Gregory Mannarino: Pump and Dump Wealth Transfer Coming Soon DIA SPY QQQ

  George Soros holds now 1.3 billion rolling Put on the market to protect his long positions. How long this levitation in the markets can continue? Nobody knows for sure, but this interview gives us a very good food for thought. Gregory expect the serious correction starting within next few weeks, when money after initial drop will be reallocated into Commodities, Gold and Silver. Big banks are already shorting the market and it will create the Pump and Dump Wealth Transfer again.

  So far market was playing along the Toby Connor's scenario: with general equities topping in the last move up into the late spring of this year, Commodities are breaking Up and Gold and Silver are going much higher. Silver is topping $22.00 level today and Gold is at $1,340. Interestingly enough ZeroHedge reports that:

Hedge Funds Most Short Into Latest All Time High Ramp Since September 2012

Ukraine, Syria And Global De-Dollarization: USD To Go Down And Gold Up TNR.v MUX RGLD GDX GLD ABX

"Ukraine will be the very bad example for these leaders: that you can come, make a few phone calls and even f**k the EU deciding who will lead the sovereign country next. The least they can do is to accelerate the De-Dollarization and call the bluff called the "food stamp recovery and Taper". US Dollar is levitating just above crucial 80.00 level, with all Taper hype and currency distractions in the emerging markets. Gold is breaking to the upside and any additional strain on the U.S. "recovery" can ignite the next leg down in US Dollar. China will be playing its own game getting ready to the global reset: accumulating record amount of Gold and encouraging its citizens to do the same."

Toby Connor: Dollar Breaks Down, Great Inflation to Push Gold And Silver Much Higher TNR.v MUX GDX GLD SLV

 "We are  following Toby Connor with his very interesting concept of The Great Inflation in 2014. Gold was in a breakout mood this week and finally has broken to the upside from $1270 level with intraday high on Friday at $1,322 and close at $1,319. We have now the massive short squeeze in action in Gold and Silver. Silver has broken to the upside as well on Friday closing at $21.51. Gold mining shares are making the very good progress as well.

  On the chart above you can see that Gold has crossed the very important level on daily chart and moved above its 200MA at $1,309. It will bring a lot of attention of traders and shorts will be running to the exit now. Mass media will be picking up the Gold story as well now. CNBC is talking about Gold and Miners already and Jim Cramer advises to watch GDX - Gold miners ETF. Next levels in Gold to watch is $1,360 and $1,420 to complete Double Bottom Reversal pattern on weekly chart.

  Silver had its massive breakout as well following the Gold footsteps this week. Next levels to watch here are $22.75 and $25 to confirm its Double Bottom Reversal pattern on weekly chart. The most important here that Silver has broken to the upside above its 200MA at $21.13 and closed above it at $21.49."

Rick Rule On Gold And Silver Markets, Miners And Silver Short Positions MUX TNR.v GDX RGLD SLV

 "Rick Rule gave a very interesting interview on Gold and Silver markets and, particularly, on Gold and Silver mining stocks. Learn from the pro about the investment landscape unfolding this year. Rick Rule was right on the money with his call on the bottom in junior miners last summer. Now he is talking about the Silver short positions being literally uncoverable with the inflow of 2 billion dollars. "The bear markets are the very authors of the Bull market. Recovery in the best Gold and Silver mining stocks will match the magnitude of the previous bear market decline."

  Companies like McEwen Mining, Royal Gold and Silver Wheaton have already demonstrated the explosive leverage to the rising Gold and Silver prices."

Gold And Silver Break Crucial Levels Causing Massive Short Squeeze TNR.v MUX GDX GLD SLV RGLD SWC

  

  As we have mentioned before, Gold and Silver has broken to the upside causing massive short squeeze. The big boyz are loaded on Gold now and we will monitor today how the mass media will be picking up the Gold story again. It will be nothing more than the info fed for crowd indicator, but it is important to watch the change in the investing public outlook. We will provide the digest of the most interesting articles from industry insiders as well this weekend updating this entry, stay tuned.

  The most important news for us: 

"Koos Jansen reports on continued unprecedented appetite from China for Gold, according to his information, after  the unprecedented demand of 2,181 tons of Gold from China in 2013 Chinese Gold demand hits All-Time record of 247 tons in January. Now Gold today's breakout above $1,322 level can be put in another perspective."

  We are  following Toby Connor with his very interesting concept of The Great Inflation in 2014. Gold was in a breakout mood this week and finally has broken to the upside from $1270 level with intraday high on Friday at $1,322 and close at $1,319. We have now the massive short squeeze in action in Gold and Silver. Silver has broken to the upside as well on Friday closing at $21.51. Gold mining shares are making the very good progress as well.

  On the chart above you can see that Gold has crossed the very important level on daily chart and moved above its 200MA at $1,309. It will bring a lot of attention of traders and shorts will be running to the exit now. Mass media will be picking up the Gold story as well now. CNBC is talking about Gold and Miners already and Jim Cramer advises to watch GDX - Gold miners ETF. Next levels in Gold to watch is $1,360 and $1,420 to complete Double Bottom Reversal pattern on weekly chart.

  Silver had its massive breakout as well following the Gold footsteps this week. Next levels to watch here are $22.75 and $25 to confirm its Double Bottom Reversal pattern on weekly chart. The most important here that Silver has broken to the upside above its 200MA at $21.13 and closed above it at $21.49.

  

Gold Breaks 1,320: The Mother Of Short Squeeze Has Arrived TNR.v MUX GDX GLD SLV RGLD ABX GG

  "Gold is sending its Happy Valentines to all Gold Bugs today and breaks $1320 on the massive short squeeze. Gold shorts will have their Blood Friday now. The real reason for this move is the realisation of the groundbreaking shift in the structure of the Gold market with the unprecedented demand of 2,181 tons of Gold from China in 2013. 

  Janet Yellen testimony has opened the possibility To Taper The Taper and James Rickards is calling for the Taper Pause in June. US dollar is going down very close to 80.00 level again. This level will be protected, but should the US Dollar break down below 80.00 Gold and Silver will go vertical towards $1,500 and $25 respectively. 

   Our short Squeeze watch includes McEwen Mining and TNR Gold. McEwen Mining had 26.8 million shares sold short or 8.6 days to cover, according to NASDAQ. MUX.to has rocketed from December low of CAD1.80 to CAD3.27 close yesterday. Gold breakout will push shorts into the corner, but explosive move in Silver will have even more effect on this company. 

   TNR Gold is still day dreaming, but move in McEwen Mining should pull out this junior out of its misery. Los Azules Copper development will be next to watch on the back of recent M&A activity in the sector and CRB - commodity index breakout to the upside."

Meanwhile McEwen Mining has printed The Golden cross on its daily chart.

WSJ: Gold And Silver Fever Returns.

The Telegraph: Questor: How To profit From Gold Rally.

Bloomberg: Gold Posts Biggest Weekly Rally Since August on Haven Demand.

CNBC/Reuters: Gold Closes Near $1,320; Best Week in 6 Months

ZH: Gold Soars After 200 DMA Breach, AS ETFs Finally Resume Buying

Kitco: Silver Confirms Gold's Breakout

FT: The Real Reason The Chinese Are Mad For Gold

There Is No German Gold Left At The New York FED

Zeal: Gold Breakout!

Frank Holmes: What's The Game Changer For Gold?

Matt Taibbi: The Vampire Squid Strikes Again: The mega Banks' Most Devious Scam Yet.

ZH: Is Bitcoin Greatly Rotating Into Bullion?

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ZeroHedge: BofAML Turns Bullish On Gold GLD, MUX, TNR.v, GDX

US Dollar weekly chart is very weak with its closing below MA200 last week.

  

  ZeroHedge reports about BofAML Bullish Call on Gold. This technical analysis bodies well with our own observations. Weekly closing on US Dollar below 80.00 and Gold above $1300 will be very important on Friday.

HedgehogTrader: Canadian Venture Exchange Breaks Epic Downtrend! GLD, MUX, TNR.v, GDX, SLV

 "We are following here very talented HedgehogTrader - he has developed very interesting trading system based on combination of technical, fundamental, insider buying analyses and proprietary Alpha Signals. He has issued the Call on CDNX today.

  It goes well with our own recent observations, and you can find more on HedgehogTrader work at his website and twitter. He follows McEwen Mining and TNR Gold as well. If this his Call proves to be right again, these two companies will benefit from huge Short position in McEwen Mining and any positive developments with Los Azules copper project in Argentina."

Peter Degraaf: Don’t Miss Out on These Important Gold Charts. GLD, MUX, TNR.v, GDX

"Peter Degraaf has produced a set of very interesting charts which we would like to share with you today. Gold is at the very important juncture now and when Jim Cramer is talking about "U.S. as a laughing stock around the world" the "serious investment" public will take notice."

ZeroHedge:

BofAML Turns Bullish On Gold

BofAML's MacNeil Curry is changing his view on gold from bearish to bullish. The impulsive gains from the 1251 low of Oct-15 and break of the two-month downtrend (confirmed on the break of 1330) tells him that a medium-term base and bullish turn is unfolding. BoFAML looks for an ultimate break of the 1433 highs of Aug-28, with potential for a push to 1500/1533 long term resistance. In the next several sessions Curry suggest buying dips into 1309, cautioning that this bullish view is "wrong" if gold breaks below 1251. For those awaiting additional confirmation of a turn, Curry notes you need to see a break of 1375 (Sep-19 high & right shoulder off a multi-month Head and Shoulders Top).

Gold Catalyst: 9 Signs That China Is Making A Move Against The U.S. Dollar GLD, MUX, TNR.v, GDX

 US Dollar charts look very weak now after the close under 200MA.

  Michael Snyder provides a great summary of the latest developments with China and former Reserve Currency Of Choice - US Dollar.  All pieces are coming together now in this "Art of War" - state level long term implementation of plan for China Peaceful Rising. West distracted by corruption, wars and created Debt is losing its grounds to the East with every Gold bar shipped to China now.

Peter Degraaf: Don’t Miss Out on These Important Gold Charts. GLD, MUX, TNR.v, GDX

"Peter Degraaf has produced a set of very interesting charts which we would like to share with you today. Gold is at the very important juncture now and when Jim Cramer is talking about "U.S. as a laughing stock around the world" the "serious investment" public will take notice."

Jim Rickards – Why China is Buying Gold & Calling for a De-Amercanized World GLD, MUX, TNR.v, GDX

"Jim Rickards steps in with his analysis of the recent China Call to De-Americanized World and its implications for the Gold market. China buys Gold by tons now on the dips and taking the physical delivery."

Gold Catalyst: Chinese agency downgrades US credit rating GLD, MUX, TNR.v, GDX

  "We have the downgrade of the US rating where it matters most: by the Buyers of US IOUs. S&P or Moody's will not dare to make the move as DOJ was very fast to remind S&P who is in charge, but Fitch this time was more following the real mess coming out of Washington, DC with its Negative Watch for US rating.

  Now the desire of China to buy all available physical Gold can be put into perspective of long term state-level planning to diversify its currency reserves out of US Dollar based assets."

McEwen Mining & TNR Gold: Las Bambas Copper Bidding From China Heats Up TNR.v, MUX, LCC.v, GDX, CU

“It is a good choice to invest in mining assets, which is a much better choice than investing in one government’s bonds – especially when this country cannot guarantee to pay even its own employees”

 Gu Liangmin, head of copper at Minmetals.

The Economic Collapse:

9 Signs That China Is Making A Move Against The U.S. Dollar

By Michael Snyder, on October 17th, 2013

On the global financial stage, China is playing chess while the U.S. is playing checkers, and the Chinese are now accelerating their long-term plan to dethrone the U.S. dollar.  You see, the truth is that China does not plan to allow the U.S. financial system to dominate the world indefinitely.  Right now, China is the number one exporter on the globe and China will have the largest economy on the planet at some point in the coming years.  The Chinese would like to see global currency usage reflect this shift in global economic power.  At the moment, most global trade is conducted in U.S. dollars and more than 60 percent of all global foreign exchange reserves are held in U.S. dollars.  This gives the United States an enormous built-in advantage, but thanks to decades of incredibly bad decisions this advantage is starting to erode.  And due to the recent political instability in Washington D.C., the Chinese sense vulnerability.  China has begun to publicly mock the level of U.S. debt, Chinese officials have publicly threatened to stop buying any more U.S. debt, the Chinese have started to aggressively make currency swap agreements with other major global powers, and China has been accumulating unprecedented amounts of gold.  All of these moves are setting up the moment in the future when China will completely pull the rug out from under the U.S. dollar.

Today, the U.S. financial system is the core of the global financial system.  Because nearly everybody uses the U.S. dollar to buy oil and to trade with one another, this creates a tremendous demand for U.S. dollars around the planet.  So other nations are generally very happy to take our dollars in exchange for oil, cheap plastic gadgets and other things that U.S. consumers "need".

Major exporting nations accumulate huge piles of our dollars, but instead of just letting all of that money sit there, they often invest large portions of their currency reserves into U.S. Treasury bonds which can easily be liquidated if needed.

So if the U.S. financial system is the core of the global financial system, then U.S. debt is "the core of the core" as some people put it.  U.S. Treasury bonds fuel the print, borrow, spend cycle that the global economy depends upon.

That is why a U.S. debt default would be such a big deal.  A default would cause interest rates to skyrocket and the entire global economic system to go haywire.

Unfortunately for us, the U.S. debt spiral cannot go on indefinitely.  Our debt is growing far, far more rapidly than our GDP is, and therefore our debt is completely and totally unsustainable.

The Chinese understand what is going on, and when the dust settles they plan to be the last ones standing.  In the aftermath of a U.S. collapse, China anticipates having the largest economy on the planet, more gold than anyone else, and a respected international currency that the rest of the globe will be able to use to conduct international trade.

And China is not just going to sit back and wait for all of this to happen.  In fact, they are already doing lots of things to get the ball moving.  The following are 9 signs that China is making a move against the U.S. dollar...

#1 Chinese credit rating agency Dagong has downgraded U.S. debtfrom A to A- and has indicated that further downgrades are possible.

#2 China has just entered into a very large currency swap agreement with the eurozone that is considered a huge step toward establishing the yuan as a major world currency.  This agreement will result in a lot less U.S. dollars being used in trade between China and Europe...

The swap deal will allow more trade and investment between the regions to be conducted in euros and yuan, without having to convert into another currency such as the U.S. dollar first, said Kathleen Brooks, a research director at FOREX.com.

"It's a way of promoting European and Chinese trade, but not doing it with the U.S. dollar," said Brooks. "It's a bit like cutting out the middleman, all of a sudden there's potentially no U.S. dollar risk."

#3 Back in June, China signed a major currency swap agreement with the United Kingdom.  This was another very important step toward internationalizing the yuan.

#4 China currently owns about 1.3 trillion dollars of U.S. debt, and this enormous exposure to U.S. debt is starting to become a major political issue within China.

#5 Mei Xinyu, Commerce Minister adviser to the Chinese government,warned this week that if the U.S. government ever does default that China may decide to completely stop buying U.S. Treasury bonds.

#6 According to Yahoo News, China has already been looking for ways to diversify away from the U.S. dollar...

There have been media reports this week that China's State Administration of Foreign Exchange, the body that handles the country's $3.66 trillion of foreign exchange reserve, is looking to diversify into real estate investments in Europe.

#7 Xinhua, the official news agency of China, called for a "de-Americanized world" this week, and also made the following statement about the political turmoil in Washington: "The cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations' tremendous dollar assets in jeopardy and the international community highly agonized."

#8 Xinhua also said the following about the U.S. debt deal on Thursday: "[P]oliticians in Washington have done nothing substantial but postponing once again the final bankruptcy of global confidence in the U.S. financial system".  The commentary in the government-run publication also declared that the debt deal "was no more than prolonging the fuse of the U.S. debt bomb one inch longer."

#9 China is the largest producer of gold in the world, and it has also been importing an absolutely massive amount of gold from other nations.  But instead of slowing down, the Chinese appear to be accelerating their gold buying.  In fact, money manager Stephen Leeb says that his sources are telling him that China plans to buy another 5,000 tons of gold.  There are many that are convinced that China eventually plans to back the yuan with gold and try to make it the number one alternative to the U.S. dollar.

So exactly what would happen if the Chinese announced someday that they were going to back their currency with gold and would no longer be using the U.S. dollar in international trade?

It would change the face of the global economy almost overnight.  In a previous article, I described some of the things that we could expect to see happen...

If China does decide to back the yuan with gold and no longer use the U.S. dollar in international trade, it will have devastating effects on the U.S. economy.  Demand for the U.S. dollar and U.S. debt would drop like a rock, and prices on the things that we buy every day would soar.  At that point you could forget about cheap gasoline or cheap Chinese imports.  Our entire way of life depends on the U.S. dollar being the primary reserve currency of the world and being able to import things very inexpensively.  If the rest of the world (led by China) starts to reject the U.S. dollar, it would result in a massive tsunami of currency coming back to our shores and a very painful adjustment in our standard of living.  Today, most U.S. currency is actually used outside of the United States.  If someday that changes and we are no longer able to export our inflation that is going to mean big trouble for us.

The fact that we get to print up giant mountains of money and virtually everyone around the world uses it has been a huge boon for the U.S. economy.

When that changes, the word "catastrophic" is not going to be nearly strong enough to describe what is going to happen.

According to a Rasmussen Reports survey that was released this week, only 13 percent of all Americans believe that the country is on the right track.  But the truth is that these are the good times.  The American people haven't seen anything yet.

Someday people will look back and desperately wish that they could go back to the "good old days" of 2012 and 2013.  This is about as good as things are going to get, and it is only downhill from here."

Peter Degraaf: Don’t Miss Out on These Important Gold Charts. GLD, MUX, TNR.v, GDX

  

US Dollar weekly chart looks very weak now with today's close below MA200.

  Peter Degraaf has produced a set of very interesting charts which we would like to share with you today. Gold is at the very important juncture now and when Jim Cramer is talking about "U.S. as a laughing stock around the world" the "serious investment" public will take notice.

Cramer: Dollar is a laughing stock worldwide

"CNBC's Jim Cramer said the U.S. is "a laughing stock around the world, maybe worse than Italy in some ways when I look at benchmarks. We have obviously lost the faith of a lot of countries."

"If there was a way to be able to take your money out of this country and put it in Germany ... if I were Brazil, if I were Japan I would do it immediately," he said Thursday on "Squawk Box."

He went on to say that the slumping dollar index, which measures the greenback's value against a basket of currencies, reflects the current sentiment of investors around the world. They are saying "lets go into gold, lets get out this dollar ... lets not be in bonds in the United States, we'd rather be in any other currency because they basically have lost control," he said..."

Jim Rickards – Why China is Buying Gold & Calling for a De-Amercanized World GLD, MUX, TNR.v, GDX

"Jim Rickards steps in with his analysis of the recent China Call to De-Americanized World and its implications for the Gold market. China buys Gold by tons now on the dips and taking the physical delivery."

Peter Schiff On Gold Catalyst: Janet Yellen Exposed - The Truth Behind the Myth GLD, MUX, TNR.v, GDX

"Peter Schiff separates truth from the mass media hype about Janet Yellen's real track record. As we have discussed before, her core beliefs are even more neo-keynesian than those of Ben Bernanke. The new play book for the FED is written by Michael Woodford and it will be even more fundamentally positive for the Gold. We can expect continuation of "pro-growth policies" with very little regard for the created bubbles along the way.
  Peter was right about the Housing Bubble in 2006, he was right about the "Tapering" in September, what will happen if he is right again with his Call on Gold? We will provide his discussion on Gold and our entry on Michael Woodford to dig it out more for interested."

Kitco:

Don’t Miss Out on These Important Charts.

Friday October 18, 2013 11:06

“The National Budget must be balanced.  The Public Debt must be reduced;  the arrogance of the authorities must be moderated and controlled. 

Payments to foreign governments must be reduced, if the Nation does not want to go bankrupt.  People must again learn to work, instead of living on public assistance.” …..Marcus Tullius Cicero (+/- 55 BC).

The current correction in gold started in August 2011 and has now gone on for 112 weeks – (it most likely bottomed on June 28th).

This has been the longest correction since the current bull market started in 2002.

The correction of 2006 lasted 71 weeks before a new high was reached.  There followed then a 50% price rise, (+85% from bottom to the next top). 

The correction of 2008 took 77 weeks before a new high was reached.  The gold price then advanced by 80%, (+325% from bottom to next top).

The expectation is for gold to advance by more than 50% as in 2006-2008, and more than 80% as in 2008-2011 during this next ‘leg up’, because of the depth of the current pullback.  Because of blatant manipulation of the gold price by large traders dumping oversized lumps of futures contracts during hours when trading is usually sparse; the price of gold is starting this next rally below its normal starting point.   This is likely to cause the price to act in slingshot fashion, and may very well surprise a lot of people.

The US debt ceiling has just been pushed upward for the 79th  time since  1960, and right after the last raise in 2011, the price of gold rose +17% between August 1st ($1620), and August 22nd ($1898) – that was +17% in just three weeks!   A similar reaction by gold at this time could result in price rising quickly from $1281 to $1498.

Here is the gold chart that records the beginning of the current bull market, along with three upside breakouts and the expectation for the next breakout, marked by arrows.  (Charts courtesywww.stockcharts.com unless indicated).

The RSI (at top of chart) is ready to rise, the CCI (at upper bottom) is rising from oversold conditions, and the A/C line at the lower bottom is still in uptrend after merely leveling out. 

This chart courtesy Incrementum.li shows us that the current correction in the gold price is not unusual, if we accept the principle that the higher the price, the larger the pullback.

       

This chart courtesy Sharelynx.com shows a gap that has opened up between the US debt limit and the price of gold.  Unless we expect the debt limit to be lowered, (how likely is that), we better prepare our portfolio for a rise in the price of gold, as the rubber band effect takes hold.

       

Featured is the daily gold chart.  Price is carving out a rising channel that is anchored by two upside reversals (June 28th and Oct 15th).  On Oct. 17th price broke out from beneath three months of resistance, with a target at the 200DMA.  The three supporting indicators have all turned positive, including the Accumulation/Distribution line.  The Gold Direction Indicator (for details www.pdegraaf.com), turned bullish at 55%, compared to 44% on Wednesday. 

        
This chart courtesy BMGBullion.com shows the US Federal Debt on a per capita basis.  This debt cannot be paid off – it will be inflated away.  Gold and silver will be sought as protection against this inflation. 

        

This chart courtesy Mark J. Lundeen shows the number of US dollar bills in circulation, compared to the number of ounces of gold supposedly stored at Fort Knox.  (These gold ounces have not been audited since 1953).

       

Here is the long-term chart for silver, along with the breakout points after a correction takes place, marked with arrows, including the expectation for the next breakout.  The three supporting indicators are beginning to rise up from support levels.

       

Featured is the index that compares silver to gold.  Since the second leg in the double bottoms of 2003 and 2008, the trend has favored silver over gold.  The two supporting indicators are turning positive.  The target for the current bounce is at the top of the blue channel. 

       

Featured is the daily bar chart for TIP the bond fund that is indexed for inflation.  The price dropped sharply in May and June when it was thought that the FED might reduce its bond purchases (TIPs are bonds after all).  Recently however the people who buy TIPs are sniffing the first whiffs of price inflation, and the arrows point to breakouts while the supporting indicators are positive.  Price inflation is the delayed result of monetary inflation and a source of energy for gold and silver to rise.

“The truly Unique Power of a Central Bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.”   …..Paul Volcker, US FED Chairman 1979 – 1987.

By Peter Degraaf
itiswell@cogeco.net 
www.pdegraaf.com"