Monday, July 2, 2012

Andrew Maguire Dissects the 515-Ton Paper Gold Dump Prior to June FOMC Statement

from, Silver Doctors:

Over the past year, SilverDoctors has documented several cartel raids in which the bullion banks dumped over an entire year’s global mining output in silver during paper raids.

Many have doubted the validity of these claims, as the official open interest reported by the CME the next day is often less than the reported volume of paper contracts dumped during the raid.

Andrew Maguire has released an excellent commentary dissecting the 515 ton paper ‘gold’ raid launched by the bullion banks immediately prior to the Fed’s release of the June FOMC statement. Maguire clarifies how the cartel can accomplish the raid and yet not have the occurrence appear in the CME OI report.

Andy states that of the 165,000 paper gold contracts dumped on the market: ‘Almost all these contracts were subsequently covered by the bullion bank into the days pit close thereby not showing up in the closing OI #. This is a standard MO. Through concentration, creating sufficient new supply at commonly watched pivots in a very short period of time to swamp any bids distorting true supply demand fundamentals, then once the momentum is turned down, to buy back all originating short positions into freshly pitched longs and a whole array of freshly invited new shorts.’

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Faber: The Markets to Crash Within 12 Months

from, The Victory Report:

Dr. Doom Marc Faber Suggests The Markets will crash within 12 months.

Cracker Barrel could break from bull channel and run up

Cracker Barrel Old Country Store (NASDAQ:CBRL) – The company operates 604 Cracker Barrel stores in 42 states, and its business plan consists of a rustic, old country store format providing a restaurant menu with homestyle country food. The stores also offer decorative and functional items, holiday gifts, toys, apparel, cookware, and foods. CBRL has increased earnings from $3.64 to an estimated $4.50 over the last five quarters, showing a strong acceleration in quarterly earnings rates.

Following a massive breakout from a cup-and-handle formation, the stock established a bull channel, and although it is at the top of the channel, it could break from it and quickly run to $70. The technical target is $72.

Incyte Corporation (NasdaqGS: INCY)

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary small molecule drugs for oncology and inflammation. The company offers JAKAFI, an oral janus associated kinase inhibitor for the treatment of patients with intermediate or high-risk myelofibrosis (MF), including primary MF, post-polycythemia vera MF, and post-essential thrombocythemia MF. The company's product pipe line includes INCB18424, which is in Phase III clinical trial for polycythemia vera; Phase II trial for essential thrombocythemia; Phase II trial for pancreatic cancer; Phase I/II trial to treat solid tumors/other hematologic malignancies. It has a collaborative research and license agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; and Pfizer Inc. The company was founded in 1991 and is headquartered in Wilmington, Delaware.

To review Incyte's stock, please take a look at the 1-year chart of INCY (Incyte Corporation) below with my added notations:

INCY has created a couple of important price levels to watch. First, the stock has formed a clear resistance at $24 (red), which would also be a 52-week high breakout if INCY could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (blue) over the last (3) months. These two levels combined have INCY stuck within a common chart pattern known as an Ascending Triangle. Eventually, INCY will have to break one of those (2) levels.

The Tale of the Tape: INCY has an up trending support and a 52-week resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $24. A break below the up trending support would be an opportunity to enter a short trade.

Silver COT Report 6/29/12 One for the History Books: Commercials Cover 25 Million Ounces of Naked Shorts!


Commercials picked up 1,144 longs but covered a massive -3,799 shorts to end the week with 43.27% of all open interest, a mammoth change since last week, and now stand as a group at -60,055,000 ounces net short, almost 25,000,000 less net short ounces from the previous week.
Technically, this is one for the history books.
Very few weeks have ever seen these huge percentage point changes!


Chart of the Day - Costco Wholesale (COST)

The "Chart of the Day" is Costco Wholesale (COST), which showed up on Thursday's Barchart "All-Time High" list. Costco on Thursday posted an outside day up to hit a new all-time high of $93.00 and close up +1.75%. TrendSpotter has been long since June 5 at $86.77. In recent news on the stock, Deutsche Bank on June 28 upgraded Costco to Buy from Hold with a $107 price target, citing strong same-store sales trends and expectations for margin improvement. Costco Wholesale, with a market cap of $40 billion, operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover.


US Weekly Economic Calendar

time (et) report period Actual forecast previous
8:30 am Chicago Fed national activity index May -0.45 -- 0.08
10 am New home sales May 369,000 348,000 343,000
9 am Case-Shiller home price index April 1.3% -- 0.0% nsa
10 am Consumer confidence June 62.0 63.0 64.4
8:30 am Durable goods orders May 1.1% 0.0% -0.2%
10 am Pending home sales May 5.9% -- -5.5%
8:30 am Weekly jobless claims 6-23 386,000 385,000 392,000
8:30 am GDP 1Q 1.9% 1.9% 1.9%
8:30 am Personal income May 0.2% 0.2% 0.2%
8:30 am Consumer spending May 0.0% 0.0% 0.1%
8:30 am Core PCE price index May 0.1% 0.2% 0.1%
9:45 am Chicago PMI June 52.9% 53.0% 52.7%
9:55 am UMich consumer sentiment June 73.2 74.0 74.1