Submitted by SD Contributor FW:
ROGUE METALS REPORT: Stacker Splatter Alert
Precious metals investors were taken to the woodshed today in yet another indication that fundamentals are governing trading. Analysts at JP Morgue, resigned to investors’ fate, were seen making paper airplanes in the New York offices of the fortress balance sheet bullion bank. “We told everyone these things are nothing more than dog squeeze,” remarked one analyst who declined to be named. His colleague, Bubba John Lapdog, estimated that supply and demand trends for silver peg its true fair value at $1.75 per ounce. “Ouija Board metrics indicate silver must trade below North American natural gas prices before we hit bottom,” Lapdog barked.
The outlook for gold is seemingly just as bleak. John “Pool Account” Radler is perhaps most emphatic about the bear case. “I’ve been in this business for over thirty years. My daddy cleaned the trash cans on the TSX floor and his third cousin was J. P. Morgan’s personal butler. I can say without a shred of doubt, gold is the most overvalued it has been in my entire life, and probably my dad and entire family’s life too.”
There’s been considerable discussion about possible manipulation and the impact from trading algorithms. Radler chalks up this talk to nothing more than sour grapes. “If you program your computer to interpret a declining Euro given fears of the exit of Greece from the EU and instruct the smart bot to buy dollar-based assets who wouldn’t consider this prudent,” Radler said. “Obviously, once a computer has been programed it knows what it’s doing and it never makes mistakes,” Radler noted.
As expected, the gold and silver bug community has been busy this week — but perhaps not in the way one might expect. Attempting to get a bead on sentiment your humble correspondent checked in with “The Doc,” the proprietor of a relatively new but highly popular blog dedicated to the silver market. We found him slouched over his desk, breathing heavily. “The phone has been ringing all day,” he exclaimed. “My momma was right. I should have been a shrink. I’ve never heard from so many whacked-out people in my life. Everyone is freaking out!”
Suddenly, a huge crash and thud echoed through the Doc’s 5th story window. Red No Bull, Doc’s partner burst into the room. “Doc, we need you outside,” he shouted. “Looks like another stacker gave up and jumped off the building.”
It’s shaping up to be an epic week. But The Doc did have sage advice worth passing on: “If you’re panicking, turn off the computer and go take a walk.”
We couldn’t agree more. Just be sure to look up from time to time and be ready to duck!