"Many people think of our times as being the last before the end of the world. The evidence of horror all around us makes this seem possible.
But isn't that an idea of only minor importance? Doesn't every human being, no matter which era he lives in, always have to reckon with being accountable to God at any moment? Can I know whether I'll be alive tomorrow morning?
A bomb could destroy all of us tonight. And then my guilt would not be one bit less than if I perished together with the earth and the stars.”
Sophie Scholl, Munich, 1942
The markets caught a whiff of fear, and the air started quickly coming out of the excess liquidity fueled bubbles in financial assets.
Gold and silver caught a bid in a pretty clear 'flight to safety' trade.
But at the same time the drops in the markets were long expected and fairly controlled, despite the hike in the VIX which we also saw today.
The wiseguy rally into the close in equities yesterday had me laughing a bit. I went into today fairly short stocks and very long gold and even some silver.
I only mention the short stocks positions to let you know that I took most of them off into the close. I don't like to hang on to these leveraged index shorts for very long.
We *might* have more downside action in stocks coming. That is pretty much up to the latest from Twitter Dum and the Kim Chi Kid.
If the markets get any indication that this whole thing is hot air, then expect a rocket rally.
They don't learn their lessons all that easily.
Let's hope for the best in any case.
As for gold, we will know when real fear is in the markets. We will see the physical inventory at the Comex listed warehouses in Hong Kong empty overnight.
The big resistance remains around the 1300$ level.
Have a pleasant evening.
