True Money Supply Vs Gold

Look at the chart below TMS (True Money Supply). This only suggests that longer term we will have inflationary environment rather than deflationary one.The deflation that we are seeing is nothing but debt liquidation going on every levels either private or public entities but this is good for overall economy as too much debt will create a boom bust cycles and its a pure monetary phenomenon.



Okay now look closer to the TMS chart you will see mini spikes around 1982-1984, And right after that during Clinton era when Robert rubin was treasury secretary took of from glass steagall act with massive spike in money supply till 2000 which has created a technology hype and got bust but central bankers did not stopped their drug addictive money supply after that but only quadrupled from there in bush era with massive QE's, Bailouts, Currency swaps ...etc..This did not solved the any problems in market and only gets worse as they are trying to kick the can down the road postponing the problems for future.This will only lead to massive inflationary in SOFT and Hard Commodities.

Okay now look at the multi decade gold market below.This is directly proportional to the Money Supply into the economy.It got bottomed in 2001 and right from there its rising in proportion to Money Supply, And it will keep exploding as the printing press resumes.



Long term charts on gold only suggest that we are in a linear growth rather than in parabolic one.But if feds like to go for another QE program in trillion dollar then it will take parabolic path and any dips towards the trend line is good buy but remember the grand support for gold is around $1000/ounce if this trend breaks, And it does not mean we are headed for the price collapse but temporary liquidation in gold markets like the one we have seen in Lehman collapse circle in red in the above chart

Hidden American Life

At least there are few media channels talking truth about the current economic situation rather than growth story.There is a mismatch about the fundamental of economy tracking data to the current media propaganda as media is in the hands of a few elite people who wants to suppress the true story of economy, And diverting minds of mass towards other entertainment channel minutes.

Anyway the following must-see 60 Minutes segment further highlights the deteriorating economic conditions across the United States.

Sensex Technicials

If the recent low is not broken we might see this up move extending towards the resistance line of the channel. That is how price has behaved in this channel so far, so the cycle may get repeated again. But a word of caution for bulls is that price has not hit the channel bottom yet.

Watch out :
15800 is key support going back in 2009,And voilating those levels below on closing basis around 15300 will be carnage on sensex.

Around these levels we have vacuum levels that needs to fill.So expect the unexpected price levels on sensex.When it hits around 10000 levels then its best time to load up on consumer cyclicals,Agri, metal and mining.

Previous Post : http://gamatraders.blogspot.com/2011/06/market-correction-or-collision-course.html when sensex was close to 19,000 and Nifty 5500 levels.




Good Luck Happy Trading.

American Airlines Chap 11

American Airlines filed for the bankruptcy.Hope this might be news for people following the media but guyz whose following the real data its past event repeating on TV sets.

Bankruptcy, Chap 11, default........these are only possible in debt based economies which is totally a monetary phenomena. Central bankers in west are trying to save banks instead of economy but did they ever addressed about the real problems ?? Never and they keep the printing press running along with digital money flowing with full force, Which will only delay the current problems more in future rather than tackling right now.There will be a full blown crisis which is brewing in the face of US and Europe now, And I hope we will see a imminent DE-leveraging in paper assests which will not only sink banks this time but also major economies with it.

I'm still sticking to my words on Bank Of America post.Okay now lets see the data on American Airlines

US Economy ? Train Wreck !!!!!

Congragulation Folks. US now has officially reached 100% on debt to GDP during this thanks giving Turkey holiday.US is now Turkey when compared to rest of westernize countries.

Be prepare for wild moves by end of this year and entering into 2012.Take a look at the debt clock jpeg for more details.

Courtesy website :http://www.usdebtclock.org/

S&P Bounces from Golden Ratio

S&P 500 daily from golden ratio from FIB Indicators and its way oversold.
If price make move above 1185 - 1190 levels it may target 1215 - 1220 levels in the coming days.Nothing fundamental has changed in the economy except the printing press.

Take a look at my previous link and current charts

Gold Going Lower

Gold Futures are showing bearish signs with low volume rally into the previous support levels $1675-$1700 which is resistance now.Once $1700 is reached bears will jump with their band wagon once again with their usual gold hating slogans.But once breaking $1600 will takes to lower levels around $1400 which will be the ultimate buy opportunity going forward.I believe it will be back with vengeance to attack $2000 level and will target $3000 by end of summer 2012.

Anyway here's the gold picture for the month of October.



Good Luck Happy Trading.

Gold In Fort Knox or Not !!!!!!

Dylan Ratigan SoapBox

Hope many of you had seen him anchoring fast money just before the 2008 crisis on CNBC ......... hez still working with MSNBC.He's the only anchor who boldly said on live show on main stream media that I am sacked and I'm leaving this show for good.

He opppose the way the news channel manupulates the contents.
He opppose the way the wall street fat cat works
He opppose the way the two way politicial party works.
He opppose the way the US govt works Business Vs Politics.

Anyway its worth watching................

Count Down Bank Of America 5 4 3 2 1..........

Bank of America is about to explode big time as its stock price is dropping like count down timer.In another 30days to 3 months of time frame we will hear something big in the market in banking space as TOO BIG TOO FAIL is about to nuclear to create ripple effects on the globex.

e

Be Prepared ................In The End

In the End by Linkin Park: Replace the lyric from RHYME to MY WEBSITE

NetFlix Losing Its Steam

Longer Term Sell Call has just triggered on the NetFlix stock.A move below 186 on the stock value is sell on it, And any short covering or rallies into moving average cloud closing value of 186 is a Sell call.

Gold Correction Goin Onnnnn

Gold now in a correction mode, And this is quite normal in multi year bull market. A correction of 15% in the entire move is in the cards based on moving average cloud strategy. A Decisive move towards 1760-1750 bounce is short lived, So expect a pull back to 1675-1650 is normal for this kinda of retracement.Load up this pig for $2000 before the year end and 2250 by March 2012.

Shorter Term



Longer Term futures on gold is solid so expect rallies going forward on any correction.Gold is on steroids now so expect a violent moves of 50's /100's as the monetary system goes down.



Gold Bug Index:

Gold bug index has decisively broke to the upside value of 600 which was the key resistance going forward.So once testing 600 level back will give us clear signs of support, And there after will have huge upside in the index i.e 900 by end of March 2012.



So what are the implication of the index:

1.Positive Sentiments on GOLD markets
2.People flooding in more in precious metal sector.
3.Moving in safe haven.
4.Losing confidence in general markets.
5.Monetary system failing.


Gold Miners Index

This is very bullish chart setup.Money will flow in this sector as they get premiums in the expense of gold prices

FED End Game : Swap Vs Low Interest Rate

Top 25 banks tabular Over The Counter Derivatives data.



Source click here


1.Why Fed wants low Interests?
Ans : To Protect IRS(Interest Rate Swaps) contracts until 2013.

2.Why Fed wants to funnel more loans to big banks?
Ans: Coz they reinvest into equities for more profits

3.Why Fed wants to capitalize large banks only?
Ans: To have footprints so that they can manipulate markets.

4.Why Fed wants paper money or corresponding derivatives?
Ans: To profit more so that they can grow even larger.

5.Why Fed hates Gold standard?
Ans: Relatively Fixed gold on this planet.

6.Why Fed wants to stay in this monetary game?
Ans: To profit more and only handful people can rule this world

blah blah.............

Politicians getting Economy Classes !!!!

Leaders need to understand the fundamental of economy rather voting blindly for useless stimulus bailouts QE's jobs bill act........don't know next time with what name will they address nation other than digital money printing.

Watch out for 2 part series

Gold Is Replacing Dollar Reserve Currency

Currencies Are Doomed ? Gold is the only Safe Haven now.

All currencies around the world are beginning to see a end to their fiat value.The only currency which was strong among all was Swiss franc and now they are pegged to EURO. Here is the complete story click here

Why EURO now and Why do they want to do right now?
What do the govt(s) around the world know that we don't know?
What are they afraid of ?
Why do they want to add to collapsing EURO?

These question are to be asked to yourself "why"? Anyway time will tell though. Now lets look at the chart EUR/CHF



Are we seeing an end of paper value as whole.Once EURO takes hit then it will be only few weeks before it hits other end of Atlantic ocean.So buckle loosely with paper folks like.....

1.Fiat Currency
2.Stocks / Bonds
3.ANY OTC's
4.Pension Funds
5.Retirement Funds blah blah.....

Now all this paper money will chase only to physicals as this market is so tiny that these metals will discovery its own price values during this crisis.So hold Physical Precious Metals as these are auto pilot which will take us to final destiny before we end this crisis.All the dark forces are trying to bring them down with thier cheap tricks by raising margin as they did it for silver but for the short its like living in hell for them.

First of all congratulation to all my blog readers for following my posts, And my prediction back in 2009 is coming to reality before Thanks Giving as the price(s) for gold will reach $2000 and silver $50.( http://gamatraders.blogspot.com/2009/09/watch-out-for-goldsilver-breakouts.html)

Good luck fellows, And Happy trading.

Are Markets Welcoming QE3 ?

Market now are looking for possible QE3 here , And are in the process of making temporary bottoms here. We are seeing a reasonable bounce from here onwards, And are getting a strong support around 1150 on S&P 500.Take a look at my previous blog entry for possible QE3(http://gamatraders.blogspot.com/2011/06/market-correction-or-collision-course.html)





Levels to watch on S&P 500 are :

Resistance Levels
1. 1200 Immediate level to watch out
2. 1275 is level that broke the entire market down.

Support Levels
1.1125 level is crucial level to watch out
2.Breaking the previous will take us to 1000 on its way t0 900 levels.

There are no prominent central banker schedule for this month (FYI :http://www.centralbanknews.info/p/central-bank-calendar.html) but remember the central banker can intervene any time they want as they are busy with their heads banging all during the crisis which started in 2007.Did FOREX (USD/JPY)a possible leak of QE3 ahead of the FED intervene.Take look at the charts with long candle suggesting a devaluation of dollar in play.



Happy Trading.Good Day

Dollar Finally Rally Before Its Coffined

Dollar Index is enjoying its final rally before going into multi decade low.When dollar speaks the rest have to obey as dollar is not backed by the its currency as it says but backed by the MILITARY, And many have you been reading/watching about the current ongoing strikes around the Middle Eastern Countries.Okay lets take a look short and longer view.

Short Term Analysis:

Shorter term dollar futures says its in ascending triangle consolidation phase.Once it breaks it will rally to target of 50% retracement of entire move of 2008-2011 which is 80 on index drawn with green horizontal line.




Longer Term Future Analysis:

Dollar long term futures is bearish as it formed inverted C & H for the past 20 years with 3-4 year s of handle based on the time analysis if you look at the spot longer term.Once 80 target is achieved we will have water fall decline all the way to 66 for initial bounce and 55 for the target.





Longer Term spot Index:

July 4 Spl Documentary : The Money Matter

The Money Matter is award winning documentary back in 1996, Its definitely boring 3 1/2 hours based on the personal choice(s) but it covers wide variety of topics which the current markets facing the problems around the world and these topic are center stage at the moments.The topics are

1.Fed Reserve
2.Bond Market
3.Fractional Reserve
4.Monetary Policy
5.Central Banking.

Currency USD-INR Analysis

Indian Rupee Longer Term Technicial Analysis:

The currency pair USD-INR is showing sign of bounce back after it has been in consolidation for almost year and half plus during that time we had a nice stock market bounce back after the intial crash in 2008.Ok now lets look at the chart for detail analysis



My moving average cloud statergy suggests that a decisive move above the blue line and closing above will be a bullish for this setup after having triple bottom and it implication will be:

1.Stock markets will take a hit
2.Exports sector will have nice profits
3.more FII will flow into market based on rising interest rates.

Hurdle that it needs to take out the

Resistance 1 : 46:10-46:25
Resistance 2 : 47:50-48


There is strong support around 43-44 area and its been holding for some time.Any break in the area will be flash smash in stock markets (but remember its only true based on moderate inflation numbers.If we enter into hyper inflationary mode then it will avalanche in globex and will eventually bring BSE/NSE with it).

The chart below suggests that breaking below the support draw in green rectangle will takes to previous cup bottom around 38-40 area.

Silver :Physical Vs Paper

The war is on, And the war is between Physical holding of silver vs Paper.Paper enthusiastic has always been the killer of the rising silver prices as most of you know the silver is a metal used both for industrial as well as monetary metal.

Let me give you what paper silver is and its problems !!!

Paper silver is a certificate issued by the bullion banks so that they can hold the physical silver and give you a paper certificate.But what happens if they are not storing the physical in thier vaults that they have promised over years which is nothing a big fraud.This is what SLV (Ishare Silver Trust) GLD (Ishare Gold Trust)

Paper market generally compromises of
Stocks
Options
Futures
Bonds
basically OTC (Over The Counter) derivatives values will be of no value or zero value once the system fails. Video below is what happens when holding paper assets.



Fundamental Numbers:



There is massive withdrawal of physical silver on comex warehouse. Before start of this year comex warehouse had a total of 100 million ounces most of which is registered.But now that no's have changed, And now most of the registered took the silver out of the comex for the eligible.Now we have only 28 million ounce left and if that evaporates at this pace then the comex will default by end of this year.So now what happens to paper silver and its value.That you have decide for yourself but the physical premium will jump 20% overnight.Okay now lets go to technical analysis

Technical Analysis

Silver




Silver daily is showing some weakness here and another sell call has just knock the door for the more downside.Its the paper silver folks so don't worry as they(bullion banks) wanted to shake the loose hands so that they can grab more physical silver out of you by selling paper silver.



Silver was and is on steroids based on the current economic woes. Silver will bottom around $28 based on the current play and will definitely challenge $50 again by end of this year.My long term target that I predict back in mid 2009 was spot on click for links below
http://gamatraders.blogspot.com/2009/09/watch-out-for-goldsilver-breakouts.html
http://gamatraders.blogspot.com/2009/05/gold-silver-dollar-and-treasury-bonds.html
it reached before my 2012 prediction.

Most probable scenario for the silver is that all the points i.e Fibonacci retracement of entire move from 2001 to 2011 which is 50%,the up trend green color of lower end channel shaded in white and down trend in red color all converging at $28 area.So I would call "THE BOTTOM" for silver and most probable price action would be in white color drawn on the above futures chart.

Once the precious metals starts their rallying by early 3rd quater we will see jaw breaking news in media by end of this year for sure.Hold your silver I mean physical holding only which will reap you big way in longer term.Once the selling is done, Are you ready for this crazy lift off ????



Silver cash also shows support around $28 area on multi year moving average cloud strategy on monthly chart.



Right now the inflation talk is paused based on market data and deflation is kickin in but this will not last much longer.US financial pillars are coming apart, And now in a process of defaulting on thier debts.Nothing has been changed or addressed so far on the future of the economy.So the downward spiral continues based on the market action.

Happy Day and Happy Trading.

Market Correction Or Collision Course ?

Stock markets lately is showing severe stress for the upside.Looking at over all globex we are overdue for a steep correction by end this 2 nd quarter.Market movers are waiting for vital numbers by end of this quarter es pl

1.Car sales numbers(Horrible) and also major manufacturing components supply disruption (Japanese quake effect)
2.Home sales (depressing)
3.GDP
4.deficit and debt ceiling numbers (Nice Uptrend)
5.QE2 officially ending (No more funds to funnel markets)

*my comments in () for possible market move.

Markets moved sharpely from the first week of MAY, And bears are now in control of this move.Intially they took down the stronger sector i.e commodities,energy, mining sectors then continued with rest of them.Commodities are the stronger among them, And Silver has shown proxy for entire commodity sector. Once this came apart the rest came too.Now lets cover the charts for Globex Stock Market Indices

United States S&P 500

Most of you have asked me what kinda of strategy do I use ? I use Moving Average Cloud with its variant parameter.(click for larger view and watch for cloud in chart below)

Now lets look more closely what exactly it is :
Prices closing under this band(s)
Red Line(Upper Band) : Warning alert for the traders
Blue Line (Middle Band) : Exiting the position
Black Line (Lower Band) : Conformation of downside

Above the cloud is going LONG and below going SHORT.It all depends upon what time frame your looking ? The chart i have here is monthly time frame for over 6 years.

Now watch closely S&P 500 chart it definitely a Picture worth of 1000 words (you can email me personally for more understanding or comment on this if you want)



India Stock Market NIFTY:

Forming a Head and Shoulder top with multiple left and single right so far.This market is weighting for the RBI interest rate hike along with FII/Local outflow from markets to guarantee fixed income. We are enter ing into higher interest rate regime for sure like early 80's style.Strong support around 12000 to 9000.Inflation is beast here.




Sanghai Stock Index

After having strong decade for manufacturing this market are due for higher to moderate growth.More downside to come.




London Financial Time Index

This market is dead based on pound valuation as more and more problems will come to queen(s)
home as deflation is kicking in those euro zone areas based on debt problems with them.




what fed has been doing all these months is just printing money and funneling them through (BIS) Bank International settlements which is nothing but bank for global banks with currency swaps to inflate the markets around the globe.Fed in past and future are worried about the collapse of markets but not the real economy, As money is not flowing in real system.When the market gets stressed out they go for another round of easing.So possible scenario for next round will be in few trillions as they will panic markets first in expense of collapse of economy.

Welcome to QE3 and this easing will have calculus representation any time market panics i.e

QE(n) where n has value of 1,2,3........Infinity

Will update Metal markets in my next post as most of my blog followers following silver action lately.

Good Luck and Happy Trading.

Is Silver Ready To Bounce ?

Silver 15 mins futures are showing some signs of relief and bottom formation after having water fall from $49.The correction of $15 in a week is like a roller coaster rider and big banks wanted to shake the loose leaves of the silver tree so as to create a panic in this metal markets.But when you see the whole commodity complex silver is leading with margin hit.

Anyway lets come to chart now.Breaking green line will have an object move to $41-$42 shown in red line.We need a consolidation here in this zone before going back to new highs.The parabolic move from $38 was not sustainable for silver markets and any moves will have adverse effects with price action that does not mean that we will not look the higher prices.Instead of taking step wise it took lift and same happened from $49.Looking at technical analysis it severely had damaged and it needs repair.So consolidation is best therapy going forward.The more the consolidation, the greater the force it can generate in due course.

Is silver bounce here, Time will tell us. Good luck. Happy Trading.

Silver : 800 POUND GORILLA IN THE ROOM

After having rose almost from $38 to $50 an ounce in my previous backwardation article(Previous blog entry: http://gamatraders.blogspot.com/2011/04/silver-futures-now-contango.html ) I still see a threat for future price explosion in prices due persistent backwardation.Events like this definitely have adverse effects on prices, And eventually cause flash smash in prices.

If silver breaks 1980 nominal high with out inflation adjusted then its free bird from there no one knows whats the next price levels.Technically speaking it will take general retracements based on supply demand but I would say SKY IS LIMIT.

Future Chain for Silver:
year 2011 is in con tango with the spot but where as from 2012 to 2015 is in backwardation.





CME group rose 9% margin hike to suppress the price and again on thursday they did 10% hike, But do they want to raise margin in just one metal leaving the rest of the metals market.I think this will a be history going back raising margin in success in week period time frame.At the same we had 20% comex physical delivery to eligible so the margin hike had some concidence with physical delivery.Silver room clearly tellingus that it is running out oxygen and manipulated at max. Anyway time will tell.

I Have Seen This Silver Movie Before

Options expiration in general markets will tend to have price fluctuation so we had inside out day in silver market which killed the bull run.Bears camp had huge success and that will be short lived.

Silver is in collision course with US dollar which will be a early event as proximal trigger for the onset of hyperinflation in the near-term.Its the good hedge of inflationary markets, And is responding to it.$50-$52 is considerable psychological resistance band on silver markets going back to hunts brother who tried to corner the market.

whose going to sell at this level ?

1.JPM and HSBC have already crushed big time with 40% silver markets future/naked short positions.

2.Margin raised twice or thrice as shorts (commercial traders) are already crushed so got to cover their ass ....as I have see this silver manipulation movie many a time.

3.Hedge funds( aka FED pumped money) looks like shorting mining sector to dislocate metal markets so as to propup fiat paper markets

Okay now lets see open interest on silver markets as its growing and will keep going as month of may and June are traditional metal delivery so guyz buckle for some serious volatility in coming months.

Open Interest with red shaded area with today and y'day.




Okay now lets look at the futures chart as bull were little over enthu in thier run up with a big gap formation which is support but at this juncture as channel resistance came into pic.So we have to respect bear here and little consolidation with little backing and filling.

Futures Chart



Is silver/gold comex nearing default? don't expect any parabolic moves until we see break down in US dollar index to new lows.

Houston Houston are we ready to lift off as count down has already began........so buckle up for bumpy ride before we head to a clearer skies.We are definitely entering into new phase of bull market in precious metals.So guyz stay tune and will keep updating.

One more thing as Many of you have asked me question regarding silver like :

why gold/silver now ? Is Silver a WEALTH ?
Targets for long/short term?
How long we have to hold this?

will try to answer in next blog post.Happy Trading

Cotton Sending Mixed Signals

Cotton considered to a be a cash crop in commodity space.This is sending a mixed signals if you look at the futures vs equity.Stay away until decision is made.

Futures:

1.c&h consolidation in 3 months frame break rally took almost to target of 220
2.Break trend with gap down looks like panic sell off
3.50% correction is already priced in or will it take us to next level shaded in white for potential buy signal.




Equities:

1.Cotton ETF which took same path as future market is going hand in hand until now.
2.Here the trend is intact, And right at the buy point with volume confirmation shaded in white

Will the future market derail this ETF as broke the trend and looking for considerable support ? This is a wait and watch game.My personal feeling is a panic sell off for deep correction in a shorter time space but eventually hold this trend.

S & P 500 Big Picture

As promised I'm posting S&P 500 historical chart this time which shows the way back from 1930's.Now lets take a look at events happened in due course of time circle in red

1.First circle was in early 90's during dot com when it broke away from the channel that was the growth engine in broader economy which went parabolic and got peaked 1999-2000 bust.

2.Technicially speaking after having took of the channel it has to test the channel which it did that when fed fueled the house market in 2002 and which got peaked in 2007 bust.

3.So this time after testing the upper channel it got into the channel with 50% which was healthy then we had fed intervene into the markets in late 2008, And pumped the market with his printing press and now test the upper channel which is resistance was support before.Now we have to wait and see how it reacts for that we have to options:

a.If fed raising the rate will effect the markets and we will see downside in market and correct to 500-600 level to lower end of channel which is show on chart with grey line.

b.If fed still eases with lower rates then it will crawl along with the upper channel and stay with the channel as dollar devalues.

Good luck folks and enjoy trading.

Gold/Silver Turning or Tipping Point

It's time for physical metal now and the biggest physical market squeeze is on which is huge so buckle for big ride so better stay with it as inflation is going out of fed radar.Take a look at this article which tells us the race for the gold standard is on

Texas University Endowment Storing About $1 Billion in Gold Bars

Belarus central bank halts sales of gold for roubles

Gold has succesfully tested the Inverted H&S pattern support which is bullish and uptrend in tact after strong breaking $1440, And heading for $1580-$1600 on futures market making new highs drawn in red line on log chart.Spot price on gold is $1486.



Silver on the other hand is flying high so don't look for dips. So all you have to do is to chase until $50 which is all time high and $52.40 on futures market.Spot price on silver is $43.02

Currency Updates

Currency markets have been in volatile recently after 2008 crisis when everybody flocked into the US dollar which was in downtrend from late 90's had a huge upside correction which is good for the dollar Index before going down the toilets.When fed announced the QE then dollar is literally a sink hole.

We had multi-year correction on currency markets, And which is healthy for indicies and now ready to rally as dollar in big time devaluation going on by end of 2012 summer.So better flock into the currencies which have strong fundamentals, And these are currency which can easily double based on technically stand point.

Australian Dollar Index:

1.No easing on their economies for recovery
2.Strong mining industries(which has got huge precious reserves)
3.Strong agriculture based economy
4.Strong backing on reserve ratio based on interest rates






Swiss Franc Index:


1.Currency is backed by the Gold
2.No easing




New Zealand Dollar Index:

1.No easing on their economies for recovery
2.Strong mining industries(which has got huge precious reserves)
3.Strong agriculture based economy
4.Strong backing on reserve ratio based on interest rates





Canadian Dollar Index:

1.Strong exports on Energy sector espl oil, natural gas, coal etc.
2.No easing on their economies for recovery
3.Strong mining industries(which has got huge precious reserves)
4.Strong natural resource to sustain low density population

Jesse Going MainStream

This is must watch video, And it has got 5 parts video all you have to do is play first and the rest will follow the topics below:

1. Assassination of JFK.
2. 911 Inside job.
3. Going after war for American welfare.
4. Conspiracies Theories.

sit back and enjoy the interview........

Silver Futures Now In Contango

Silver Futures two days before was in Backwardation but now in Contango. Persistance backwardation will definitely have spike in spot price will takes into $40's, And will eventually contango.Take a look at the red oval for detail view of the future chain when the silver for spot is $38.20

Click here for Silver Futures

Please Raise One More Time

Secretary Geithner Sends Debt Limit Letter to Congress

April 4, 2011

The Honorable Harry Reid
Democratic Leader
United States Senate
Washington, DC 20510

Dear Mr. Leader:

I am writing to update you on the Treasury Department’s projections regarding when the statutory debt limit will be reached and to inform you about the limits of the available measures at our disposal to delay that date temporarily.

In our previous communications to Congress, we provided regular estimates of the likely time period in which the debt limit could be reached. We can now make that projection with more precision. The Treasury Department now projects that the debt limit will be reached no later than May 16, 2011. This is a projection based on the expected level of tax receipts, the timing of our commitments and obligations over the next several weeks, and our judgment concerning the level of cash balances we need to operate. Although these projections could change, we do not believe they are likely to change in a way that would give Congress more time in which to act. Treasury will provide an update of this projection in early May.Click here for more

CBS 60 Minutes: The Second Mortgage Meltdown Crisis

Connecting The Dots !!!!!

Ignoring FED !!!!! Does state have their own coinage (GOLD/SILVER )? Why Now ?



Is fed is getting ready for "Too big to fail" will eventually fail the notion and FDIC is ready for their master plan with unlimited funds by the treasury click here

Is gold consolidating at this level waiting for the debt ceiling to breach the value ( $ 14.294 trillion), And there is growing urgency in washington to raise the limit or sell what they hold during the crisis.

Raw Gold Shortage in china, And china's central banks recommend buying gold for wealth preservation click here . So what happens when billion people start accumulating all at once.

GOLD SILVER SHORTS !!!!!

Gold and Silver shorts are getting excited after having reached to new highs on gold and 30 year high on silver price past last week.If shorts are aggressive in their position then this is possible position they might have in near future...................

Market Updates

Shorter Term Chart

SP 500 which has top 500 companies on it indices (added/deleted based on their performances of the companies in the current market conditions) is right at the crucial point hovering right at the previous support after having water fall in shaded area which crashed all the way to 666(number of the beast :Mega Banks).

Breaking the previous support which is now the resistance will definitely tells us that fed is in the process of another round of easing i.e QE3 which will factor in market on or before june 2011 as QE2 is ending, And this is what will happen in the markets as fed is opting for QE to infinity.

If it breaks this current support levels then fed is likely ending the QE so he might tightened the money supply that will have direct impact on rates hike. So buckle up guyz we are headed for economic turbulence either way but elite would prefer to have inflation rather than deflation.





Longer Term Chart for your reference and will post another chart in my next post why 666 was good support during the financial crisis was 50% of the correction of the entire channel 1933-2008.Good luck for your traders guyz.

Gold and Silver Updates

Gold and Silver are definitely in secular bull market and there is no doubt about it has long way to before we see or media calling for bubble.Fundamentals and Technicials are in place to drive the prices way high before we people thing of.Think of all the worthless paper money created by the central bankers around the world, One day or the other the true currency will be commodities or metals or real asset will be the true currency.

So whats my year end target for the gold is $1600-$1800 and silver might kiss the 1980's high which is $50.Below are different time frame charts for the gold and silver.

Gold Longer Term Chart




Medium Term Chart

Gold shorter term making cup and handle formation or Inverted H&S formation which is bullish which will drive this formation to $1520 and consolidation will drive all the way to my year end predictions.




Silver Longer Term Chart

Silver chart as always shown more strength then the big brother gold.This is definitely will blow every once mind when it reaches to levels of gold.May be this financial cry might bring 1:1 before it peaks but year end will be $50.Good luck folks on this as this will create a wealth to once portfolio.



Gold to Silver Ratio

Gold to silver ratio telling us that little brother silver took the lead in the current financial crisis game plan.Historically during 1980's gold to silver ratio ran till 17 (850/50). So we might see the ratio going to those levels or even lower based on the supply demand ratio driver along with big bullion banks short positions but the current ratio has definitely broke the longer term ratio with the decending triangle in execution in place.Gold/Silver is true money gauge. So selling paper money with true money is nothing but gold/silver.