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Roger Wiegand


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Federal Outrageous Mystery Committee's $200 Billion Shell Game

By Roger Wiegand      Printer Friendly Version
Mar 12 2008 3:38PM

www.webeatthestreet.com

“We’ve warned repeatedly to never sell the market manipulation committee (FOMC) and their gang members short. I suggest they have a pot full of ideas to skate over this very thin fiscal ice. This is an election year and the Boyz will do anything to make incumbents look like economic supermen. We all know they’re 70 pound monetary weaklings but also legendary escape artists with public relations tools extraordinaire. Watch for a stock rally until April Fool’s Day. How appropriate is that?? - Traderrog

Barchart.com Explains TSLF:  Totally Selfish Loose Funding

"The FOMC committee held a 90-minute conference call last night to discuss and approve the new facility, which was approved unanimously. The FOMC also approved an increase in its dollar swap lines with the European Central Bank, the Bank of England, and Bank of Canada, thus providing those central banks with additional access to dollars. In a coordinated move, all three of those central banks plus the Swiss central bank injected a total of about $45 billion of reserves into their respective banking systems yesterday to relieve global inter-bank lending dislocations. The new facility is called the Term Securities Lending Facility (TSLF). This adds to the already-existing Term Auction Facility (TAF), which the Fed has been using in place of the discount window to lend to banks on a longer-term basis with a wide variety of acceptable collateral including mortgage-backed debt. The Fed last week announced an increase in its TAF auctions to $100 billion for March from $60 billion last month." –Barchart.com Morning Call 3-12-08 (Editor: This stuff is PR pap to pump markets. Real help is absent).

Entering Phase Two of Global Crack-up Boom

Notice they term the collateral as “a wide variety of acceptable collateral including mortgage-backed debt. What this means in real terms is The Mystery Committee will take any banks’ un-salable paper trash these lenders and others cannot price nor sell. This garbage has no value whatsoever as it is not trading, has no actual price, and ought to be vastly written-off or, written down. They can’t do that or the entire system would implode. We are now in Phase Two of the Global Monetary Crack-up Boom.

The Mona Lisa Picture of Market Intervention. S&P 500 Intra-Day 11:45 AM 3-11-08 TSLF Stock Boomlet Kicks-Off.

U.S. Dollar Continues Bumpy Failure to Bottom

Intraday Dollar June, 2008 Futures 3-12-08 Tumbles to 72.90 Support.

Dollar’s new main, lower support is 70.90 and 70.70. Should 70.70 be violated and confirm on a close, look out below.

Dollar’s Damage Will be Excruciating

Is this a messy chart or, what? The United States Dollar seemingly cannot get a grip as the FOMC, United States Treasury and foreign central banks have instigated policies designed to save their respective economies letting the dollar fall into oblivion. As one analyst said yesterday, “We’ll fix the economy first and worry about inflation later.? We’ve got some news for him; the USDX is the Reserve Currency for 85% of the entire world. This destructive posture is ruining America’s core asset valuations and dragging down other nations as well. If this situation skids into hyperinflation (maybe fall, 2008); all will be totally out of control. The Green Man, Chopper Ben, and Good ‘Ol Hank at Treasury will be running to find some new addresses off this planet.

April Gold Futures Give Perfect Bull Continuation Triangle. Rally Ahead.

May 2008 Silver Futures Show Similar Triangle. Notice Opens and Closes Stuck Near 19.80. Silver Does Not Want to Sell.

May Copper Weekly Futures Temporarily Peaked. Hard Resistance is $4.

Copper is a primary indicator for precious metals, bonds, and the general health of business and industry. It is a major component of electronics, autos, and construction. This weekly chart has formed a bugle pattern, which is bearish. Note lower, lows from last April until a December, 2007 bottom. The top channel line for the same period gave us four larger tops with the last one ending near March 1.

Copper is tricky to interpolate as it’s by-products of gold and silver mining are in long range bull markets. Next, when general business and manufacturing goes weaker, its price tends to sink. Another prime factor is the 140,000 tons of copper each day imported into China for their internal uses and booming economy. We forecast copper to rally for most of March, then top out and sell similar to last year’s performance. Our prediction for gold is a $1,050 high for spring. Silver could hit our objective of $22.00 to $22.50. Precious metals share traders should enjoy a rally for the rest of March.

Big Picture for March, 2008

Watch for rallies in most all markets until the end of this month. Sometime between March 24, and April 7, 2008, the bloom goes off the rose and the nasty “Sell-in-May-And-Go-Away? arrives. We forecast a -24% haircut in most stock shares including precious metals. In this instance, the baby gets tossed with the gray water. Traders should prepare and act appropriately selling into strength those shares they prefer to be out of and wait for a later summer bottom to buy in again. Some smart traders are all in cash right now planning to buy heavily after the next lower base has been secured. Others will simply hold and ride out the storm clearly understanding what lies ahead. Still others will sell half and keep half. In our newsletter, Trader Tracks, we provide weekly guidance and extra e-mail alerts to report our best new trades and offer suggestions for trade management.

Whatever you do, make a concerted effort to stay with the trend and hang onto your core holdings of preferred shares, cash, and coins. Physical gold should never be sold or, traded but rather accumulated steadily on a monthly savings plan and squirreled away. Big traders are always ready to buy on the dips and normally never sell their gold and silver. You would be amazed how quickly your physical gold and silver will accumulate using this strategy. - Traderrog

Roger Wiegand
Editor Trader Tracks Newsletter
& The Rog Blog at webeatthestreet.com

 

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Roger Wiegand is Editor of Trader Tracks Newsletter for gold, silver and energy traders. Roger provides recommendations for short and longer term traditional stock shares and futures- commodities trading with specifics for individual trades.  See www.webeatthestreet.com for more information.

Contact Claudio Bassi, at Trader Tracks New York City publishing offices for a modestly priced trial subscription 718-457-1426 Monday through Friday, 9:30am to 5pm or, e-mail Claudio at cbassi@miningstocks.com