16 September 2020

Stocks and Precious Metals Charts - Let's Party Like It's 1929 - Quad Witch Option Expiration on Friday


“Human nature being what it is, small loopholes are likely to be exploited until they become big ones, and big ones until they turn into financial disasters.”

Seth Klarman


“Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation.”

 John Maynard Keynes


 “As a rule, Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works.”

 John Stuart Mill


“Booms start with some tie-in to reality, some reason which justifies the increase in asset values, and then -- and this is the critical feature of speculative mood -- the market loses touch with reality.”

 John Kenneth Galbraith


Stocks tried to rally today.

There was a sector shift out of big cap tech and into the broader small caps and the Dow.

 But alas, it was not meant to be. 

Stocks went out on the lows of the day, as Powell Punch lacked enough sizzle to keep the party going.

Jerome Powell made some very incisive points in his press conference, especially with regard to the relative fragility of the recovery due to its striking lack of broad participation and organic growth.

He did say that they saw no asset bubbles, but what else would he be expected to say in his position.

Gold and silver were rallying, but gave up some of their gains.

The dollar was slumping but was largely unchanged.

The 'dot plot' indicates that the Fed will keep interest rates close to zero through 2023.

The economic data from July showed a striking lack of foreign money flowing into US debt.


There will be a quad witch expiration on Friday.

We turned the heat on this morning for the first time this season.  It was very cold overnight.

Google seems determined to force me to use this dopey new version of blogger. It has some real drawbacks, and no discernible advantages.   I wonder why they did it, and for whom?  The old version worked well and was stable.  This new one is awkward and buggy.

Well, at least the price is right.

Autumn is in the air.   Winter is coming.

Have a pleasant evening.