Market Curiosity: Exploring Markets And Systems

May 8, 2011

Articles, silver and stock market charts…

Filed under: Just Watching — Tags: , , , , — Jeff Fitzmyers @ 2:11 pm

Biggest market rigger is government itself, by Chris Powell: Anti-competitive as its activity is, OPEC’s formation a half century ago was only a defensive response to the rigging of the currency markets by Western central banks and particularly by the U.S. Treasury Department and Federal Reserve, which were manipulating the value of the world reserve currency, the dollar, the international means of payment for oil, long before OPEC began to try to manipulate the oil price.

Hmmm. Did not know that. Mr Powell goes on to note, “The second problem is that there are always speculators in all major markets.” Take the nebulous evil speculators to extremes. If the corn market was only 1% speculators and 99% commercials, the commercials could not hedge and this would allow significant price swings that farmers, Kellogg, and cereal buyers would have to deal with. Then entities would stock up when prices are low and forgo when prices are high on a monthly basis. If the corn market was 99% speculators and 1% commercials, the commercials could hedge and down line prices would be rather stable. “Speculators” come in all varieties: long or short price, long or short volatility, spreaders, wise, foolish, etc. All those differing activities tend to dampen wild price swings. Why did corn hit all time highs in 2008? Who was the big disruptor?? Gov forced ethanol.

The Silver Crash of 2011? by Martin Armstrong: We have two primary possibilities for a low shaping up on the horizon. WE could create that spike low and BOTTOM precisely on June 13th/14th… If we drift lower into the final weeks of May, then we can see a rally for the week of June 13th. That will not be real good. This could set the stage for a decline especially if we close year-end below $28… The force of this decline is encouraging. The faster it comes down, the shorter the duration: remember 1987, 1929-32. This could lead to a marginal bounce into the last weeks of May, and from there silver will turn down into the June 13th target… Anytime a market doubles like this in the last few months going into a high, it is the kiss of death.

Wondering if there is not a small bounce up (0.5 to 4 days?) before kissing he magenta 170 EMA.

Gold miner bullish percent has plenty of room to drop.

Waiting to se if the SLW : silver ratio tests support with a higher low.

Stock insiders are selling at a greater pace than last November.

Weekly NYSE Summation index is making lower highs. So probably not a great time to go long stocks. (Could be an opportunity to short some stocks for a swing trade.)

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