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Bernanke Fails to Move Gold Market Lower

This is the single, ultimate indicator of longer-term technical strength; thus providing both a shorter-term picture and a longer-term picture of a market which has just begun (another explosive) rise. Looking at the market from even a more long-term perspective, the 18 months of sideways-to-lower price action has "built a base" (a huge base) in a market in the middle of the longest/strongest bull-run in market history.

This, in turn, shows a market capable of now moving higher (without any significant interruption) for many, many months. Cautious bulls might want to make themselves aware of one more future event: next Friday's jobs-propaganda from the U.S. Bureau of Labor Statistics.

There are two reasons, however, why I am already expecting this next potential "ambush date" to represent another failure for the banking cabal. First, their attempt to move the market lower on last month's (phony) jobs report was another dismal failure .

The reason why that attack failed was that anyone who looked at the details of the July report saw that the BLS had made a gigantic "seasonal adjustment" (higher) in the jobs numbers -- to reflect predicted layoffs (in the auto industry) which were canceled at the last minute. Having padded last month's jobs report with somewhere in the vicinity of 200,000 fantasy jobs, those fantasy jobs must be subtracted in this month's report (to reflect what actually took place).

This means we will see one of two things in next Friday's U.S. jobs numbers. We will see a terrible, negative number -- as current job-losses plus the huge, downward revision from last month produce a large, net job loss. Or, we will see the BLS suffer a(nother) bout of "amnesia," fail to subtract the imaginary jobs it added in the prior month and destroy its credibility with a much larger segment of the mainstream public.

Note that this stunning breakout in the gold and silver markets occurs just as gold and silver are entering their traditional "strong season." Sound the horns, and proclaim the march forward! The bankers are now in full retreat.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
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