FAS vs FAZ

5:15 p.m. Kept tabs on the market this morning. Surprised the IMF's announcement didn't kick-start the market much more. Lack of liquidity is hurting bulls. No real solutions in sight, as expected. But still, I expected the banksters to do more at this point. We'll see. Still all cash and watching from afar.

FAZ daily

So much for falling off a cliff, for FAZ is back

FAZ daily

Piercing through the upper trendline, but for how long?

FAZ daily

Declining volume, tough to see FAZ staying above 50

without a retest first

FAS daily

Really, what a disappointment for bankster bulls

FAS daily

That gap down yesterday and today's sluggish trading, not good

FAS daily

Volume in FAS fairly strong, which tells me that FAZ's rise has

everything to do with outflows and pullouts from finnie stocks, re: BAC

AGQ daily

Not sold on silver spot price and the 3x ETN, but this is significant

AGQ daily

Rising volume. rising price in a down market

DGP daily

Not as perky as silver/AGQ today

DGP daily

So-so volume

DGP daily

Hanging man candle on the gold 2x ETN not a good sign

FAS vs FAZ

3:16 p.m. I love to yammer on about how the banksters have us all set up. You don't think they've shorted this market? You don't think they even short themselves? Hell yeah they do! They're freaking banksters, remember? All they want is to make profits, nothing else matters. So yeah, you bet your ass they're banking through this downswing, kneecapping every hedge fund and retail trader that went long a week or two ago. They know shit is hitting the fan. So do you and so do I. But do we dive in headfirst?

I liked FAZ at 45. Liked it more at 40. It hit 35 and I was surprised. From there, I really thought the banksters would seize control and send the market into a year-end eruption to new highs. But they actually can't control things in Europe as quickly or smoothly as they can control the Fed and the White House.

So we have FAZ rising to 50 (closing above 49) while FAS fizzles. Where do they go from here? I totally believe in the psychology of round numbers. People are like that. They wince and pucker at certain round numbers and 50 is one of them. I'll watch from the sideline with my binoculars now and then, but it's too busy for me anyway to pay too much attention to the market. Just be cautious out there. Traps are everywhere.

FAZ daily

Today's round of lame news had FAZ roaring higher

FAZ daily

Pushing the higher trendline or gravity kicking in?

Hanging man candle means little with headline risk dominating

FAS daily

Returning to those basement levels again

FAS daily

Generally it's a bad idea to buy anything that has a reverse split.

BAC and FAS come to mind

Tuesday cinema & library (updated 900 pm HST)

Blogs
Upside Trader: Why I shorted financials twice in 2 days (Oct 25)
Le Fly: You are cordially invited (Oct 25)
Cain Thaler: I told you they'd disappoint (Oct 25)
Le Fly: Hedge fund relief rally stalled (Oct 25)
Cain Thaler: QE3 is coming (Oct 25)
Le Fly: There is only one long trade here (Oct 25)
Le Fly: Devil is in details (Oct 25)
Rajun Cajun: What I'm looking at this morning (Oct 25)
Golden Truth: Housing continues death spiral (Oct 25)

Vlogs

(new) streetmoney21: Gold, silver finally make a move (Oct 25)

(new) bullorbearreport: Silver rebound, markets looking bullish (Oct 25)

Truth Never Told: The Riddle (Oct 25)

Peter Schiff: How govt stimulus spending and deficits impact capital markets (Oct 25)

Wearchange.org: Russell Simmons on End the Fed (Oct 25)

endless mountain: Stock market and silver technical analysis (Oct 25)

ScrapGoldBusiness: Time has come to buy silver (Oct 25)

Kitco: Bill Murphy, Jeff Christian (Oct 25)

Jim Comiskey: Daily market insights - Metals futures (Oct 25)

Audio
Peter Schiff Radio (Oct 25)

Chris Martenson: Guest Eric Sprott (Oct 25)

Mainstream

Reuters: Amazon profits fall more than expected (Oct 25)

Monday cinema & library (updated Tue 200 am HST)

Saw Moneyball last night. Great flick. Great minds coming up with a better way to succeed.

11:47 pm (Hawaii) Late start on today's cinema & library. Busy work day, busy other stuff day. Just busy. But I'm nowhere as busy as gold and silver spot prices, which are both ripping higher overseas. If you were brave and/or logical enough to grab a load of physical gold and silver last night when prices were slashed  to remarkable discount levels, a standing ovation to you. If you stepped into AGQ below 100, more power to you. At this rate, with spot silver at 33 now (it was 26 little more than 24 hours ago) and spot gold at 1675 (it was at 1520 or so about 24 hours ago), this is either a sign of the "normal" volatility to come... or the Great Takedown has finally ceased.

Was it enough for the puppeteers to empty out the last of their naked shorts in silver? Probably not, and that's not really a concern in this moment. All I need to know is how to deal with my modest position in DGP once premarket trading opens in about 2 hours. If the market rallies (I have no idea), my eyes will also be peering in on FAZ and FAS. As there were discount prices on gold and silver, there will again be low, low prices on FAZ soon enough. I plan to ride that express from 55 or 50 or 40 to 100, but I won't pretend to know when that particular train is leaving.

Golden pukefest?No anxiety for physical owners

Hi ho Silver! Already 30% above yesterday's low. 

Update 2:02 am AGQ at 130+ (+14.9%) and DGP at 55.84 (+7%) as premarket trading opens. AGQ was available yesterday below 100. In and out is the way for traders. Quick and efficient preserves capital. Or as Robert Nesta Marley once said, "He who fight and run away live to fight another day."

Blogs

Zero Hedge: Key precondition to second Greek bailout has failed (Sept 27)

Michael Snyder: Fed plans to identify 'key bloggers', monitor Facebook, Twitter (Sept 27)

Zero Hedge: Silver soars 26% in 26 hours (Sept 27)

Turd Ferguson: Looking for a bottom (white-out edition) (Sept 26)

> Charts Gold Dec 15-minute | Silver Dec 15-minute

Jeff Berwick: Gold and silver bubbles, panics and stink bids (Sept 26)
SGS: Long GLD calls (Sept 26)
Zero Hedge: Presenting the mother of all European bailout flowcharts (Sept 26)
Zero Hedge: Gold, silver recover as EU doubles down (Sept 26)
Zero Hedge: 'Anonymous' alleges Hong Kong's HK$8.5 billion Chaoda is next Sino Forest (Sept 26)
Peter Tchir: EU goes from monetary union to suicide pact (Sept 26)
Reggie Middleton: I suggest Groupon offer coupons to IPO investors (Sept 26)
Golden Truth: It's getting very ugly out 'there' (Sept 26)
Dan Norcini: Gold charts and some comments (Sept 26)
Realist News: High court in Germany says halt all EU bailouts - Unconstitutional (Sept 26)
Le Fly: Ice cold (remix version) (Sept 26)

Vlogs

BrotherJohnF: Silver Update - Hidden bottoms (Sept 26)
Keiser Report: Pax Americana pyramid nightmare (Sept 26)
MoneyBags73: So many more people would want to have gold if they understood (Sept 26)
MoneyBags73: IMF may need bailout to bail out Euro nations (Sept 26)
drutter: Vancouver physical silver inventory update (Sept 26)
King World News: Why central banks smashed gold, silver (Sept 26)
Four Horsemen Film: Fiat Money (Sept 22)

Mainstream

Reuters: World stocks rebound on Euro bailout hope (Sept 27)

Business Insider: Greek Fin Min: If Europe can't save Greece, it can't save itself (Sept 27)

Business Insider: Geither to ABC: (Europe) foreshadowing escalation (Sept 27)
Reuters: Some sectors of China's economy may crash: Marc Faber (Sept 27)
Jim Comiskey: Daily market insights - Metals futures (Sept 26)

(video) BBC: Alessio Rastani: 'Smart money knows stock market is finished' (Sept 26)

Friday morning library

The Telegraph: Strauss-Kahn case 'on verge of collapse' amid doubts over maid (July 1 2011)
NY Times: News of turnaround in Strauss-Kahn case stuns France (July 1 2011)
Drought.unl.edu: National drought summary chronicles poor, devastated crops (July 1 2011)

Tuesday afternoon library & theater

Ketchikan Library, Alaska, 1908

Reports/Blogs

(new) NJ.com: Salem Unit 2 nuclear reactor shuts down after cooling pump failure (June 28 2011)

(new) Turd Ferguson: Mid-day update (June 28 2011)
(new) Ben Davies: Revolting PIIGS (June 28 2011)
AP: Treasurys fall on hopes Greece will avoid default (June 28 2011)

Reuters: Lagarde wins IMF top job, presses Greece on crisis (June 28 2011)

Reuters: Zynga IPO could raise $2 billion, file Wednesday (June 28 2011)

David Gross: Iceland shows default doesn't lead to a deep freeze (June 28 2011)
(new) Gonzalo Lira: How long would it take to pay of the US debt (June 27 2011)

Video

(new) Mark Hulbert: Is gold entering a bear market (June 28 2011)

(new) David Rosenblerg: US at risk of post-QE2 downturn (June 28 2011)

(new) National Geographic: Doomsday Preppers (part 1) (part 2) (part 3) (part 4) (June 28 2011)

(new) Nigel Farage: Free Europe, ditch the Euro (June 28 2011)

(new) CNBC: New Jersey takes out $2.58 billion loan (June 28 2011)

(new) pdlumina: Can we just get this economic beatdown over with (June 28 2011)
Frank Holmes: Gold will double in 5 years (June 28 2011)

Max Keiser: Waterboard Bernanke again (June 28 2011)

Minyanville: 10 things you never knew about outsourcing (June 28 2011)

(new) chamaflauge: Riots, violence, silver, gold and Shanghai (June 26 2011)

Urban chickens in San Diego (July 2 2010)

Graveyard Library Hours

Central Library, Seattle

Reuters: IMF boots Fischer from race for top job (June 13 2011)
Christian A. DeHaemer: The US has defaulted (June 13 2011)
Zero Hedge: Are HFT algos taking aim at ETFs next? (June 13 2011)
Zero Hedge: In Q1, Bernanke spurred inflation (June 13 2011)

Scouting report

7:55 pm (Hawaii) Overseas markets are down in the -2% range so far. US Dollar is above 76. Crude Oil at 98.45. Gold 1508. Silver 34.68. With so much uncertainty on both sides of the QE3 coin, it's no wonder so many people are cashed out.

So much anticipation about the days and weeks ahead. But I think we'll be underwhelmed. There will be no magic bullet. Things will not be as volatile as we may imagine. Cash will be on the sideline as politicians and bureaucrats push keyboards and, in the words of the great David Byrne, things will be "Same as it ever was . . . same as it ever was."

To QE3 or to not QE3 ... so many gray areas. If it isn't officially announced, but the market is propelled long after June 30 by inflows and buying, there you have it. It will have begun covertly. If not, it'll be just a matter of time. The alternative is a crash across the boards in due time, and Big Ben will have to assert the Federal Reserve's authority in these matters. In the meantime, gold and silver are deep into the equation. Somewhere. So is China. How beautifully combustible it all is.

Zero Hedge: Goldman aligns itself alongside China for next IMF head (May 22 2011)
Zero Hedge: China prepares to launch Gold ETFs, Utah makes gold, silver legal tender (May 22 2011)

Update 8:40 pm (Hawaii) "Silberblick" at The Silver Gold Hedge blog points out that it is in China's best interest — in the near term — to keep gold and silver prices relatively low. Eventually, however, the People's Republic could use the newly-formed gold futures trading instrument in Hong Kong to burn rubber and destroy the US Dollar sometime down the road. True or not, it's an interesting picture.

Silver Gold Hedge: Why the Hong Kong Exchange will disappoint, for now anyway (May 22 2011)

Update 10:44 pm (Hawaii) Interesting interview of Hugo Salinas Price regarding his concept of a silver Mexican peso and a quoted monetary value.

Silverseek.com/DollarVigilante.com: An interview with Hugo Salinas Price on a return to a silver Mexican peso (May 19 2011)