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Profiting from the Cartelís Interventional Tactics



-- Posted Tuesday, 26 December 2006 | Digg This ArticleDigg It!

DEEPCASTER LLC

www.deepcaster.com

DEEPCASTER FORTRESS ASSETS LETTER

Wealth Preservation         Wealth Enhancement

Financial and Geopolitical Intelligence

 

          Many of us have been pounded and justifiably outraged in turn by The Cartel's actions in periodically taking down the price of Gold and Silver.  But the Cartel is not invincible - - one can profit from learning Cartel Tactics.

 

           Moreover, learning how The Cartel conducts its Market Intervention attacks can give one an advantage which can result not only in avoidance of losses, but also in significant profits.  [Note:  for a more detailed discussion of the Cartel and its strategies and tactics see Deepcaster's October Letter entitled "Mega Manipulations - - Juiced Numbers IV:  How The Government Gets The Statistics It Wants, Markets Get Manipulated, Citizens Get Deluded and Worse."]

 

So, consider the following tactics which are key to The Cartel's Market Intervention Program:

 

  1. War Against Tangible Assets

 

          The evidence indicates that The Cartel is conducting what one might call in a War Against Tangible Assets in general, and against The Strategic Commodities, and Gold, Silver and the other precious metals, in particular.

 

It is no surprise to anyone familiar with the markets that Gold and Silver are at the top of The Cartel's Hit List.  This is for good reason too, so far as The Cartel is concerned.  That is, the Central Banker-led Cartel wants to keep investors focused on buying their Treasury Paper and giving legitimacy to their Fiat Currencies.  The Cartel's profits and power depend on keeping investors "hooked" on their paper.

 

In order to succeed in legitimizing their paper they must create doubts in investors' minds about the ultimate benefit of holding Gold and Silver as Bedrock Assets.  This is one of the major reasons for their periodic attacks on Gold and Silver.

 

The viability of The Cartel Bankers whole fiat currency and Treasury Securities regimes, and therefore of their power, would be greatly compromised if they did not periodically attack and take down the prices of Gold and Silver.  But The Cartel cannot successfully attack indefinitely, because every attack requires some selling of physical bullion into the market, and physical bullion is limited in supply.

 

 

  1. Communications Policy

 

          By its own actions, the leader of The Cartel, the U.S. Federal Reserve, reveals it is engaged in a continuing "Communications Policy."  The evidence increasingly indicates that it places, or causes to be placed, leading or disinformational "news" stories designed to shape public and investor opinions about the markets and the markets' future.  These "news" stories are thus used to mold investors attitudes and actions in a way which advances The Cartel's goals.

 

For example, one clue that a trap for partisans of Gold and Silver is being set is when "news" coming from official or quasi-official sources or Major Controlled Media sources is clearly being used to paint a certain picture of market conditions.  At such times, and especially regarding the Gold and Silver markets, one should be especially wary and be prepared for the markets to "go the other way" from what the Controlled Media indicates would be the best course.  The Cartel appears to relish using its "Communications Policy" to get investors "offside" and to shear them.

 

 

  1. Lures

 

          This "Communications Policy" is buttressed and supplemented in the markets by what we can call "lures."  In other words, if one looks carefully at The Cartel's interventional history, one can see not only that they periodically aim to "paint the charts", but also they aim to paint the charts in such a way that they "lure" as many investor-victims as possible before one of their attacks.  The goal appears to be to maximize the damage to precious metals investors.

 

For example, in the second Gold and Silver takedown phase of 2006, Gold was "allowed" break out of a triangle so convincingly that even the Harry Schultz Letter issued an Alert saying that gold was breaking out.  Shortly thereafter gold was very substantially taken down, thus punishing the longs who bought in at the breakout.

 

 

  1. Key Technical Analytical Points

 

          The Cartel employs key technical analytical points and patterns to use investors technical analyses against themselves.  In particular it uses black-box (computerized trading program) controlled hedge funds against themselves.  For example, the black boxes tend to pause and get out of the market at key Fibonacci levels.  It is often at or near these key levels at which The Cartel decides to attack.  The effect is to get the black boxes running in the direction that the Cartel wishes.  With similar effect The Cartel uses investors' reliance on the whole kitchen cabinet of technical indicators - - from Elliot Waves to Heads & Shoulders, to set up investors for shearing.

 

 

  1. Plausibility and Pretexts

          Finally, the Cartel desperately needs plausibility to conceal its actions.  Therefore pretexts for Interventions need to be either found or created.  The evidence indicates that the Intervenors have a history of either waiting for or, it appears, creating these pretexts as plausible reasons for attacks.  This helps conceal the entire Interventional Operation.

 

          Employing all five of the above considerations allowed Deepcaster to forecast, on December 1, 2006, that Gold, Silver and Crude oil would all be taken down "in the next few days."  Thus these three takedowns have already begun.

 

 

Conclusion:

 

          Considering plausibility, pretexts, communication policy, lures, key technical analytical levels (and particularly Fibonacci levels) and the War Against Tangible Assets, together may provide very helpful indicators to protect assets, and, indeed, to profit from Cartel Interventions.

 

For example, the next time the reader becomes aware that The Major Media are full of bullish stories about Gold, and the precious metals and the technical analytical picture appears bright, and this is accompanied by some sort of a technical breakout, that is the time to be especially wary.

 

For investors it is far better to establish long-term long positions near the bottom of the Cartel Manufactured Takedowns than it is to get lured into the Cartel's trap by "news" stories and favorable technical analytical markers.

 

          Indeed, establishing such long positions in the physical metal near a Cartel Engineered Bottom is exactly what The Cartel does NOT want you to do.  The resulting Profit would be the best revenge.

 

 

  

 

DEEPCASTER LLC

www.deepcaster.com

Wealth Preservation         Wealth Enhancement

Financial and Geopolitical Intelligence

 

Gravitas, Pietas, Virtus


-- Posted Tuesday, 26 December 2006 | Digg This Article




 



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