Three Interesting Charts

Finally, its Sunday and the Globex reopens in less than 10 hours. I’m off to the golf course to kill about half the time but first I wanted to give you these charts to ponder.

First, take a look at this 12-hour chart of the June Long Bond. When Tungstenman downgraded all the commodities this week, look at the effect it had on the long bond. For an explanation, Trader Dan nailed it:
http://traderdannorcini.blogspot.com/2011/04/goldman-sachs-jams-bonds-higher.html
Once again, Tungstenman screws their clients for the benefit of the Fed.

The question I’d like you to ponder today: Just who/what was buying all these bonds this week? The dollar wasn’t rallying so its not like there was a tsunami of “safe haven” buying from around the globe. If the demand was domestic, from where did it come? Pimco? Not likely IF you believe their latest pronouncements.
At any rate, the bond is banging right up against long-term resistance near 121 so I doubt its going much higher from here.

Now look at crude, the primary object of Tungstenman’s verbal attack. It dipped mid-week but stopped right at the trendline that goes back to when the rally began in February. So, let me get this straight…The Squid carries the water for the Fed and tries indirectly to talk up the LB from critical support near 118. They succeed, albeit temporarily. In the process, they crush their clients who take their misbegotten advice and go short crude and other commodities. Crude is now set to resume its UPtrend which will take it back to the highs near 113.50 and likely much farther. The Tungstenman clients who are short will soon be forced to cover which will only serve to propel crude even higher.

Lastly, and most importantly, take a look at this daily silver chart. I’ll leave my comments to a minimum. I want you to draw your own conclusions. However, note that with each “correction” in price, the lines of ascent subsequently get more steep. What does this tell you about:
1) Overall demand and interest in silver
2) The Cartel’s ability to “manage” price
3) Near term direction of price
4) The likelihood that silver is currently making a top

Have a great day.
Enjoy the silence.
Relax and be happy.
Get ready for tomorrow.
TF

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