THE GIG IS UP

                                           This IS Important

Sooner or later the beans had to be spilled. I mean, you can’t keep this stuff a secret forever can you?

I am referring of course to the blatant manipulation of gold led by the U.S. Government and their lapdog institutional hacks JP Morgan [JPM] & HSBC [HongKong & Shanghai Banking Corp].

Two excellent articles, yesterday and today, over at www.zerohedge.com prove my point. Below are the two links in case you missed them:

http://www.zerohedge.com/news/chris-martenson-explains-how-gold-manipulated-and-why-thats-okay#comment-2298764

http://www.zerohedge.com/news/paul-mylchreest-presents-various-visual-case-studies-gold-price-manipulation

Although I have known for years, and have witnessed first hand in the gold trading pit, the blatant manipulation of prices, I didn’t really know exactly the extent of the numbers.

In a nutshell, gold has risen approximately 590% in the last 11 years; if you had simply bought gold at the U.S. open and closed your position at the U.S. close of trading you would have lost 70% over this 11 year period.

In this same 11 period, if you had been long from the Asian open through the European session until the U.S. open AND then gotten short from the U.S. open until the close where you liquidated the short position, you would be up over 5,000% !!

How many of you knew this?

For me, it perfectly explains the “Lemmings in Asia” phenomena, and why my algorithm works so well the vast majority of the time gold rises. I will be the first to tell you, and I have said this in the algorithm manual, that my algorithm has a very definite long bias.

I get emails all the time asking me why I start trading gold at about 11 PM or Midnight [Chicago time]. This time is about half way through the Asian session and goes from there. And this data also helps explain why so many of the algorithm profits come in the early AM hours of the U.S. time zones.

The second document talks about the algorithms the government uses to initiate their manipulation. Fascinating stuff and I highly recommend you read both documents closely.

Both JPM & HSBC have historically held extremely large short positions in both silver and gold futures and options. They both regularly exceed speculative position limits established by the CFTC [that everybody else has to respect] but nothing is ever done about it. The end justifies the means when you are doing God’s work.

Have a good day everyone.

-vegas

SURPRISE!! POLITICIANS HATE GOLD

                                     Got Gold Chalky Soetero?

Let’s see, trillion dollar deficits per year as far as the eye can see? Check.

Oil prices rising driving inflation? Check.

Weimar Ben printing money like no tomorrow? Check.

Along with the Fed the BOJ and ECB printing money as well? Check.

You and I both know the table is set for gold to spiral higher rather quickly in the near future. The political gold cabal has literally thrown the “kitchen sink” at the market and all they got the market down is about 8% and about 13% from the all time high last September?

“That’s it? That’s all you got to show for the market manipulation of JPM & HSBC; the margin shenanigans of the CME; the stealth drops in the wee hours?

Seasonally speaking, March is usually a weak month for gold, with the lows generally seen mid-month. If that holds again this year, then the lows around 1632 will hold and from here we will base and go higher.

As I have stated in earlier posts, my only fear for gold comes from going lower on the year [1562] for the first time in 11 years. Selling could materialize rather quickly from the GLD and all the moving average lemmings who would sell. If that happens, who knows where it would stabilize.

Having said that though, emerging market Central Banks are strong buyers of physical gold at these levels, and with all the rumored selling of Weimar Ben and the gold cartel, how much more can they throw at the market before they are forced to capitulate and buy much, much higher?

The world is printing money at a record clip that would make the old rulers of Zimbabwe blush. It’s only a matter of time before the dam truly breaks and prices race higher. A close over 1802 / oz. and the gig is up. Sometime in 2Q 2012 and I think this gets taken out and from there the fun can truly start on the upside.

Be patient and let Chalky’s policies make you rich.

Have a good day everyone.

-vegas

NEVER SAY NEVER

                           Trading The NFP; Guess Which Is You?

Tomorrow is NFP day, so fireworks will commence at exactly 7:30 A.M. [Chicago time] when every financial market will go totally schizoid.

Remember, there are lies, damned lies, and statistics.

With Chalky Soetero’s reelection in full metal jacket mode, the fix is in at the BLS. How many more people will they take out of the labor force and how many “seasonal adjustments” with the birth/death model will they add to pretend employment?

Consensus is about 125K added to payrolls, so we will see what happens.

The other event risk of the night is the Greek PSI – what percent of the bondholders are willing to take an 80% haircut on hundreds of billions of dollars in Greek Gov’t debt? Early reports today put it at over 75%; what if it isn’t? Expect some volatility if there is a negative surprise.

Although there have been some really bumpy days in the last couple weeks, I’m starting to see gold trading return to normal mode. The algorithm should be OK to trade from here on out. I think things are close enough to normal.

With today’s trade in gold, in spite of the NFP tomorrow, daily ranges seem to be expanding, and that helps the algorithm. If only the lemmings in Asia would stop buying gold every single session, we could actually get some superior signals to trade.

Of course, having said that, tonight should be no different than every other night and expect gold to test 1710-1715 before they are done. If the NFP is perceived as negative, expect some big gaps down as JPM & HSBC take over.  We’ll see won’t we.

Have a good day everyone.

-vegas

OLD HABITS DIE HARD

                                            Innocence Is Bliss

I got one question for all of you readers who live on the Pacific Rim in Asia. I’m talking to those who live from Japan to Australia.

Why oh why do you have to religiously buy gold every single night taking XAU higher and therefore allowing the Central Bank gold cartel [JPM & HSBC to name just two] the opportunity to sell it [and fade you in the process] in Europe and the U.S.?

Do you guys ever sell?

Hey, here’s an idea: stay up late some night and buy it during European and U.S. trading hours and get it cheaper.

The algorithm continues to struggle under the types of conditions we have seen in the last month. We have either had days where no volume or much activity has taken place, and therefore the data basically “collapses on itself” and it doesn’t take but a buck move to generate a signal, or we have ‘postal volatility” and every stop you put in is going to get “hunted” no matter where you put it.

Until the market resumes under more normal conditions, you have to pick your spots and use the algorithm as a guide. Make your trades count. This may mean you miss some trades, or even not trading for the day. So what? Would you rather have your account down significantly? I didn’t think so.

Today, most of Europe and Asia was a dead affair. In the U.S. session we basically had about an $11 range [1716 – 1705], but we had 21 5M candlesticks $3 or over in range to 1:30 PM, and look where the market is; it’s nowhere, stuck around 1712.

Rumor has it that some Asian hedge fund [via JPM] sold 30 metric tonnes of gold on Wednesday. Next time guys give it to somebody who can sell the gold and get good prices. Why would you use JPM?

The last time the gold market had a big selling debacle [September 2011], it took the market about 21 business days before it recovered. Expect a test of the lows from Wednesday, and maybe even “another shoe to drop” in the upcoming week. This is what I’m looking for, and why today’s prices weren’t good enough to get me long; even for just a trade. I’m pretty sure we get a test of 1700 again and maybe even 1685. After that, 1654 is pivotal. We’ll see what happens.

Have a good weekend everyone.

-vegas

GO AHEAD, MAKE MY DAY

                                     Mrs. Wannabe Trades Gold

Well, to be sure, it didn’t. What we need is Dirty Harry on the case to find out who kidnapped volatility. My guess is he could look right straight at the biggest gold and silver manipulators in the business; JPM and HSBC.

Since they can borrow infinite amounts of money from “Weimar Ben” at basically 0% interest, selling paper gold all day, every day, has been a popular thesis for them for years. Only when they get into trouble and need to actually find the physical stuff to deliver at the place where customer money gets stolen "joke of an exchange" known as the COMEX, do interesting things start to happen in the marketplace.

In a normal bull market, early breaks can be bought and late breaks you have to leave alone. Then on new highs, you have to be the seller.

I know a lot of you were disappointed in gold’s performance today, especially after it climbed out of the whole and made a new high for the day, only to rapidly drop off from there. I’m thinking you can thank JPM for that.

Not much to say about a market that has more $4 candlestick spikes & drops than sugar pops in your cereal bowl, all the while going pretty much nowhere.

Catch my comments on today’s trade at http://vegaspamm.blogspot.com

And for those that want to trade crude oil, get my “Vegas Crude Oil Trader” for free at the links over on the PAMM webpage.

Have a good day everyone.

-vegas