09 February 2018

Stocks and Precious Metals Charts - Something Wicked This Way Comes

“Imaginary evil is romantic and varied; real evil is gloomy, monotonous, barren, boring. Imaginary good is boring; real good is always new, marvelous, intoxicating.   Everything beautiful has a mark of eternity.”

Simone Weil

"Come, Lord, let your face shine upon us so that we may peacefully enjoy all good things.  May your powerful hand be a roof over our heads, and may your strength preserve us from all evil.  Free us, Lord, from those who would hate us without cause.  Give peace and harmony to us, and to all the inhabitants of the Earth, as you gave them to our fathers, who called upon you with faith and trust."

Clement of Rome, Letter to Corinth, 95 AD

"Double, double toil and trouble,
Fire burn and cauldron bubble.
Cool it with a baboon’s blood,
Then the charm is firm and good.
By the pricking of my thumbs,
Something wicked this way comes."

William Shakespeare, Macbeth

“Hell is empty
And all the devils are here.”

William Shakespeare, The Tempest

Stocks had another wild day, ranging down to test the lows, and then rally back to positive gains after the rest of the world had gone to bed for the week. I am not so sure that we are done with this. The lack of conviction in the buying is palpable.

I am not sure where this short term correction will go. I did say it was coming as a reaction to a blow off top. No matter what happens in the short term, I think unless we get a cleansing of the system and some meaningful financial reform that we will see something that will be remembered as 'a crash' once again, as we had seen in 1997, 2001, and 2008.

And this next one is likely to be of an even greater magnitude, as each of the prior financial collapses have been.  And I am concerned that the next one is going to leave a tear in the social fabric, and the balances in the global relations and economics.  People will only take so much. And the reaction of the status quo will set the tone and theme for where it goes from there, and how deeply.

Gold and silver continued to slide sideways, with each rally attempt being firmly pushed down to what looks like a long trading range. The physical inventories of gold offered for delivery in the Comex warehouses is once again getting a bit lean.

The Dollar managed to rally just a little bit higher.  It has worked off its deeply oversold condition now.

Next week we will be getting quite a bit of economic data, including the PPI and CPI, and Import and Export Prices. This may tend to affect the markets, and their recent epiphany about higher interest rates— or not.

Devils' Hands in Hell, Rong Khun Temple, Thailand
The Congress critters never cease to amaze. After having recently slashed taxes for the wealthiest few, and increased military spending while once again forbidding the government from negotiating cheaper prices with Big Pharma, the campaign has already started to cut Medicaid and Medicare in order to make up for the deficits.

They are certainly not shy about being hypocrites, and not too lazy to steal from the weak and the disadvantaged.  All these things are for the benefit of the powerful and the wealthy, whom it is that they serve.  It would have been better if they had never been born, than to betray their oaths and sacred trusts.  And you would spend an eternity with these?

The weather is hard on all of God's creatures, but especially the least of these.  Please remember to care for them.  It may help to open your minds and hearts, making you into a more attractive and happier person.  Or at least less miserable.  And in the end to save your life.

For until we look with pity and love on the unfortunate we cannot see God, who comes to us quietly, in order to save us, through the overlooked and the despised.  And so the worldly and the proud do not see Him, and are consumed by themselves.

Need little;  want even less;  love more.

Have a pleasant weekend.

Related: Biggest Two Week Decline in SP 500 Momentum Indicator Since 1928