GOLD’S M.O. REARS ITS UGLY HEAD

 

“Happily buying high & selling low for decades!”

I get up early this morning, only to immediately see yet again, the  

“Chuckleheads” and Mrs. Wantanabe & Gal Pals shoving gold higher, above 

1240 … and the endlessly repeating cycle of gold’s “modus operandi” [M.O.] 

begins to emerge once again for all to see … “I am of course, referring to gold’s 

habit of rallying in Asia and dropping in New York, or vice versa … the natural 

course of things if you will … there isn’t a single rally the dopes in Asia can 

generate, that bullion dealers in New York won’t undo almost immediately 

… you’d think they would learn, but they never do”!

I guess the vaunted success of the G20 meeting [dictators, thugs, & SJW’s], has 

aroused their “animal spirits” and given them the itch to own gold … more 

than likely, in the next week they will happily sell in the low 1230’s or high 

1220’s and wonder WTF happened, like they always do … the bullion dealers 

in New York only too happy to accommodate them. Needless to say, in the last 

7 weeks since and including October 11th, gold has managed to rally in 

New York exactly 2 times of any significance … the rest of the time? … flat to 

lower, working off Asian rallies … “oh, but not to worry, this time is different, 

as I remind everyone these are the 4 most dangerous words in the English 

language”! So, we’ll see what happens, as a broken clock is still right twice a 

day … but like yesterday, it doesn’t look good for any kind of sustained price 

increase coming into the New York session, with the very real possibility of a 

good smackdown once New York opens and gets going … that doesn’t mean 

they won’t or can’t run some stops above 1243, cuz that is a distinct possibility, 

and in the process ruin a day for some shorts before they go get the longs 

… remember, these guys hate specs on both sides, and will do whatever they 

can to inflict the most pain to all traders equally.

Here at the NY open, it’s been a steady “WTF happened to that rally”? for the 

last couple of hours, as suddenly [snark] nobody seems interested in bidding 

gold higher … “I dunno, maybe it’s the fact that since the sun has risen in New 

York, and a few bullion dealer desks have gone “online” and ready to go, their 

large offers have taken the “oomph” out of those wishing to goose the market 

higher … and even though we’re only a couple of bucks off the high, it feels like 

it’s the width of the Grand Canyon to get back up there … and unless somebody 

starts buying this stuff again, look for the steady slow drip lower into dealer 

oblivion and another shit day of trading, thank you very much morons in Asia”!

To be fair, though, to Mrs. Wantanabe & Gal Pals, it might be the ChiComs up 

to their dirty tricks, that I’ve outlined before on the blog, that’s at play here. 

Briefly to summarize, they buy in Asia on Pacific Rim futures exchanges, intent 

on taking delivery, and then use useless dollars gained via their trade surplus 

[$1.5 billion dollars per day] to sell in New York via their BFF’s the bullion 

banks, to suppress price lower … they don’t really care about paper losses in 

New York, cuz that to them is simply a cost of doing biz, and besides, it’s in 

practically worthless dollars so who gives a shit? … no, the aim is to suppress 

price to buy physical metal via delivery without causing a panic price move 

higher … they simply do this up and until they control most of the world’s gold 

supply … at that point, the Yuan gets gold backing and the U.S. is burnt toast 

with their petrodollar hegemony … and in essence, this is how you defeat the 

U.S. without firing a single shot, and making them a third world nation 

shithole like Britain and/or France. “Them that has the gold makes the rules”! 

[And just as a side note, Russia & India have joined them, so the Chicoms got 

some company.]

And so, here we sit an hour into the day, and it’s completely dead … price 

hasn’t moved 50 cents in hours, and all those long from Asia and/or Europe got 

that funny feeling in their stomachs that those sell stops below the market are 

nothing more than magnets, waiting for their order … “and like moths to the 

flame, they haven’t a clue what’s going on or why”.

“Well, that escalated quickly, didn’t it”? … around the Chicago open [15:20 

server time], a nice blatant stop hunt on the upside, which saw the old high get 

eclipsed by a few pennies, immediately followed by the obligatory “Thelma & 

Louise” routine of bullion dealers after they sell spec buy stops … “and while 

we can’t know when or how they’re gonna do it, we know that it’s gonna happen, 

and by the time you see it on your screen, it’s too late”. And, here we sit right 

back to where the stop hunt started, where all that’s changed is that some 

shorts got clipped … now the longs turn? File this under, “you can’t make this 

shit up if you tried” … 5 minutes later, and it’s the longs getting sell stops set 

off ... “but yea, honest markets [snark]”.

At mid morning in NY, and like the historical data suggests with an extremely 

high probability, gold sits doing Mr. Jack Squat with its $3 ½ dollar range [so 

far as I write], chopping the living shit out of both longs and shorts for 4 ½ 

hours, via the obligatory, out of the blue “who saw that coming”! bullshit spikes 

that nobody can capture unless you’re already with a position … “and again we 

see, bullion dealers in complete control of the market, and as I stated before, 

getting to a new high a few bucks away is like thinking you can long jump the 

Grand Canyon and make it to the other side … yea, good luck with that Skippy 

… let me know what hospital they take you to so I can visit”! In reality, it’s 

simply gold rearing its ugly head and behaving like it always has!

I hope you realize, it’s not getting “in” gold that’s the problem … the problem 

is a function of getting out … if you’re 1 second too late on the turn, you get 

max slippage on the fill, and if you HODL it, you risk the multiple spikes from 

hell that dot the M1 landscape for $1 - $3, 1 to 3 minutes later straight against 

you. And in a market that is dealer controlled, inside $3 chop, please enlighten 

my donkey as to how you expect to make the loss back without doing “stupid 

shit”? … right, me neither … which is why we have a lower threshold for 

intraday volatility, that prevents trades below certain volatility levels, cuz 

when VIX drops, the “false positives” rise dramatically.

And simply cuz a picture paints a thousand words, directly below the  

“hog slop” a/k/a gold on the M5, showing the infamous “Flying Wedge of 

Death” [FWD] in all its dealer glory, here a little before Noon EST.

 

click to enlarge

And after the “Chuckleheads” & Mrs. Wantanabe et al did their schtick last 

night, “what did you expect gold to do”? … Over 90% of the time, there is no 

follow through, but that doesn’t mean you can get short, cuz the spikes up 

catch your stops … how many times do you get stung? … and if it by chance 

keeps going, you’re burnt toast in a big way. So far today, nothing new under 

the sun, cuz unless somebody comes in and has more money to throw at gold 

than the dealers [highly unlikely], gold either sits or chops, and then screws 

over anybody dumb enough to think it’s going anywhere … it’s not. Today 

almost a complete carbon copy of yesterday, where late Asia does all the heavy 

lifting, and then New York spoils the party. Welcome to gold.

I know the feeling … just when you think they’re gonna smash it or rally it to 

the moon, along come the spikes from hell to quash whatever it was doing, and 

now it’s headed the other way so quickly it makes your eyes water … this is the 

FWD folks, and it’s been the bullion dealers friend forever and a day, cuz back-

in-the-day when there were pits, the commercials would pull this shit on locals 

whenever they felt the pit crowd was either too long or too short, and then jam 

price and create new body cavities … so, nothing new under the sun.

Here in the New York PM, another run to the high that fails spectacularly, and 

it turns via the M1 so quickly, that if you’re late to the liquidate button, it’s 

curtains within 3 minutes … and this is what happens inside tight ranges & the 

FWD that kills specs … a few of these on the ledger, and it turns into a 

disastrous day rather fast, all the while not a “Hoover Dam” thing is happening 

to justify the loss. “That’s why the algorithm sits”!

No trades today in the PAMM or the C2 options advisory signals service.

What else can you say, but simply another day of shit trading conditions, 

brought on by the Asian session? … two days in a row, the bullion dealers 

simply crush any enthusiasm coming into the New York session from Asia & 

Europe, and after two days of ebullient optimism about gold going forward, 

where are we really from very early Monday morning? … about ten bucks, 

big whoop.

A few algorithm buy signals that weren’t executed, cuz intraday volatility 

readings too low to make the trades … and as it were, two were slight winners, 

and two were slight losers, and this is exactly the scenario we wish to avoid 

… what’s the point of scratching and being at risk, when volatility readings tell 

you nothing is happening and not likely to anytime soon?

So onto tomorrow, where I’m hoping the chumps traders in Asia don’t put on 

their buying dunce hats and go bananas trying to take out 1243 … I’d much 

rather see some liquidation to the downside coming into New York, cuz that’s 

the ticket for New York rallying … I’m outta here … until tomorrow mi amigos 

… Onward & Upward!! 

UPDATE NYSE CLOSE 4 PM EST: True to form, gold puts in another 
abysmal close to the day, not only having been in another FWD, but closing 
ugly from 16 hours ago … it hasn’t done diddly squat, despite the stock 
market carnage. The “Great Bullion Wall of Selling” at the 1240 level, still 
very much intact. Simply put, gold can’t “close the deal” and break free from 
bullion dealer chains, as well as chart trend lines from 7 years ago.

Have a great day everybody!!

-vegas

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