Golden Minerals Company

This just about sums it up...

Just the usual - VHF

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At A Loss For Words

January 13, 2011

You know, days like this really piss me off. I've been doing this long enough to know I'm not supposed to take it personally but, on days like today, I can't help it.

At around 1:15 EST, I was visiting by phone with my friend, Mr. Hyde. We were commiserating on the orchestrated, bs nonsense of the PMs vs USDX trade today. (I don't mind getting my ass kicked when I'm wrong but getting my ass kicked when I'm right makes me want to quit.) At any rate, we agreed that we'd seen all this crap before. Regular buyers were in the pit, holding off Blythe and the Monkeys all day, but you knew that when everyone went home at 1:30, she was going to take her gigantic silver auger and jam it straight up our collective butt. In what should come as a surprise to no one, she has done, and continues to do, exactly that:

All you stock traders need to understand what bullshit this is. The PMs are now, for all intents and purposes, closed. London is done and Hong Kong is still sleeping. When the Comex closes at 1:30, the tradition is that everyone takes a little break until 6:00, essentially calling a temporary ceasefire. But not an increasingly desperate EE. They've taken to hammering the PMs on the Globex, afterhours. Again, this is akin to running a play in football while the other team is in timeout or halftime. It is blatantly unfair. But it doesn't *%#^* matter. Nobody cares and no one is going to stop them so, we're stuck.

Now take a look at today's action on a 5-minute chart:

Silver popped on the open as regular buyers with regular money bought silver on lousy economic news and a steeply falling USDX. After about 15 minutes, Blythe shouted "Genug" to the monkeys and off they went, beating silver back to pre-open levels. The weak dollar kept buyers in the arena through the session which was just sufficient to keep Blythe from running the table. However, as soon as everyone else goes home, The Wicked Witch simply overwhelms the remaining, miniscule bid and down it goes.
Pure, unadulterated bull*%!*. Now, feel free to say that I'm just a conspiracy theorist, I could give a ^*&*, but you tell me how it is that Hyde and I can accurately predict in advance what will take place on the Globex when we're just a couple of dumb, drunk, gambling-addict hayseeds.

Anyway...we're back to hoping/praying that support will hold. Again, its about 1365 in gold and 28.50 and then 28 in silver. Any rebound strength in the USDX now and you can bet your ass Blythe will double-down and take a stab at breaking them. You'd better start planning where to place some stops.

Maybe the cute, little silver bears and the chain emails are right and silver is about to be hammered down to 20 so that really big money can surge the OI, drive the price to 40 and force JPM to settle in cash at a 30% premium. Hell if I know. For now, I'm off to CVS to get some Preparation H and some maxipads as I hope to unwind Blythe's auger without doing too much additional damage.