The Golden (Sentiment) Rule: If It Isn’t Off The Chart Now, It Soon Will Be

Tyler Durden's picture

Remember: what is unsustainable, can never crash, or so those who can create virtually unlimited naked shorts out of thin air would like everyone to believe.

Gross exposure - new all time record shorts:


Net: lowest longs in a decade:


Comex Registered gold inventory: decade lows:


Total Comex gold inventory: lowest since 2008:


Two final ones, but without the charts:

JPMorgan total gold vault holdings: record low.

Bundesbank gold repatriation: ongoing.

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Cdad's picture


The sheer brilliance of the criminal syndicate known as Wall easy to read format.  

Now...overlay Netflix across them, a company losing buckets of money, and you have a complete work of art.  Perhaps, JP Morgan will send Germany an investment position in streaming movies...instead of the gold they are recalling.

lololololol...what a lemming hootinanny!  


THX 1178's picture

Whoo nelly! This crash is going to be BRUTAL!

LetThemEatRand's picture

Fuck these guys.  You can't fight the Fed but you can go down swinging.  

ZerOhead's picture

I wonder how many ounces the guys back at the Fed are buying...

My guess is that they are filling their pockets with what little may remain in the vaults since Bernanke told them the Christmas bonus promised to be a little bit lighter this year.

ACP's picture

I just go by the old saying: "Buy low, sell high."

It's reasonably low right now, I think.

lineskis's picture

Those shorties are needed for the next leg Up!

Ness.'s picture

Hey Warren.. Paper burns.  That barbarous relic doesn't.  

ACP's picture

He knows what he's doing...classic case of a guy with a silver tongue who also talks out of both sides of his mouth.

He'll milk the last bit of juice out of the paper, then quietly rotate out when the time comes.

GetZeeGold's picture



+43 LOL!


Heh heh.....there's always that one guy.

When everyone else is running out of the's time for you to calmly walk in.

We gave some cotton candy to the gays and illegal aliens this week...but we didn't do a damn thing to slow the fiscal ride into hell....which is why you should own some real gold.

BaBaBouy's picture

This Whole Fucking Paper SMACKDOWN Sham Is Signed...


Barak Et AL ...

LawsofPhysics's picture

Yes, but one should recognize that all paper promises are going to zero.  When fraud is the status quo and there is no rule of law, possession and a dependable tribe are key.  The earth is awash in paper fucking promises and liabilities, with realtively little real assets or collateral of real value.

Hedge accordingly.

Cdad's picture

I believe we have just entered into a that market phase where asset value is everything.  Furthermore, regarding precious metals, I suspect this next quarter won't be about inflation, but rather the threat of deflation per currencies.  As such, things that hold their value against that deflation will be sought.

All one need do is monitor the literal frenzy on the BlowHorn [CNBC] about how gold has been going down because inflation is nowhere in sight.  Wrong.

Buy physical metals.  Buy resource that they have been bludgeoned to death.  On that second count, forget earnings in the near term.  If you are skeptical on that second count, simply observe how ACI sold a tiny fraction of their assets this morning...and magically captured 57% of their reflected market cap in cash.  Those valuations are fubar.

Sell crap.  Sell momentum stocks [aka the S&P].  Sell Carl Ichan's Netflix.  Sell Amazon.  Sell Starbucks.  Sell consumerism.

And, of course, prepare for the fallout.



Lore's picture

The short position stands out as particularly bizarre in light of what is happening at street level.

There's a rumour popping up on gold bug discussion boards that JPM is being set up for some kind of implosion.  Is it actionable intel, or just fluff?

tango's picture

I put as much faith in the rumor and conspiracies of gold forums as do pyramid power or healing geodes.  You ALWAYS hear this when gold is down (the FED's fault, Rothschilds, Jews, secret groups, blah blah) but never when it rises.  Strangely, those issues that still should matter are never discussed in Bull runs. 

Lord Koos's picture

You mean how when gold is going up, the prices in fiat matters, but when it's going down, it doesn't?

Lore's picture

It is hard to imagine JPM on the chopping block.

tango's picture

Cdad, we've been hearing this same thing since 1992 when Ross Perot preached the same thing would happen if our debt went to something like $5T.  Many refused to invest in this bull market because they were told it was "phony" or would collapse "soon".  So what did they do?  The worst absolute thing.  They sold stocks at their low and bought gold at $1500-$1900/oz and silver in the $40/oz range.  Now they've lost a good share of that money.  

No wonder so many folks are so angry out here!   I would be too if I'd followed the "financial" advice offered here and lost my shirt. Folks, get a good financial advisor who does not let ideology guide their investments.  Get one that emphasizes capital retention and has a strategy for down markets.  Do your research and select the appropriate one (I use one specializing in folks nearing retirement or having already retired). 

There will be a day of reckoning but not tomorrow.   As Tyler reminds us, the nature of investment products is to rise and fall.  Sadly it takes nearly a lifetime of experience and rough examples to learn that when things go up dramatically you take profits, when things decline below a certain percent you sell and when things are at their bleakest, you buy.  

fockewulf190's picture

The market is no longer fair. It is being run by machines trading in nanoseconds. It is being manipulated on all fronts; everything from LIBOR to fat fingers to unexplained flash crashes. The CFTC, time and time again, turns a blind eye to the most blatent of manipulative trades and allows massive naked shorting to exist unimpared within the gold and silver markets.

See, I used to be like you. I used to dilligently buy stocks every month for the long term, spread my risk around, the whole nine yards. I will no longer participate in a rigged casino...and that is exactly what the stock markets of the world have become.

On top of all that, even the very fiat currency in my wallet, that which I am supposed to work my balls off for, is being debased on a daily basis by some asshole who I never met, nor elected, yet who has the power to ruin
my fiscal safety simply by hitting CNTL-P.

I have turned to phyzz as a result of all the BS and have not regretted it at all. The faster I can convert this paper into phyzz, the better I feel...and I don't care what the current price is because I am not selling until the Great Reset is over.

LawsofPhysics's picture

"Deflation" is a myth, stop using that bullshit progressive language.  No society/currency has collapsed/died because their purchasing power was too strong.

wee-weed up's picture

It seems critical mass was reached once gold dropped below $1200...

That must have been everyone's BUY point.

noless's picture

Marketwatch ran an op ed yesterday advising people to buy bullion instead of etfs.

Sub 1000 most def. Swings.

Cacete de Ouro's picture

No charts for JP Morgan's conex ounces and the Bundesbank's Fed gold repatriation?

Try a photo instead...

Almost Solvent's picture

Stand back and watch them implode on their own.


Maybe not in the next year, but certainly in the next 5-10.


Exponential math is a bitch.

LetThemEatRand's picture

I'm betting (literally and figuratively) that it's less than next year.   If I'm wrong I can wait, but it will suck that the dry powder is drying up faster than Bernanke's beard with one of those "vortex" hand-dryers in the WH.

ZerOhead's picture

When she breaks it will likely be hard and fast... every bankster and hedge fund on the planet will want to double down on the implosion prior to the Great Inflation...

LetThemEatRand's picture

And they'll have to reinstall the paper towel dispenser at the WH.

francis_sawyer's picture

Bernanke's got options... There's always the SUCK CUT...


fockewulf190's picture

He is going to retire and write a book and promo it on CNBS...just like Greenspan before him.

ZerOhead's picture

When you look up the dictionary definition of FUBAR you can see those same graphs...

The Shootist's picture

Me thinks BuBa should hurry up or shut up with their gold transfer. That is, if they have the slightest inclination of not wanting to be left holding a bag of shit.

Long-John-Silver's picture

It's a Bubble of epic proportions. Everyone will be asking how they missed this Gold Bubble after it pops and they can't buy physical Gold with Dollars (or any other fiat currency for that matter). Gold to Infinity Bitchez! 

Midasking's picture

It is getting deeper and deeper down on Wall St.  If you like liberty you might like this 

WAMO556's picture

Methinks that you ALL are taking crazy pills.

Why is that you say?

Because the Fed own everything! In case you dumbasses weren't watching, the Fed has been BUYING.....MASSIVELY! All you dumbasses have been thinking that the FED, et al have been SELLING, when the bankers have been BUYING. Did you all forget that when things get serious, you have to lie.

Could it not be possible that the info that the bankers have been publishing were INTENTIONALLY inaccurate. I think the KGB guys would call it MASKAROVA. A masquerade!

Sun Tzu - show a strength as a weakness and a weakness as a strength. What better way to do this when working with the Intelligence Community.

Business is warfare!!!

LetThemEatRand's picture

And warfare is just business.  Nothing personal.

francis_sawyer's picture

Los del Rio would call it a Macarena...

cynicalskeptic's picture

And what has the Fed been buying?  Crap mortgage backed securities that the banks unloaded because they were worth 0.  T-Bills - backed by what again?   WHat happens when the Federal Government can't float any more debt?  WHAT pays off those T-Bills?    Is the Fed going to foreclose on the Federal Government?  Good luck with that.  There's a reason the Chinese have been trading paper denominated in $US for TANGIBLE asstets like Australian mining companies, oil contracrts with the Stans and farmland in Africa.....

The Fed owns PAPER - nothing more.  And if you think that paper is really worth something.....  

jcaz's picture

What- EXACTLY- do you think the Fed "owns"?   It's PAPER...

"Methinks"?    Is Bill Shakespeare giving out financial advice now?  I'll wait until CP3O comes out with his own blog, thanks......

Dingleberry's picture

If the fed wants gold to crash for real, all it has to do is bribe people (with real interest) to buy bonds.

That won't happen. 

So back up the truck, and thank the fed for the buying opportunity.

BTW, don't use margin or futures.

Newager23's picture

I follow gold and silver prices every day and have for about a decade. I've been following this correction that began in September 2011 very closely. I think we may have finally found a bottom this week. The HUI has had a nice bounce off of its lows and so did silver today. If we get further strength next week, then we could finally be heading higher.

Now is probably the time to buy GDXJ before it takes off. This is the safest investment for mining stocks. SIL is another one that I like for low risk / high return. These are ETFs so they are not going anywhere. 

You could also look at some of the mid-tier producers that look like 10 baggers. And gold mutual funds are looking very attractive at these valuations. If you get in now on a mutual fund such as the Franklin Templeton Class A Gold fund, you could get some huge dividends down the road.

Lore's picture

Re: "These are ETFs so they are not going anywhere."

Solid as a rock. Yeah baby, Yeah!

Long-John-Silver's picture

The only bottom to be found in Paper Gold is ZERO which it is about to find. Physical Gold will soon be infinite in terms of Dollars. 

cpzimmon's picture

I really want to believe this Cdad. But one thing that I've learned throughout the past couple of months is that the guberment can do anything that they want; including taking gold down to zero if they want. Thankfully, I don't even think a muppet would believe it. Well, I guess I'm not so sure of that.

Whiner's picture

Well, gold isn't the only asset that is artificially priced, but tis the only one continuously and openly suppressed , so ask yourself, what is it actually worth? If all over the world peeps and banks are buying like dope heads and the cost to produce has moved above the set value for most miners, while world-wide fiat print storm neverbeforeseen picks up velocity...well you get my drift. If your horizon is at least 2 years, well, you know where a chunk of tour money has to be.

augustusgloop's picture

lemming hootinanny. brilliant. 

Xibalba's picture

bwahahahahahaha!  Take that papermunchers!  

LetThemEatRand's picture

Did you see that spiked in Boston after the Cup?

LetThemEatRand's picture

When the tide goes out, you can see who is wearing shorts.