Open Interest in Silver and Gold are the key, and they are still STRONG!!

The US Dollar,  the link to the entire central banking systems control mechanism,  is still elevated with its trade at 87.190,  up 17.4 points yet quite a bit off its high at 87.540,  which happened at the London open.   Surely Asia (not including Japan) isn’t interested in supporting the one fiat that has suppressed all things in order to keep this brain dead system on life support.   If one was to believe in chart formations,  the “Shooting Star” pattern in the Dollar looks as bad as the US 30 Year Bonds chart showing the same event back on Oct 15^th.   Treasuries are still supported but doesn’t look very good for the resilient longs holding out.   Did all that digitized fiat Japan created lose its steam within a day’s trade?   If so,  QE has lost its abilities.

The Energy Sector,  which is suffering because one of the US supported terrorist groups went rouge and took over oil fields in a few nations and is now selling Oil (far below what was intended) to support its existence is really putting pressure on the money system with Crude Oil still trading down inside the $80 mark at $80.71,  up 17 cents with the rest of the sector waiting to trade lower.  This,  in turn,  would cause far more problems globally than one could consider.   I cannot deny the view that this is all about the midterm elections,  but with Crude Oil trading so low,  the global hedgers will suffer immense damage if Oil was to trade lower.   So we wait to see how rouge, rouge becomes.

Gold seems to have had a one day attack last Friday which didn’t do much damage at all when it comes to the Open Interest with the trade at $1,169.60,  down $2 inside a trading range between its low of $1,161 and its high so far at $1,172.30.   Open interest,  which we still hold as the key to it all only lost 1,196 contracts in Friday’s staged attack leaving the OI total at 418,259 and with a gain in the overnight if 3,647 since the Sunday night opening.   Regardless of the price collapse Friday,  the Longs refuse to exit.   Silver got hammered hard price wise on Friday as well after Japan copy catted QE forcing the price down to $15.635 before the buyers came in with the trade now at $16.045,  down 5.6 cents with Friday’s low in both Silver and Gold remaining intact.   The biggest problem,  as we’ve mentioned for months now is these deep pocketed buyers “ARE NOT LEAVING”!   The Open Interest in Silver gained more ground Friday breaking a multi-year record with a total OI of 179,608.   Open Interest fell a bit last night but we have to wait because these inter-market measures don’t mean much till the closings.   Still,  what we see is failure of the short traders to control the OI.   If these strong numbers in the December contracts remain,  then the delivery requests will drain more out of the central banking system making Shanghai the go to for all deliveries.   We feel Supply and Demand will take over again and force the hands of these short sellers to run and hide.   The CFTC has declared no manipulations in the Precious Metals Sector after a 5 year investigation,  so this excuse cannot be used in the future without proving the worthlessness of the governing bodies,  so in a way,  this will help the Bulls out when the markets start their rally.   By the way,  both Silver and Gold have (what I call) the Thor’s Hammer formation showing up in the charts.   This is the exact opposite of the Shooting Star formation we see in the US Dollar,  so if the Precious Metals close in the green, this points to a positive trade in the future.

Bitcoin is trading lower with the trade at $330.40,  down $7.80 inside a 3 day trading range between $344.90 and $316.60.   Ripple Coin,  our little experiment in the Crypto’s,  has fallen back a bit as well with its trade at $0.004787 but still a great trade because this crypto will eventually be backed by Gold (at least that’s the plan).

Grains are all trading lower with the harvest in full swing,  Softs are lower as well responding to the Dollar’s rally,  and the Live Stock Sector opens at 9:10 Chicago time.   The Twisted Sisters of Paper look a little weak after the super rally close created by Yen Paper with the three showing some weakness in the early morning.

The focus now is on these mid-term elections with many democrats looking weaker than these painted pigs.   This doesn’t mean much to us anymore since we’ve been aware that the 2 religions (Democans and the Republicrats) only fight in the public but bow to the same money makers behind the curtain.   There is real change in the air and if one see’s,  its global.   Austerity measures are a complete failure and the unelected officials have been measure and found wanting.   Those that remain steady in their beliefs that Silver and Gold are real and the only money that counts,  will eventually be proven right,  but only after the weak are chaffed.   So 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

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