excellent interview w. Ben Davies on King World News today gold & silver markets.

Lee, capital is coming out of precious metals mostly because funds had to sell their
only profitable stocks....in order to balance their margin .
IMO--there is far more upside than downside here. Each to their own.

Market Violence Will Create Large Bear Trap
September 23, 2011, at 1:49 pm
by Jim Sinclair in the category General Editorial | Print This Post | Email This Post
Dear Extended Family,

A quote from CIGA Eric today completely encapsulates what we are experiencing in the gold market:

This is a repeat of 2009 – actually even more extreme readings than 2009. We are severely oversold today. Anyone not buying here does not believe in the fundamental story. In my opinion, this will be a huge entry point by 2012.

In conversations with Kenny we examined the worst case scenario in terms of the correctness of Eric’s comment with which we both totally agree.

Our conclusion is:

Market situations like this will be found to have held and created bear traps in several instances of similar pattern action over the past 30 years WITHOUT having continued further down to first major support. The current corrective pattern over the past 23 trading days strongly implies that the move below $1690 would continue on down to the core at $1665 at minimum as first bottom, and in the extreme to $1615, but not below $1584. This will happen prior to exhaustion and a return to the full bull trend.

So far the remaining successive levels of $2450/$2510; $2850/$2900, and $3280/$3330 are not affected.

Gold shares are being impacted by a field of problems as a result of the large short positions held in almost all. They are being taken advantage of today by pressuring the entities in hopes of causing long term holders to collapse in their commitments.

Respectfully,
Jim

Dr. Copper Becomes Mr. Hyde Chart

The technical picture on this chart is so ominous in terms of what it is saying about the American economy that the best analogy is that Doctor “Jeckyll” Copper has turned into a sort of Mr. Hyde financial character. The implications of the copper chart for the general economy and stock market are nightmarish. While I haven’t shown the weekly chart for copper here, it shows an even bigger head & shoulders top. The bottom line is that the stock market and the economy are both in tremendous danger.

Gold Super Highway Chart

Gold Analysis

A gold bullion rush is coming, and I believe we are within 12-18 months of seeing gold trading in the $3000 price range. Those trying to outsmart this bull market are looking to get the horn, and most of those trying already have, numerous times. Historically, when a loss of confidence hits a paper currency the decline can be earthshaking. I believe gold short sellers are going to get scorched. Large core bullion positions outside the banking system are your solution to this crisis.
GDX Breakout of the Decade Chart

The bullish inverse head and shoulders formation is activating, and $95.00 is the target. The powerful volume that is accompanying the move is the turbo charger that will see this market pick up serious momentum over the next four months.
GDX Close Up Chart

This chart is literally a close up of the right shoulder of longer term chart above. This type of multiple head and shouldering action is very bullish in this type chart pattern. Literally these formations can be used to identify stepping stone targets as prices moves higher. Note the above targets on this daily chart.
Gold Stocks Volatility Zone Chart

What typically accompanies an overbought market is volatility, and volatility is definitely here. In the last two weeks you have seen GDX trade down 10%, only to turn higher and regain it all. It fell about 10% yesterday, again. It is important to have a program in place that operates on buying weakness to build holdings, rather than placing stop losses, because the volatility and computer program trading have effectively made the use of stop losses impractical.

Gold senior stocks have finally gotten overbought technically, after many months of being heavily oversold. Overbought does not mean overdone. The blue boxes on the above chart represent the most favorable season for gold stocks. The overbought condition normally stays there for four months. While most gold investors are probably in almost a fit of terror this morning, the fact is, technically speaking, this move up has likely just started!
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So why is open interest jumping up in Silver??
Posted on September 23, 2011 by JB Slear
US$ is higher by only 10 points with the trade at 79.200 after reaching a top of 79.270. Treasuries are being bought up in the early expirations and are flat further out. Petro Products are now down another $2.00 with Crude at $78.73. Gold is being hammered again down another $43.20 with the trade at $1,699.30, Silver is down another $3.908 cents with the trade at $32.570 with all the base metals on its trail. Funny thing about this … err … so called correction, “IF” this is a liquidation, why is the open interest jumping? That’s right, OI in Silver increased by 1,000+ …. after yesterdays correction. This is purely HFT at its best, Another tid bit to consider was the lack of sellers in the options. We watch theoretic values like a hawk, no one was allowed to be filled at the theoretic values, but another 40% higher. This is what happened in Dec Silver calls yesterday, sure we got filled today, but why the reluctance to sell? Sure glad our governing bodies are on the ball … btw, does anyone know if Hugo got his Gold? Grains/Softs/Meats/ are taking another hit as well but this correction is rather shallow, the Paper Markets are going nowhere but down as well so what is the “Powers that Were” preparing for? We’ll keep in our options and continue to add more as time passes …. in the meantime … Stay Strong!!

I take this as alternative info ,insight. My post that is.you talking about CNBC..?

Jim’s Mailbox
September 22, 2011, at 12:06 pm
by Jim Sinclair in the category Jim's Mailbox | Print This Post | Email This Post
Capital Is Flowing Into Gold
CIGA Eric

Capital flows set the direction of secular trends. Linear up trends have been broken to the upside in many if not all global currencies. In other words, capital is flowing in gold at increasing rates across the globe. This is something to remember when the short-term orientated media likely characterizes today’s action as a gold "pounding".

USD Gold


Euro Gold


Swiss Franc Gold


Yen Gold


Loonie (C$) Gold


Kiwi (A$) Gold


Real Gold


More…

SLW---great buy here.

Thank you , I stand corrected. A dimension I was ignorant of.

This is how I know him- below




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Pants, your comments are sarcastic even a little caustic. I just posted an article.
Getting it right...in these days is a challenge. And I don't post unless I trust the advice being offered.

Stay strong translates to --don't sell your precious metals.
I trade in only pms. The miners inc SLW. And inc AVL= rare metals.

'hydroponics' is caustic particularly,when you seem to be ignorant about the subject.
JB Slear is part of the Sinclair circle inc. Norcini.

For certain he's a much wealthier person than you.

Precious Metals Bear Trap Set ….
Posted on September 22, 2011 by JB Slear
US$ is been driven up by only one entity sending the price to a lofty 79.140 up 128.1 points with a high of 79.215. Treasuries are showing exactly what the Fed was doing after yesterdays orchestrated fiasco, sending Eurodollars (not the Euro-currency) lower in order to support the further out years which will prove to fail in time. No one has the ability to take on more debt so the actions of the few will prove to be foolish in the long run. The entire physical market has been hammered since the Fed release, what I mean by physical is the real products that humans need to survive was pushed lower. The further out Treasuries are being support as well as the Japanese Yen, but absolutely everything else on my screen is negative in price. Crude Oil is down $3.50 (this should continue to piss off the oil nations) a barrel, every single Grain/Soft/Meats have been hammered as well. This might seem good on the surface, but these are farmers and merchants who, hire people who have debt to pay, in what’s still left of a raped infrastructure of a once super power. Gold is down $54.50 with the trade at $1,754.70, Silver is down $2.40 with the trade at $38.065. Silver’s open interest is at 112,000+ at present. There has been a reduction in open interest of only 3,000 position in the past week which means no one is leaving the market. This action the Fed did, gave more strength for the buyers to come in storming. The shorts should be in a panic because the Long contracts are deep pocketed, btw, does anyone know if Hugo got his Gold yet? Paper Markets are not following the Fed support and are trading lower. So the assumption here at the Fort is we will be hearing from the financial Money Honeys storyline that people are selling to get off margin calls in order to support their stock positions. The truth is most likely the exact opposite …. The suggestion here is sit tight in options, this should be real short term, and as always …. Stay Strong!!

JB Slear
Fort Wealth Trading Co LLC.
866-443-0868 Ext 104
817-717-5489
Fax: 817-764-2537
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In effable is such a great word. Lee, I am very hesitant re onlining my photo.
Newlys was a young version. The single photo on my computer is recent....
I am the same type as Newly though lighter in complexion and hair.
Her bike is bigger than my italian scooter at that age...I was 24 she may have been older then...

sally

On what level or criteria...? a photp...? an age..?
peanut brittle is easy...sense not easy.

this lady has been talking of nothing but precious metals...
Sense....?!---or, peanut brittle?

Harvey Organ's - The Daily Gold and Silver Report
harveyorgan.blogspot.com/ - CachedHarvey Organ's - The Daily Gold and Silver Report. Pages. Home · Required Reading · About Me. Friday, September 16, 2011. Gold and Silver rebound as ...
Fireworks!!!

Canny-- read Harvey Organ tonight....

Tom Stevenson
Tom Stevenson: ETFs have potential to become the next toxic scandal
Who says regulators are only good for slamming the barn door after the horse has bolted?

ETFs are not the cheap and transparent vehicles the marketers would have us believe Photo: Alamy
By Tom Stevenson3:45PM BST 17 Sep 2011 79 Comments
Back in April, the Financial Stability Board (FSB), an international super-regulator, wrote a prescient if less than catchily-titled paper "Potential financial stability issues arising from recent trends in Exchange Traded Funds (ETFs)".
Its central warning - that ETFs are not the cheap and transparent vehicles the marketers would have us believe - was spot on. When UBS's $2bn black hole hit the screens on Thursday, no one who read the FSB report was surprised to see the words ETF and rogue trader in the same sentence.
The past ten years have seen an explosion in the popularity of ETFs. In part this reflects some of their acknowledged benefits – relatively low costs and the ability for investors to trade them throughout the day. A third claim, that ETFs are simple products, may once have been true but it no longer holds water. Many of these funds are now fiendishly complicated and way beyond the comprehension of the individual investors and professionals alike who are buying them.
Here are just a few of the reasons why ETFs are not all they are cracked up to be.
First, around half of the ETFs in Europe today do not match the index they are designed to track by holding all of its constituent shares. Unlike the plain vanilla "full replication" ETFs which do, 45pc of the market is in the form of so-called "swap-based" ETFs which instead use derivative agreements, often with investment banks, to simulate the performance of the underlying assets.
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Derivative trades add a second layer of uncertainty to the unavoidable ups and downs of the market, the counterparty risk that the organisation on the other side of the contract might go bust. Even worse, the provider of the ETF might sometimes be a part of the same organisation as the derivatives desk carrying out the swap.
When a bank acts in this dual capacity, and because of inadequate disclosure rules, there is a significant potential for a conflict of interest in which the end investor comes off second best. Because there is currently no obligation for the basket of assets used as collateral to actually match the assets the ETF purports to be tracking, a bank may choose to hold less liquid assets to back the fund which it could struggle to sell if too many investors want out at the same time.
The problem of liquidity is an increasing issue with ETFs because of the way in which the funds have branched out into other asset classes such as fixed income and commodities. In these markets, liquidity is typically thinner than in big equity markets such as those measured by the S&P 500 or FTSE 100.
Liquidity is only ever a problem at times of market stress. Unfortunately, that is precisely the time when it matters, as investors in some real-estate unit trusts discovered a few years back when the property market turned down and, funnily enough, their managers were unable to sell enough properties to pay back redeeming unit holders. Investors were locked in.
A big unrecognised risk with ETFs is related to the ease with which traders – hedge funds in particular – are able to use the funds to short markets. For reasons which I'm not sure I could explain even if I had the space, it is possible for the number of shares sold short in an ETF to massively exceed the actual number of shares available. It has been suggested that the "Flash Crash" of May 2010, in which US shares fell 1,000 points before bouncing back in a matter of minutes, was a consequence of this – around 70pc of cancelled trades at the time were reported to be for ETFs.
Like many financial innovations – most obviously, the alphabet soup of mortgage-related debt obligations that triggered the financial crisis – ETFs started out as a good idea, and for some investors, in their most transparent form, they remain so. But, as so often in the financial services industry, a tangled web of complexity has rapidly developed. What was once a straight-forward means of gaining access to a market has turned into a minefield for investors and one which, as UBS discovered in the middle of the night last week, has the potential to become the next toxic scandal.
Tom Stevenson is an investment director at Fidelity Worldwide Investment. The views expressed are his own. He tweets at @tomstevenson63.

Very good program on Puplava's Financial Sense-Newshour.On SVM.
for those interested in making money.

You are totally correct but do the germans win.....?
Or-are the only winners the old banking families ?

Its canadian Zab.... the same rumor circulated about GPL weeks ago....

SVM is a Vancouver company. It does not have problems imho. An anonymous accusation does not make it a problem,except for a cratering sp.The ceo just bought 1oo,ooo new shares.
I just bought more shares. The reality of a very well managed business makes this stock a great steal.
Do your own D&D.

Here is a snippet fron Casey Research on the matter:

"We have no reason to suspect Silvercorp has done anything wrong. It appears this is a deliberate attack on the company to profit on existing short positions. Keep in mind that this is not the first time a company operating in China has been targeted by similar tactics; a number of companies have been hit with similar allegations, the most prominent of which was Sino Forest by short seller Muddy Waters last June. These people have clear reasons for circulating false rumors.

What to do? First, do not panic, and do not sell your shares. Given what we know at this point in time, we have no reason to change our opinion of the company. Keep in mind that CEO and Explorers’ League honoree Rui Feng has an incredible track record. Would we buy here? Perhaps, with the caveat that we don’t know how bad the fallout could be and thus how low the shares could go. Given the enormous short position in the stock, they could fall lower – but at some point many of those positions will unwind and force the stock higher. If you have a full position, we recommend simply holding to your shares until this settles; if you have room in your portfolio to add or initiate a position, we think this could be a fantastic opportunity. In the interests of full disclosure, members of Casey Research and/or the Casey Fund may be buying shares in the next few trading days, and maybe even selling some puts as a short-term speculation."

Zab & others--SVM last week at 7.04 to today over 9.
Nice gain with much more to come.

Zab, SVM is a terrific company in every way. The claims are anonymous and fraudulent.
The same fraudulent claims were made about GPL weeks ago. There is much fiat money to be made in both stocks , particularly SVM.

the establishment thinks and believes 'it'll all be ok..like it always has been'.
They do not accept our currency is crappola.
During and prior to heads rolling in Paris in the 1780s(?) the establishment
thought all would be ok. Same with the Jews who remained in Germany in 1938 and 9.

Canny, whats wrong with buying svm and slw here..??

Devastation in Vermont . Hurricane rain wreaks havoc. No local media covering it. All programmed into National conglomerates.
Pathetic.
We have lost so much in this materialistic media controlled culture and society.
Do we have the mentality to build from our healthy human roots?
I am not sure. back to basics.

Fabian, you are not supposed to sell your gold. Hold and buy more on dips.
Buy silver miners now.

Newly, I mean "allow markets" to be independent of the fricking fascist bankers &FED.

Free markets fall and rise on their own terms. Value is determined. Unlike what certain nations are doing in Europe as we speak.
As for traders.. tomorrow is tricky before bernank speak.

Why don't they stop doing doing it. Markets are supposed to clean themselves out.

20 AUGUST 2011

Jon Stewart: The Poor's Free Ride Is Over



The Daily Show - World of Class Warfare - The Poor's Free Ride Is Over



POSTED BY JESSE AT 9:35 PM
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CATEGORY: CLASS WARFARE, PREDATOR CLASS

We do feel bad however for holders of paper gold, as the day of the gold share class unwind draws nearer by the day. And with 31.5 million GLD shares for a total of $5.5 billion, the unwind will be, for lack of a better word, epic. The only question is when.

Ditto for SLV

Be warned.

The top is years away. Have faith and buy dips.

Fabian, the mining stocks are manically undervalued particularly the juniors.
Sprott and Embry believe silver stocks are going to explode soon. Ditto gold miners.

Gold Game Plan Chart

Technically, gold has completed a price overshoot. What I mean by this statement is that price has risen enough above the upper supply trend line to label the situation as signifying price is out of the former rising channel and entering a new one.
This action has been a feature of the gold bull market since inception, and it is now ushering in the gold “super highway”. The big question is, how do handle yourself in the gold market now?
Well, here’s what I expect into the next several weeks, and I hope I’m not raining on any parades. The fact is that I suspect $1680 could be tested. It is really the price area that ushered in this accelerated phase of price appreciation. If you have physical gold, just sit tight. For those who don’t, I would strongly recommend buying down into the $1680 area, incrementally. We may touch that price before surging higher, but we may not, so buy into the target, not just at it.
Buying gold in the future at higher prices than where we are now is likely to be very painful for those who try. Buy weakness now, because the heat in the volatility kitchen is going to get much hotter. This gold market is not a normal market. You must be prepared for gold to get technically overbought and stay overbought, for months or longer, and exhibit unbelievable swings in price.
I am projecting that the volatility in gold will dwarf anything you’ve seen in the Dow in the last ten years.
GDX Magic Carpet Ride Chart

My analysis of the GDX chart indicates that gold shares are preparing for a magic carpet ride, and the smartest money is working, on days of weakness, to get your shares. The greatest fundamental of the mining shares is the price of gold, and the smartest money understands very well what the current central bank buy programs eventually mean for gold stocks, which is much higher prices.
Every time the market takes a hit and someone sells into weakness there has to be a buyer. It may be hard to watch the volatility in your assets, but please do not sell these shares in times of price panic.
Remember when the Dow was trading at 3000 and those saying it would go to 10,000 were labeled insane? Well it did it, and it only took five years. I think a bigger event is coming on the upside for gold stocks.
Still, that gain will come one small dollar of share price at a time for GDX. My price projection for GDX on Dec 24, 2010 was $70.00, looking one year forward. That target looks solid and reasonable.
GDXJ Consoidation Chart

This GDXJ chart is signaling much higher prices in the next 3-4 month timeframe. I see GDXJ up substantially by Dec 2011. I like GDX and GDXJ for a superior way to own a diversified gold stock portfolio. I own some individual issues, but my primary focus is GDX and GDXJ, and I urge you to consider the benefits of these products.
Note that GDXJ rose over 100% in nine months with a majority of the move coming in just 3 months. Since then, it has consolidated for the same amount of time. Currently it is a coiling like a snake, poised to strike out in a big move higher.
Note the SFS Fuel Cell Indicator on this ETF is a weekly signal, which is normally very powerful, MACD is also indicating price can move substantially higher.
I set a $56.00 target on Dec 24, 2010, looking one year forward. That target looks solid into the end of the year. Stay long and strong in gold stocks, because the technical situation really is excellent.

http://www.zerohedge.com/contributed/fed-bombed-market-i-ask-why

Zab, do you think there may be shorting in the stock...?
HL is one of many excellent miners being shorted.
I believe that is soon to change. Do you read js minest ever?
F

crash the markets if you want qe3 eom

S&P Key Support Level: 1284; After That It Is Rough Sailing Until 1252
Submitted by Tyler Durden on 07/28/2011 - 23:48
200 DMA Displaced Moving Average Gross Domestic Product


As ES tumbled to 1285, there is a good reason why it was instrumental to halt the drop because should the 200 DMA in the S&P get taken out, at about 1284, then say hello to the next support which is at the March and June swing low trendline of 1258. Then again, in order to get QE3, which by the way is the goal here once all the smoke and pizza boxes clear, the market does need to plunge as has been warned again and again. Alas, it has to drop by another 20% from here. So, all those who traditionally keep buying the dip in advance of anticipated Fed intervention sooner or later will have to eat their losses. And considering that America may be bankrupt as soon as Tuesday unless the Fed sells its gold, it will certainly be sooner. So as Asian dealers scramble, and Europe wakes up (can UniCredit make it a trifecta of trading halts? Why of course), with America to follow thereafter realizing its Q2 GDP was just 1.7% (and to be revised to 1.4% in 2 months), the race for QE3 finally is on with just one month until Jackson Hole.