Sometimes I feel like I live in a financially loony-bin. I’m still trying to figure out why the MSM purports Larry Summers to have been “hawkish” regarding monetary policy – contrary to EVERYTHING he’s ever done as a public leach – er, servant. And not to mention, what a “coincidence” that this “truism” emerged just as he was about to withdraw from Fed Chairman consideration. It’s almost as if TPTB decided to attempt the “all-time train dodge” – for those that have seen Stand by Me – by rapidly spreading PROPAGANDA that somehow the recent Treasury collapse was related to his pending Fed Chairmanship. Their initial intent was to install him in office – knowing he has a long, storied history as a banker lackey; however, once they realized the confirmation process would prove too “acrimonious,” they “recast” him as an inflation hawk. Obviously, they hoped that someone – ANYONE – would return to the Treasury market; despite such a thought process being ludicrous at best.
All night, MSM headlines shrieked of how stock and bond futures were soaring due to Summers’ withdrawal; and given the PPT’s 24/7 role – particularly armed with the day’s other non-news (the meaningless Russian Syria agreement), they started off the day’s manipulations on fine footing. PMs were again suppressed in typical “SUNDAY NIGHT SENTIMENT” fashion, and all subsequent rally attempts were stopped via the same old algorithms – at the same old “KEY ATTACK TIMES.” Back to the “news,” the early, equally nonsensical T-bond gains generated swarms of MSM articles highlighting the “ding dong, the witch is dead” nature of the Summers withdrawal. Heck, the below article showed up at 2:45 PM EST; incredibly, stating that Treasuries were rallying – when in fact, they were mid-plunge. And no, this is NOT the first time I have seen these vultures like Reuters do this…
NEW YORK – Stocks and bonds on major markets rallied on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from consideration to be the next chairman of the Federal Reserve, leading investors to believe U.S. monetary policy might stay looser for longer.
–Reuters, September 16, 2013
The PPT maniacally held the line on double-digit Dow gains; however, “turboQEing” the Treasury market is not as easy as buying unlimited stock futures with printed money. When the article was published, the T-bond was already sharply negative, heading toward a miserable close at the day’s lows. And oh yeah, if it seems strange that PMs would be hit hard when “investors believe U.S. monetary policy might stay looser for longer” – not to mention, on the day after Andrew Maguire’s new BOMBSHELL manipulation revelation – all you have to do is look at the times of the gold caps and attacks; i.e., 2:15 AM EST, 8:20 AM EST, 10:00 AM EST, 12:00 PM EST, and “crybaby time” at 2:00 PM EST…
I’d like to write of all the other “PM-negative” news of the day (facetious); like much higher than expected PIIGS debt; another “NASDark” market outage; Obama vowing to not negotiate regarding next month’s “debt ceiling” breach; and last but not least, none other than Hank Paulson deeming another 2008-like financial crisis a certainty. But instead, I’ll simply conclude today’s outrage with two quotes.”
The first is from Greek Prime Minister Antonin Samaris, which could easily be attributed to any of a number of Western “leaders”; “You have to tell people the truth, but give them hope as well.” And last but not least, from the likely next Fed Chairman, Janet Yellen, in 2010; “I did not see nor appreciate the risks of securitization, the credit rating agencies, the shadow banking system, or S.I.V.’s — I didn’t see any of that coming until it happened.”
Long-time readers know I hate technical analysis; at least, I have hated this since the Cartel went hog-wild in recent years to use it as a “weapon” against institutional and retail investors alike. That is, by attempting to “trick” buyers into believing charts were “signaling” buying opportunities, only to pull the rug out by breaking key “support levels” with additional naked shorting.
However, long-term technical charts are much harder to break than short-term ones; and given the massive confluence of PM-bullish fundamentals currently in the spotlight – i.e., the weakening global economy; the Fed’s likely inability to pull off more than a token, piddling “taper” (to save face); the upcoming U.S. budget and “debt ceiling” debacles; the ongoing Syrian crisis; and countless other potential “black swans,” it’s difficult to ignore the enormous, seven-month “reverse head and shoulders” that appears on the verge of completing in both gold and silver…
Only you can decide how much value to assign to this chart; and ceteris parabus, I wouldn’t assign much. However, as part of a larger mosaic of fundamental, technical, and seasonal factors, it SCREAMS that we could be amidst an historic PM buying opportunity. Remember, no one rings a bell at the bottom; although not far from this summer’s lows, I did.