30 September 2013

Gold Daily and Silver Weekly Charts - Capping For a Non-Farm Payrolls Report

"The war for liberty never ends. One day liberty has to be defended against the power of wealth, on another day against the intrigues of politicians, on another against the dead hand of bureaucrats, on another against the patriot and the militarist, on another against the profiteer, and then against the hysteria and the passions of the mobs, against obscurantism and stupidity, against the criminal and against the overrighteous.

In this campaign every civilized man is enlisted till he dies, and he only has known the full joy of living who somewhere and at some time has struck a decisive blow for the freedom of the human spirit."

Walter Lippmann
It was cap, cap, cap today, as the precious metals were held back in a week of budget crisis, a Non-Farm Payrolls Report, and the beginning tomorrow of the active delivery month of October.

This is likely to be a confusing week with lots of cross currents and volatility as markets overreact to news. Traders love this sort of volatility, especially if they have advantageous access to information both in market structure, timeliness of orders, and economic events.

I put a brief explanation on the two separate political events that are occurring, the new fiscal year budget and the debt ceiling discussions into the stock market commentary this evening, for those who do not understand the US budgeting process and legislative process.  That includes just about everyone, including the politicians, but only if you believe what they are saying. 

Have a pleasant evening.