Monkey Hammered Muppets and Gold Technical Analysis
Monkey Hammered Muppets and Gold Technical Analysis by Trader Stef
If you missed my recent analyses on the price advance of gold, I suggest you review “A Silver Note and the Screaming Gold Rally Pauses After the Dog Days of Summer,” published on Aug. 31, “Savvies Were Aware of the Near-Term Risk for a Pullback in Gold and Silver,” published on Sep. 7, and “Gold Gamblers Spoofed Into RICO Prison,” published on Sep. 22. There was no major change in the CFTC’s Commitments of Traders (CoT) report data on Oct. 8, as there is a standoff of sorts over the last several weeks without a major shift in positioning vs. the price trend, so I will not cover the CoT today.
I find the intermittent blindness that permeates a small contingent of the precious metal punditry to be quite stunning and comical. It cannot have its cake and eat it too. On one side of the mainstream ticker and social media sandbox, we have financial headlines such as “China Trade Intrigue, Algos React to Old Mo and Spread News” that casually attribute the endemic algo-driven flow of capital as mere passing moments in a benevolent ether.
“Again, hooray. Yet who can deny that there was indeed a speculative nature to this action? Who can deny that as high-speed algorithms are where the volume is in 2019, and that while many of these algos are designed to react instantly to headline news, while others game the momentum? Well, there was plenty of momentum, as well as plenty of headlines to key in on late Friday. I remain not quite negative, but unconvinced.”
On the other side, we have unabashed whiners experiencing mental breakdowns with each and every inevitable price breather that gold and silver must take, and they have suddenly jumped onto a new algorithmic conspiracy hayride. The Banksy monkeyscan see what the peasant monkeys do.
Just like the global warming cultists that converted to a “climate change” catchphrase after facts caught up with the conspirators and chiefs, the troll farm and “blame anything but the obvious” crowd that existed well before Greta’s “how dare you” meme, has adopted that brand of hysteria after a DOJ spoofing indictment for gambling within the institutionalized digital spaghetti. The wired angel hair of modern automated trading platforms that regurgitate algorithmic mayhem laden with machine learning AI, HFT, and dark pools took root and matured a decade before the SEC or DOJ had an epiphany to finally grow a pair and recognize the weather patterns of modern trading technology.
The weather of our Sun in relation to earthbound cyclicality is primarily responsible for climate fluctuations on Earth. The theory that man can finitely control such a complex system by eliminating cow farts and implementing social schemes that are designed to tax you until death do us part as globalists thrust their surveillance state upon us is foolhardy ignorance. A similar level of complexity now exists within the interconnected global financial system that transcends nanosecond moments. To theorize that the minuscule precious metal pricing mechanism within a global financial monstrosity is infinitely controllable beyond human nature as capital flows follow the path of least resistance is bordering on a misled insanity.
Technocracy has unwittingly unleashed a self-aware contemporary Hal upon the financial markets, and we are forbidden by our biology to join as a member. The machine-learning club does not care about your feelings or assumptions of what any particular asset, equity, or market should do, no matter how deep an in-the-know access may consider itself.