sinclair (today) on gold and silver

  1. dub
    33,892 Posts.
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    Heads Up on Gold/Silver
    The Form of Stabilization Versus Manipulation
    Be Watchful & Profit
    James Sinclair
    [email protected]

    I have suggested that the difference between stabilization and manipulation is perspective. Allow me to add that from time to time, at key market levels that have significant meaning to financial interests, attempts to stop a bull or bear market move will take distinct forms. Our job, in order to profit consistently, is to identify and understand in market terms the footsteps of the giants. By doing this, we should be quite careful not to find ourselves financially flattened by their footprints.

    Through my previous postings, you have now seen what the footstep is in market terms for the Exchange Stabilization Fund. I have also pointed out its presence to the exact hour and minute of daily market charts on 3 and 9-minute basis. The Exchange Stabilization Fund will enter and jam the dollar higher for a period of time and then step out of the market. You can see that the instant they quit, the market slowly begins to regain its natural bearish direction in the dollar. It is a Saturn Rocket up and a distinct end of the up move all at once (see the dollar on Thursday-Friday).

    What is that we want to see in Gold Monday or Tuesday?
    Gold is set up technically now to slice through the $354.50 key derivative risk control number that has been so long defended by the gold cartel of common interest. Therefore, those in the community that trade have to be keenly attentive to the form of what occurs Monday and Tuesday. What we want to see is $354.50 taken out on the upside in a dynamic manner by holding in the $350 range, then a sudden upward thrust and closing above $354.50.

    What is it that we do NOT want to see in gold Monday or Tuesday?
    Kenny Adams & I have concluded that what we would not like to see is a significant market presence of dedicated members of the gold dealer's cartel of common interest making a temporarily successful "Custer's Last Stand." That would take the form of a constant slow slight downtrend in the form roll of the gold price lower as if to the right. You can picture this in your mind because that has been their previous signature in market terms. That would put us back into more chopping with slices down that we have had over the last two weeks.

    What do I believe will happen?
    My trader's sense tells me that we will take out the $354.50 and climb the next step to $372.00 here and now. We shall see. Keep your "Heads Up" and eyes glued to gold. The Golden Battle resumes for us in twelve hours. Monday/Tuesday will be an important event in the History of the Gold War.

    Ho-Hum to Humdinger
    The Reincarnation of Silver

    Because of the serious nature of what Silver has just done, I discussed the technical condition yesterday at length with Kenny Adams. Kenny, as I have told you, has been my pal and co-conspirator in this market for more years than either of us would like to admit. First finding Kenny is not easy as he has a habit of flying above Nevada in his ultra light. I feel obligated to tell you that Kenny has been known to crash an aircraft from time to time. Once he took out his neighbor's stone wall with his flying contraption. Between that event and sliding on his own single flat human landing gear down a country road at 60 mph in Sharon Springs, New York when his motorcycle departed his company, keeping Kenny in one price is not an easy job. However, you know those real cowboys, they are hard to kill. Ok, you came here to hear about silver so I am going to treat you to Kenny's own words because I totally agree with Kenny. You will note his support and resistance numbers can differ slightly from mine, but we both agree that silver's time has come.

    Silver broke the magic long-term levels of resistance by closing above $4.81 and $4.87 on Friday. This sets the stage for silver to move much higher, as it is finally above the alluvial fans of time and price resistance that has dominated silver since before mid-July. This move allows silver to function in its new bullish environment, taking 3 forward steps up, to 1 back rather than it previous action which has been taking 2 forward and 2, or even 3 backward. The Silver Bull is now in high gear for the intermediate and longer term, finally.

    However, for the very near term, silver's first heavy resistance is just ahead. Resistance points have created a bracket which is weaker at its start ($4.96) and forms a much stronger major core of resistance at ($5.00 - $5.06) reaching an equally strong area of resistance at ($5.09- $5.12. Therefore look for a stall or short-term reversal in the range of $4.96 t $5.12.

    Above $5.12, the next target is $5.32 - $5.37.

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