Raping and Pillaging

  After the fall of the Roman empire, the world slid into the "dark ages" - a period seemingly bereft of humanity. The European continent was ruled by various clans. It was customary when one clan took over another, one of the first things they did - was rape all the women. Not enough to just kill all the men, no they had to rape all the women too. Thats how life went for centuries, it was a crude savage world. They called it the dark ages for a reason. Trading Silver (not owning Silver) is very much like living in the dark ages. There are 2 clans each looking to rape & pillage the other.  Bulls and Bears. Like clans, they draw lines, and stakeout territory. The $27 level, where silver sits right now - is huge. Just look at the chart above. 

 Silver is knocking on the proverbial door of $27 for the 4th time in the last 2 years.  There is tremendous support at that level - which also means there are lots of sell-stops set just below the $27 level. The paper aristocracy (leader of the bears) views those sell-stops like a hungry dog views red meat. The silver price won't just meander across the $27 level, triggering those stops & lightening the bull in the process. No, silver is a much more vicious beast. When it breaks, corrections of 25-30% in days are the norm. The way the banker clan sees it,  It is simply not enough to kill all the weak bull hands with their stops just below $27, no they will have to rape their women too. For this reason, the probability of a sojourn down to $19-$21 area is becoming increasingly likely. 

  I have said it before, but it bears repeating; Silver is a mans market. The corrections & the volatility within are like no other market. The $48 spring high of 2011 has left Silver in correction mode for 14 months now. Silver has the exact opposite problem of Gold. Gold has arguably corrected far enough down in terms of price, but has only been in correction mode for 9 months. Silver, on the other hand, has been in correction mode for 14 months; plenty of time to thin ranks. The problem is prior corrections in this Bull have seen the silver price contract by over 50% from peak to trough. We don't have that here. We are 14 months in, but silver has only contracted 45% to date. The banker clan, who control this market, will not be satisfied with a correction only in terms of time. Remember: they are raping & pillaging. When they rape, they want both tits in their mouth. TIME and PRICE. Only a trip to the $19-$21 range would qualify this a man size correction (60%) in terms of price. 

 The psychological pain on tap for the bulls the next few months, may well be unbearable. A trip down to long term support in the $19-$21 range will have the effect of thinning the bull ranks significantly, to be sure. The bear camp, will be growing, with technical traders & momentum traders piling on the short side. Observe the manner in which silver has bounced off $27 in the past, only to gather itself & attack that level again & again.     Each time from a lower high. This has left a descending right angle triangle on long term silver charts - an ominous pattern. Meaning, if and when $27 fails, look out below. 

  For all the reasons above, Bagholder is of the opinion long term silver bulls are about to get raped, yet again. You may have noticed an overtly dark tone to todays blog. Speaking as the staunchest of bulls, there is widespread apathy in the bull camp. This, in and of itself, means news isn't all bad for the bulls. If ever there was a recipe for higher prices, thin apathetic bull ranks & swelled bear ranks is it. Those things only exist at major bottoms. We here at Mytwocent$ will be scaling in deeper, all the way down. We suggest you do the same……   

Greece, It all starts with a light envelope

  Or so says the wisdom of Richie......

    

     

     The US media & their masters (the paper aristocracy) would have us believe the dominant economic theme - four years running, is Greece defaulting on their debt, and its supposed impact on the Euro. I am quite sure the Ivory tower types are having quite a laugh shoving the Greece story up our rectums the last four years. After all, it was the Greeks who invented ass-fucking. I, for one - am tired of the Greek gift.  Greece, no matter what the media tells you - simply is not big enough to collapse anything - especially not the euro. Greece represents about 1% (GDP basis) of the European community. Here in the US, this is the math equivalent of Alabama being able to collapse the dollar. It has about as much chance of happening as this kid pictured below does of kicking ass.

  The real issue with Greece is some powerful people, with more money than brains, have booked wagers in the trillions that are tied to the outcome in Greece. In essence, Greece is nothing more than a long drawn out crap game. Assigning blame to Greece is like blaming the dice when you seven out. Sure they turned a seven - but are the dice really to blame for your losses - or are you?  The situation in Greece is really no different. There are large $$ sums bet on whether Greece pays their debts in full, partially, or not at all. There are large $$ sums wagered on whether Greece withdraws & starts their own currency - or continues to get bailed out. There are large $$sums wagered on whether the problem will be contained, or spread to other countries - and which countries? 

  The Greece story drags on year after year with no resolution in sight because The bankers (your casino hosts) would not have a game if there were an actual resolution in Greece. Not only that, when the resolution comes, one side or the other will get skinned. Like the saying goes - you can shear a sheep many times, but only skin him once. The way the paper aristocracy sees it, there is no reason to shut down the casino - especially when you consider there are willing bettors on both sides. This is why the story drags on for years. 

  Occasionally, the Volume level on the Greece story gets kicked up to "ramming speed" levels - like now. This has the effect of getting anyone remotely interested in trading the Euro onto the short side.  The "Euro to zero" mantra has been pushed hard by the Paper Aristocracy. Any reasonable sentient being has to know this means the Paper Aristocracy is on the long side of the Euro. Thats right, while the media chants Euro to Zero, The COT's show the Bankers with a RECORD long Euro position in place. In the meantime the general public dolts, easily swayed by the evening news, are carrying RECORD short positions.  Another fine example of Bankers vs. public.  Gee, I wonder how this trade will end.

  Bagholder goes long the Euro right here, as the idea of a flea speck of a country crashing the system is patently absurd. We will check back before the end of the year on this one.