Monday, April 16, 2012


                                         The Key To Victory

Q: The 800 lb. gorilla is very hungry and wants to eat. What do you give him?
A: Anything he wants.

With Europe about to go off the cliff, what with the new “austerity” in the PIIGS zone, bond yields climbing, and economies diving into recession, of course the Euro (EURUSD) must be manipulated by the ECB; we simply can’t have a currency crisis right now. 

Before I ask this next question, please don’t think it is rhetorical. Is there any financial market not being manipulated by some government?

Seriously, I think the answer is no. Which brings me full circle back to gold. I wrote in the updated algorithm manual [which you can download for free at the link “Get It Free”] that there are 3 main objectives to government manipulation of gold: 1) keep gold out of the news, 2) hurt as badly as possible all retail speculators [long or short], and 3) make the manipulation count [on the charts].

Since the middle of 2011, the stakes have been seriously raised by the “central planners”. Things are spinning out of control on the fiscal and monetary fronts; trillions of dollars have been thrown down the proverbial rat hole, and don’t think for a minute these guys are going to back down: the manipulations will get bigger and bigger as time moves forward.

Today is a perfect example when you look at gold. Smacked down hard very late in the day on Friday (over $10 / oz), together with another $15 on the down side in Asia to start the week, you got about a $25 move lower on the lowest volume imaginable. So how is that possible?

But wait, the game isn’t finished for the day yet; oh no, they have to destroy some retail specs first, and that comes with the allowed rally to a new high for the day to drive the shorts out of the market with their buy stops. OK, we get a new high by a few pennies, the shorts have been squeezed, now what?

Easy peezee. You smack it down hard to near the low in the next 50 minutes. And from there very little happens; trading dies for the day, as the market limps into the close, the high finally safe from assault in their view. This is how a “normal” market trades? [Ha ha ha ha]

Remembering what I said earlier, ask yourself if the 3 main objectives have been accomplished? Sure have, and in spades.

The difference between all of us traders and the manipulators is the fact that we are in the market to make money and they could care less; they are here to wreck havoc and target a price. It doesn’t matter if they lose billions, they just print what they need, and besides it is chump-change compared to what the objective is; keep the current U.S., Europe, and Japan financial ponzi schemes alive.

Trading can be simple, but it is never easy. Guessing what the central planners do [with JPM front running the whole process] can be tricky, but never think they aren’t there.

Have a good day everyone.


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