28 October 2014

Gold Daily and Silver Weekly Charts - Quiet Option Expiration, Markets In Lockdown

One of the savvier traders and commentators I know told me this morning that 'the markets are in lockdown,' and I think he had it exactly right.

The Fed is very sensitive to provoking a market sell off in anything except precious metals perhaps when they formally announce the end to QE III tomorrow.

I would expect an extra effort to placate stocks and bonds. Moderate growth, low inflation, all is well, but we'll act quickly in case anything upsets our clientele on Wall Street. As for Main Street, we'll send a 'get well card.'

If there are any fireworks coming in the metals it would be an FOMC related 'gut check' over the next couple of days.

You would have to be almost blind, deaf, and dumb, or maybe just a willfully whole lot of the last of these, to not yet realize that something very big is going on in the world of global economics.

Have you noticed that the US and a few of its client states seem to be at odds with just about everyone else in the world? That is the currency war. It is the struggle to maintain and increase political dominance through the use of the dollar and financial institutions, essentially to control the world's money supply and extend the Pax Anglo-Americana forever.

It is good to remember that just are there are military neo-cons pursuing the New American Century, so there are financial counterparts, who while a minority have enormous financial power and thereby political influence.

Change is coming. It will take longer than we expect, but when it starts to show, it will come much faster than expected.

Have a pleasant evening.