Wednesday Windup

No change in the program. Consolidation for the next week or two with air letting in the commod sector. Any good manipulation of a global economy needs to have some periodic blood letting. The coordinated announcement with the the golden boyz (GS) this week on Oil and now copper should have been anticipated. Certainly its intention is transparent enough. If your stated intention is to repair a global economy by monetization then you cannot have your tsunami of liquidity creating a disastrous stagflationary burdern on billions of people. After all if you did this then of course you would have uprisings springing up globally as families wrestled with the choices of shelter or food or political freedom. Oh wait…..never mind…thats another thread. Let’s just say the game can only continue with these little pin pricks on an ever expanding liquidity induced bubble.

Certainly oil’s most recent move is a result of the current monetization. Some may argue that its supply and demand driven.. Ok…I’ll accept that….maybe 2% is. What is really occurring in this latest move is a highly manipulated and I might add cynical manipulation by GS to squeeze some VERY large short positions in Oil. This move was halted when the PTB said enough was enough and a cease and desist order was given. Yes….thats right boyz ….you bastards still made a shit pile….but you didn’t get all of it did you???

Unfortunately they went too far. A certain amount of oil spiking was wanted but not to the extent they pushed it. Now they have some serious “CONfidence” damage to undo and that just isn’t that easy to repair. Right now there are some very damaged consumers and businesses. Monetary policy can only do so much to repair the recent structural damage they just created with the oil spike. Alas…this will not be the last of this type of pain so you better get used to it. This is one of the reasons that our energy plays are far from over. ATPG HNR NBR WPRT GMXR HERO SGY etc.

I’d like to see another week or two of healthy retreat in silver and gold but I might nibble or trade intraday as some of these miners correct here. Watch the stochastics and RSIs in these for buy lines. BE PATIENT.

GS does not want you on these trades so they are going to shake you out. That means they should take silver down further.

Read more at Great Depression 2