Election Day rah rah should keep Precious Metals in check

The US Dollar’s trade now stands at 87.255,  down 15.2 points inside a tight trading range between a high of 85.385 and its current low of 87.170.   Treasuries are elevated but still falling with the 30 Year Bond showing an upside down “V” top,  the exact opposite of what we see in the papers lately.  Chairperson Janet Yellen will be meeting with Obama to discuss the most recent events since Japan took over the QE in the typical sleight of hand move these people play and how it hasn’t affected the Bonds like the past experiences in QE.   Yellen is as shocked about Fischer’s recent statement as much as the inequality shock she claims to have regarding the markets.

The Energy Sector continues to fall in value as the deflation factor kicks in with Crude Oil now trading at $76.65,  down another $2.13 after yesterday’s $1.76 drop taking the entire sector down with it.   We feel most of this drop is now because of the events in the Middle East as well as the typical “must make the voters happy when they vote” mantra that has been in existence over these past several decades.   The problem with all this is that the governing bodies cannot control deflation like they can with inflation.  Now,  we’ll be seeing international corporations,  who need to hedge against energy inflation,  start to falter because there was no war rally in the last 2 attempts with ISIS and Russia.   Somebody really screwed up,  and it’s about to show up in the international companies profits.

Gold is positive in the early morning trade with the current price now at $1,170.60,  up 80 cents and inside an overnight trading range between its high of $1,175 and the low of $1,163.40.   Open Interest fell by a marginal amount yesterday with 1,631 contracts leaving the battle with 416,728 contracts still in play.   Open Interest in the December contract is very high and may be what us bulls have been waiting for as the count stands at 265,837 contracts.   Silver is still being held down with its trade now at $16.085,  down 11.6 cents and to us,  it’s obvious that this is the exact point of fear for the central banking system.   They have no way out but to let the prices go higher.   Open Interest in Silver fell a bit in yesterday’s trade with its total now at 177,341 after 2,266 contracts left the field.   Most of those that promote the decay in Precious Metals value never seem to get into the meat of GATA’s discussions.   If they did,  their arguments would of course fall apart.   Take good ol’ Dennis Gartman for instance.   He loves to parade himself as the great Precious Metals trader and claims there is no manipulation in Silver and Gold.   He asks for proof that the central banking system is controlling the markets and laughs at those that have the data regarding this topic,  but will never openly dispute GATA’s findings.  Surface talk at its best,  yet if he looked at the numbers of contracts dumped within minutes after an FOMC data report,  his argument would fall apart instantly.   How can any company (or group) be allowed to short 2 ½ years of global mining production within minutes, in a single day,  without the governing bodies being all over the company or group for market manipulation?   These are sanctioned drops without oversight,  only central banks and governments can do this without drawing the ire of the regulators.   Very easy to understand,  yet he’s the expert that has yet to profit off of any of his Gold trades.

Bitcoin is still being hammered and is trading at $325.30 inside a 24 hour trading range between $334 and $320.   The spread between the high and low is narrowing,  so this may be a turning point in all anti-fiat money.   Ripple Coin,  our latest suggestion in alternative Crypto’s,  is trading at $0.004986,  up 0.00200 points from yesterday and holding its own.   We had a little experience over the weekend as we could not enter our Ripple Wallet.   An obvious technical glitch in the system and Support came in and helped get the ball up and running again,  but we learned that is it important for the Wallet owners to have in a safe place their “Secret Key” written down somewhere and away from the internet.   This way if something were to happen,  like our little experience,  Support can find and re-establish the wallet faster.   If you’re not learning for your mistakes,  you’re bound to repeat them till you do.

Grains are weaker across the board with harvest pressures in full swing and now falling fuel prices adding to the mix.   Softs are weaker overall with Cocoa the only exception,  and the Live Stock Sector seems to be happier now that the overnight session was removed because of the manipulators coming in while the only cattle traders were sleeping.   The Papers are working lower in the early morning but we expect the election rally to come in one more time.   After all there are no manipulations in these markets.   They reflect all those high paying jobs and long lasting careers everyone has and those sticky facts, like the lack of car sales,  housing sales,  new home buyers,  big ticket items, and etc.,  are simple anomalies that haven’t turned higher in over 5 years.   See?   Nothing to fear.

In time,  reality will set in and the manipulators will be forced to allow the Precious Metals to trade in proper format,  until then,  we holders of true money will have to deal with these people who can get away with shorting years’ worth of production in minutes as we listen to idiots on the Cyclops (if that’s where you get your data).   So,  in the meantime,  keep buying on these dips,  it really is like manna from heaven,  Keep those Precious Metals and Crypto’s close and as always … Stay Strong!!

JB Slear
866-443-0868 Ext 104
817-717-5489
Fax: 817-764-2537
www.FortWealth.com

Don’t risk what you cannot afford to lose….
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