Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain with Stocks
By: Chris Mullen, Gold Seeker Report

Will The Fed Sacrifice Retirement Portfolio Values For The "Common Good"?
By: Daniel R. Amerman, CFA

Here's How We Discovered This Disruptive Gold Stock... Before It Went Public
By: Frank Holmes

GoldSeek Radio Nugget: Rob Kirby and Chris Waltzek
By: radio.GoldSeek.com

Silver: Supported by D.C. and The Deep State
By: Gary Christenson

Blue Sky Uranium Reports over 1% U3O8 and 0.1% V205 in Pit Sampling Adjacent to Ivana Uranium-Vanadium Deposit
By: Blue Sky Uranium Corp.

Gold Oil and Commodities …Back to the Future?
By: Rambus

Investors And Analysts Know Nothing About Gold
By: Avi Gilburt

The New China and Gold
By: Arkadiusz Sieron

Pound Falls 2.5% Against Gold as UK Government in Turmoil Over Brexit
By: GoldCore

 
Search

GoldSeek Web

 
Does ‘Braveheart’ Ending Await Bears?

By: Rick Ackerman, Rick's Picks

 -- Published: Monday, 11 August 2014 | Print  | Disqus 

Although the Dow Industrials finished the week with a 186-point rally, there’s reason to hope that this latest, drug-addled binge will sputter out within the next two or three days if not sooner. The sleazeballs who engineered Friday’s impressive levitation had to pull out quite a few stops to make it happen. To get things rolling, they precipitously withdrew their bids Thursday night on news that Asian markets were getting socked, apparently because of bad vibes from Ukraine. The air pocket in U.S Index futures produced a quick 15-point drop in the E-Mini S&Ps – equivalent to about 120 Dow points.

Now, it is not unusual for the night crew to push prices around a little when ostensibly tradable news comes their way. Such gratuitous oscillations usually occur within a relatively narrow range, and it is these nervous squiggles that make the long stretches of tedium in the wee hours tolerable for nocturnal predators. The added enticement is that there’s not much risk in this, provided one is not sitting on the can, or moaning over Russian porn, when all geopolitical or financial hell breaks loose as it sometimes does. In this case, however, because the Asian selloff was not serious enough to trigger a panic in Europe, let alone an avalanche in U.S. stocks, the downdraft amounted to a brazen heist. For perps accustomed to shoplifting, it was akin to their ordering the store manager to open the safe.

The Music of Lucre

The arpeggio of buying that followed was deftly played and lucrative, at least for its producers. By 4 a.m. Eastern, sellers were more or less spent when shares fell to a fire-sale level at which even widows and pensioners knew they’d been had.  It took but another hour to run up stocks sufficiently to ensure that shorts, too, would greet the opening with fear and self-loathing in their hearts. By that time, seven hours off their lows, stocks were sitting above the previous day’s close. Feeling confidently in control, DaBoyz feathered back just a bit at the opening, creating a shallow pullback that allowed them to buy a few more shares without letting bears off the hook. The fact that the ass-bandits were then able to goose stocks into a full-blown  second leg of short-covering, and to close the broad averages above Thursday’s peak, attests to their great skill in manipulating fear to their consistent advantage. However, my gut feeling is that the second wind-rally into the close may have exhausted short-covering for the time being, much as the 4 a.m. low had exhausted selling.

How Traps Are Set

From a technical standpoint, it’s possible that the E-Mini S&P futures will now slash and burn a path all the way up to 1949.25. That would be equivalent to a Dow rally of a little more than 200 points, or a 0.618 retracement of the plunge from July 24’s record high. Any higher will place shorts in the kind of jeopardy that Mel Gibson’s William Wallace character faced at the conclusion of Braveheart – i.e., impaled and racked to the thinness of a pipe cleaner, but still capable of responding to pain.

For our part, we’ll be looking to get short with a tight stop-loss near the 0.618 line mentioned above, but also at new record highs if they should follow. Bulls and bears would be in the same boat at that point, their buying power spent and nowhere to go but down. What a trap that would be! Not a bear in sight, nor a single bull lacking in confidence and conviction.


| Digg This Article
 -- Published: Monday, 11 August 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.