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Old 12-08-2011, 08:29 AM   #1
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Exclamation Draghi just dropped the ball

It looks like Super Mario just blew up Europe's hopes of a fast, easy bailout. He said NO LOANS to IMF. Silver and gold promptly CRATERED. Gold fell 25 dollars in less than two minutes and silver is succumbing to gravity just as fast, as all paper that is leveraged gets unleveraged. Everyone wants to get out first. This is fucked up beyond all recognition now. Folks, this will be our last and best chance to back up the truck and get PM's at a severe discount before they go bananas. The deleveraging is going to be extremely painful, as the banksters now know Europe will not print.

Welcome to the wasteland.
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Old 12-08-2011, 08:32 AM   #2
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F.cking high frequency trading. Anyway BTFD.
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Old 12-08-2011, 08:35 AM   #3
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Has the real Christmas sale finally arrived?

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Old 12-08-2011, 08:36 AM   #4
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$25? Try $50

1761 to 1711 in a matter of minutes.
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Old 12-08-2011, 08:41 AM   #5
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It was a sharp move in both gold and silver, but they are still within the range / zone that they have ben trading in for the last couple of days (as of the moment).
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Old 12-08-2011, 09:17 AM   #6
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Originally Posted by PMBug View Post:
It was a sharp move in both gold and silver, but they are still within the range / zone that they have ben trading in for the last couple of days (as of the moment).
The shares though have really taken it on the chin.. Down 2.5% on the GDX thus far.

Silver went from being over it's triangle to now hugging the bottom support levels. This is not a good day for the metals.
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Old 12-08-2011, 09:24 AM   #7
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Glad I only closed some of my shorts yesterday. But Gheesh, this market:wallbash.gif
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Old 12-08-2011, 10:00 AM   #8
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I did notice a real abnormal amount of volume this AM on GLD - normally the vol bars premarket don't even show on my charts, this time it was like mid-day volume rate.

Might be time to BTFD, but I'll wait for the dip to reverse first. It's still running along my lower trend line, which is still nicely up tilted. Funny, any downturns seem to stop right at that line and reverse.
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Old 12-08-2011, 10:04 AM   #9
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Originally Posted by DCFusor View Post:
I did notice a real abnormal amount of volume this AM on GLD - normally the vol bars premarket don't even show on my charts, this time it was like mid-day volume rate.

Might be time to BTFD, but I'll wait for the dip to reverse first. It's still running along my lower trend line, which is still nicely up tilted. Funny, any downturns seem to stop right at that line and reverse.
It's will resolve itself in a direction based on what happens in europe.. So, most likely lower prices ahead. Personally, I'd much rather see European leaders some up with something but It's very unlikely.
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Old 12-08-2011, 11:02 AM   #10
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I think people are missing quite a bit from the news release today. Everyone is focused on the IMF aspect and no QE... At least not till the treaty is changed. All the non standard easing methods they DID enact were kind of swept under the rug.

Quote :
Will conduct two LTROs, with 36 month maturity with option of early repayment. First will be allotted on December 21, 2011, and will replace October 6, 2011 LTRO. This is more than the expected 2 years.

ECB will ease collateral criteria for loans to banks. Will reduce rating threshold on ABS collateral

National Central banks can accept credit claims such as bank loans

Will reduce the reserve ratio from 2% to 1%, which will free up collateral in money markets
They are accepting debt as collateral on 3 year loans... And they lowered rates... Was today a takedown?
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Old 12-08-2011, 11:12 AM   #11
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Originally Posted by dereksatkinson View Post:
I think people are missing quite a bit from the news release today. Everyone is focused on the IMF aspect and no QE... At least not till the treaty is changed. All the non standard easing methods they DID enact were kind of swept under the rug.



They are accepting debt as collateral on 3 year loans... And they lowered rates... Was today a takedown?
These news came out before Draghi said that he opposes on behalf of the ECB to lend money to the IMF.
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Old 12-08-2011, 11:17 AM   #12
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I think this is all just posturing. There was a good post about this a few days ago from another blog. To stay together they need to convince the mkt and the members that the euro will be strong. So they talk this talk, get all countries in line, agree to stricter controls which essentially gives germany more control over europe without guns or tanks. then when everyone is in line they will monetize and ease. Germany is an export country. The euro is relativley weaker than a stand alone duetchmark, so the euro has helped them a lot. Germany wants to keep it together.
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Old 12-08-2011, 11:26 AM   #13
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Originally Posted by escobar View Post:
I think this is all just posturing. There was a good post about this a few days ago from another blog. To stay together they need to convince the mkt and the members that the euro will be strong. So they talk this talk, get all countries in line, agree to stricter controls which essentially gives germany more control over europe without guns or tanks. then when everyone is in line they will monetize and ease. Germany is an export country. The euro is relativley weaker than a stand alone duetchmark, so the euro has helped them a lot. Germany wants to keep it together.
I think there is no doubt that the EURO will survive. Even EUR/USD won´t make new lows (0.9 USD) imho. The only question is what will the price of gold be after all this idiocy?
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Old 12-08-2011, 11:52 AM   #14
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Originally Posted by swissaustrian View Post:
These news came out before Draghi said that he opposes on behalf of the ECB to lend money to the IMF.
That's not what he said.. He said that it was illegal for them to do it under the current treaty and he wasn't willing to go around it. Nothing was said about "willingness" to actually do it.

Basically.. He did his best to not undermine the summit that is taking place over the next two days.
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