07 October 2016

Gold Daily and Silver Weekly Charts - 'Goldilocks' and The Recovery®

The Jobs Report came in weakly this morning, almost surprisingly so, all things considered.  It was heavily touted on the financial infomercials that pass as business news as a 'goldilocks' report.

If the Fed did not want to get off the ZIRP boundary so badly I would be guessing that they would be doing nothing much until there was a real indication from the economy that it was warming up. But since they do want higher rates for their own policy purposes then a one-and-done in December still feels like a viable option.

Gold and silver were hammered this week. The notion that this was normal market action is risible nonsense if one looks at the actual tape of the huge sales at market in quiet hours. It was classic market manipulation.

The problem for the bullion bullies was the huge overhang of longs in the October and December contracts, stacked up against the steadily shrinking supplies of freely available metal.

This week was opportune for this sort of 'technical trading' because he largest physical market in the world in Asia was closed for a holiday week. It was also a Non-Farm Payroll Report week, which is one of the signal events for gold selling.

Andrew Maguire says this was an opportunity for the wiseguys who were trapped in naked shorts by the Brexit event to get out of their losing trades. That makes much more sense to me than Rickard's notion of the Western central banks conspiring to knock down the price to give China a chance to buy more gold.

But time will tell.

Speaking of time, it looks like after five years the guy at the center of the MF Global looting of customer accounts is going to be held to a wristslap (for him) fine and no trial. I think his executive insurance is covering most of the legal fees and perhaps any fines.  It pays to be friends with the Wall Street Democrats.  Their hypocrisy in pursuit of money apparently knows no bounds.

The clearing reports from yesterday were quite, as were the warehouses although I did include those figures just for reference.    The Comex is not a very good measure of what is going on in the metals anymore.  Perhaps it was at one time.

The key price level supports held, and next week we will see if Asia has a taste for the metal at oversold prices.

The American League Divisional Series have been entertaining so far, although the coverage by TBS is not nearly as sophisticated as the playoff coverage from ESPN.  I preferred watching it today to this nonsensical market rigging puppet show.

Have a pleasant weekend.