oops.  the selloff has begun!

Oh yeah, DOUBLE TOP!!! SELL, SELL, SELL!!!
... and thank you for selling

the double top is a VERY bearish formation.  it means that if you don't get out now, you won't get another chance b/c it ain't coming back up.

The dollar index hasn't moved; pressure on gold began exactly on the hour mark and culminated in a vertical drop during a typically quiet period. Remember the triple-top in 2010 around the $1420 level? What about the double-top in March of this year, or later in June? Maybe all the other double tops during the past decade with the same behind-the-scenes developments as now?

Why hasn't oil fallen? Why didn't the dollar or any other currency experience volatility? Are only the precious metals involved? Where is the selling coming from with virtually no volume?

The only thing I see is forced liquidation of weak positions, a commensurate price decline and a large drop in futures open interest on vapor volume that screams of short covering. What's particularly intriguing is that this is an odd time for such an attack to take place. There's almost always a major event just around the corner. The London open ought to be interesting.

I'll teach you patience yet.


I wonder which master artist is painting the tape...

It didn't budge during gold's drop two and a half hours ago, and the 5-day old USD move is running out of steam.


Again, oil didn't move during the most recent dip in gold.

Brent has been consolidating. WTI has been finding consistently stronger support at each decline. What will WTI do without administrative trickery and perpetual oversupply of one particular regional storage center that heavily influences the price?


That makes no sense. Selling into a decline will only fetch progressively worse prices for the seller. If profit is the motivation, this is the last thing that would be done. The seller would be selling as the price is rising, not falling, or else it'll be bleeding red ink and won't be around long - and you don't get to be a big fish by making those kind of moves.

You're right about this kind of move causing a panic, although I suspect that most weak longs will have already been knocked out of the game. Downside should be limited with heavy buying below $1810 as explained two days ago.

Serendipitously, Dan Norcini posted already. All we need now is another GLD Puke Indicator buy signal at the close of next trading session to make this frightfully reminiscent of late 2008. It triggered once in early Sept '08, then a week later on two consecutive days. After a brief rally, it triggered a fourth time and really took off.


Uh-huh... lol

10:1 you've bought put protection this AM, haven't you?  be honest

this down move has even more "motive" strength than the 2d a coupla weeks ago.  to me this means this is the "real deal".

since a metaphor has been proposed for whats happening i guess i'll throw out one myself.

when miscreanity and i were kids the greatest mano-a-mano matchup was not Ali vs Frazier, not Team Canada vs the USSR, and not Jimmy Connors vs. John McEnroe.

it was the young, charismatic challenger Bobby Fischer vs. the old, stodgy, brilliant reigning world champion Boris Spassky in 1972 for the World Championship of Chess.  they represented not just the US vs the USSR but also the East vs. West, Communism vs. Democracy, Socialism vs Freedom, the Red Army vs. Uncle Sam.

now Spassky was a great Grandmaster, an expert in all the openings, middle games, and closings, able to crush all opponents with his patient methodical expertise. Spassky's reign as world champion lasted three years, but then he lost to Fischer of the United States in 1972 in the "Match of the Century".

the thing about Fischer was that he was brilliant and creative, and cunningly unpredictable.  a match would be going along and suddenly Fischer would make a move that would make the crowd and commentators sit up in their seats and go "Say WHAT?" you could see the corner of Spassky's mouth curl up in a snicker as if to say "i gotcha".  sure enough as the ensuing moves played out, Spassky's confidence turned to frustration and then fear and finally defeat.  he was never the same.

you may think i'm nuts to go against miscreanity, FOFOA, Jim Rickards, Dan Norcini, Eric King, Jim Puplava, Jim Sinclair, Nouriel Roubini, Mish, Dave Rosenberg, James Turk, David Einhorn, Ben Davies, Eric Degroot, Pierre Lasonde, Gerald Celente, Peter Schiff, Ken Ivory, Eric Sprott, Antal Fekete, Bill Fleckenstein, Bill Murray, John Embry, Rick Rule, Doug Casey, Michael Pento, Mark Faber, John Embry, Felix Zulauf, John Hathaway, Rob Arnott, Jean Marie Eveillard, etc, etc, etc.  And perhaps i am.  after all, who the hell is cypherdoc anyway?  just an anonymous voice on the Internet.

but one thing i know about markets is that when i can spout off a list of players like that off the top of my head that means everyone is on one side of the boat.  i prefer the other side.

Bitcoin slowly moving up.  i like this setup.

sure there's manipulation.  thats a fundamental part of my OP.  the problem the inflationists and gold bulls have is that the Fed has the power to shut off liquidity anytime it wants.  it can destroy gold just by changing their minds.  Ben is human; i'm sure he's sensitive to all the criticism and hates the fact he's been so predictable since he's been Chairman.  you need to think in terms of game theory or like a criminal.  what's he gonna do?  destroy the USA via the USD and have that as his legacy? 

there will never be the Greatest Transfer of Wealth in History like you guys hope.  gold will not go to $35000.  i doubt it will ever reach $2000.  that was the perfect mirage to put in front of the bulls.  i think your outstretched hands will never reach it.