Monday Outlook: The cartel has slashed gold & silver ever since September 8th, but by this Friday, it may be the Cartel who’s getting slashed…
The week is starting out a-typical and ending that way too. Today is Columbus Day, and the banks are closed, but the markets are open. On the fundamental front, we have a slew of Fed speakers starting tomorrow, and of course, by Friday the 13th, they are going to need all the jawboning they can get to keep their stock market propped, the dollar under hypnosis, and gold & silver out of the public conscious:
From Wednesday on there are market moving data releases for the HFTs to trade off of, including:
- Treasury Budget
- Business Inventories
- Consumer Sentiment
This is why it matters:
The data releases “hit the tape”. This means they are released, and everyone’s favorite tape is the market data feeding news platform Bloomberg Terminal, which no longer publishes yearly costs but, but it is safe to assume it costs around $25,000 for the program, which hedge funds and major trading firms (i.e. the revolving door between Washington and Wall Street) use in conjunction with their algorithms to trade positions back and forth all the while racking up the profits and creating nothing other than a bunch of synthetic paper currency and nothing of substance.
The Fed speeches are significant too. Computers calculate numbers, and the “black boxes” that are built to parse the data in the releases is not something a human mind can do in nano-seconds, let alone does a human have fiber-optic and laser connections to the major trading clearinghouses like BATS to front run, skim, spoof, snipe and pounce any other computer that is nano-seconds behind. So humans need fundamental news.
The fundamental news comes in the form of jawboning the markets. That is to say, all of those Fed Heads declaring that everything is awesome reassure any of the actual people left in the stock markets that the Fed has their backs. Said differently, this week is the typical data release feeding the computer algorithm trading, in conjuction with the various staggered Fed speeches re-assuring the humans that U.S. stocks are the place to be.
At one point, however, it won’t be, and with the exception of a few people on the inside who stand to profit immensely from knowledge we are not privy too, the Fed will not longer support the system in order to allow the bubble to pop. Since they know when that point is, they will bank on the whole way down too as investors loose their hard earned money that they trusted in paper assets.
But they will most likely have trouble with gold and silver this week.
Gold & silver have been under constant price smashing since September 8th. Can the smashings continue, such as the way we saw the precious metals fall until the end of the year in 2016? They could, but the pressure on price has come much earlier this year than last. The silver price was still at $19 just a year ago. Are they really going to be able to push silver down $2 from here to end the year? Not likely. Yes there is silver (and gold) on the markets at the retail level, but there’s no way there would be much if any left after the rush into the metals if they push the price down that far.
Here’s a chart showing just how they have barely been able to keep the 50-day from crossing the 200-day:
When that blue line crosses above the red-dotted line, that would represent a huge change in sentiment on the bullish side. Could we get that cross before Friday the 13th? if silver has some surge in price this week it’s possible, and if silver was $2 higher this time last year, it could indeed have that surge in it.
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