

Thomas Jefferson

"I believe that banking institutions are more dangerous to our liberties than standing armies.  If the American people ever allow private banks to control the issue of their currency, FIRST BY INFLATION, THEN BY DEFLATION, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.  The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

Mayer Amschel Rotschild

"Give me control of a nation's money and I care not who makes the laws."

Kitler's picture

You are expecting a lot from your masters. Patience my friend, they are not going to be leaving the buffet anytime soon.

AlienQubit's picture

To see all of those hidden charts, etc...Right-click on the image and choose 'open in new window/tab'... depending upon browser.

ceilidh_trail's picture

Anyone know how to get rid of the R side links to view the whole chart?

ICTruth's picture

Buy a bigger monitor, or change your screen settings. Mine is the same way...

bankruptcylawyer's picture

i was up at 3am sunday night watching silver hit 25 and was just jaw dropped. 

when i saw it recover today to 31 i really am starting to emotionally accept ( capitulate ) , that the big boys will always be there waiting to scalp the little boys and you just never know when it's going to happen to you, protect yourself all you want , but they know how you are protecting yourself and they will wait until you think you are safe, but are not. 

 

 

Duffminster's picture

I've been in the Precious Metals since about 2002 and am a long term buy and hold buyer based on the macro conviction that whether there is default on sovereign debt or endless monetization alla: Japan for the US and Europe, ultimately, long haul, the currencies are going to be worth less and less.   Yes, as GATA has pointed out over and over again, that Central Banks and their operative derivatives wielding bullion banks constantly cap suppress and use market psychology on gold and silver and clearly they don't want the People of the World to Remember that Gold and Silver are still money and the only proven long term stores of value in the face of their maniacal money printing operations.   Having seen this, knowing the underpinnings of the gold reserves vs. swap with better understanding than the masses and knowing that these actions usually fleece the short sighted and weak longs over time, I didn't sell through multiple raids and I've seen gold and silver beat the stock market massively.   Gold prices were rising too fast and the Central Banks saw the opportunity to hit the metals hard last week.  Ultimately, we may retest the lows or if we are more fortunate, the bounce will not be any steeper and we'll consolidate over the next 2, 3 weeks in a more sideways action and we won't test any lower than $1580 or thereabouts and silver no lower than $28.   I would look at the seasonal charts Jesse put up today at Jesse's Cafe American , which is also on Tyler's read list here at ZH and then if you have the patience consider what I wrote last week about the sell off.  In 2008 my conviction was tested very much but having stayed the course, I now realize that in gold and silver, it is not a market for traders but only for those who actually KNOW THE DIFFERENCE between currency backed only by debt and the hollow promises of nations run by corrupt politicians and HONEST MONEY.   Here is an excerpt:

"...All this taken together means one of two things:

1. The Central Planners devalue the currency in order to make the debt repayable at lowered debt levels via expanding the value of assets that are now deeply depressed like houses and thus inflate our way out of depression.

2. Allow deflation to take hold, allow all the global sovereign debt to default, go through massive social, market and economic upheaval, probably world war and the complete devaluation of all currencies as the bonds that support them will be equally worthless.

My guess remains that option one is more preferable to the still Bank run world. Unfortunately, for the moment, the ECB doesn't have the ability to monetize the way the Fed does.

For some reason the Fed and other largest Western European banks and likely Japan want to paint a picture of deflation by attacking gold. I would think that in order to avoid the impression that deflation, default and depression are coming they would instead be buying gold.

Perhaps market chaos, social revolution, the failure of the existing financial systems and the like are their motive because what they really want is to start a war, kill off a large portion of the population and crank up the military industrial complex? I don't think so.

The clear signs that gold was under a coordinated attack are as follows:

1. A continuing series of large margin hikes on gold and silver through the US metals futures exchange COMEX.
2. The focus on taking silver down. Silver is the most efficient price lever on gold due its smaller market cap.
3. That it clear that the COMEX margin hikes were leaked to key major, and the largest metals derivatives players (guess who).
4. The proximity in time to the Fed meeting, G20 pronouncements to support banks and the massive drop in silver prices just prior to the margin hikes.

It is clear that this was a well orchestrated take down in gold and silver executed with extreme precision and the tactics that the folks at GATA have been analyzing and detailing through years of research. Ultimately, no matter how much they try, this tactic can succeed very little in the future as the East knows that the US debt situation is just as bad as the Greek debt situation and that the US debt is even less repayable at the current currency values than that of Greece. It is precisely for this reason that nations are calling their gold back from the vaults of the biggest manipulative gold banks and exchanges to their home lands, and China is setting up the Pan Asian Gold Exchange.

Either way, deflationary depression or long term monetization and more gradual inflation, real money, hard cold cash holds value and the current system of debt based currency and economic activity will ultimately erode the value of fiat currencies.

So, while the futures paper markets can be manipulated a while longer until China and other nations can get honest exchanges set up (Pan Asian Exchange is coming on as we speak), this game will soon be at an end. I'll be buying as much physical silver and gold as I can as this raid comes to an end.

Silver is now in full backwardization thanks to the completely false price readings that the manipulators are painting with their their corrupt futures markets. Keep in mind, there is only about 1/10th as much available above ground bullion as there was in 2008 and demand is far higher than it was then. The central banks long ago sold off their silver bullion and mining supply is level and will drop sharply as mining for industrial metals like copper drops as it is largely mined as a byproduct of mining other metals.

There is more I could say and will say. For the long term buy and hold crowd to which I belong, do not let them shake your faith in honest money, gold and silver and do not believe the charts these master thieves are trying to paint for their own ill conceived machinations.

Gold and silver represent honest money, honest dealing and moral integrity. These central planners and their very greedy short sighted banking buddies have no intent or even concept of the words "transparency," "integrity," "honesty," and ethical and moral behavior. They are concerns only with short term gain and passing the buck. Pun intended...."

Duffminster

DogSlime's picture

Hold physical metal.  All this manipulation bullshit becomes meaningless.  When all the defaults and bailouts and fuckups finally shake down, physical PMs (if history is anything to go by) will still buy pretty much the same basket of goods.

Try to buy the dips where possible, of course, to maximise the amount of physical metal you can get hold of.

Hold physical and fuck the markets.  When all this bullshit is over, you will have savings that haven't been destroyed.  Use PMs as savings.  Don't hypnotise yourself with the idea of $10,000 gold or $500 silver.  If that were to happen then great, but if it does, it could well be because the $10,000 isn't worth shit any more.

 

Well, that's how I approach it anyway (at least in the present climate).  Fuck all this Paper-PM-EFT-Casino shite.

Ag1761's picture

Probably the best comment I've read today, +1

Same approach I've been undertaking recently. I never thought I'd see Ag under $40 again, but the manipulation and margin hikes has allowed me an extra few ounces on my monthly purchase today. I missed the drop to $26 over the weekend but I'm more concerned with the exchange rates, seems to effect me more so than the dips.

I've bought loads at mid 20's through 30's and bought more at low 40's regardless.

I expect the paper game will be up in the future, may be a year, may be two or more. Ag is my savings that I donlt keep in paper.

tyler's picture

Silver investors are going to make a fortune for a variety of reasons.  You should expect to maintain your purchasing power with gold and be able to retire with silver.  

New American Revolution's picture

I'm wondering what caused you to place a trendline in your silver chart where no trendline belongs.   Tell us there is more to it than just what your showing here.   Tell us you pulled said trendline from a major point, further back and out of view of the chart, and that you just didn't slap one down to support your position.   Please tell us, so that we can determine, clearly and once and for all, if your truly the moron you keep pretending to be.

virgilcaine's picture

Some seriouz hopium being administered, follow credit.. its not buying it.  YLD 1.98% lowest in 50 yrs.

Greek 1 Year Gov 135.78%  !  not moving either.

PulauHantu29's picture

Our Nobel Peace Prize Winner:

"In late 2009, the Obama administration transferred 55 so-called bunker-buster bombs to Israel. The 5,000-pound bombs conceivably put Israel in the position to attack Iran's buried nuclear facilities--or to target Hezbollah's buried bunkers in Lebanon.

The revelation, first reported by Newsweek's Eli Lake Friday, received independent confirmation via a sensitive U.S. diplomatic cable released by WikiLeaks last month."

http://news.yahoo.com/blogs/envoy/why-did-obama-bunker-buster-bombs-isra...

tired1's picture

How much did the US pay Israel to take the bombs off our hands?

Zola's picture

When is there going to be serious downside follow through in this market? Just when you think there could be capitulation coming , some clowns rally the whole thing back to the pre selloff level ...  PPT ? 

virgilcaine's picture

Red on Close today...that would be awesome!

Yancey Ward's picture

Credit where it is due.  That was a great call yesterday.

SheepDog-One's picture

LOL, now everything runs entirely on 'short squeezes', yea sure.

CapitalistRock's picture

We are now levetating again. Magic.

Sambo's picture

GS, BAC, C for citibank....all shitty banks going up after all the talk last week of how bad a quarter GS is having, BAC downgraded by Moodys etc etc....the market is an algo with a well coded 'bug' in one of those servers in NY. Good luck trading in this rigged market.

boiltherich's picture

One trillion dollars flooding into the NYSE alone in less than two trading days is a lot of squeeze.  Not to mention every single arrow in the commodities markets is green and pointing up, and we are to believe that there was that much hot cash sitting on the sidelines just waiting for "good" news about an EZ TARP?

Get ready for inflation in the cost of living as the average person is about to get butt raped to pay for Franco-German AAA ratings. 

covert's picture

don't ever chase the bid, just sit back and relax and let the market come to you.

http://expose2.wordpress.com