So Much For Taking Control: Silver Gets Sniped On The Battlefield As Gold Is Pinned And Under Fire

SD Friday Wrap: Silver has gone down, gold is pinned down and under fire, and we are losing ground on the battlefield. Here's the situation...

Editor's Note: This Friday Wrap was started on Friday at 1:30 p.m. EST and does not include any market/price action after that time.

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The gold to silver ratio is right at 80 again:

The good news is that the 50-day moving average is pointing down, and we do know that this extreme is unsustainable - "frothy" as the central manipulators like to call it.

And that just about wraps it up for the good news this week.

Well, kind of.

More on that later.

Silver has been sniped on the battlefield:

The technicals are breaking down and breaking down fast.

The silver price is closing below its 50-day moving average (bearish), we're down 5 of the last 6 days, volume is fading, and we have a bearish crossover on the MACD.

All in all, silver is looking a little pale right now.

That's putting it lightly.

Silver's lost a lot of blood, and we really need to see the bleeding stop.

But let me draw your attention to silver's weekly chart:

Is it just me, or is the flat-lining reminiscent of the suppressed VIX last year?

And we know what happened to the VIX: It spiked up from 10 to 50 and is now base building from a higher level. Silver is starting to look eerily similar to that set-up.

The experts who say the move is going to be "explosive" are looking more right as the weeks drag on.

One final note on the weekly chart above: That's a nasty "bearish engulfing" candle on the end, and it's below both the 50-week and the 200-week moving averages.

Granted, the moving averages are one on to of the other (also just like the VIX), so in reality, the cartel is only putting off the inevitable.

So here we sit folks.

Practically rounding out April and silver is a sixteen bucks.

And fifty cents.

Amazing.

And we see MAGA isn't working out as planned:

With three consecutive quarters of declining growth, and increasing inflation, what does that spell?

S-T-A-G-F-L-A-T-I-O-N.

That's a dirty word in theory and even nastier in practice.

Buy alas, while everything in the entire world goes up in price - not silver.

Oh no.

Silver is the only thing in the world that goes down in price, no matter the environment.

Whether it's inflation (silver goes down), stagflation (silver goes down), or deflation (silver goes down even more), and heck, when the hyperinflation finally kicks in because the ESF and the Fed have administered a final, lethal dose of currency to manipulate markets, well silver will probably go down in that environment too.

Just don't go thinking you'll be able to buy any.

Because silver will go into hiding better than Jimmy Hoffa.

Back on track.

Gold is down five of the last seven days:

We're now well below the 50-day moving average, and the MACD still looks pretty bearish right now.

We really need that $1310 close from March 20th to hold, lest we put in a nasty short-term downtrend with a new lower-low.

On the weekly we can see that gold is still holding on (barely) to its uptrend:

You might want to take a shot of Pepto or pop a Tums as we move on to the other two precious metals.

Palladium is about to put in a "Death Cross" any day now:

If this rally doesn't get up an moving soon, we could be in for some serious "lower for longer".

And platinum?

This is a bearish trend if I've ever seen one:

I'm not quite sure today's bounce is the pivot either.

That closing lower-low we put in on Wednesday, combined with the fact that the Relative Strength Index is not screaming "oversold" leads me to the assumption that the worst is not over.

Copper is indicating it's not over either:

If copper closes below, call it, $2.98, we're in for a world of hurt.

Oblivious to all of this is crude oil:

Crude is consolidating recent gains, call it the $68 level.

Here's the thing: The price of crude is a key component to the cost of mining gold & silver.

With a rising price of crude oil, so too rises the cost of production.

So if crude is going to keep rising, ultimately breaching the $70 a barrel (which could be soon), then the metals will have to rise in price.

After seven painful years of price smashes on gold & silver, there's just no way for the miners to sell at a loss and make it up on volume.

That dog don't hunt.

But things really could turn on a dime here.

Here's why:

(I just noticed that is supposed to say "shooting star" not "shooting start").

The dollar looks to be running out of steam for this rally.

We've got a "Gravestone Doji", or a "Shooting Star Doji", or whatever you want to call it doji, but whatever you call that last candle on that chart of the dollar, don't call it bullish.

Furthermore, we are close to arriving at an "overbought" level on the RSI.

In fact, when the GDP number hit the tape today, I asked if we've seen the top in the dollar rally?

I think we have.

We'll see.

The dollar couldn't breach 92, and it has been rising for 8 of the last 9 days.

And if the dollar rally is over, that means the metals are set to reverse, which means it's rally time for gold & silver.

Part of my reasoning for why we could be topping here with the dollar is fundamental in nature. It looks like the U.S. economy has seen the best it's going to see.

So what does that tell you about people's desire to invest in all things United States, including using dollars to buy American stocks?

Furthermore I will say this, and it probably won't be well received, but it needs to be said: All this MAGA talk from President Trump, I really do think it's not meant for us.

If the President's MAGA proclamations are not meant for us, then who are they meant for?

Foreigners.

If the foreign MSM is controlled by the CIA, which it is, then the soundbites and video clips seen abroad paint the picture of an America that's just booming - all to attract foreign direct and indirect investment into dollars and U.S. based goods & services.

It's genius!

Unless you're an American.

Then it's just a kick to the...

But sooner or later people grow up, foreigners too, and the magic tricks don't seem to have the same, well, magic, that they once had.

And the illusion of MAGA will be understood as just that - an illusion.

Are we at that point?

It's hard to tell, because President Trump has been unclear as to what his actual policy for the Dollar is.

Does he want a strong dollar, which can be assumed by his recent attack on OPEC and the price of oil last week, or does he want a weak dollar, so the U.S. can export more and attract more foreign investment?

There are other variables to a strong dollar or a weak dollar policy, but that's not the point.

Besides, my argument would be the dollar should neither be strong, nor weak, but rather, a specific weight and purity of gold & silver.

As required by the United States Constitution.

But that's not the world we live in right now.

We live in the land of make-believe.

My point about President Trump and his dollar policy is what does the President want right now?

Or is "confusion" on his dollar policy the policy?

The markets haven't been able to figure it, nor have I, as evidenced in part by the recent surge of the dollar.

Now that there's nothing but peace, love and happiness in the world, volatility is again subsiding again:

But if that's true, and I'm talking fundamentally here, and not really about the VIX but about peace, love and happiness, then how do we justify our military presence in South Korea going forward?

I get it - "We need to stay over there to make sure things go smoothly".

Yet it does bring up an interesting question: Think of all the U.S. debt-based fiat currency spent in and around the Koreas on defense.

Where will all those troops go?

What about those expensive "drills" and "exercises"?

What will we spend the money on if North Korea is no longer a foe but a friend?

That's a topic for another day, but sooner or later we need to be asking those questions.

Besides, we need to have that talk sooner or later.

But not right now.

Right now, let's talk about TNX.

The yield on the 10-Year Note finally breached the psychological level of 3.0% this week:

While yield has pulled back somewhat, we're still well above 2.9%.

If there is truly peace, love and happiness in the world, however, bond yields would be rising, because people would not need the "safe haven" or "Flight to Safety" in the bond market, but rather, they would be inclined to take on more risk by going into riskier assets like stocks.

You see, when there's fear, uncertainty, war, and the like - people don't take risks with their finances.

But when there's peace, love and happiness, people do.

So how can you explain bonds being bid even though the tension in the world is suddenly no more?

I'll spell it out for you: M-A-N-I-P-U-L-A-T-I-O-N.

Which has an alternative spelling: I-N-T-E-R-V-E-N-T-I-O-N.

And both of those spellings are the product of two direct inputs: The ESF and the Fed.

So interestingly, there is now peace, love and happiness in the world.

Yet people aren't taking on risk:

In fact, the DOW is having the darnedest of times trying to muscle out some gains here.

But as the reality of this fake economy, these fake markets, and this fake world peace (because believe me, the military security complex will find an enemy), all of the charts above are going to reverse their short-term trends of late.

And when that happens, gold and silver won't need to muscle out anything.

Because the people will be rushing into the sector and buying up anything and everything gold and silver that they can.

Hand over fist.

And at that point, the best thing to do would be to just grab a bucket of popcorn and watch it all unfold.

Because when these markets reverse, just like the VIX earlier this year, gold & silver could be "explosive".

And we've got to wait until the dust settles so that we can then come out on top.

And come out on top we will.

Stack accordingly...

- Half Dollar