The End of Liberty

A real life horror show is unfolding before our eyes.  I have embedded the "End of Liberty" film just released today by National Inflation Association for your Halloween viewing pleasure.

Please visit the NIA site http://inflation.us for other great films such as "Meltup".

Silver bulls caution warranted ahead of Fed QE2 announcement

Until the Fed has announced its QE2 program scope next week (there is an interest rate meeting Wednesday November 3, 2010) precious metals are likely to keep consolidating.  Will the asset purchases be on the order of a few hundreds of billions of dollars or a few trillion?  What will be the asset mix?  Most importantly, how will traders react?  For example, Bill Gross of PIMCO (who may very well have an inside scoop on the Fed's activities) feels that bonds will sell off rather than be bolstered (the more intuitive reaction). [1, 2]  In any case, there might be some sort of unanticipated surprise or disappointment (at least for those of us who are not psychic or Bill Gross).

Weekly Chart:  Best guess we are in minor 4, of intermediate 5, of primary 3

4 Hour Chart: Zooming in, possible zigzag developing as a fractal within minor 4

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Sources:
1. Bill Gross Telegraphs QE2 Green Light: Buys MBS On Margin Tyler Durden ZeroHedge

2. Bill Gross: QE2 Signals End of Bond Rally, Shanthi Venkataraman TheStreet.com

Updated scenario for silver, looking for long (again)

I am stalking silver for (another) long.  I am convinced silver will ramp again due to the precarious condition of our economy and dollar, the question is timing and low risk entry (in my view).

Here are my updated Elliott Wave counts.  Note that this is just my best guess.  I have studied other peoples' charts and they have slightly different counts or ideas.
Weekly Chart

4 hour Chart (zoomed in view)

Going to close silver for now for +.22

We are close to a half hour short signal so closing silver.  Still looking for pullbacks

We got 4 hour long signal on silver 23.48

12:45 PM Tokyo time or 4:45 AM London time as of this sentence, we did get a 4 hour long signal on silver several bars ago (see green dotted verticle line in chart). Spot quote as of this sentence is 23.48. My charts are grabs from about 2-3 hours ago have been waiting for further strength.
30 min chart showing 4 hour long signal

 4 hour chart showing 4 hour long signal

Strap on your tinfoil hats, I have ultimate conspiracy trade for you

Per Pastor Lindsey Williams on the Alex Jones show today, the ruling class which runs our planet are plotting to spike oil to "$150/$200 per barrel in the next six to eight months" and he also mentioned that one should expect that gold and silver will be the only currencies that can hold their value (e.g. they will spike big too).  The pastor's anonymous source is a dying "globalist elite" (as the oligarchical ruling class, who have a vision for a one world dictatorial government and one world currency, is referred to by the truth movement) who is terminally ill with cancer and is the former CEO of one of the major oil companies, but has decided to spill the beans on the nefarious plan.  If the information is accurate and there is a concerted plot to collapse the economy of the United States by 2012 by flushing the dollar down the toilet, it has obvious but grim trading implications.

Please visit the infowars.com site for the full article by Kurt Nimmo which elaborates more eloquently on the predictions.

Traders as this has the possibility to be misinformation, please exercise your critical thinking skills and do your own technical and fundamental analysis.

Going to bed, setting stop on silver to BE

Silver moved up nicely tonight but I am sleepy so will just keep a stop to allow me to get $.05 in case I am stopped out overnight. Click here for entry signal.

Got half hour long signal on silver 23.54

Bad timing for US traders though since it is first hour almost noon of Hong Kong trading.  Here is half hour signal, the 30 minute cycle has been entered (dark gray).  Target is open to see if it can break the downtrend which started yesterday.  Silver needs to get inside the 4 hour cycle to keep moving up.  If not or if the half hour cycle signals short we get out.  My quote for spot is 23.54

Silver finally got bigger PB looking for BUY spot

I think this latest sell-off in silver (or gold) is just temporary. Looking for good buy spot, but since this is the first time since late August 2010 where we have a series of LH and LL (two lower highs and lower lows in sequence on the 4 hour chart) we need to be careful as it defines a mini-downtrend on the 4 hour timeframe.

Here is my Elliott Wave count on weekly chart for potential roadmap for pullback:

4 hour chart show LH LL series (2 in row):

Alternate theory on flash crash, caused by currency wars

It is widely suspected that the flash crash event is the result of HFT (high frequency trading) gone wild. The SEC scapegoats Waddell and Reed's singular algorithmic S&P500 e-mini trade for causing the entire thing but data gathered by Nanex seems to refute this.

However, Webster Tarpley, investigative journalist and historian, presents an alternate theory.  Back in late 2009/early 2010 when Greek sovereign debt issues were the front page news (albeit really old news which was recycled and hyped up) the Euro started taking a significant dive.  Mr. Tarpley thinks that the collapsing Euro was the result of a concerted Anglo-American speculative attack in order to bolster the dollar, and that this attack on the Euro also resulted in an unintended "boomerang" effect upon the US stock indexes which crashed in May of 2010 (the "flash crash").

Quoting from Mr. Tarpley's work:
...
"The stage for this current crisis was set last May when the Anglo-American attack on the euro, designed to provoke a panic crash of that currency, broke down — partly due to German self-defense, partly because of Chinese intervention, and partly because a high-frequency attack on the euro boomeranged against the Dow in the infamous “flash crash” of May 6. Since then, the euro has been steadily gaining ground, while the US dollar has lost about 13% of its value since mid-June. The forces of depression, represented by $1.5 quadrillion of kited, toxic, and bankrupt derivatives centered on New York, have been re-asserting themselves against the battered US greenback.

If smashing the euro was one prong of the Anglo-American game plan, then driving the Chinese renminbi up into the stratosphere was the other prong of an ongoing attempt by London and New York to export a world depression by beggaring their leading rivals in Frankfurt and Beijing. The attack on China had been speaheaded by the feckless Tiny Tim Geithner, so it is not surprising that the Chinese have largely ignored US demands, limiting the rise of the renminbi to just a couple of percentage points since the last bilateral confrontation in June."
...

Full article here

Mr. Tarpley also extrapolates this point in an interview with RT News on the ongoing currency wars of competitive devaluation:

Is there a levered derivative I can use to short Al Gore?

I think Al Gore and the IPCC (United Nations Intergovernmental Panel on Climate Change) will go down as the biggest fraudsters in history. Yes of course coal fired plants or the like should be required to burn cleanly in terms of capturing such harmful emissions such as sulfur dioxide (which causes hundreds of thousands of premature deaths in China per year), but the carbon tax is on CO₂, a nutrient of plants and other living things which use photosynthesis to get their own energy.  CO₂ has no scientific consensus, as Al Gore claims, to be the cause of global warming. In fact, there is a petition to the US government to reject the Kyoto global warming agreement which has the signatures of over 30,000 scientists, 9029 of whom are PhDs. The IPCC has been caught fudging data in their reports or presenting results from flawed mathematical models. If the case for CO₂ being the root cause of global warming were so strong why do so many scientists disagree and why are outright lies or exaggeration used to make the case?

I would encourage you to watch the following excellent video interview with Lord Christopher Monckton, leader of the UK Independence Party and former science adviser (within the auspices of the Number 10 Policy Unit) to UK Prime Minister Margaret Thatcher, where he debunks popular global warming myths, such as global warming causing polar bear extinction, and outlines the ulterior motives of those who are pushing forwards the global warming and carbon tax agenda:


To be fair, here is Al Gore being questioned in Congress concerning the cost of cap and trade to the American taxpayer and what Gore might have to gain from the global warming agenda or carbon trading:


Al Gore always refuses to debate Lord Monckton publicly on the issue of global warming, most likely because he would always lose this intellectual knife fight, being the duller blade.  He also refuses to debate the founder of the Weather Channel John Coleman who wants to sue Gore for fraud. See video below:


Also, please Al quit forcing yourself on those Masseurs, it is not only a crime but makes you look bad. [4]

Maybe Goldman Sachs can put together a special CDO for me where I get to take the short side while IPCC and Gore get to hold the bag on longs?
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Further Reading:
1. Barbara Hollingsworth: Who's who on climate fraud  Barbara Hollingsworth Washington Examiner
2. Do Al Gore's investments grow with the global warming myth?  Christopher Lore, CFACT (Committee for a Constructive Tomorrow)
3. Climategate: Who Benefits When the IPCC Lies?  Charlie Martin, PajamasMedia
4. A very inconvenient masseuse: How saint Al Gore, the sanctimonious eco-crusader, lost his halo (and his wife!) Zoe Brennan and Annette Witheridge, MailOnline

New Federal Reserve Note for Hyperinflation

If we get hyperinflation, we should honor Uncle Ben by putting him on the new trillion dollar bill.

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Sources:
Obama Trillion Dollar Bill: http://www.obamatrillion.com/
Google Images
Microsoft Bing Images

Safest Three Gold and Silver ETFs CEF, GTU, PHYS

Did you know that the GLD and SLV gold and silver ETFs do not have an independent audit of their gold or silver supply? That means that it is possible if people demand delivery of their gold and silver and there is not enough backing the paper, certain funds could default and leave the investors SOL. Per James Turk of GoldMoney.com, there are only three ETFs he trusts where a third party independent auditor comes in to audit the physical gold or silver supply, including melting down bars if there is some sort of discrepancy. In fact he feels even the central banks and Fort Knox if audited would be shown not to have as much gold as one would expect...

1. CEF - Central Fund of Canada  - Best price action, combines both gold and silver
2. GTU - Central Gold Trust
3. PHYS - Sprott Physical Gold Trust  - Terrible price action though, not moving!  Worst choice in my view lol

Scroll to 2 minutes 10 seconds in to the following video, for the audio reference so you can hear it for yourself:

Dow is a textbook bearish Gartley

Very creepy how mechanical the Dow futures is being with regards to this bearish Gartley pattern which appears to have completed at point D.  The AB leg is almost symmetric to the CD leg in both price (1168 points versus 924 points) AND time (28 days rally to peak at B opposed to 25 day rally to peak at D).

Compare the above chart to where the actual peak is at D to the rough estimate I did weeks ago where I simply projected forwards in price and time via symmetry with the white solid chalk lines:
Looking for 10840 on Dow Futures by End of September 2010