Tag Archives: Turd Ferguson

Fake Economic News + Overvalued Stocks = Recipe For Market Disaster

Think you know what will happen this year?  What would you have said to me on January 1st last year if I told you:  ” the S&P 500 would hit several new all-time years this year and Donald Trump will be elected President?”

Craig “Turd Ferguson” Hemke invited me on to his “A2A” webinar with his subscribers last week.  We had a spirited and (I think) entertaining discussion about abundance of fake economic news that permeates the financial media, the true state of the U.S. economy and the growing risks to the stock market.  And of course we chatted about precious metals an mining stocks.

And of course his subscribers had some interesting and thought-provoking questions. You can listen to our conversation here:  A2A with Dave Kranzler and you can access Turd’s webite here:  TFMetals Report.

The 2008 Collapse Will Continue Without More QE

Craig “Turd Ferguson” Hemke invited me onto this Thursday A2A podcast show last Thursday.  As usual, Turd does a great job of blending irreverent humor and truthseeking in order to flush out cutting-edge insight on the issues affecting our markets.  In this episode we discuss:

  • The history of DeutscheBank and how this is all still relevant today
  • Jim Rickards and his role as a “spokesperson” for gold
  • The relative safety of working with different custodians and online clearing firms
  • The benefits of owning shares in streaming/royalty companies
  • And, as usual, a whole lot more

You can hear our conversation and the excellent questions asked by the members of Turdville here:   A2A with Dave Kranzler of Investment Research Dynamics

Is A Precious Metals/Mining Stock Sell-Off Imminent?

Silver is up 25% YTD through last Friday.  I have not checked every commodity and stock index, but if silver is not the best performing asset YTD, it’s in the top three.  What’s more remarkable is that this move has occurred despite vociferous anti-gold/silver propaganda flooding from Wall Street and the media.

The current “meme” is that the large net short position by the bullion banks against the large net long position of the hedge funds has set the market up for another predictable price raid by banks.   I do not know if the banks will be able to pull it off yet again.

Depends on whether or not the hedge funds have stop-losses set that the banks can smash with enough paper to trigger them or whether the hedge funds will keep buying the paper that the banks print. In the past, it gets to a point at which the hedge fund computers start selling and the banks can successfully attack the stop-losses. that’s what causes the waterfall drops.

Up until now every attempted price raid since February has been met with aggressive buying, especially in the junior miners.  Too be sure, the banks – under the direction of the Fed under the direction of the BIS – are getting geared up to take another run at taking down the price of gold/silver.   Whether or not they will be successful is another matter. There is a lot of cash on the sidelines which recently exited the stock and high yield bond markets and is looking to pile opportunistically in the PM sector.

Craig “Turd Ferguson” Hemke invited me on to his A2A  Podcast Show last week.  We engaged in a lively discussion about the precious metals and a lot of other timely issues which will affect the markets.   You can listen to the podcast by clicking here – TF Metals Reprot –  or on the image below.  Download as an MP3 here:   LINK

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SoT – Craig Hemke: Demand For Physical Gold/Silver Will Break The System

The 50 day moving average in gold has turned up and it has bullishly crossed through the 100 dma – it has also bullishly crossed through the 200 dma…It’s almost like the HFT hedge fund programs have been flipped from “sell every rally” to now “buy every dip” because the technical picture is so good. – Craig “Turd Ferguson” Hemke on the Shadow of Truth

The debate raging in the precious metals community is if and when the a big raid on the precious metals market will commence.  Today, for instance, gold had drifted higher in overnight trading only to be smacked pretty hard when the Comex opened.   That’s nothing new.  But what’s new, given the way in which the precious metals market is set up right now, is that after being taken down $12 by the criminal traders on the Comex, gold grinded higher until it was only down a couple bucks by the time the stock market closed.  Even more interesting is that fact that the mining stocks (HUI Amex Gold Bugs Index)  rejected repeated attempts to take them into negative territory and they finished up over 6 points – 3.6% – on the day.

The trading pattern of the precious metals sector – at least for now – has defied all expectations of the market given that the technical factors currently in place have historically ushered in a vicious takedown of the sector.

This data that I refer to when I talk about the bank picture, whether its the Commitment of Traders report or the Bank Participation report, it’s all dubious crap anyway because it’s generated by the criminals at the CFTC…when they crank out these reports, we’re supposed to take them seriously in the first place? The CFTC is a criminal co-conspirator [in the precious metals manipulation scheme] – Craig “Turd Ferguson” Hemke, SoT

A big variable in the expectation of a big sell-off in gold and silver is the COT “structure.”  As of last Tuesday, the “Commercial Sector,” which is primarily the bullion banks, is net short 171,000 gold future contracts.  The hedge funds  segment of the COT is net long 104k gold future contracts.  The “other reportables” and “non-reportable (retail trader) segments make up the rest of the long side of the bullion bank short position.

The net short of the bullion banks is 17.1 million ounces. Currently, the Comex vaults are showing 377k ounces of gold in the “deliverable” account and 6.8 million total ounces. This ratio of short interest to the amount of physical underlying is absurd.  Technically it’s illegal because, as Craig discusses in the interview (see below), the CFTC continuously defies the laws in place and enables the banks to skirt mandated position limits on the Comex.

What will happen if one of these days the hedge funds decide to stand for delivery?  If just 50% of the hedge funds stand for delivery?  While it’s true that in any given delivery period that, at most, 1% of the long open interest stands for delivery, the laws of probability suggest that one of these days a significant portion of the longs will decide to take delivery.  This will bust the Comex.

In the interview session below, we discuss this issue with Craig and several other factors right now that are affecting both the markets  and the Central Banks ability to manipulate the markets.  At some point the demand for physical gold/silver will break the system:

Someday something will change and the confidence scheme will fail. Every uptick [of gold] increases the pressure on that confidence scheme which is why the banks are fighting it so hard…in the end they are just not going to be able to…Craig “Turd Ferguson” Hemke on SoT