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Be careful what you wish for
http://www.myfwc.com/redtidestatus
Dollar doing a Dead Cat bounce
Stalled at resistance on the 15 min chart.
Average up vs average down
Price dropping buy is a loss from the get go until it turns. Subsequent buys are also a loss until it turns.
Price rising gives a profit and subsequent buys are also showing a profit. When it turns down Profit is locked in at the sale.
Averaging up is much safer than averaging down.
Average up!
Now there's a novel idea.
"A lot of people were expecting the market to break down, so those who have been caught short will continue to buy back in the near term."
http://www.reuters.com/article/2014/10/09/markets-precious-idUSL3N0S42TN20141009
PRECIOUS-Gold at 2-week highs on lower dollar as U.S. rate hike seen farther off
Thu Oct 9, 2014 6:04am EDT
* Gold extends gains to fourth session
* Dollar index down to two-week lows (Updates throughout, changes dateline form SINGAPORE)
By Clara Denina
LONDON, Oct 9 (Reuters) - Gold climbed to its highest in two weeks on Thursday as the dollar fell after minutes of the last Federal Reserve policy meeting drove markets to push back expectations for the likely timing of an interest rate rise.
Spot gold rose to its highest since Sept. 26 at $1,229.80 an ounce early on Thursday, and was trading up 0.5 percent at $1,227.40 by 0956 GMT.
It rebounded nearly four percent from a 15-month low of $1,183.46 hit on Monday, under pressure from better-than-expected U.S. jobs data.
U.S. gold futures jumped two percent to a two-week high of $1,230.30 an ounce.
"The air has been cleared and we know that an early interest rate increase in the U.S. is not as likely as people had expected," MKS SA senior vice president said.
"A lot of people were expecting the market to break down, so those who have been caught short will continue to buy back in the near term."
The dollar was down 0.3 percent against a basket of major currencies, a drop to its lowest level in two weeks.
Minutes of the Federal Reserve's Sept. 16-17 meeting, released on Wednesday showed that Fed officials want to tie an interest-rate rise to U.S. economic progress. They however expressed concern about the dual threat of a rising dollar and economic slowdown in Europe and Asia, another factor behind its stance towards keeping an accommodative policy for the near future.
That prompted investors to bet that the Fed is in no rush to tighten after years of monetary stimulus.
The dollar had posted weekly gains for 12 consecutive weeks and its strength, coupled with a string of positive the U.S. economic data, had been driving gold's declines over the past few weeks. Investors tend to withdraw from non-interest-bearing assets to seek higher yields elsewhere when the dollar gains.
European shares also rebounded from the previous session's two-month lows on Thursday.
Equity markets and gold have both benefitted from a low interest rate environment and increased central banks' liquidity in the years after the 2008 financial crisis.
Despite a rebound in gold prices, which rose for four consecutive sessions, longer-term sentiment remains bearish on the prospect of further gains in the dollar.
"Despite the new interpretation of the minutes we still believe that the Fed's window to raise rates will be in the first half of 2015 and so do not see anything significantly changing in terms of the gold outlook," said INTL FCStone analyst Edward Meir.
Holdings in SPDR Gold Trust, the world's top gold-backed exchange-traded fund and a good proxy for investor sentiment, fell 5.38 tonnes to 762.09 tonnes on Wednesday - the lowest since December 2008.
On the physical side, premiums in Singapore over London have eased slightly to $4.52 from $5.44 on Wednesday, UBS said in a note.
Chinese buyers returned to the market on Wednesday after a one-week National Day holiday.
"The initial demand out of China is encouraging, especially as a full circle of players won't be back until Monday," UBS added.
Silver rose 1.3 percent to $17.54 an ounce. It hit its weakest level since March 2010 at $16.66 on Monday.
Platinum was up 0.3 percent at $1,276.75 an ounce, having fallen to $1,183.25 on Monday, while palladium rose 0.5 percent to $803.25 an ounce.
(Additional reporting by A. Ananthalakshmi in Singapore; Editing by William Hardy)
Fire Shuts Down Kinross Gold’s Nevada Mill Operations
By Kitco News
Wednesday October 8, 2014 5:53 PM
(Kitco News) - Kinross Gold Corporation (TSX:K)(NYSE:KGC) has shut down its mill operations at its Round Mountain mine in Nevada as the result of a fire Oct. 1.
In a statement released late Wednesday evening, the company said that nobody was hurt in the fire but there is no indication as to how long the temporary suspension will last. The company added that they will assess the shutdown and give an update when they report their third quarter earnings on Nov. 5.
Kinross also said that the shutdown is not expected to impact its 2014 production guidance. “Production continues uninterrupted from the mine's heap leach facilities, which account for approximately 75% of Round Mountain's production,” the company said in its statement.
According to the company’s data, as of June 30, 2014, Round Mountain produced 87,329 gold equivalent ounces attributable to Kinross.
The mine is operated by Kinross but is a 50/50 venture with Barrick Gold Corporation (TSX: ABX) (NYSE: ABX). Kinross is a Canadian-based gold mining company with mines and projects in Brazil, Chile, Ghana, Mauritania, Russia, and the United States.
By Neils Christensen of Kitco News; nchristensen@kitco.com
Cute but came out @ 16:00
The FOMC minutes from last month are coming out at 1400 EDT. With all the various
possible random influences on Yellenke from Europe, the BRICs, and the usual issues of
political self-preservation, holding a short-term position into this release is only for those
with the mightiest testicular fortitude. In an infinite universe of fecal matter and fans you
don’t need a PhD to suss out the probabilities of a serious collision between the two. http://www.kitco.com/reports/MIT1008.pdf
I am still in JNUG
Will start paring down my position @ $14
Gold just broke $1220
JNUG just broke $12
Plan the trade
Trade the plan.
Take profits when offered.
I was explaining to my 9 yr old grandson yesterday
The difference between courage and stupidity.
Buying in @ $9.72 yesterday took courage but not near the courage that holding all day today took. (g)
Paulson testified yesterday
In the AIG suit that the same deal was given to AIG to punish them for taking so many risks.
Can I breathe now?
Been holding my breath all day! (g)
The confluence of events that led to the recent scurrilous lows on Sunday
night are somewhat dissipated. The corpses of bottom-pickers are strewn
about the landscape as a reminder never to push too hard. Now the
shorts can start to wring their hands as the scenario transmogrifies. A big
factor for the drop in precious metals from early August to Sunday night
was the corresponding strength in the US dollar. The dollar rally was
predicated on expectations of a rate hike from the Fed. Said rate hike
being justified because the US economy is performing at or above the
levels the Fed has gone on record as saying it deemed necessary for it to
take the pressure off rates.
BUT another important factor to remember is that it wasn’t all strength of
the dollar, but an acknowledgement of the weakness in certain European
and BRIC economies. This is getting more traction now because the
market learned years ago that the US can only do so well when the rest of
the world is hamstrung. Now US rate hikes are put on the back burner
and Yellenke has another arguably valid reason to maintain the status
quo. She gets another reprieve and the can gets kicked a little further
down the road. And with Election Day right around the corner, it is
reasonable to expect no rate moves until December at least.
http://www.kitco.com/reports/MIT1007.pdf
Secrets of the bailout, exposed: Why you should be watching the AIG trial
http://www.salon.com/2014/10/07/secrets_of_the_bailout_exposed_why_you_should_be_watching_the_aig_trial/
The AIG bailout trial began in Washington last week. This is a case where one ruthless, reckless corporate CEO, AIG’s former chieftain Hank Greenberg, argues that his company wasn’t treated as well during the bailout as those of other ruthless, reckless corporate CEOs. So there’s no real rooting interest for anyone with at least one foot planted in reality.
But as I wrote recently, regardless of the outcome, this trial should matter to every American. In fact, just in its first week, we’ve learned a lot of new information about how the bailout architects– then-Treasury Secretary Henry Paulson, ex-Federal Reserve chair Ben Bernanke, and former president of the New York Fed Timothy Geithner – conducted themselves amid the chaos of the financial crisis. And it doesn’t reflect well on any of them, with concealed information, bait-and-switches, and favorites played among financial institutions. As these three prepare to take the stand this week in the case, we should be pleased to finally have this debate about the bailout in public.
Unlike virtually everyone reporting on the case, Naked Capitalism’s Yves Smith unearthed the Greenberg legal team’s “Proposed Finding of Fact,” which provides the basis for their claims: that AIG shareholders, including him (Greenberg was ousted as CEO in 2004 but retained a large stake in the company) were treated in a punitive and unconstitutional manner by the government. This is obviously only one side of the story, but it features several nuggets that the voluminous documentary history of the AIG bailout – from government reports by the Congressional Oversight Panel and the Special Inspector General for TARP to crisis narratives like Andrew Ross Sorkin’s Too Big to Fail – never managed to cover.
For example, the central justification for the bailout was that AIG had no ability to raise capital from the private market to cover short-term debts to its creditors. But the finding of fact presents evidence that multiple sovereign wealth funds, including the government of Singapore, China’s Investment Coproration, and a consortium of Middle Eastern investors, wanted to invest in AIG. China was “willing to put up a little bit more than the total amount of money required for AIG,” according to the finding. But Paulson rejected these offers, instead implementing the eventual plan, which gave the government an 80 percent equity stake in AIG in exchange for an $85 billion loan, one that subsequently ballooned to $182 billion.
1/ Government explain that the sweep is to save the bailout funds for taxpayers in case FNMA continued to lose and did not have ability to re-pay. It was no intention of " taking " at all --- Sweeney will rule
" Taking Clause does NOT apply ".
Like FHFA had no idea how much $ was going into the company checking accounts every day during the Q and they were just as surprised as everyone else when the multi-billion profits magically appeared on the bottom line. RIGHT! And the immediate recognizing of the DTAs and sweeping them too was another surprise. RIGHT!!
2/ Government explain that because FNMA today prove they are solvent, Government therefore retain the bailout funds of 116B, the rest will be returned to FNMA. It was no seizing private property for public use at all --- Sweeney will rule " HERA does NOT apply
And all the emails and memos from Treasury stating clearly that it is the policy to NEVER allow the stockholders to benefit ever from any profits in the GSEs. RIGHT!!!
3/ Government explain that because The Board of FNMA and the right of Shareholders were dismissed since FNMA was placed into C-Ship, FHFA was therefore guardian of the Company to oversee and decide on all operations on behalf of FNMA, including signing the sweep with Treasury ( refer to # 1 above for reasons of sweeping ) --- Sweeney will rule " The fiduciary duty is NOT breach ".
And FHFA did not ever coillude with Treasury to steal the entire company from the GET-GO. RIGHT!!!!
4/ Between 2 options, EITHER 1M Senior Preferreds + 10% interest OR 79.9% Common shares, Government now choose to exercise 79.9% Commons, then release FNMA --- Sweeney will rule " The bailout agreement is NOT breach ".
And the new info from the AIG Paulson testimony that the deal was structured to punish AIG when FnF got the exact same deal and they will only be able to admit the intent was to punish and not conserve. RIGHT!!!!!
In JNUG @ $9.76
In JNUG @ $9.76
IN THE UNITED STATES COURT OF FEDERAL CLAIMS
)
FAIRHOLME FUNDS, INC., et al., )
)
Plaintiffs, )
)
v. ) No. 13-465C
) (Judge Sweeney)
THE UNITED STATES, )
)
Defendant. )
)
JOINT STATUS REPORT REGARDING OCTOBER 9 STATUS CONFERENCE
In accordance with this Court’s Order of August 13, 2014 (Doc. 85), the parties hereby
notify the Court that they do not believe it is necessary to hold the status conference currently
scheduled for October 9.
Date: October 7, 2014 Respectfully submitted,
JOYCE R. BRANDA
Acting Assistant Attorney General
s/ Robert E. Kirschman, Jr.
ROBERT E. KIRSCHMAN, JR.
Director
s/ Kenneth M. Dintzer
KENNETH M. DINTZER
Acting Deputy Director
Commercial Litigation Branch
U.S. Department of Justice
P.O. Box 480 Ben Franklin Station
Washington, D.C. 20044
(202) 616-0385
(202) 307-0972 fax
KDintzer@CIV.USDOJ.GOV
Attorneys for Defendant
s/ Charles J. Cooper
Charles J. Cooper
Counsel of Record for Plaintiffs
COOPER & KIRK, PLLC
1523 New Hampshire Avenue, N.W.
Washington, D.C. 20036
(202) 220-9600
(202) 220-9601 (fax)
ccooper@cooperkirk.com
Of counsel:
Vincent J. Colatriano
David H. Thompson
Peter A. Patterson
Brian W. Barnes
COOPER & KIRK, PLLC
1523 New Hampshire Avenue, N.W.
Washington, D.C. 20036
(202) 220-9600
(202) 220-9601 (fax)
Reasons to Set the PCF
• Makes clear the Administration's commitment to ensure existing common equity holders will not
have access to any positive earnings from the GSEs in the future
http://blogs.reuters.com/alison-frankel/files/2014/03/fairholmevus-goldsteinmemo.pdf
Paulson and Punishment
So. If the deal with AIG included warrants and was designed to be punishment, what is the deal with FnF supposed to be?
Is it also punishment? If so, for what?
For buying the deals the regulators forced down their throats? For sending advocates to the legislator's offices to educate their staffs on just exactly how important FnF are for the economy?
It would seem to me that the winning all those fraud suits against the banks and being magically made whole in the process shows that they were and still are punishing the wrong entities.
Where, exactly in HERA, does it provide for punishment of the stockholders?
CLUE: Why was no punishment applied to Citigroup? According to Paulson's testimony, it was so that the shorters were not rewarded in the fiasco.
What about all the naked shorting of FNMA that was being aided and abetted by Goldman Sachs? We are talking about hundreds of billions of dollars in profits and systemic fraud that will be exposed if FnF win.
Must Be the Season of the Witch
By James Howard Kunstler
October 6, 2014
As the Governor goblins at the Federal Reserve whistle past the graveyard of dead Quantitative Easing, and the US dollar magically expands like a prickly puffer fish, and Mario Drahgi does what it takes with Euro duct tape to patch all black holes of unpayable debt from Athens to Dublin, and Japan watches its once-wondrous economy congeal in a puddle of Abenomic sludge (with a radioactive cherry on top), and China chokes on its dollar-peg, and Russia waits patiently with its old friend, Winter, covering its back — and notwithstanding the violent chaos, beheadings, and psychopathic struggles across the old Levant, not to mention the doubling of Ebola cases every 20 days, which the World Health Organization did not have the nerve to project beyond 1.2 million in January (does the doubling just stop there?) — there is enough instability around the globe for the gentlemen of Wall Street to make one last fabulous fortune arbitraging the future before the boomerang of consequence circles this suffering planet and finally accomplishes what the Department of Justice under Eric Holder failed to do for six long years.
It’s the season of witch and you should be nervous. Especially if you live in part of the world where money is used. Pretty soon nobody will know what any currency is really worth — at least for a while — or what anything else is worth, for that matter. Perhaps the fishermen of India will start using their worthless gold for sinkers. Jay-Z and Diddy will gaze down on their bling in despair, thinking, perhaps, they should have invested in Betamax players instead. In the time of anything-goes-and-nothing-matters, it’s dangerous to expect anything.
Here’s what I expect: the surge of the dollar is the crest of an historic Great Wave. A Great Wave is an awesome event, and its crest is a majestic sight, but soon the foam spits and hisses and the wave breaks and crashes down on the beach — say, out at the Hamptons — where hedge funders stroll to catch the last dwindling rays of a beautiful season, and all of a sudden they are being swept out to sea in the rip-tide that retracts all that lovely green liquidity, and no one is even left on the beach to weep for them. Indeed their Robert A. M. Stern shingled manor houses up behind the dunes are swept away, too, and the tennis courts, and the potted hydrangeas, and the Teslas, and all the temporal bric-a-brac of their uber-specialness.
And, of course, it being the season of the witch, that’s where the zombies come out for real — the tattooed savages who all this time have been stewing in their own rancid juices awaiting their turn to get jiggy with the nation that left them restlessly undead. I don’t think you can overestimate the depth of ill-feeling that the American public harbors for the cravens who engineered their USA into the biggest booby-trap the world has ever seen. The trouble is, they lost their humanity in the process, so when they have their way with the feckless folks tweaking the dials, you might want to contemplate moving to Finland.
Who can feel confident about the tending of things just now? The diminishing returns of the Information Age are about to bite our collective ass like an army of Orcs. The sum of all that digital magic is a nation completely incapable of telling itself the truth or acting honorably. Unemployment is down without employment being up. Candy Crush is making the world safe for democracy. We have the finest health care system in the world. ISIS is trying to compete with our homegrown videogame industry for supremacy in porno-violence (actually, I thought we already won that) but now we will obliterate all the bad guys in the world by remote control from the drone bunkers of Las Vegas, and that will show them. Thank goodness the long holiday season is almost upon us to juice the so-called economy ever-higher.
There has never been a crazier moment in history. The weeks before the outbreak of the First World War seem like a garden party compared to the morbid antics of these darkening days. America, you’ve been wishing fervently for the Zombie Apocalypse. What happens when you discover you can’t just change the channel?
http://kunstler.com/clusterfuck-nation/must-be-the-season-of-the-witch/
If I was that good,
I could go back to being retired in a week or so. (GGG)
FNMA increase today is now double what JDST would have made.
I actually was just using JDST to increase powder for
Going back into FNMA.
I got back in FNMA yesterday with 3X what I had in FNMA when I left it just over a week ago.
The bump in FNMA today is roughly equal to what I would have made had I stayed in JDST.
Plan the trade and trade the plan. It is OK to leave money on the table when profits are offered.
10 million share bid
In FNMA @ $1.52
Out of JDST @ $17.56 for a 2 bucker
Oh Yeah.
Gold still going down as we speak.
Are you considering?
That NUGT is not gold. NUGT is miners. Miners suffer from cost of production. With Gold down here and staying down, some miners are not as able to cover production cost and make a decent profit. That causes their prospective share prices to affect NUGT.
Gap Schmapp!
How about the stacking of over 10 million bid just under the market while they sold 2 million shares short to the mooches who saw that stack as the bottom.
Then the huge bids just went away.
Welcome to the OTC.