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Last Updated : 09 September 2010 at 18:10 IST
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Are banksters creating gold price bubble?

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17. What about timing? Look at the liquidity flows. The banksters are piling on short positions in the gold market. Does that sound like a strategy they would employ if gold was about to be re-valued here and now against the dollar, and the dollar was about to begin a huge leg down against gold?

18. The answer to that question depends on how big a short position you think the banksters can carry, with the ultra-leveraged "fundsters" on the other side of this trade. The answer is the trillionaire banksters can carry millions of contracts on the short side, millions beyond the 500,000 they are carrying now, by definition, because they have trillions in liquidity to do it. The fact is they are already carrying tens of millions of contracts as a group in dozens of futures markets around the world, so "stepping up" their gold market trade and position size, either on the short or long side, to numbers vastly beyond the imagination of most in the gold community, is easily possible, without bankrupting the COMEX.

19. While the banksters could carry millions of gold position shorts, the reality is they want to make money on their newest short positions, and the sooner the better. Live for ringing the cash register today, not tomorrow's gold pie in the sky, is their motto, and mine. $1156 is now a distant memory. We have risen almost exactly $100 to $1256, and recovered $100 of the $110 we tumbled from $1266. Those who "knew" it was all over at $1156, now "know" gold is about to blast to $1400, with visions of $2000 an ounce gold sugar plums dancing in their heads. I have the same visions, which is exactly why I am a seller into this rally. Not a buyer. Not a wiener. The price-chasing wieners will soon be roasted, as they have been every time they have swaggered up to the price chasing trough since the beginning of time itself. Sorry to break the news to those of you holding your price-chasing gold heroin needle, but I don't bet against the banksters, not here, not now, not ever. Go ahead, stick that needle in, see what happens. Get a grip on yourself. Don't shoot up with heroin. There's nothing the trillionaire banksters like better in a market fight, than an opponent who is drugged up on price-chasing heroin. If the heroin addict is also snorting a big load of debt cocaine, if he is leveraged, all the better, because then it's slaughterhouse time.

20. Below is a link to the natural gas chart, and in the bigger picture, it bears an eerie similarity to Gold at $250-$400, when Gold seemed set to move, but then disappointed for what seemed an eternity. My advice is to continue accumulation, with patience. Nat Gas Chart. Important Buy Program Underway! Look at the myriad of buy signals being generated on the oscillators!

21. As phenomenal as NG looks, Uranium looks even better! Here's the Uranium Chart. There's a head and shoulders bottom, and you can be a player in this asset class via the U.tsx ETF for just $6 a share! Hands up everyone who doesn't have six dollars to own at least one share of this ultra high quality asset while the market is holding a 70% off price sale! I'm a buyer every 5 cents down; that's the level of commitment.

22. Here's a look at the GDX Daily Chart. Price is up about 15% in 6 weeks. There's nothing else to do but book profit on trading positions. Nothing. Now here's the GDX Weekly Chart. Note the red supply line in the sand, which is really an exponential-gains-for-you launch pad into the stratosphere. Despite a huge run, the weekly chart oscillators are still generating buy signals right now! Remember that I personally sell into all strength, regardless of such buy signals, but the signals are positive indicators of higher prices to come for your core positions. The GDX chart is telling me that I could be booking profit for some time, and well into much higher prices!

23. The game I believe the banksters will play, here and now, is to patiently add shorts into gold's strength while frustrating traders who buy with tight stops, and frustrating those who have sold too quickly and are now afraid they are going to miss out on "the big one." Your trading strategy must be: continue to book profit on your gold and gold stock trading positions, and order the cement truck to encase your gold market core positions in cement, positions you are already gripping with an Iron Hand. OK people your holiday is over! Let's hit the Gold Price Grids. Work Time!

Courtesy: www.gracelandupdates.com
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NCDEX SOYBEANINDOREJUN12 20 June 2012 contract was trading at Rs 0 . What's your view on it?
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Ustation  Posted On : Jan 28, 2011 10:46 AM
Spot on !