Wednesday, April 18, 2012

On Monday, Rick was interviewed by Kerry Lutz of The Financial Survival Network. Topics included: The uptrend in the dollar More bad news for Europe. How the ECB blew through $1 trillion in a very short time. How the bond markets are being "stage-managed" by the Fed and the ECB to try to create the appearance of normalcy.

A resurgent gold could pull silver out of its funk today, but there would be fewer handholds in the latter for camouflageurs if this should occur. My suggestion would be to use a b-c pullback from just above the 32.090 peak-let I've labeled. However, the odds for success would improve if the approach to that peak is sufficiently choppy to make a marginal breach of it -- say, by a tick or two -- look initially like a double top.  You can learn to do this stuff yourself, probably more quickly than you might imagine. Click here.

Yesterday's attempt to bully the futures lower conspicuously failed to generate an impulse leg, hinting that the next move will be an uptrending assault on the trendline flagged here yesterday.  Toward day's end, its lower threshold will come in around 1673.40, but a breakout would imply more upside to at least 1684.00, the 'D' target of the pattern shown. The first opportunity camouflageurs might have to climb aboard would be on a b-c pullback from just above peak #1 or #2.  The #1 peak is equal to the 1659.60 midpoint resistance of the pattern, so any progress above it would be doubly bullish. If anyone reports being filled on this order in the chat room, I'll establish a tracking position of four contracts for your further guidance. In any case, it looks like a high-odds trade to me. _______ UPDATE (11:14 a.m. EDT):  Although the pattern noted above is still valid in theory, the futures have laid an egg this morning with a so-far pointless feint lower. It will look like a scaled-down clone of yesterday if they finish on an equally pointless upswing.

With just a small push, June Gold would turn quite bullish on the hourly chart, potentially creating a low-risk entry opportunity.  Take a look at the chart accompanying today's tout, since it explains how to take advantage.

With a small thrust at day's end, the futures finally generated a bullish impulse leg on the hourly chart. However, we shouldn't overlook the fact that this occurred within a larger, bearish pattern on the daily chart (A=1352.50 on 4/10).  Under the circumstances, bulls should exercise more caution than bears despite yesterday's strong rally. Notice that a move to the 'D' rally target would bring the June contract into a cluster of external peaks, each of which could provide a technical rationale for getting long via camouflage. I'll leave it to you to sort out the opportunities overnight, since it's impossible to predict exactly how any rally might act relative to the cluster of external peaks.

Global Banking System Collapse [We have argued here before that it is lies, systematic fraud and blatant duplicity by the central banks that have kept the global economy afloat in recent years.  In the essay below, a regular in the Rick’s Picks forum who goes by the handle ‘Buster’ provides as succinct and elegant an explanation of this as we have seen. His thoughts were originally published in the forum, but we are reprinting them below because they deserves a wider audience. RA] America is a great country. As with any business, its success is based on the balance of its assets against its liabilities. Its assets are a plentiful supply of natural resources; land & minerals, plus 300 million specimens of the most creative creature on planet Earth. These assets are hindered by one main liability, a ruling class who imported a monetary system of theirs from Europe a while ago. It is a non-free market system which is enough of a hindrance to negate all the positives of any country in time. A simple enough system to understand, yet very seldom understood, even by the most intelligent among us, it would seem. It operates on the simple rule that currency is borrowed into existence with interest bearing on it at a given rate. The critical point to recognise is that the interest owing is not issued by the lender, only the principal, thereby meaning that the interest either has to be paid out of the sum of principal borrowed, or by confiscation of real physical assets, i.e. “real wealth”. The only thing keeping this eventuality from occurring is if a new borrower adds more money, borrowed as yet more debt, into the economy. This is why such a monetary system requires ever more investing manias to perpetuate itself.