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The PM Break Out Is Here: Now What?
Submitted by FMX Connect
Yesterday we published an article calling for a breakout in Precious Metals with a focus on Silver.
The breakout has occurred and you should be long both metals.
If you are long, or want to get long here your stop losses will be wide and volatility based. Here are some tips on managing the positions:
- Silver Stop Loss should be $32.45. You can pick a tighter stop if you like, but this is the proscribed level for pullbacks to go to and the bull move to remain intact. Losses can be managed by adjusting volumes rather than tightening stops.
- Gold Stop Loss Should be $1680.00. This may seem less risky than silver, but that often means worse reward potential.
- Tomorrow morning trail stops higher as profits occur, use previous lows, highs on the hourly level or the top Bollinger Band line on the Daily chart previous session.
- Get ready to take profits aggressively: when these hit, 80% of the projected volatility based move is in the first 72 hours
- Get out if you are not in the money in 48 hours, even if your stop isn’t triggered. Momentum fades fast if you don’t get follow through from the immediate push.
Good Luck.
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Get ready to take profits aggressively:
i thought only muggers took profits agressively
Love ZH and I'm a PM bull...but this cheerleading is too much now.
Ya it's really rediculous to front run the banks and the idiots they have under theyr lying ass spells. Knowing they can't do a massive revalue without fucking themselves in their own eye. Nailing them to a long grinding gold bull market until this shit hits 5k which they can then move it back down.
That's rediculous.
Blythe won't stand for this. Asia either supports tonight to confirm else support to be tested vigorously. Staying out until then.
good point, for me 33.85 was the short term resistance, it held, looking to go long w/n 2 weeks at lower levels
Agreed. I didn't like the price action. It was one large surge on no news and then it floundered around at $1700 all day. Sure, we closed over that level, but I don't see it leaving that level. Something is rotten here. Position limits are coming and retail is surging back into PMs. Wanna bet the manipulators come back with a vengeance? I really don't see this thing taking off just because of a 3% day. All other huge rally days in PMs over the last few years were wacked with a huge wooden mallet.
If I'm wrong, then I still say we will see an attack on prices before it sets forth into the upper limits of the $1700-$1800 range. The second mouse gets the cheese you know.
Stuart
If true to fashion, they will hit it hard,and in the a.m., the PTB will let it ride till expiry(if it doesn't drop back there), we may be on the way to $2k+ before Jan1st.
if you have physical your stop/loss is a glock (or better yet. a shotgun).
0.50 s&w pistol
one shot one kill and you dont need to be a sniper
if its good enough for bronson on deathwish 3
its good enough for me
enjoy the doco lads ;J
http://www.youtube.com/watch?v=3UKu2zbMHJ0
Pistol-close is too close.
apberusdisvet
Both, plus a good semi, and lots of ammo for all of them.(.308/7.62x51), IF you can find one without being Barney Franked.
You would be hard pressed to think there is any problem with the economy, if you are trying to buy a .308 Semi,and ammo for same.
They are basically non existent unless TOP $ is paid.
goddammit.....here in the land of Aus we are not even allowed to own knives. Soon we will have to register baseball bats, pitchforks now classed as WMD's.
Anybody got any spare SOMA?
Easy to find, if you pay in specie.
almost guaranteed these will be hit now, thanks a lot
Stops bewilder me. If I think it's going up, then why would I want to sell when it goes down? The dips is where I enter, not exit.
Next stop APMEX.
What a bunch of liars... Yesterday they did not predict any direction. Like cowards. now they claim they predicted a breakout.
BS
http://www.zerohedge.com/news/pm-break-out-here-now-what#comment-1809647
CROX how close to 2 will it get this time around.
What are we, day traders with miners, gold and silver. Don't get that.
Fuck paper gold, just buy the metal.
What exactly is a "Stop loss"? I have a ton of physical gold and silver and plan on holding it for a very long time, but that term is new to me. I know it is used in the miliraty.
Stop losses are sell orders for stocks that trigger at a certain price to prevent too much loss. I guess they're talking to paper traders.
Take profits when JPM share price starts to slip below SLV. Historically its been pretty accurate. Blythe will soon deem it necessary for her and her whore friends to raid the comex again. Maybe this time the Euro zone will decide to scuttle the ship, and they lose control in the chaos. Just a thought.
Question: On exiting a coin shop - Would you rather have 35 Dollars because you sold a silver dollar or 1 Silver Dollar because you sold 35 paper dollars? IE - Do you really have the balls to carry US Backed Paper FIAT out that door?
Chavez was supposed to start bringing back gold to Venezuela late October/early November. A few months ago was only the announcement that they were going to do it. Wonder if the request came in today larger that the shorts were expecting and a case of new Fruit of the Looms was required as they shit themselves.
stateside
I had to inventory the phys today. $142.20 in coin of the realm. Accounting for the various dominations, that's 108 Troy oz..
1% of gross will go toward more phys silver this friday. Slowly but surely, its adding up.
*
"HoboTrader"
Ahhh HahhhhhHaaaaaaHaaaaa! HAH!
It's a waste of time to try and make rapid trades between PMs and US dollars.
Buy and bury. Dump the US dollar for PMs. They will outperform for a decade at absolute minimum.
Bollinger Bands Bitchez.......
Hahahahaaaaaaaaa
too funny.
Stop fucking trading money....
Save it instead.
You can store it at my place.
Trade Women,or cattle or goats....
But MONEY...
STOP THE BULLSHIT.
I would like to learn more about the trading women part but my wife has won quite a few ribbons at shooting contests (maybe she wouldn't mind if I trade ETF instead of physical). guess i have to settle for stocks -- in one episode of Beverly Hillbilles, Jed Clampett was advised to invest some money in "stocks". So he bought cows and goats, "stock" meant "livestock" to him
Dated a not bad blond, who claimed to be the third best woman in the country with a cross bow. My wise ass had an interesting thought. How many women in America have ever shot a cross bow, three?
I didn't say that because I wanted to keep doing what we were doing, and... she just told me she can shoot.
Tyler, ever think of minting a 1 oz ZH round? Could become the new big underground currency. Just be sure not to put the word 'dollar' on it.
As far as I'm concerned. as a small time player with limited technical knowledge, the market as a manipulated
circus often doesn't relate to technical analysis. If I had netflix with a stop I'd have been massacred when the market opened.
However since the market is rigged and dangerous except for the most sophisticated techs. and robots I've only got small
pm miners and some 2x etfs where the eventual odds of collapse are in my favor. The rest is cash and physical salted in more than
one country. I don't believe the breakout at least in the paper etfs.
They can't see it?
I just don't understand how ANYONE "can't see it".
"It" being the most blatant and obvious fact that the world's monetary and financial system is flat assed broke!
Europe is absolute toast, fair value on Greek bonds is less than 50% of par value and everyone knows it. Their banks are insolvent even without any haircut from Greek holdings and everyone knows this. Italy, Portugal and Spain are all beyond fiscal sanity or repair and this also passes as common knowledge. The real estate markets are deflating across Europe (and the entire globe) after previously being blown to huge overvaluation levels with the help (prodding) of European banks and this is also widely known.
The European Central Bank does not have enough money, muscle, options (or even competent leaders it seems) to even flatten out the path much less pull out of it's nosedive and even mainstream media is reporting on this. If you add these "well knowns" together then you can logically make the leap that the Euro currency is done, it's life ended and will be replaced.
Then you "cross the pond" to the U.S.A. and guess what? Same thing! The banks are insolvent if they actually marked assets to market, everyone knows this.
Municipalities and States are fiscal beggars on their way to bankruptcy courts and this is already widely known and visible in the last couple of weeks with the first actual filings. Next you turn your eyes to Uncle Sam and his finances, yep another deadbeat here and even the "hometeam" rating's services have taken notice of this. You could do a poll from any inner city to remote corner of the country and EVERYONE knows deep down that the U.S. is financially (and morally) broke beyond any repair. EVERYONE knows that EVERYTHING is broke, busted and insolvent!
THIS is how every financial panic in all of history has happened.
THIS is how the children's tale of "The King with no clothes" was penned. So if everyone knows that everything is broke then why do hear on CNBC et al that "we can work our way through this and muddle along"? Because as Jack Nicholson said in A Few Good Men, "you can't handle the truth!".
This has to be it.
I cannot think of anything else because it has been MORE THAN obvious for quite some time. I have heard plumbers, farmers, bankers, real estate agents, city workers, you name it, tell me that "the government is broke" yet when I ask "what are you doing about it?", they say, "I have my money in an FDIC insured bank account".
Some are now getting around to buying some physical Gold and Silver but mostly because "they are going up". People "know" but they just can't make the leap to acting on what they know.
This phenomenon along with "you can't handle the truth" is a function of very long term brainwashing and "false education".
Using ANY logic at all would lead you to "pull" as much of your investable assets OUT of the system. "Out" meaning out and away from the obvious damage that the broken fiat system will inflict. "OUT" meaning into physical metals and assets, OUT meaning into the companies that produce these physical metals and assets.
It is so, so sad to see people who have worked, lived and saved their entire lives within this fiat system like "good little boys and girls", about to get completely wiped out... penniless!
Think about it, EVERYTHING within the current fiat, paper, fraudulent system is going to be valued at what it is truly worth...ZERO.
If you can wrap your head around this (admit it to yourself), you can act accordingly. The day is coming when EVERYTHING "paper" is going to stop. Banks will not open, credit cards not function, ( physical Dollars will actually spend for anywhere from 2-10 days until they too become unacceptable) and the entire system will sieze up and into a barter society until a NEW and "acceptable" (from a confidence standpoint) is issued and circulated.
We are very, very close as there are now calls for a new "World Central Bank".
This has been floated in recent days by none other that The Vatican.
There is very credible evidence that The Vatican accumulated massive amounts of Gold during and especially toward the end of WWII. It is possible that they are actually the largest holders of Gold in the world.
Any new currency MUST have some tie to Gold and the limited Gold that is above ground MUST be revalued higher as there is not enough at current prices to support a 7 Billion person global economy. Long story short... how can anyone not see what is about to happen?
The whole fiat episode is like your crazy Aunt in the basement, everyone knows she is there but no one is willing to talk about it.
Those who do are branded as crazy and no one wants to believe it anyway.
Maybe there are a few more investors who "do see it".
Gold is up nearly 3% today and thus violating it's decade+ long 2%/day collar!
www.lemetropolecafe.com
"Everybody knows that the dice are loaded,
Everybody rolls with their fingers crossed.
Everybody knows that the war is over,
Everybody knows that the good guys lost.
Everybody knows that the fight was fixed:
The poor stay poor, the rich get rich.
That's how it goes.
Everybody knows." -Leonard Cohen (1988)
Get ready for the future for it is Murder.
It's over... it aint goin any further.
Leonard Cohen
The Future
http://www.youtube.com/watch?v=bY_6UYf9irY&feature=fvwrel
Leonard Cohen, the Master. I was so lucky to see him on his (2009?) tour.
Bearing:
Just for you... a 42 minute video, an award winning interview with the "Master".
http://www.cbc.ca/q/blog/2010/11/17/leonard-cohen-on-q-wins-the-gold/
It's your one way ticket to midnight
Call it heavy metal...
JPM the PM trade diddler of the world.
If the eurobanks implode, PMs will plunge, as banks have to sell everything to get cash. But it will not happen, after all. Euro will be saved.
OR MAYBE....the banks will scramble to swap worthless fiat for asset boosting PMs to avoid crumbling balance sheets
Unpredictable World we live in...................except for boring, 5,000 year intrinsic value of PMs
In 2008 PMs crushed. Will this time be really different?
Ha ha ha -- your dichotomy is so damn funny !!
So which one is it then?
A) PMs will plunge, as banks have to sell everything to get cash. But it will not happen, after all. Euro will be saved.
B) In 2008 PMs crushed. Will this time be really different?
Too bad for you PsyOps can't be like Schrodinger's Cat !
My only question is, what happens when the retail investor and mutual funds are no longer part of the stock market? On ZH someone commented that 75% of trading vol. is now robots and vol. is falling. What happens when there is no one retail left to skin a few cents off per share and the bots are the only ones trading? Does the market collapse to 0? and the only thing left is shorting the ponzi bond market??
The key was sentiment. I paid up for Hulbert's sentiment data a few weeks ago. It was showing 8% long exposure. Lowest monthly reading in series ( only two years) while coming off a massive oversold reading at major support. Wasn't such a hard call. But, if you can't piece it together, just buy physical every time it seems like a bad idea.
Anyone who says to use stops in gold and silver is trading paper and is missing the whole point.
Not necessarily. Eg. are you homesteading on a placer mine in Ghana, panning a mountain stream in Western Canada, or metal detectoring nuggets in the New Zealand foothills? Or perhaps you're running a larger PM operation that meets its payroll and other financial obligations with product? Do you own a business that only accepts payment in Au/Ag/Pt, etc?
Or are you trading a good/service for 'paper' and then trading that 'paper' for the real thing, like most of us?
After all, it's your point that everyone ought to build a pile of actual ounces, right?
My friend, there's more than one way to skin a dead, bouncing cat.
(FWIW: IMO 'stops' probably do leave a bright flashing neon sign as to exactly where those who place them will cry 'Uncle!')
Looks like another margin increase is just around the corner?
Any guesses on how many bullets the CME has left in their market price suppression weapon of choice? Do they have other tools in the shed as well or is this pretty much it?
It would be nice to know how many paper ponzi price dips we can look forward too before the physical price ‘is’ the market price. Imagine that? The price on the boards is the actual price paid for physical delivery.
Now theoretically you can manipulate prices up as well but given that these smack downs seem to only happen when the price goes up and during low trading volume times of the day my guess is that the real price is touch higher than where TPTB want it.
I'm skeptical of serious follow through, absent big news from Europe or from a US bank. That said, 1680 is too tight if the stuff's good.
JPM still has the privilege of smacking down PM's until the term "swaps" is defined, plus sixty days.
I need a little help here. Can someone tell me why I would want to buy investment grade gold coins rather than the current minted coins? My friend told me that if the gov't seizes everyone's gold, as FDR did in the 30's, the investment grade coins would be safe because the gov't has never seized those. I said, if the dems are in charge they would seize those too. I don't want to pay a 50% markup for something that relies on historical precedent. Anyone, please?
What specific coins are you talking about? Don't buy anything with "collector" or antique value. Don't buy from anyone who advertises, and don't pay high premiums... US Eagles carry some premium but you get most of it back when you sell, so the spreads on those are competitive if not better than generic bullion.
1 oz US Gold Eagles (any date) are the way to go.
Hi Classical! Your instincts are correct. Buy bullion coins, eagles, maple leafs or krugerrands at the best premiums you can find. You might consider buying incrementally in small amounts using cash at local dealers or at coin shows to remain outside the radar of the corporate fascist state which is taking over in this country and is reading this post.
There are some unscrupulous dealers that peddle pre-33 gold because their profit margins are greater. Good luck to you sir!
I am Tuco Benedicto Pacifico Juan Maria Ramirez and I recognize the 6000 "tradition" of gold being money.
Tuco, I just want to know one thing. How did you get away from the graveyard with all that gold after the bag broke? I have been troubled with this very tough question for many years.
PM break out is contagious by have un-protected fornaction with fait money. The last PM break out I had was at a bank banging some hot CDS ..ugh for week my balls hurt
if you are gonna do anything in gold except troll, you need to be able to answer these basic-type questions for yourself, classic_b_17
a roll of small gold coins (50 each $5 eagles) is 5 ounces and costs almost $10K in green stamps. this is for a roll of gold about the size of a roll of dimes
so if you are a billionaire, one thing; and average joe, another. assuming UB the ave. joe, i suggest going to a local coin dealer and talking about the non-investment coins for starters, since bullion coins are basically just worth their weight in gold, and are not too complicated, assuming you stay just w/ US coins, the different types and fractional weights of a few standard different moderns (eagles, buffaloes, & $10 presidential spouses, for example)
if you buy locally you don't hafta identify yourself to purchase or give your address
but you also need to have a clear sense of "why am i buying gold coins?"
what is being given here is technical trading advice for going long and the stop-loss points in the trades to trigger getting out without losing yer ass if the market changes direction suddenly. many here don't trade & have been buying PMs for a while, not for now, but for when they might need them due to perceived instabilities in the global monetary/debt systems. there are a lotta zeroHeads who hold some bullion (coins or otherwise) as insurance. these people use no leverage and hold the PM assets free and clear, up-close & personal, too. if their children end up with them that is really just fine! but, they're not trading, trying to increase their green stamp winnings and their taxes. they own gold coins; the ones they choose; as they please; as much as they please
if you get a roll of dimes at the bank: $5
if those are gold "diimes": $10,000 and you'll get some change back, too!
this is a sales pitch to get you to spend more than you need. In unlikely event there is another confiscation (highly unlikely and completely unenforcable) who's to say the same exemptions would apply. If you are concerned go buy yourself some perth lunar series two gold coins that have limited mintages but trade at bullion prices. Best of both worlds............
Get ready to take profits aggressively
Yeah, sheeple, arrange the stop-loss-cascade altogether please so when margin hikes hit again, price goes down and JPM can close some of their shorts.
Does anyone tried Goldmoney before?
What are your thoughts on it? It seems a good way to have an offshore account backed in gold..
I have been using GoldMoney for a few years. You have the option of buying gold, silver, platinum and you have a choice of countries to store it in. It is an excellent service but do your own due diligence.
BTW when filing taxes it is NOW a requirement that you disclose your offshore gold holdings to the Treasury. Methinks they have done so to discourage folks from moving money away from the US. So if you are thinking of establishing an account, do it now and before the powers that be it more difficult to do so. Also, open up an overseas brokerage account. This way you can access your gold and your stock wherever you need to.
I have had an account there for about 4 years now. Yep, gotta disclose to the IRS on the FBAR form.
if you don't hold it in your hand, you don't own it.
don't count on when fiat collapses to be able to take full delivery.
For me, PMs are a hedge against losing my life's savings in the event of a financial thermonuclear detonation. And I think it's coming sooner than anyone expects. That's why I purchase PMs. I don't really pay attention to the price fluctuations too much. Just buy and hold (even at the "highs"). Because eventually, the USD and most of the world's other currencies will be devalued to zero. In the aftermath of such an event, when most people's bank accounts have evaporated, I will not be left holding my dick.
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<----Buy Physical
<----Dance with the Devil
I just buy physical a few days 'after' they hike the margins on the paper bugs.