Look up the charts for gold and silver. It is normal for the metals to have some round-number resistance as each are threatening to break above very significant price levels, and one would expect a few failed rallies to be part of the trading story. However what is clear to me today is that an aggressive seller is standing by to hammer flat any move above $1600 gold and $40 silver, no matter what the other factors in the market may be. That is the loyal Cartel henchmen on duty, ready to unload however many fake paper contracts they must in order to contain any bounce and drive the metals back lower. The battle plan appears to be holding the line today and tomorrow and then bombs away next week as the Comex op-ex window is upon us yet again.
Now think back just a few years ago. Remember how the market idiots would show up on tv and state that gold was completely overvalued because there was nothing bad in the market to warrant the rise in price? Ooops! Today we are bombarded with bad news on the economic front, and the hype over the debt ceiling has probably been overstated, so they cant play the 'nothing bad is happening' card. Now they have brought the manipulation out in broad daylight and could not care less who notices or complains because they know that no one is going to do anything about it. And days like to today are what we get.
Short away boys. The last raid bought less than one day. The summer drought is nearly over and then the spec money starts coming back in play. And here we are on the brink of yet another new all-time high. Even in this wimpish market with a lot of traders away on summer vacation there is still enough buying power to push gold up at the $1600 range and keep them on their toes. When the next trigger event staggers the market, whatever that may be, gold will run hard and there is not a goddam thing the Cartel can do about it. They will pull back and start defending the $2000 plateau by the end of the year. Short away boys...
cheers!
mike
