Illyia's Heart on SI Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Illyia's Heart on SI

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: illyia	3/7/2012 10:38:33 PM
	of 7567

Attention IH Readers If you have not yet purchsed bullion this may be your last best chance coming up for a very long time. The charts are looking very pull-back (in a 4th wave) and we may see a last swoon before the fireworks begin. I've been waiting for two things. Both happened today and both were in articles on ZH. The next move up is likely to be beyond all expectation and I would hate to have not informed you as money may become a dicey thing. i. **** Is Gold Suffering Under ECB Margin Calls? By Tyler Durden Published on ZeroHedge ( http://www.zerohedge.com) Created 03/07/2012 - 17:05 [1] Submitted by Tyler Durden [1] on 03/07/2012 17:05 -0500 Derisking [2] European Central Bank [3] Last night we noted [4] the very concerning rise in margin calls for European banks thanks to collateral degradation at the ECB. This story has become very popular as traders try to figure out which assets were deteriorating rapidly and which banks face immediate cash calls. One thing that came to mind for us was - what about Gold? Coincidentally or not, the last time we saw a big surge in collateral margin calls by the ECB (in September of last year), not only did Gold lease rates explode (implode) but Gold prices fell off a cliff as the squeeze came on from gold liquidity providers pushing prices down to exacerbate the negative lease rates on the gold collateral. The point here is that as margin calls come in from the ECB, we wonder whether banks will be forced to liquidate their gold (last quality collateral standing) to meet the ECB's risk standards. The key will be to watch gold lease rates (as we explained here [5]and here [6]) and ECB Margin calls to see if Gold is merely suffering a short-term dip from USD strength derisking or if this is a more broad based meeting of collateral desperation need that might have legs - only to be bought back later. MtM losses combined with collateral calls ( as we noted earlier [7]) was never a recipe for success and we will be watching closely. [8] Charts: Bloomberg Similar Articles You Might Enjoy: Derisking European Central Bank Source URL: http://www.zerohedge.com/news/gold-suffering-under-ecb-margin-calls Links: [1] zerohedge.com [2] zerohedge.com [3] zerohedge.com [4] zerohedge.com [5] zerohedge.com [6] zerohedge.com [7] zerohedge.com [8] zerohedge.com [9] rss-feeds.zerohedge.com Revisiting the Gold Bugs Index By Tim Knight from Slope of Hope Published on ZeroHedge ( http://www.zerohedge.com) Created 03/07/2012 - 21:48 [1] Submitted by Tim Knight from Slope of Hope [1] on 03/07/2012 21:48 -0500 Gold Bugs [2] Moving Averages [3] Slope of Hope [4] From Slope of Hope [5]...... Below is the broad view of index symbol $HUI, which shows how the analog has strengthened recently. The key, of course, is to break beneath that lower horizontal line. If we can do that, life gets interesting in a big hurry. [6] Looking closer, you can see the important event that happened on Monday: we broke that ascending trendline. On Tuesday, we gapped down, creating a nice window at 508.92 [7] Looking closer still, you can see how much damage has been done since February 29th. We came dangerously close to crossing above 554.92, but mercifully we did not. The gold bugs index may seem odd and esoteric, but I am firmly confident that a failure of this index would be a crucial harbinger of a general plunge in equities. [8] As a final thought, here is the price chart.........without the prices. This just shows a standard trio of simple moving averages and points out where I believe we are relative to the prior analogous timeframe. [9] Similar Articles You Might Enjoy: Gold Bugs Moving Averages Slope of Hope Source URL: http://www.zerohedge.com/contributed/2012-10-07/revisiting-gold-bugs-index Links: [1] zerohedge.com [2] zerohedge.com [3] zerohedge.com [4] zerohedge.com [5] slopeofhope.com [6] slopeofhope.typepad.com [7] slopeofhope.typepad.com [8] slopeofhope.typepad.com [9] slopeofhope.typepad.com [10] rss-feeds.zerohedge.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next