silver breakout of 26 29 range

Trading is a dirty word.

I admit it. I suck at trading.

I can read charts but I lack the discipline to follow through on my analysis of those charts. I bought in at 37 way back when and watched silver rally to 26 and then bounce between 26 and 29 for months. I got out with a loss inside that range and wrote about a potential rally if and when the words quantitative easing became the rumour of the day. In late August and early September of 2012 I watched the rally that would have got me back into a winning trade.

What moved silver paper above 29 ?

In Europe it was news about the buying of bonds. In America it was rumours of a new round of QE which was taken even more seriously when a new jobs report came out way short of expected at the end of the first week of September.

I suck at trading.

However....

On the matter of the ECB ( European Central Bank ) providing low interest loans to EU banks this video called The Great Euro Crash - 2012, starting at 42 minutes, might explain why these loans ( type of quantitative easing ) do more harm than good to any European economic recovery.

At 42 minutes Draghi explains the LTRO ( Long Term Recovery ) concept where nearly a trillion Euros are loosened into the European financial system. Banks can now borrow from the ECB at 1 percent. At 43 minutes another speaker explains ( makes an opinion ) how the money borrowed fails as a recovery tool since the banks mostly turn around and buy newly issued European bonds with the loans. 

Narrator : Little of the trillion Euros has found its way into the real economy. It has gone somewhere else.

David McWilliams : LTRO's are cash for trash ???....so that the European banks are not forced to pay for their own reckless decisions. ECB is giving them cash at 1 percent for 3 years. With that cash they are investing in government bonds. So bust banks are propping up bust governments with free money on dodgy collateral and calling it SUCCESS. Is the money trickling out into the economy ? No. On the contrary, the money is being stuck on the balance sheet of the banks.

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The silver breakout of the 26 29 range is happening while the Euro is rallying up from bottoms that saw pairs like the eurusd test 120 after busting through the 135 level. The European big money managers at the ECB did warn that they would not let the Euro fail when eurusd hit 120. That should have been a warning of a wave up for the pair and any good trader would have likely picked up on that tell. The eurusd closed the wk of Sept 7 2012 on a high note just above 128 and it looks to want to keep moving up at least to test the 130 mark or even the 133. But trading is never that easy and it is just as likely that next week the Euro retracement wave stops abruptly and goes back towards 120. 

Meanwhile the silver xagusd price ended the Sept 7 2012 wk above 33 which is a test of the April 2012 level seen on the chart above. A breakout above 34 definitely will continue to that 37 test which happened way back in early 2012. 

LOL...... I could easily stop this rally...all I would need to do is take a trade long the xagusd.....instantly the markets would reverse and I would stand my ground until..........kidding of course....i suck at trading.  

July 2012 xagusd - ecb qe

At the end of July 2012 xagusd is trading within the 26 to 29 range.

This image compares a daily chart of the eurusd with a daily chart of the xagusd.

Generally the two assets have moved together since January, however eurusd has been much move noisy and much easier to trade in small cycles.

What will make the silver usd break out above or below the recent 26 to 29 range ?

While there is no guarantee that the two pairs will continue to move in the same direction, history indicates that if the euro finds support then so will silver.

Thursday August 2, 2012 is a key day when Draghi of the European Central Bank is expected to make news about the ECB putting weight behind to Euro or allowing the markets to determine the faith of the European economy.

In other words investors and bankers are fidgety about Draghi and the ECB using the quantitative easing card this week or this month. Failure to do so will likely send the euro ( eurusd ) down to retest 1.20 and more likely 1.18. That same action will send the xagusd contracts below 26.

If Draghi allows a large cash flow into the free and open markets ( lmao ) then the eurusd will likely rally to somewhere above 1.25. My likely guess is 1.27 and maybe pressure to 1.30.

If that happens then xagusd will follow the direction in a similar rally. I use rally loosely here, since I believe any xagusd move upwards will be a fast and furious spike. Where to for the xagusd ? Half point recovery since January 2012 is about 32. Full recovery hits 35 and a blast into the past could test 45.

xagusd has been consolidating between 26 and 29

All information on this blog is speculative at best. Use at your own risk.

friday 13

The last day of trading this second week of July 2012 is Friday 13.

Silver spot traded in a range between 26.5 and 28 all week long and the silver chart shown here shows the results.

There remained much speculation about the possibility that some countries would soon start releasing money into the banking system in order to stimulate national economies. This speculation of quantitative easing might have been the catalyst that held the price of silver from dropping below the triple bottom 26 level.

Another factor that may have held silver above 26 might have been the par with expectation economic data that came out of China. Par is better that negaive. Should a few more par of better than expectation data reports come out in the next weeks then this might also feed the bull silver buyers a jolt and send the silver price rallying to 29 or 30 or maybe even higher iif and when.

On Friday 13 that is how silver news rally interpreted the week of silver trading.

july 2011 2012 silver

Click on this july 2011 2012 silver chart to enlarge

Compare the july 2011 2012 silver chart to the following 5 year chart.

Our 26 or 29 post made last week played out almost exactly as we had said it would.

Early in the first week of July 2012 silver started trading lower than the open and seemed to want to go to 26. Mid week the sentiment had shifted and silver buyers were moving the price which peaked at 28.5.

On Friday, July 6, all kinds of economic reports failed to prromote a stronger economy and the price of silver spiked back towards 26.

The 5 yr chart shows the potential upside should silver break through that bearish vertical channel which has big support and resistance level at the current price of 28. Then again at 31. The high of 48.48 set as the peak of the bull silver rally which broke above 20 in 2010 is a nice top to hope for if a bull silver rally comes to pass in the last part of 2012.

However!!!

A test below 26 would certainly make sense here since there are likely tons of stop orders that could be hunted out of play at that level.

However if the silver price does go below 26 then how are we to know that it isn't a genuine market sentiment and not just a stop hunting strategy ?

Again, from looking at the 5 year chart we see how deep a bear silver ratlly could go. There was a big range between 10 and 20 that lasted for several years and which was broken out of in July and August of 2010.

So basically we have been experiencing silver above 20 dollars US for 2 years alreadly.

9 or 90 silver



9 or 90 silver

 It is unfortunate that my audience counts myself and well......myself, since this information contained in 9 or 80 silver could proove very valuable to someone who took the time to read this post.

Why?

Go figure, the guy who made the attached video which predicts that silver will skyrocket to 1000 usd or more in the near futre may be completely off his rockers.

However !!!

Take away his over optimistic assessment of the future price of silver and the rest of what he says about silver and the accumulation of silver may not be that far off the truth.

And...in the end he may not even be wrong about the super inflated price of silver should the global financial system continue to chase a reality that more and more people are coming to believe does not and will never exist.

What reality is that ?

Well, some people believe that those who control money would like nothing more than to believe and have the rest of us believe that by allowing them to continue to be the money managers and wealth distributors of the world that somehow they will make the world a better place. The fact is that to make the world a better place as per their standards which state that they must earn money on every transaction that goes on in the world......well you know that story.......

As for the 9 or 90 silver topic of this post what is important about the video is not the part where the guy makes 1000 dollar silver cliams that could easily send some people in a fantasy frenzy. What is important about the 9 or 90 silver video is the statement about  how everytime JP Morgan Chase Co is forced to sell the silver spot market in order to not lose billions of dollars,  the billionaires of the world meanwhile go on a buying frenzy for silver bullion and coinage as the price goes down or remains low and affordable .

Think about that for a few seconds and you may agree with me that the billionaires of the world likely participate in shorting the silver spot market, through their brokers and agents, just as much as JP Morgan does. They likely also buy long silver paper contracts when appropriate. And all the while they keep stacking or buying all of the physical silver that they can find or afford without over leveraging themselves.

Why ?

Because if they can play the paper silver game with JP and his friends they can be a part of the group that manipulates the low cost of silver. If they lose and gain similar amounts on their short and long silver contracts it is not a big deal because most of their money allocated to silver is actually going to buying physical silver - in other words the wealthiest people are hoarding physical silver at any price like the guy in the video says. ( or any price below x dollars where x is ??? 50 usd ? 60 ? 90 ? ) . At some point they will stop shorting the paper contracts and watch JP and his friends take the fall they rightly deserve which by the way is not going to be a good thing for the rest of humanity. At least not a good thing in the short term.

JP Morgan and the agents of the boinkers who bought Bear Stearns back around 2008 meanwhile are likely a little worried about the price of silver going up and up and up since the company name is at risk. The independent boinker who works the JPM portfolio is however not much worried about the outcome since, as an insider, they are likely using much or these big salaries and comps to load up on silver bullion as the mother ship struggles through the impossible bottle neck.

JP Morgan under any otther name would definitely not be JP Morgan and senior JP would likely rock the spirit world should his namesake fail but to the current people who man the JP Morgan Ship ( the White maybe ) another bank founded in the future when the JP Morgan dust of failure has settled, founded under a new name but by the same boinkers would do just as well if the endgame was to procure the world with a same old, same old crap system of weatlh management and distribution.

If you read this then I feel good.

It makes two of us.

If you read 9 or 90 silver then you might also want to read 26 or 29 silver which was the short term struggle for silver spot contracts at the end of June 2012.

Let me know how that turned out.

1 minute silver set up

I am studying this 1 minute silver setup.

The xagusd chart has simple sma 60 and 100 added to it along with a basic moving average convergence divergence indicator.

A one minute chart is only tradeable if you are willing to sit and watch the trading platform for hours on end. However, what works on a one minute setup chart will generally work on a longer timeframe. Trading charts is a fractal thing were scalability is the key word.

As above so below.

What do you need in order to enter a trade if you are a technical trader ?

You need a signal and you get that signal by using one or several technical indicators. On this particular 1 minute silver setup chart the quoted price starts printing below the 100 and 60 ma's and drags in the bear sector.

There are two points on this 1 minute silver setup chart where the MACD indicates weak reversal efforts which some traders might be tempted to use as buy points thinking that the bear rally is oversold and complete. I consider those MACD points as false starts and prefer to wait at least until the spot silver quoted price test the 60 sma. At that point I look for the next MACD signal.

At this point I can enter a trade, long silver in this case, and, depending on my strategy, I place a sl order below the last low. ( I hate stop loss orders mainly because I believe in the idea that there are some amongst us who would manipulate markets in order to win at all costs ). There are other methods of beating the fear and greed factor that comes from some people trying to force sense in the markets.

Having entered a trade on this 1 minute silver setup chart at the indicated area, the next step is easy as pie. The trader has to look for an exit point.

One potential exit point is indicated on this 1 minute silver set chart. There are other exit strategies.

This study is for educational purpose only. Use at your own risk and if you dare. And try it on other traded assets. If it works out for you please come back and comment about it.

I will be adding other examples of this 1 minute silver setup as time goes by.

29 or 26

Will silver go to 29 or 26 USD on the spot market ?

It is the end of June 2012 and it is Saturday and all silver trading is on the backburners for the weekend. The last trading day of June 2012 set silver at a price of 27.5.

Here's my chart of silver - XAGUSD - with some trendlines that were drawn in. Most trendlines are very bearish for silver on this chart.



Silver 29 to 26 ? That is the question...


June 2012 was a wicked month in silver trading. In the first week of June 2012 we saw a spike to nearly 30 USD. The energy that fueled that spike faded quickly and the XAGUSD quote retraced quickly to 29 and ranged above the May 2012 29 to 28.5 range.

Silver bull sentiment faded away with the Bernanke news releases and the price of silver quickly drepped from 29 to 26.

It wasn't until the last few days of the month and some news releases coming out of the EU ssummit meetings claiming that the EU banks would be recapitalized that silver traders found enough courage to buy the white metal up to 28  ( in the blink of an eye ). The bottom line for June 2012 silver spot was 27.5 XAGUSD.

What's next ? 29 or 26 ?

A person could make arguments for both sides. Silver short term ranges always offer several percentatges of volatility. This next month could as easily be a series of short waves fluctuating between 26 and 29 as it could be an early July 2012 bull run to test 29 then an aggressive bull move to challenge 30 which would somehow indicate a longer term trend reversal for technical traders.

At the beginning of May 2012 XAGUSD broke below 30 USD and no one, except silver bullion buyers has dared to pay more than 30 dollars for an ounce of silver since.

So where to ? 29 or 26 ?

Most physical silver buyers who are looking to buy on the cheap and hold on to their silver are likely hoping for the silver spot price to fall well below 26 at which point they could accumulate more physical silver.

That is the long game. What about the people who dare to trade silver spot market contracts either long or short ? That is the silver paper game which most physical silver traders do not bother with.

The paper silver game is the arena of the silver market manipulators. Or at least that is the general feeling amongst those who research and follow the silver trading trail.

The biggest question of this particular " Silver News Blog " is " Can one play both the physical silver buy and hold game and the paper silver trading game at the same time.

Buying silver bullion is a no brainer in a world that is on the brink of madness if not completely mad already.

Silver bullion, if nothing else, will serve well in a blackmarket society or when paper money is become worthless.

Until then however, the money masters, ie., big players like JP Morgan Chase Co and others will continue to defend their short positions and by doing so there will likely continue to be plenty of these multi percentage overnight spikes in silver.

Can the average Joe buy and sell silver spot contracts and challenge ranges like the one that might settle between 29 to 26 ?

That is the question ?

How much do I buy ? How much do I sell ? How do I justify being long and short at the same time ?

Those are other questions.

Is silver ready to move

jsnip4 asks " Is silver getting ready to make it's move ? ".

He made the video yesterday. Today is Thursday, June 28, 2012, and the EU summit is schedualed to start in the next few hours.

Is silver getting ready to make it's move ?

jsnip4 is basing this vid on news from a silver bullion seller who claims that demand for physical silver coins is up 40 fold from 2007-08 levels.  

Silver Doctor article

If you learn nothing else from watching then at least you will be reminded that trading silver paper is not trading silver bullion. jsnip4 touches on the fact that silver paper which trades at spot price ( forex price ) does not necessarily reflect the bullion price ( silver coin ) price which is always higher and sometimes much higher.

The spot price can go down while the physical silver price goes up.

I said this blag might not interest the expert who should already know that. However most of us are amateurs trying to make a few bucks trading silver and this information is a must know if you dare trade spot or forex contracts.

In February jsnip4 made a similar titled vid.

  Then, he was analyzing information coming out of CME group and how they tend to play with silver margin requirements at just about the perfect time to cause major chaos in the world of forex or spot silver trading. Again margin is only something that would concern you if you were buying silver on a leveraged account. If you already own physical silver this margin requirement issue really can only help you since it could likely send the price lower to a point were you could buy more silver coins or silver bars.

jsnip4 rules and knows what is going on in this day and age. So when he asks " Is silver getting ready to make it's move ? ", then you might just want to hear what he as to say.

Silver today is testing a low just above 26.5 and bouncing back and forth by a few percent. What will the EU summit do to the silver sentiment? We will know in the next few days.

XAGUSD - june Bernanke - Twist- QE3

June 20, 2012

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XAGUSD - june Bernanke - Twist- QE3

Update - At 2:30 EST same day Bernanke updates his earlier news release. At this time he states that the Feds sort of overestimated the Ameriran recovery and that the Twist 2012 package released today would be the last of its kind for the time being as this particular strategic financial weapon was tapped. Any further fiscal stimulus would require another type of weapon ( likely QE3 ).



_____________________________

XAGUSD - june Bernanke - Twist- QE3

Original Post

Ben Bernanke of New York Federal Reserve released some information regarding the economy.



more twisting - less qe3
we have it under control Mr P.

 Meanwhile everyone was speculating about the effect of such news on the price of metals, including silver which was pushing back and forth between 28 and 29 USD for the period leading up to the Bernanke news release of June 20, 2012.

Are the markets headed down if Bernanke does not agree to some form of quantitative easing today ?

After the release - no great surprises - no additional quantitative easing today - extra 287 billion released is Twist cash.

XAGUSD went to 27.75 and then back above 28 to 28.25.








Twist - Operation Twist 2011 is an FOMC strategy whereby the Federal Open Market Committee can access money. It was implemented in 2011 as a means of buying up some 400 billion dollars in bonds with maturity dates of 6 to 30 years. The same strategy included the selling of shorter term bonds. The Feds maintained that it was a measure necessary to extend the maturity of their portfolio and also an attempt at doing what the Quantitative Easing ( money printing ) attempt had failed to do.

Operation Twist 2011 was a spin off or continuation of a strategy meant to flatten the yield curve which was adopted in 1961.

manipulate silver

Can a herd of sheep turn against their master ?

Fleeced No More

Wouldn't it be great if you could stock up on silver bullion, coins, or even a few silver options and not have to worry too much about someone else moving the market against you in order to scare you out of your trade and out of any potential of making a few bucks from trading ?

There is no such thing as market manipulation, you say !

I beg to differ. I believe, like many others, that there are traders who have super large accounts who are ready to muscle their way through the markets. One common term to define manipulative action in any market is " cornered market ". When a party or a group has enough investment power in any sector or stock or cuurency they have the power to move the price of that financial instrument.

Silver manipulation is not a story isolated to 2008 or 2012. Back in the 1970's the Hunt brother's tried to corner the silver market and found out the hard way that investors, no matter how rich they are, can lose billions trading aggressively.

Today it is suspected that much of the volatility in the silver market is part of a collusion scheme involving only a few parties. Without naming names let us just say that their initials are JPMC and HSBC.

This series of post looks at the potential of turning the table on anyone who would try to control the price of silver. The entire premise of this series is based on the fact that silver will always be worth more than nothing. Silver is not fiat.

Silver can be bought and sold but when those buy and sell orders are not managed properly they more often than not empower people who manipulate the silver market for their own profitable ends.

Stop hunters seem to love to chase over leveraged accounts that are in danger of being forced into foreclosure by the dreaded margin call.

Is it wrong or immoral for such powerful brokers or financial houses to trade that way ?

Probably not. They are simply playing the game.

To beat them at this game, " we the sheep " have to start thinking like " they, the wolves ". 

How can a herd of sheep beat a master or a wolf dressed in sheep's clothing when this master is out to manipulate the silver market, or any market.?

 

That is where we go next with this series..........

______________

Trading is risky business....read the warnings before investing real funds. We only suggest this approach as an educational exercise that might wake up the rest of the world who compete against the few who would love to manipulate us all into pastures of doom.

Look back for the next installment at a later date. 

silver manipulation conspiracy



Is there anything to
the JP Morgan
silver conspiracy theory ?



What is the JP Morgan silver conspiracy ?

I am going mostly with what Jon Lockton of Hals Report, and Gerry White and Rowena Mason of the Telegraph were reporting about this silver manipulation issue back in 2010.

Since 2008 allegations of silver market manipulation ( control by monopoly ) had risen the suspicion of the CFTC who were now investigating the matter.

JP Morgan Chase was at the center of the investigation and HSBC Holdings was their counterpart in a game of probable colluding to profit from volatile silver markets.

The suspicion of investors like Peter Laskaris, Eric Nalven, Andrew Maguire of Goldman Sachs,  and others was enough to send lawyers filing class action law suits against the giant financiers.

Silver prices are being forced to a level that is below the true value of the metal commodity states Lockton who claims that JP Morgan was able to do this because they had acquired such a large position in silver.

White and Mason meanwhile state that this collusion fiasco in silver started back in June of 2008 when JP Morgan acquired Bear Stearns who held an extremely large volume of short silver futures.

The CFTC released an article in late May 2011, one of many, on the topic of The Big Silver Con.

The Big Silver Con article speaks of the 26 XAGUSD target lines that are at play at the end of the QE2 or quantitative easing efforts and how silver traders a legging into or " piggybacking " the silver manipulation giants.

It isn't that simple and I might have missed the mark on my understanding of The JP Morgan silver conspiracy issue but then again maybe not.

Someone else was asking whether or not the little guy could somehow play in the big fools game and I put in my two cents worth on that issue at

http://silvernewsrally.blogspot.ca/2012/06/stick-it-hard-to-jp-morgan-chase.html


 

Stick it hard to JP Morgan Chase

How can we " Stick it hard ot JP Morgan Chase " and other silver market manipulators ?

This is a response to a YouTube video comment....

Hi Greg: Is there anything we as little guys can do to really stick it hard to JP Morgan Chase? I'm sure you realize that Chase has been sanctioned by the Federal Reserve, The SEC, the U.S. Treasury & the White House to Short Silver prices indefinitely into the Future. I realize buying Physical is the best thing to do for now, but What else can we do to make JP Morgan Chase regret the day it accepted this Con Job?  quote from ThePayola123 who comments on GregVegas5909 video

I don't know how Greg would answer The Payola123's question about " the little guys " fighting the giant bankers and the regulators and governments, but here is how I suggest that it is not only possible but it is quite easy to beat the big silver players at their game of silver market manipulation.

Well guys, here goes...( sorry for that Greg !!! )....

Silver is currently trading just under 30 USD an ounce and testing many major support resistance levels. Greg as some good info on those sr levels in the attached vid. I spoke about that in my last post.  June 14, 2012 Silver apocalyptic set up. I am writing " stick it hard to JP Morgan Chase " on Sunday, June 17, 2012 just hours before the Greek elections get underway.

Here is my theory.

Anyone can open an account with a silver broker and start buying paper silver. Silver in paper is not silver in bullion. Most people tell you that it is only wise to buy silver bullion or the real stuff but I tend to disagree.

Why ? Basically because if you are going to " stick it hard to JP Morgan Chase " as a little guy then you have to be willing to play by their standards and they play with paper silver and silver bullion. So should the little guy.

One little guy is not worth much and can not hurt the giant. But many little guys are much more dangerous than a giant.

It is a fact that JP Morgan Chase can not push the price of silver to less than 0. Silver will always be worth more than nothing. That is the power of silver and the reason that it is a safer investment than fiat currency.

Assume that the little guy only has 1000 dollars to trade. For 1000 dollars this silver trader can buy about 35 ounces of silver bullion at 28 USD. If silver goes down in price then this trader risks holding on to 35 ounces of silver that have depreciated in value but they are still worth something.

Those 35 ounces of silver are not bought on leverage therefore there is no way that this silver trader can bust out the account on a margin call which is usually the opportunity that the giant looks to cash in on.

If the silver trader had only put up 500 USD to buy these 35 ounces of silver then logically this little guy would be playing with leveraged funds and could lose a big chunk of his investment should a giant like JP Morgan Chase choose to sell silver at a price that would put our little guy at the margin call level. Off the top of my head I think that price would be about 19 USD.

Leveraged silver trading is a paper game. 

Now assume that SilverTrader1 above has a friend, call him SilverTrader2. ST2 steps in to protect ST1 when ST1 is about to be wiped out by a margin call.

Silver trading US dollars is done under the XAGUSD international symbol. If XAGUSD goes to 19 then ST2 buys a few thousand dollars worth of bullion or paper silver.

Having done this then ST1 and ST2 have taken a second step in the game called " Stick it hard to JP Morgan Chase ".

If JP Morgan Chase feels like they must push ST1 and 2 out of their silver position then they have to move the price even lower towards 9 or so. Again a figure pulled off the top of my head.

At XAGUSD 9 the ST3 steps in with a yet bigger bet.......ST4 with a yet bigger bet lower.....and so on and so forth until JP Morgan Chase and their team of conspirators as you call them are jumping out of 30th floor windows and yelling foul. ( or howling at the lords of their ars goetic realm of deceit !!!! ).

I would love to see the price of silver at 1 penny or even 1 dollar. How much silver could ST1 to ST>>>2>>>>4>>>>>>8>>>>>>>16>>>>>>32>>>>>>>>>64>>>>>>>>>>128>>>>>>>buy at that level.

There is no way that JP Morgan Chase or the Feds or the SEC, US Treasury, US Government or Chinese Goverment or any wantabee god of the Ars Goetic realm could defend against the little guy in this scenario.

Well hardly any way !!!!!!

Recall that in the past the government of the USA has taken steps to stop the public from owning or hoarding Gold. They enacted a law whereby all gold above jewellery and a very basic amount must be returned to the treasury and the gold trader was then given good old American dollars.........35 dollars per ounce.

The devil is in the details and the banking giants are part of the bigger game of " stick it hard to JP Morgan Chase " , and of other such games of distribution of resources for the better good of ???? ( fill in the ????).

In my opinion that is how the little guy beats the boinkers at their own game. It is only " their " game as long as the little guy ( ssssssssssssss) refuse to play along. Or sit idly by hoping that their boinkers and brokers, and their ivy league educated financial assets managers and pension fund managers, will fight their battle of even distribution of resources for them.

Boinkers and brokers are bought and sold. ( Economics Ivy league education is likely the biggest corruption of reality in this age of change - it is a system of education designed by the wealthy for the wealthy - the deans of such systems of education are the authorities who sign the diplomas of the next generation of authorities....they are the knights or wizards behind the apprentice - the sorcerers apprentice only practices if the author of authority brands him loyal to the bigger game ). They get paid the big bucks because they can take big bucks from the little guys.

I don't know how GregVegas5909 would answer your question ThePayola123 but I think an approach such as described above would begin a real battle between the David and Golliath of silver trading.

Stick it hard to JP Morgan Chase       Game on                            

           No real education necessary.........       

June 14, 2012 Silver apocalyptic set up



Silver Daily Forex chart
June 14, 2012



If ever a silver trading chart told a story.....

This silver daily forex chart for June 14, 2012 is that chart.

 

 

Why is this silver chart different than any other ?

I just read a memo on my broker's trading platform stating that they are making a rare exception and will not be accepting any trades on silver, gold, or currencies over the coming weekend. The reason they claim is a general consensus amongst brokers and economists that the Greek vote and other European monetary policies could send the markets into a super volatile mode.

The screenshot of the daily silver chart above was taken just before the Thursday night Australian and Japanese market session. The descending trendline shows an obvious high level of stress that seems to have been on the minds of many silver traders for several months now.

There was a double bottom at 26 USD against silver and a third attempt to reach that price at the end of May 2012. That last attempt never quite got there. It isn't hard to imagine how there must be tons of orders both for buys long and stop losses somewhere just below 26 so any big money market maker will likely do everything in their power to push through that level. Then again every apocalyptic economy guru has been stating ( screaming ) that the price of silver is going to unimaginably high levels if and when the banking reserves of the world start printing money in order to save the inevitable collapse of paper currency.

So if the weekend does bring about a major shift in European economic affairs and if the banks do start printing big bucks to save the " system as it is " then I agree with my broker that the weekend starting June 15 2012 could definitely be historically written on Mondays June 18, 2012's silver chart as sharp spikes up and down.

And since I cannot trade to protect my existing trades then in other words my broker is telling me that I am scrued  ( typo on purpose ).

Now my broker is a nice guy and doesn't mind that I place trades all year long. Those trades accumulate and most be managed very carefully. However the trading strategy that I use didn't take into consideration that suddenly I would not be allowed to protect myself.

Sure, my broker does state clearly in his memo, at the last minute, that I must make sure to adjust my trades for this unfortunate set of circumstances.

I am pretty sure that I will be busted come Monday. Not necessarily because my strategy fails but because my broker fails to provide efficient service.

Who knows ? I might survive the weekend and wake up with a big surprise come Monday.

_______________

I have learnt alot from trading. Most of all I have learnt that a person is lucky if his passion is for prostitutes more than if his passion is for the financial markets.

I would like to think that a person can go to hell with a bunch of bankers or with a bunch of perverts and hookers. If god is a just judge he would never put bankers in the same dungeon as he would hookers and porn stars who at least have a little decency and respect for others.

   

OECD Eurozone austerity vs eurobonds

Any news about growth initiatives in the Eurozone is likely to have some effect on the price of silver.

There is a meeting scheduled for May 23, 2012
when the OECD will attempt to convince
the ECB to loosen up on the
austerity measures that have been
applied to the Eurozone as of late.
Loosening the austerity measures likely would
involve releasing new paper into the markets.
That paper could be in the form of Eurobonds if
the suggestion of the OECB is
taken seriously

------

The short leg up on this silver chart was mostly
a response to news out of the US last week
when Bernanke and the Feds were
sending out rumour waves concerning
the release of a QE3 financial amd market rescue
package in the near future should the Eurozone
crisis put more stress on bull stock investor sentiment.

OECD is the Organization for Economic Cooperation and Development ( an international financial watchdog ) and it is currently suggesting the introduction of eurobonds as a measure towards stabilizing the Eurozone economy.

Interesting links about the OECD and other players in the European debate or argument between ongoing austerity or loosening of goverment funds.

OECD - Better Policies for Better Lives

The global economy is recovering, states the OECD, however, European governments must take greater actions to ensure that the crisis in the euro area does not derail the recovery.....

Forbes Article about how Hollande is against austerity and the leaders of Italy, Spain and Ireland seem to agree with France's new leader on the topic of eurobonds.

Meanwhile Merkel of Germany is adamant that eurobonds are not the definitive solution to the financial bottleneck in Europe.

Germany insists no eurobonds to solve debt crisis

The IMF - International Monetary Fund seems to be siding with those in favor of a eurobond issue.

Geithner speaks - Jobless Claims Report - May 17, 2012

May 17, 2012 Silver 5 minute chart

News due out at 8:30 am EST.

Initial Jobless Claims by American workers.

Treasury Secretary talks on the State of the Economy in the USA

At 7:30 am silver is quoted at 27.5 USD.

Yesterday there was a spike to a new low of 26.75 from 28 USD. The price quickly recovered to 27.75 and retraced to 27.5.

365 is the expected number for the initial job claims. The last number was 370.

The actual initial jobless claim showed no change. CNN claims that any number below 400 thousand is indicative that there is some economic growth in the USA.

Treasury Secretary Timothy F. Geithner has been dealing with the JP Morgan Jamie Dimon 2 billion dollar bat bet issue for the last week. Geithner and Dimon had had discussion on the Volcker rule and stronger bank regulations in recent meetings.

" We are in a much stronger positiion to manage those challenges
than is true for any other major economy in the world "

" Europe is still caught in the grip of a very tough financial crisis "

What did Timothy Geithner have to say about the State of the Economy on May 17, 2012 ?

One hour silver chart - May 17, 2012
testing the 100 SMA

Austerity alone won't work, says Geithner. He keeps on selling the American economy as being relatively strong in spite of the global conditions but stresses that " economic growth requites a willingness to do things and not just to cut things ". Geithner's May 17, 2012 State of the Economy speech included a reminder that the road to the November elections are will be a fierce battleground or high stake game of fiscal policy promises between the Democrats and Republicans looking to sway voter confidence.

The silver markets moved up and down about 1 percent initially. The bullish silver buyer loaded up to 28 USD per ounce silver an hour or so after the markets opened.

What moves silver ?

According to most economists, the printing of new money points to inflation or in a sense to the devaluation of the USD and to the buying of silver and gold.

If the rumour of Quantitative Easing - Act 3 - continue to circulate through the financial streets then likely the fever for gold and silver will follow suit.



What Bloomberg had to say about the Jobless Claims Report of May 17, 2012.