[Charmin]

After our deflationary spell I wonder if it holds more true than ever that "Diamonds are a girl's best friend." I haven't looked at the price chart for diamonds since gold is our target of focus and not even sure they are more of a safe haven than gold, but I do like to read a few grown up girls on the markets. In that case the Aden Sisters and Kathy Lien seem to fill the bill on occasion.

GLD appears to have retraced 2/3 from it's October highs and I'm wondering if a pullback becomes bearish or allows for another push higher into a supply line near 84.
http://www.StockShar..._1227927080.png

[Charmin]

Grinch, if gold doesn't follow two harmonic patterns then it would be most welcome.

http://blogs.fxstree.../27/gold-again/

[GRINCH]

"It's probably well known for now that the Fed will most likely go into a "Quantitative easing pattern" to unfreeze banks and their credit lending.

If they're buying debt just to revive the economy then I'd have to guess gold will respond in due time."

-Charmin

[GRINCH]

"When there is too much opinion around, the recourse is facts. Here is the fact about the coming deflation."



Mr. Katz

[bearvest]

Wedges:

I took a bit off the table Thursday ( Canadian, Eh? ).

Hedged a bit Friday.

A review of many charts indicates that the longer term pattern is a clearly bullish rising double bottom or "W" pattern. However, there's a bit of hazard in the current patterns.

Many charts are diaplaying bearish rising wedges. Stochastics is well into overbought.
These patterns should not occur early in a third wave, as it appears that there are only 3---not 5---waves up in the breakout off the October lows.

We must see an impulsive upward breakout from the wedge pattern. If not, a potential re-test of the lows may be in the offing.

At least, a re-test of support at the "W" seems to be in order. Note the unfilled gap at 90.

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[bearvest]

XAU:

A re-test of 90 that holds would be a "gift".

It would set up a multi-week combo of one-two patterns leading to 3's of 3.

The rally into 3 of 3 is normally "the point of recognition" in Elliott wave theory.

The XAU bottomed in October. The Broads hit their lows in November. Ergo, Gold is out-performing.

A swoon between the "president-elect euphoria" and "pre-innauguration day buyers' remorse" can't be ruled out. The XAU is riding on the Broad's coat-tails.

Kinda like a Grinch stealing post-Christmas.

[GRINCH]

YOU ARE HERE -----------> X

"The conclusion that deflation is always reversible under a fiat money system follows from basic economic reasoning.

A little parable may prove useful: Today an ounce of gold sells for $300, more or less. Now suppose that a modern alchemist solves his subject's oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified, and he announces his intention to begin massive production of gold within days.

What would happen to the price of gold? Presumably, the potentially unlimited supply of cheap gold would cause the market price of gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold would collapse immediately after the announcement of the invention, before the alchemist had produced and marketed a single ounce of yellow metal.

What has this got to do with monetary policy?

Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.

By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.

We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." -Ben Bernanke 2002

[Charmin]

The reading list:

I wonder if the news of those wanting to take delivery is the start of something special. I also often wonder where guys like Jim Willie get their inside information and why should they share it with us.

"Powerful foreign entities are preparing a massive major assault on the US financial corruption, at key spots. All signs seem to point to the gold futures contracts traded at the COMEX and NYMEX, whose prices are routinely suppressed by a high volume of uneconomic short contracts by two to four banks. The COMEX is a division of the New York Mercantile Exchange. A highly leveraged sequence is soon to be unleashed, one that should bring back thoughts of asymmetric attack.

Something big comes to the gold market, with big angry players! If successful, severe damage will be done to the USDollar. Their goal is to kill the COMEX gold market, the key location for gold price suppression. Major Russian, Chinese, Arab, and European bankers and billionaires are angry beyond words. The giant portion of gold vaulted resides in Central Europe. A plan is in place. The key here and now is COMEX gold futures contracts, where many big players are demanding delivery for their December contracts. North American investment houses have also targeting them for delivery demands. With newly energized Russia & China building their gold treasures, with Arabs turning from distrusted Western paper and more toward gold & silver, look for the new players to offer support to the primary thrust attacks. If successful, it will be a defining moment in US financial history. The first delivery notice for the December gold contract is given on November 28." Jim Willie http://www.financial.../2008/1126.html

[GRINCH]

Charmin, on Nov 29 2008, 06:49 PM, said:

The reading list:

I wonder if the news of those wanting to take delivery is the start of something special. I also often wonder where guys like Jim Willie get their inside information and why should they share it with us.

I also often wonder where guys like Charmin and Grinch get their inside information and why should they share it with us?

True-patriots?

Jim Willie is living in Costa Rica after receiving threats on his life in America.

He fights on the front-line without fear.

His views are not popular with the white-shoes.

He sells a news-letter but could care less who buys it.

Grinch knows this for sure.

He also is a doctorate statistician who doesn't only rely on statistics.

His hyper-bole is actually quite restrained.

Knowledge can be a curse……

[Dharmaeye]

Charmin, on Nov 29 2008, 03:49 PM, said:

The reading list:

I wonder if the news of those wanting to take delivery is the start of something special. I also often wonder where guys like Jim Willie get their inside information and why should they share it with us.

"Powerful foreign entities are preparing a massive major assault on the US financial corruption, at key spots. All signs seem to point to the gold futures contracts traded at the COMEX and NYMEX, whose prices are routinely suppressed by a high volume of uneconomic short contracts by two to four banks. The COMEX is a division of the New York Mercantile Exchange. A highly leveraged sequence is soon to be unleashed, one that should bring back thoughts of asymmetric attack.

Something big comes to the gold market, with big angry players! If successful, severe damage will be done to the USDollar. Their goal is to kill the COMEX gold market, the key location for gold price suppression. Major Russian, Chinese, Arab, and European bankers and billionaires are angry beyond words. The giant portion of gold vaulted resides in Central Europe. A plan is in place. The key here and now is COMEX gold futures contracts, where many big players are demanding delivery for their December contracts. North American investment houses have also targeting them for delivery demands. With newly energized Russia & China building their gold treasures, with Arabs turning from distrusted Western paper and more toward gold & silver, look for the new players to offer support to the primary thrust attacks. If successful, it will be a defining moment in US financial history. The first delivery notice for the December gold contract is given on November 28." Jim Willie
http://www.financial.../2008/1126.html

http://www.nymex.com...ia/delivery.pdf

[kaotic]

$1330 remains my call. Timeframe Spring 2009. Running the presses into hyperdrive is bound to stave off the deflation beast at least for 9-12 months or so. Longer-term target could be MUCH, MUCH higher depending on the USD ability to maintain that key 70 zone. Anything under 70 and the entire landscape changes. Wishfull thinking regarding a COMEX default, sorry but ain't ever gonna happen. The gold price has corrected in direct correlation to the USD and hence should the DX break under 70, then the action will be very exciting. Until then we are rangebound..

[GRINCH]

Charm, I just sprayed orange juice through my nose upon realizing that your avatar had changed.

Grinch will be leaving this under your tree this year.



(after I steal the nerf-gun).

[Charmin]

GRINCH, on Nov 30 2008, 08:10 AM, said:

Charm, I just sprayed orange juice through my nose upon realizing that your avatar had changed.

Grinch will be leaving this under your tree this year.

shovel2_lg.jpg

(after I steal the nerf-gun).

Grinch, my avatar hasn't changed in years, but my signature has because of those google ads. Glad you noticed....

[Charmin]

By the way, I use adBlock Plus from firefox to eliminate Google ads and objectionable images. The last vestiges of freedom from Google is still alive and well. I still have a choice.

[Charmin]

Dharmaeye, on Nov 29 2008, 11:29 PM, said:

http://www.nymex.com...ia/delivery.pdf

I wouldn't even know what to make of the delivery chart, except that it appears a few banks have got a few contracts on the line.