Gold and silver are being heavily manipulated right now…[and] I fully expect the forces controlling the gold market will try to break the double bottom and take gold down to $1050…during this summer’s correction… and then roar back to $1800-$2000 over a 4-6 month period.
So says “Toby Connor” (goldscents.com) in edited excerpts from his original article* entitled COMMODITIES: ANOTHER LEG UP/GOLD SET UP FOR A FINAL TAKEDOWN.
[The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Connor goes on to say in further edited excerpts:
I think the motivation for this is the same that it has always been. The profit potential after releasing the gold market is much greater from the $1000 level than it is from the $1800 level. Make no mistake, the entire purpose of this year and a half long bear raid has been to manufacture a lower D-wave bottom, thereby increasing long side profit potential. In the process they’ve managed to also make some good money on the short side. I think they have also intentionally damaged the physical supply side of the metals market knowing that that would exacerbate the rally once the manipulation is removed at the yearly cycle low, and the secular trend is allowed to resume…back to $1800-$2000 over a 4-6 month period.
As you can see in the chart below, any time over the last year and a half that the GDX has dropped below its 10 week moving average, especially if it occurs late in an intermediate cycle, it has almost always signaled that an intermediate degree decline has begun so I wouldn’t get my hopes up that the banking cartel is going to release this market and a third daily cycle is going to recover to new highs…
Notice how the mining stocks are still making lower intermediate lows, and lower intermediate highs. The sector needed to move above last August’s high in order to confirm that the bear market was over, and the cartel aborted that move before it could happen.
- Once gold does get a bounce out of the impending cycle low I intend on taking a large short position in mining stocks to play that move into the yearly cycle decline.
- For now, though, I continue to recommend staying on the sidelines in this market, and I would strongly discourage trying to catch the bounce out of the impending cycle low. We simply have no idea when the cartel is going to allow that to happen. It may start on Monday, or it may begin once gold tags $1280, or the cartel could even drag gold all the way back to $1250 before they allow a short-term bottom to form and gold to generate a dead cat bounce.
Predicting where this market is going to go in the short term would require inside information as to the banking cartel’s intentions next week. Unfortunately I doubt they are going to send us a memo on that. However I think we can probably assume that the third daily cycle, once it rolls over, is going to be devastating to the precious metals market and I expect we will also have a fourth daily cycle before the yearly cycle low is complete. That fourth daily cycle will probably take gold back down to $1050 and a final bear market bottom if the cartel has its way.
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
Supporting Articles by Toby Connor:
The unintended consequences of five years of QE are coming home to roost! In May or early June the stock market parabola will collapse…followed by a massive inflationary spike in commodity prices – particularly gold & silver – that will collapse the global economy. Read More »
Over the next couple of months everything should generally rise together but once the dollar puts in an intermediate bottom sometime in March or April, commodities and gold will move down into an intermediate correction as the stock market completes its final blow off top. After the stock market parabola collapses later this summer it will be time to put the pedal to the metal in the commodity markets, and especially the precious metal markets as the Great Inflation begins in earnest. Read More »
The Fed has manufactured a parabolic move in the stock market…which is much more aggressive (and thus even more unsustainable) than witnessed at either the 2000 or 2007 stock market tops. Parabolas always collapse – there are never any exceptions – so when the pin finds this bubble it’s going to take down not only our stock market, but unleash a destructive force on the global economy. Read More »
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