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Message:: [QUOTE="qsilver007, post: 1524913, member: 34667"]FROM A WALL STREET PERSPECTIVE LABOR DAY EDITION SEPTEMBER 3, 2012 WOW IS ALL I CAN SAY..............THERE MUST BE SOMEONE LOKING DOWN ON ME AND HEARING ME SAY PRICE IS TOO LOW AND VOLATILITY IS TOO LOW My last update was Thursday nite, I cant lie, I did end up turning my computer on Thursday and what a tremendous day it was.  Gold and Silver suffered a minor attack right as the Bernanke's commentary was released to the press, as you know his speeches are prepared, and they press gets it as soon as it it released unless you have CGQ or a sophisticated charting system you may have missed it.  Options had also had the "3 day weekend taken out becasue as we know the world is perfect and the sotck market is stagnantSilver dropped to 30.30 and Gold to arounf 1645 in the blink of an eye all of this because "Bernanke comments were not deemed frinedly enough"  minuted later..............  I will say  a higher power came in and all the machines that had sold gold and silver and just about everyt future on the board...........................dont know why, but started covering there shorts, during that fateful hour gold and silver took out there week highs, and in reasonably decent volume especially for the day before labor day weekend they broke the weeks highs and were thn making runs at new multi month highs............. Labour Day another Key day.................Gold and Silver makets were open for an shortened session today, but on every ohter world exhcange, normal hours................. Silver cleared 32, I mlooking at Dec fututres so I'll call 32.15 the high Althought today will NOT show up on the charts as the COMEX pit was not open it is still impressive for Silver to keep climbing in cery thin trade and break another dollar handle With options vols off the lows, but still REDICULOUSLY LOW for what has occurred in GC and SI in the past two weeks, it comes as no surprise................all market makers are short vol across the board, as they deem gold and silver to be stocks???????????????????  When is the last time the SP was up 52.00 in a day? or how about the dow up 600.00???????????? I havn't seen that since 2008 Anyway 1700 Gold for all intensive purposes is here, amazing the OCT 1640c was 24.00 on Friday now 63.00, the OCT 30.25 call in silver was 95 cents, now 2.05 cents not bad one day returns You will hear all the bubblevisions talking about how gold and silver were up because of possible qe, stimulus blah blah blah.....................or maybe even the old "the euro was up story"................WRONG, WRONG, WRONG.............. Machines algo and trend followers who have fought it, are now officially getting on board and some really stubborn ones are covering there shorts......... My techincals indicate that us silver and gold bugs will start to encounter some stiff resistance between 32.48 and 33.11 and for gold 1713.2 and 1726.5 Bank of England and European Central Bank meetings are 7:00 est Thurs and 7:45 EST Thurs DRAGHI press conference is 8:30 EST During the past two weeks silver has tacked on 4 plus dollars and gold about 80 dollars this is while the sp 500 has been preety range bough 1400-1420, the euro stuck between 1.24-1.26.....soplease dont let the herd tell you that those two have been driving the metals markets, all that has happened is funds have taken prfits in stocks and no put money in precious two weeks ago sp was up 12% on the year, gold about 5% and SILVER WAS FLAT????????? Today silver is up 14% on the year sp is up 12.5% and gold% WTI CRUDE OIL IS DOWN1% THIS YEAR BUT THE GRAIN BEING UP 40% OR MORE SHOULD ADD SOME INFLATION by the way I paid 5.04 cetns for 2 gallons of gas for my motorcycle today it was premium,  but none the less 5.00 gas is here IMF also stated WORLD FOOD PRICES WERE UP 10.5% ON AVERAGE LAST MONTH!!!!!!!!!!!!!!!!!! One may ask how is crude down and gas up easy..................... TRADING 101........................  Some of you may know this already, but for those who don't here it is.................. Brent Crude is 116.00 per barrel RBOB is 3.00ish a gallon it moves so quick The rbob contract minus the wti contract is the crack the "r crack" meaning rbob crack spread it is the profit margin or premium differential between the rbob contract and the crude contract RBOB is up about 30% this year...................... that is what we all use so traders have since 2008 just moved more of the spec money into RBOB and BRENT also Heating oil is also a proxy for diesel fuel you may ask why do they still quote heating oil.............about 5% of the US uses it still majority (95%) obviously is natty (gas)............ The governments have less control over the refined products, so they step in less and with Brent it is generally a WORSE grade of crude than WTI, but since it is used in more places around the world,  and the rest of the world is used to paying 10-12.00 per gallon or more, traders just use brent now.......... little investing info energy my second specialty PERSONAL BULLION INVESTMENT Wife did it again estate sale got a run of canadian proof sets 63,64,65,66,67.............100.00...................also a run from newer days..................97,98,99.............100.00 for those As ststed earlier I no longer by silver coins she buys them all and if I must say does a FANTABULOUS JOB!!!!!!!!!!!!!!!!!!!!! THE REAL REASON GOLD AND SILVER CAUGHT A MAJOR BID ON FRIDAY AND WILL CONTINUE FOR THE FORSEEABLE FUTURE......................... First and foremost, those of you who have read all my writing, I have stated every time I thought price was too low at 28.00 is and 1600 is and option vols were too low.............option vols have held there lows, but based on the movement we are getting 14% in gold vol and 25 % in silver are way too low......................for those knew to options, an option vol should be about the percentage you think the underlying sill move in a given year, obviously the nearer term options trade at lowere vols as all the machines sell that and buy further out, when metals move like they have bid the machines get killed as the end up short futures and long junk calls like June 2013 2200c in gold or something like that.  At the money one month options in silver are less than one dollar and in gold less thas 25.00 with the BOE, ECB and FED in the next ten days,  IT MAKES NO SENSE!!!!!!!!!!!!!!!!!!!!!!!!!!! Realize you now have many machines long in these markets who have no idea why that can be good and bad, good as the price has come up to a respectable level..............Platinum still ABSURDLY CHEAP..................Gold SIlver ratio did form the rounded bottom I spoke of at 58:1 and is now 53:1.................nice five unit move....................... The third metal which has been used as money in the past by EVERY COUNTRY IN THE WORLD HAS BEEN LEFT IN THE DUST........................ COPPER NOW IS WAY TOO LOW PERIOD!!!!!!!!!!!!!!!!!!!!!! If you know how to play options with vols where they are and price where it is in GC and SI you can create a strategy at low cost which could be very favorable for you whether you think up or down NOW THE REASON I WORTE THIS WAS TO INFORM, STATE SOME FACT, AND GIVE SOME OF MY OWN OPINIONS...........................  I trade proffessionally and simply see what I see, I am not a scam, and I dont want your money.......................I want all the Gold an silver bugs to profit from the new goevernment actions FRIDAY KEY STORY OF WHY GOLD AND SILVER WENT UP.................................not fed, not euro, not stocks, not promise of qe, .........................well then what was it?????????? I WILL TELL YOU................... Queitly while the media tells you one thing, the ECB and Spanish governement created a bank in the wee hours of the morning on Friday, that will be fully financed by the ECB and will be allowed to borrow as much as need to buy up all the crap floating around Spain mainly MBS's (mortgagbacked securities) CDO's(collaterlized debt obligations), and Spanish paper...................did any of you see ther SPANISH TEN YEAR YIELD GET OVER 7% FRIDAY, you can be honest................most of us were with our family or watching out favorite precious metal gold or silver have a a 50 dollar reversal or in silvers case a 5% reversal.............. Why is this Spanish bank story so big yet no one will talk about it.............................. The goverenments have no where to go on short rates unless they eant to start paying people to take money..................yes they can do more QE, but that was so last year and the year before........................  they need new and creative ways to pump money in the system WITHOUT SAYING QE........................... so voila, create a bank whose sole purpose is to buy crap and get rates down in a certain area,.....................if this works therw ill be no real way to tell how much the bank has put in the system as you cant track every loan, but that is the reason why we bought calls on the gold and silver dip...........................This bank im guessing will buy 100's OF BILLIONS OF EUROS IN JUNK DEBT.................................If it works and get borrowing costs down, expecta to see them in all of the PIIGS, China, UK, India, US, blah blah blah...........................that is the real story of the rally you can believe me or not OTHER NOTES, OPINIONS, CONCLUSIONS................................  Since the governemets look at the stock markets as the economy and many of them have rallied huge since june and july I do not think any QE will be announced by the ECB or FED, the BOE may announce something small 100 billion pounds or so(isn't it sad when we say 100 billion is small?) Gold is about 25 euros from the all time high if it clears it I hope more people start beleiving me that the Euro and Gold are not correlated, also Gold in Rupees (Indian) is very near an all time high as well................If Gold clears thouse and holds for more than a week then that will be a big sign that 2 HUGE economies are buying Gold.............It is not the US driving this market this time it is everyone else......... LAST BUT NOT LEAST.............BE CAREFUL AT THESE PRICES, I thin kwe all know that silver esepecially can go way way further still 18.00 off its nomimal high and that with zero inflation cost............... but there are a lot of machines in and they dont care about you or me, they are there to take your money  2 weeks ago i was praying we could get thru 30.00 sooner, now Im wondering in we will get under it again any time soon............. Dont know, but I can tell you the 1550 gold put and the 27 silver put are VERY VERY CHEAP AND IF YOU WANT A CHEAP INSURANCE POSITION AGAINST LONG Papes Gold or Silver they offer good protection, you can even sell 1 of the 25c in silver to buyabout 5 or 6 of the 27 you give up a little on the upside to be able to pick up a ton if we go down...........just my thought TRADERS ARE BACK FORM VACATION, MANY CENTRAL BANK MEETINGS IN THE NEXT TEN DAYS BE READY FOR ANYTHING..................... For disclosure I own both calls and Puts in SIlver and Gold, and own quite a  bit of physical silver Most sincerely,Thank you for your time and reading this huge article, I felt it was important..................... Markets reopens in 41 minutes so I will check in with you guys later this week.................[/QUOTE]

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