No Pain No Gain: It’s Best To Prepare For Pain This Week In Gold & Silver Prices

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from Silver Doctors:

SD Outlook: looks like were going lower, so buyers have great opportunity here. If you’re not a buyer right now, prepare for more pain. Here’s why…

Editor’s Note: There will not be a SD Midweek Update on Wednesday.

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This is the week where both fundamentals and technical data dumps can have an effect on the cartel’s ability to smash the price of the metals.

Meaning they will be able to strong arm gold and silver with ease.

Let’s recap the fundamentals for the week.

On Wednesday the markets are closed for Fourth of July.

With markets closed on Wednesday, the cartel loves smashing around market holidays. Thanksgiving and Christmas are prime-time holidays for smashing too.

Something tells me that the latter half of the week will see an increase in people taking time off to spend with families or on vacations.

That said, there will likely be low trading volume this week, and recall that the cartel doesn’t need to dump as much paper to start the waterfall of selling, so we must assume they will not let the opportunity go to waste.

Additionally, on Thursday, we get the minutes from last month’s FOMC.

That is another trick the Fed manages to pull out of its sleeve each and every month. You see, they wait three weeks before releasing  the minutes of the meeting. Obviously they could be released the very next day in the age of computing and telecommunications, but, and they won’t tell you this, but the Fed likes waiting three weeks before releasing the minutes because if the markets react to a Fed meeting in any bad way, well, they can just go in and doctor-up the minutes to convey a particular message.

For example, if the June FOMC was perhaps too “hawkish”, which is the consensus, especially when judging by the decline in the Dow in the days following the June rate hike.

So on Thursday when we get the June Fed FOMC minutes, there could be a “dovish” spin on them to help prop the markets back up.

Of course, this is assuming that is what the Fed wants.

In my opinion, they still want to keep the stock market propped-up, unless of course, they are trying to gently, which is impossible, release some air out of the bubble.

If that is the case, then the minutes would confirm a “hawkish” Fed.

And that’s just the main fundamental factors affecting gold & silver this week.

There’s still the technical data dumps we have to deal with.

Aside from Tuesday, which is a smash day anyway as the cartel re-works positions for the COT Report, and aside from the markets being closed on Wednesday, there’s important data dumps all week long.

The most important, and a key day the cartel loves to smash, is Friday when we get the BLS Jobs Report.

Bottom line – Both fundamentally and technically speaking, I think we are in for a rough time of it this week, and even more so that last week.

Moving on.

Nasdaq futures look to be opening lower to start the week:

One veteran trader said to be on guard for a decent stock market drop today as today is one of those Fed balance sheet unwind days.

The VIX does seem to support this analysis as we’re starting from near 17.50:

If the stock market does have a meaningful drop, we would look for volatility to increase from here.

We would also look for the yield on the U.S. 10-Year Note to continue its decline:

When stocks drop, currently, like Pavlovian dogs, traders are trained to seek the “safety” of the U.S. bond market.

More buyers than sellers increase the price of the bond, which reduces the yield. Price and yield in bonds have an inverse relationship.

So we’ll see, but it does look like the market, volatility and the bond market are all signaling some kind of drop in the works.

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