Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Silver Precious Metals Carpe Diem

Commodities / Gold & Silver 2019 May 01, 2019 - 03:25 PM GMT

By: The_Gold_Report


Sector expert Michael Ballanger reviews recent movements in precious metals and discusses how he is playing the market. Last week I sent out my uber-bullish call on the metals and miners at the conclusion of a period fraught with doom and despair for all things gold and silver. The criminality of the interventionists was in full bloom as they bombed gold down through that critical "Line in the Sand" at $1282 forcing the Speculative Longs (hedge funds, quant funds, technical funds) to immediately reverse and regurgitate longs and initiate big new short positions as the bullion bank behemoths took profits. First, let's revisit that missive.

From Saturday the 20th: "All right, now that I have concluded my rant on the madness being inflicted upon us, I have a couple of observations to make about gold. Earlier last week, I was looking at GLD wondering whether my GLD May $124 puts might hit $5.00 before the end of the week and then it occurred to me that my "Line in the Sand" at the prior lows of $1,282 and the subsequent "breakDOWN" was no different in its blatancy than the "breakOUT" in Barrick. So, I pulled up the GLD chart and lo and behold, while the sub-30 level for RSI sported two super buying opportunities in 2018, it has not been much under 35 in all of 2019 thus far. Now, notwithstanding that the stock markets are getting somewhat stretched, I have to respect two things: 1) the dotted red line in the RSI window in the chart below and 2) that only in the perverse world of precious metals are technical "breakdowns" to be BOUGHT while technical "breakouts to be SOLD. Therefore, I have covered all my shorts in both gold and the mining shares and initiated 50% long positions in JNUG, NUGT and the GLD June $120 calls. The chart below pretty much says all that is needed; we are at an inflection point that represented tradeable bottoms in mid-November and early March."

After a particularly heavy reading day on Sunday, I let loose with this unhedged, categorically table-pounding bullish call:

Monday, April 22, 2019 (after the close)

Buy gold; buy the Gold Miner ETF's…

"Just a short note this afternoon to bring attention to the Gold Miners (HUI) that are under siege again today despite some sharp improvements in the COT, which came out on Good Friday while I was enjoying the Easter weekend and the NHL playoffs. It was a decisively bullish report with the Commercial cretins covering 54,379 contracts. They let out a lot of line in February at $1,340-1,350 and are now booking the approximately $75/ounce of gains which amounts to approximately USD$660,352,500 in profits which is pretty nice work if you can find it, especially with regulators turning one blind eye while they wink the other.

Also bullish is the chart of the GLD posted Saturday as it has entered oversold status. Everyone is now resigned to a test of the 200-dma at $118.25 ($1,152 for gold) but I don't think it will get there without at least a $30 rally first."

-End of Monday Re-post-

The next morning, gold traded down to $1,267.90, marking the low for the move along with similar bottoms for GLD (SPDR Gold Shares), SLV (iShares Silver Trust), NUGT (Direxion Daily Gold Miners Bull 3X Shares ) and the JNUG (Direxion Daily Junior Sold Miners Bull 3X Shares) and all my favorite leveraged longs for metals and miners have rocketed straight north ever since. Once again, this is not so much intended as a self-laudatory indulgence but more as a revolting illustration of the foul machinations of the bullion banks. What they are allowed to do with the paper markets is analogous to robbing a Brink's truck en route to Fort Knox.

In the "You have GOT to be joking" category, once again, thanks to the blind eye of the regulators and the criminal complicity of the CFTC, the bullion bank traders manipulated the gold market through coordinated Crimex opening bombings to create a pervasive aura of fear and loathing such that the $1,282 level was taken out with a vengeance on April 16th with the $1,267.90 lows coming exactly one week later and precisely at the conclusion of the April 23rd COT week. You read it here late that week when I concluded that the $1,282 "breakdown" would be a sucker shot (failed breakdown), which resulted in last Saturday's missive. By that Tuesday, every algobot and armchair technician was targeting and typing "200-day moving average @ $1,252" but as we now look back, the bullion bank Cretins created the signal through intervention and then with the "breakdown" pattern in place, ambushed the Large and Small Spec sellers/shorters by engaging in massive short covering, which halted the descent and set up the late-week rally—and the COT Report spells it out by their actions right up to the day I went 100% long. See below…


Could it be any more blatant than the tape action in gold late last week? If you took the chart of gold and removed all the text so all that was shown were just the numbers and candles, the penetration of $1,282 was a classic, textbook sell signal and price should have proceeded to test the 200-dma at $1,252. If that was a stock chart and price action made such a move, you get bet the freaking farm that there would be a "WHOOSH" of selling with price responding normally. However, since this is the precious metals market and since gold represents a "Clear and Present Danger" to the health, safety, and security of the American Dream, it is managed by the central banks and treasury department desks in all countries subservient to U.S. hegemony. That is, quite simply, why it trades so abnormally and why I throw all technical analysis rules into the waste bin and have been doing so for as long as you can all remember.

Now that I am now comfortably long the JNUG at prices of $7.15 and $7.86 for an average of $7.505 with the stock now trading at $8.24, I am placing stop-losses accordingly so as to protect the gains. I bought the GLD June $120 calls at $2.06 last Friday and they are currently $2.75. I bought a 50% position in the NUGT June $15 @ prices of $3.35 (Thursday April 18th) and then Tuesday June 22nd I added another 50% at $2.35 averaging $2.85 with the market at $2.82. (I was a tad early on NUGT).

Lastly, here is an interesting exercise for the JNUG. I have been using the RSI swings between 30 and 70 as buy-sell guidelines; they have occurred four times in the past eighteen months with the average gain being 64.1 % and with average duration roughly seventy-five days. If I take the $7.05 low from Tuesday and use April 22nd as the bottoming date, I have a target price of $11.57 by the end of the first week of July. I am doing similar analyses for GLD, SLV and the NUGT and will advise.

So, here we are once again on the long side of the gold market having exited all leveraged positions first on February 20th at $1,348.80 and then again in late March at $1,320. I have a hunch that we may see a move to north of $1,315 during this move but until the U.S. dollar rolls over, the headwinds are going to be a tad too stiff to allow the ultimate ascent into the $1,400s and beyond. As I wrote last Saturday, I no longer agree to don the uniform of the masochist gold bug while the rest of the co-conspirators revel in the wonderment of orchestrated and colluded stock market advances. I instead am open to any and all methods of securing profitability in this bizarro trading world and if that includes thinking, acting and investing like a bullion bank thief, so be it.

Nunquam iterum asinus…

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger's adherence to the concept of "Hard Assets" allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Disclosure: 1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts provided by the author.

Michael Ballanger Disclaimer: This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in