Caught between deceitful government economic data releases this week and the wishful thinking of the floundering Captain Bernanke and his assorted sputtering mouthpieces, Gold and Silver took it on the chin again today. Despite reports to the contrary, both remain standing. Oil? Oh my, look at that...Oil has bounced back again. This country faces a serious gasoline "situation" in the coming months and no amount of weekly dribbling increases in crude "supplies" is going to change that. Gasoline demand is up and supplies are down...way down...way way down. Refinery problems persist and it is too late to play catch up now. OPEC has turned a deaf ear to requests to open their taps further. These OPEC guys aren't stupid. They realize that presently there is not a "oil" crunch, there is a "gasoline" crunch caused by refinery incapacity. Oil prices WILL continue to rise, as they do EVERY summer. And rising Oil prices will expose the lies inherent in today's Government economic data. The future of ALL the metals is bright...remain focused on the Big Picture.
Oil surges on US concerns; Opec ‘content’ over prices
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=149917&version=1&template_id=48&parent_id=28
Despite record gasoline pump prices above $3 a gallon, there has been no let up in robust demand in the world’s top consumer.
Consumer nations have called on Opec to open the taps, but the group, which supplies a third of the world’s oil, says it sees no need to act. Its next scheduled meeting is in September.
Chuck Butler at the Daily Pfennig says it best when referencing the Dollar's reaction to the latest questionable government economic data:
Geez Louise, let's get our heads on straight, and realize this is simply a technical correction, in the dollar, we've seen these over and over again during the weak dollar trend that began in February of 2002... As I always tell my audiences... An asset begins a weak or strong trend because of a Fundamental reason, and the trend will not end until that fundamental reason is corrected. The trend, however, is not even close to being over! The dollar entered the weak trend when its Current Account Deficit reached the historically telling number of 4.5% of GDP... I say historically telling because over time, fiat currencies always experienced a currency crisis any time their deficit to GDP percentage reached 4.5%. Of course, the U.S. Current Account Deficit has only gotten worse, and now stands about 6.9% of GDP... So for all those traders out there buying dollars... Put that in your pipe and smoke it! http://www.dailypfennig.com/
Jim Willie CB always has some insightful commentary for the folks at Kitco.com. For an excellent read on the contradictions in government economic data please read his latest here:
http://www.kitco.com/ind/Willie/may172007.html it's an eye opener.
Cheer up peeps! The end of this "retracement" is closer than we think. There are some headwinds to overcome as we have given back a lot of hard won ground to dem Rat Bastids. The Big Picture is sound. The Fundamentals are solid. The lies are being exposed. NO government is bigger than the markets. In time dem Rat Bastids will be over run. The metals are on sale, buy some or add to your positions. The odds of buying the "exact" bottom are infinite. The same goes for selling the top. Maintain a "core" position in your metal of choice. If you must trade regularly: buy when the metal is onsale and nobody wants it, sell into strength when the line to get in is long. REPEAT. When Levi's are on sale you don't wait for the price to go back up do you?
Silver Resistance: 12.88 / 12.95 / 13.03
Silver Support: 12.80 / 12.74 / 12.65
________________________________All prices SPOT
Gold Resistance: 661 / 664 / 668
Gold Support: 656 / 653 / 650
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