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The skewed Inv 'H&S' could be in play still...



S.

Great stuff guys, thanks for updates and posts.

tick tock



Consulates and the Vatican in Chaos as HSBC tells them to Find Another Bank

"Diplomats in London have been thrown into chaos after Britain's biggest bank, HSBC, sacked them as customers and gave them 60 days to move their accounts."

"Their situation has been made far worse because other banks have been closing ranks and refusing to take their business."

"More than 40 embassies, consulates and High Commissions have been affected. Even the Vatican has been given its marching orders."

http://www.dailymail.co.uk/money/news/article-2384003/Consulates-Vatican-chaos-HSBC-tells-bank.html

That's old story, I suspect those involved knew this for a couple of weeks.

It will be sorted out soon, as many banks would love to offer them the service.

Seems to be bleeding to death cutting through everything with ease. ...



In hindsight I shoud have stayed on Friday afternoon and initiated hedges at the break of the triangle support line. Now I will have to scale out prior to the close if we don't see a recovery. I notice there is divergence on the RSI above.

One positive is $Silver is holding up quite well.

S.

$GOLD - Is holding on but needs to remain above its 20/DMA and break above the 50/DMA for the potential 'Bull Flag' to play out...



S.

Miners have tagged the first 'Gap' and may bounce from thee...



S.

Almost 10 'Dojis' and 'Hammers' in a row?/? On $Silver.

Look at the bollinger Bands how they are tightening. Something will give and probably with a jolt. This would be where a 'Strangle' Option trade would come in handy, that is where you hold both puts and calls for the same instument for the same maturity date, would only work out if there is a large enough move in one direction to offset the loss on the opposing option.



Don't ask me any more about options cos I NEVER GET THEM RIGHT.

S.

I will hold onto the miners to see if we can bounce from the Gap and perhaps plot a 'Triangle' ...



S.

Sahara - options could prove a sore point (come Dec), or possibly next time I see him :o)

If you recollect when my son discussed silver, as he left, I said (completely off the top of my head, with absolutely.... no info or figures...just plucked out the air as ..an option example, in effect)

oh - you could probably go the option route, pick up a Dec option to buy say 20,000 Dec silver contracts @ $27 for £3/400
- & if silver hit $30
- you would probably make around $60,000 ish.
- the words 60,000 made his eyes light up
- but, he has never bought a share in his life, and completes on his 1st house shortly
- so I thought he would have enough on his plate etc & and not even a few hundred pounds to play with.

The above straight option is about my limit of understanding options, and in hindsight
- I must pluck some more abstract figures out the air in future......as
- got a text from him tonight
"bought 20,000 dec $27 silver for.....£380....fingers crossed for Dec"
(nearly fell off my chair at plucking figures out the air, actually playing out)
- text back for more detail
- to cut the text exchange story down
- He bought some Soc Gen SY81

Looked them up - and saw "parity 1/10" which was a ???
- I gather it is the ratio of the option....to the underlying actual
- looked that up.......& the option he has is for 1/10th of an oz....not a full oz
(so he doesn't have an option on 20,000 oz ...only 1/10th ie 2,000 oz. So at $30 dollars expiry....a potential $6,000(ish) profit.....not erm...$60,000).

Now do I tell him.....??
(will sleep on it :o)

Mexico was forecast
- to increase... its silver production this year,
- however if present trends continue, total output could...... fall nearly 10% in 2013

the last two latest reports coming from Mexico’s INEGI, we can see that the majority of the declines have come from Zacatecas — the richest silver region in the country.

Retail investor - inflows into equities - really do seem ....
- to gather steam....at market tops
- being led in by the nose....to carry the bag
(when the boyz have offloaded)





The chart above shows the investor psychology cycle of investment behavior overlaid against the S&P 500 index.
- The bar graph in the chart is the 3-month average of net monthly inflows by retail investors into equity based mutual funds.

Any hint of what has really been driving up the stockmarket
- such as any correlation
- between the rise in the S & P
- and...the amount of QE pumped in by the FEDy
(indicated by the ....expansion of it's balance sheet :o)

But surely the rise.....is (as the talking heads are saying) - the demand flowing into domestic equity mutual funds.

Begs the question, then..... why it went up....the rest of the time
- when as the following chart's - downward spikes ...illustrate

- Funds were heading out the exits.....for around 90%+ of the time





I think I will go with the suggestion in this chart &.....the previous post

- FEDy pumping in the QE.....and pumping.. up...the S & P

As posted on the other side, a great clip to show to all your friends and family who just don't get it

http://www.youtube.com/watch?v=5z5xwb2xCyk&feature=youtu.be

One of my fellow director found this.....on the BBC!!!


http://www.bbc.co.uk/news/health-22967727

Nicely put conclusion** by Embry

And the fact is that the derivatives in the banking system are utterly toxic.

If the so-called economic strength is in fact real, and I don’t believe it is, but if it is real and the U.S. really does begin to ‘taper’ to any large degree, interest rates are going to go up sharply.

This will literally endanger the entire banking system because of the blowups that will begin to take place in the derivatives market which will be related to interest rates.


So the West is playing a really dangerous game here and it’s going to be fascinating to see how this next crisis unfolds.
- We have never seen anything like this in history.
- There are over one quadrillion dollars worth of derivatives out there
- and they are concentrated in the largest banks in the world.

If things become really unsettled and chaotic in the interest rate world,
- I promise you
- there will be massive winners
- and massive losers
(in the derivatives game).

**But the bottom line is.... the losers...... won’t be able to pay,

- so the winners..... can’t win.

Snurkle - that Titanic/Gold youT - is excellent.

Snurkle nice to see it made it on to the BBC.
- still think they ought to say.....silver enhances antibiotics performance
.....but silver alone....works just as well :o)

(Probably works even better on its own - as there are no antibiotics ...killing off your good bacteria)

Gaz - Oh dear!.... Tricky one.

Also the Options are for SLV and not Silver so the price of Silver may need to be nearer $28.

I looked at the option chain for SLV Covered calls (where there are no options for Dec) but Jan-14 they run out at .12c which equates to around £1600 for 20,000 so not sure how SG do there options?/ I thought they were more into warrants/?

Strike Bid Ask

10.00 8.75 9.40 9.43 -0.08
11.00 7.85 8.25 10.48 0.02
12.00 6.80 7.30 11.23 -0.03
13.00 5.95 6.10 12.18 0.12
14.00 5.00 5.20 12.86 0.17
15.00 4.15 4.25 14.63 0.37
16.00 3.30 3.40 15.38 0.47
17.00 2.58 2.62 16.17 0.75
18.00 1.93 1.96 16.88 1.12
19.00 1.40 1.42 17.43 1.40
20.00 0.99 1.00 17.83 0.99
21.00 0.68 0.70 18.13 0.68
22.00 0.48 0.49 18.35 0.48
23.00 0.33 0.35 18.49 0.34
24.00 0.23 0.26 18.58 0.25
25.00 0.18 0.20 18.65 0.18
26.00 0.12 0.16 18.67 0.12
27.00 0.11 0.12 18.70 0.11

s.

Yes - Great links, and charts today.

Remember keep taking the coloidal ;-)

S.