Stocks and Precious Metals Charts - Risky Business - Stocks Set New Low to End the 3rd Quarter

 

“The Scriptures are shallow enough for a babe to come and drink without fear of drowning and deep enough for a theologian to swim in without ever touching the bottom.  Ignorance of the Scriptures is ignorance of Christ."

Let them not flatter themselves if they think they have Scripture authority for their assertions, since the devil himself quoted Scripture, and the essence of the Scriptures is not the letter, but the meaning. Otherwise, if we follow the letter, we too can concoct a new dogma and assert that such persons as wear shoes and have two coats must not be received into the Church.

"The privileges of a few do not make common law.  To sin is human, to lay snares is diabolical.   They fill their houses through the plunder and losses of others, so that the saying of the philosophers may be fulfilled, 'Every rich man is unjust, or the heir of an unjust one.'"

St. Jerome


"The blessed John the Evangelist lived in Ephesus until extreme old age.  His disciples could barely carry him to church and he could not muster the voice to speak many words.   During individual gatherings he usually said nothing but, 'Little children, love one another.'   The disciples and brothers in attendance, annoyed because they always heard the same words, finally said, 'Teacher, why do you always say this?'  He replied with a line worthy of John: 'Because it is the Lord's commandment, and if it alone is kept, it is sufficient.'"

St. Jerome, Commentary on Galatians, 4th century, based on the commentaries of Origen of Alexandria

Stocks set a new low on the CrashTrak chart, and the lowest low since the initial pandemic lockdown stock collapse.

Gold was flat and silver was slightly higher.

The Dollar was unchanged.

VIX was unchanged but still elevated in the 30's.

Bully has to find a bottom here soon and get stocks turned around or the winds of October may blow a hurricane.

Have a pleasant weekend.

 

Stocks and Precious Metals Charts - Who Could Have Seen It Coming? - Comex Gold Option Expiration Tomorrow

 

"We looked into the abyss if the gold price rose further.  A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.   Therefore at any price, at any cost, the central banks had to quell the gold price, manage it.   It was very difficult to get the gold price under control but we have now succeeded.  The US Fed was very active in getting the gold price down. So was the U.K."

Eddie George, Bank of England, From Reg Howe v. BIS, JPM et al.


"What is offensive is that they lie, and worship their own lying."

Fyodor Dostoevsky, Crime and Punishment


"It is in the gold lending market that the central banks of the world lend out their gold holdings to commercial bullion banks, where the physical gold is sold and shipped out, and where the central banks then claim to hold interest-earning ‘gold deposits’ with the bullion banks.   These gold-deposits (which are merely a claim on a bullion bank) then mostly roll over short-term, passed around indefinitely between the clubby LBMA cartel of bullion banks, in a totally opaque behind the scenes network.

The physical gold bars lent out are long gone to Switzerland and the Far East, and the central banks then deceptively claim that they still hold the gold on their balance sheets when in fact all they have is a liability to the bullion banks. In the middle of this market sits the Bank of England, offering gold custody and storage to other central banks (in the vaults under the Bank of England headquarters in London) and offering gold accounts to the bullion banks concerned."

Ronan Manly, French central bank and JP Morgan team up to boost Gold Lending


The Dollar jumped to take the 114 handle today, off the weakness in the Euro, Yen, Pound et al. 

This record Dollar strength poses serious earnings risks for dollar-based companies with international exposure.

Gold was hammered down to a multi-year low, along with silver.

Tomorrow is a fairly important Comex option expiration for gold, for the October contract. 

What a surprise.

The physical inventories in Hong Kong Comex warehouses remained very thin.   

Bonds are getting clocked by the rising interest rates, although the shorter term bills can be held to maturity.

Gold from the ETF selling may be some assistance, in addition to the usual Bank shenanigans.

Stocks were lower once again, with the SP flirting with the important CrashTrak prior low.

I don't think we have seen capitulation in the equity markets yet.

Or from the gold and silver cartels in NY and London either.

What is the old market saying, Sell Rosh Hashanah and buy Yom Kippur.

But the high ground seems to be a reasonable good position for waiting, as indicated many times here previously. 

Or perhaps even more appropriate for this year,  Sell in May and go away.

The atonement for the Wall Street financial assets bubble compels the Fed to continue to feed our children's future to the Moloch of the money men.

But in this as always, remember what is truly important.

"The most important problem in the world today is your soul, for that is what the struggle is about."

Fulton J. Sheen

There are the three great gifts of His tender mercy. 

 Repentance - forgiveness - thankfulness.

Have a pleasant evening.

Stocks and Precious Metals Charts - Don't Get Out of the Boat - Option Expiration on Friday

 

"Hot money seeks out the conscious mispricing of risk. Capital, in the form of both money and personal talent, increasingly flows into malinvestment and the gaming of markets. The productive economy languishes, left wanting for the lack of creative resources and attention. The bubble rises to unsustainable valuations— and fails, and a nation's capital is consumed.

The next five years are not about winning, but surviving."

Jesse, The Men Who Sold the World, 5 August 2019


"He who sells what isn't his'n,
Must buy it back or go to prison."

Daniel Drew


"When we look back on this period in time with the perspective of history, we will see markets dominated by control frauds and mispricing of risk that will seem painfully obvious.  Why do we not see this now?   Why did so few see it coming 2007, and in 2000?  Perhaps because the money is too good, and our societal judgement is too corrupted, often willfully so.  Bubbles have a surprising resiliency, as does evil in a hardened heart.   And for the same reasons."

Jesse, April 2021


"This place is like somebody's memory of a town, and the memory is fading. It's like there was never anything here but jungle."

Rust Cohle, True Detective

Stocks managed to rally today despite, or perhaps because of, the stunningly bad Empire State Manufacturing Index.

We don't need no stinking real economy.  We just need more easy Fed money.

Gold and silver were hit hard, and the Dollar rallied.

And it turned out to be a risk on day.

Run bully, run.

Option Expiration for August on Friday. 

For the rest of the year remember, never get out of the boat.

Have a pleasant evening.

Crash of 2008 In One Picture

 

"There are recurring cycles, ups and downs, but the course of events is essentially the same, with small variations. It has been said that history repeats itself. This is perhaps not quite correct; it merely rhymes."

Theodor Reik, The Unreachables, 1965


History never repeats itself, but the Kaleidoscopic combinations of the pictured present often seem to be constructed out of the broken fragments of antique legends."

Mark Twain, The Gilded Age, 1874


“History does not repeat itself. The historians repeat one another.”

Max Beerbohm, 1896


I have included the CrashTrak plot in the aftermath but originally I was posting it when the signal was given in June 2008.

I have stopped including 1987 in the historical reference because although it fits the pattern it was in fact a hellacious flash crash noted for it brief intensity, quickly addressed with a flood of liquidity by Alan Greenspan.

 

Stocks and Precious Metals Charts - God and Mammon

 

"You either belong wholly to the world or wholly to God.  If people would do for God what they do for the world, what a great number would go to Heaven.  Our greatest cross is the fear of crosses.

Envy follows pride; whoever is envious is proud.  Envy comes to us from Hell; the devils having sinned through pride, sinned also through envy, envying our glory, our happiness.  Why do we envy the happiness and the goods of others?  Because we are proud; we should like to be the sole possessors of talents, riches, of the esteem and love of all the world!

Everything is good and precious in God’s sight when we act from the motives of adoration and of love. Christ tells us that even offering someone a glass of water would not go unrewarded. You see, my children, that although we may be poor, we can still easily give alms.

How good is our God!  When we are no longer able to come to Him, He comes to us.  We are each of us like a small mirror, in which God searches for His reflection.

If you pray and love, that is where happiness lies.  It is always springtime in the heart that loves God."

John Vianney, Curé of Ars

"Le secret des grandes fortunes sans cause apparente est un crime oublié, parce qu' il a été proprement fait."    (The secret of great returns which are difficult to explain is a crime that has not yet been discovered because it has been carefully executed.)

Honoré de Balzac, Pere Goriot

"The real collapse of our currency began when it became evident that certain industrial circles were more powerful than the government."

Adam Fergusson, When Money Dies: The Nightmare of the Weimar Collapse

The VIX and Dollar dumped, and gold and silver shot higher.

Gold is now up to some serious resistance in the short term.

Stocks had another ranging day, finishing slightly higher to unchanged.

The markets are waffling ahead of tomorrow's Non-Farm Payrolls report.

And that is just another indication of what a Fed-driven mispriced market we have. 

I could not find enough conviction to take any serious position ahead of the report, so we'll just have to see what happen.

Daisy is responding remarkably well to treatments and is settling in to her new environment.

Have a pleasant evening.

Stocks and Precious Metals Charts - Aspirations

 

"It is the time of the harvest, and the reaper cuts into the ripe grain with wide strokes.  Mourning takes up her abode in the country cottages, and there is no one to dry the tears of the mothers.  Yet Hitler feeds those people whose most precious belongings he has stolen and whom he has driven to a meaningless death with lies.

Every word that comes from Hitler's mouth is a lie.  When he says peace, he means war, and when he blasphemously uses the name of the Almighty, he means the power of evil, the fallen angel, Satan.  His mouth is the foul maw of Hell, and his power is at bottom accursed.  True, we must conduct a struggle against the Nazi terrorist state with rational means; but whoever today still doubts the reality, the existence of demonic powers, has failed by a wide margin to understand the metaphysical background of this war.

Behind the concrete, the visible events, behind all objective, logical considerations, we find the irrational element:  The struggle against the demon, against the servants of the Antichrist.

Everywhere and always demonic powers lurk in the dark, waiting for the moment when man is weak; when of his own volition he leaves his place in Creation, as founded for him by God in freedom; when he yields to the force of evil, he separates himself from the powers of a higher order; and after voluntarily taking the first step, he is driven on to the next and the next at a furiously accelerating rate.

Everywhere, and at times of greatest trials, men have appeared, prophets and saints who cherished their freedom, who preached the One God and who with His help brought the people to a reversal of their downward course.  Man is free, to be sure, but without the true God he is defenseless against the principle of evil.  He is a like rudderless ship, at the mercy of the storm, an infant without his mother, a cloud dissolving into thin air."

Please distribute this as widely as possible.

The White Rose, Fourth Leaflet, Munich, 1942

“"It is very easy to get drunk with hate. Hate is like the glass of whisky which is given to the soldiers before a bayonet charge. Whisky stimulates but does not nourish. Hate is not creative, only love is creative.

No one in the world can change truth.  What we can do and and should do is to seek truth and to serve it when we have found it.  The real conflict is the inner conflict.  Beyond armies of occupation and the catacombs of extermination camps, there are two irreconcilable enemies in the depth of every soul: good and evil, sin and love.  And what use are the victories on the battlefield if we are ourselves are defeated in our innermost personal selves?”

Maximilian Kolbe, executed at Auschwitz, 14 August 1941


"The most important problem in the world today is your soul, for that is what the struggle is all about."

Fulton J. Sheen

 

Stocks tried to shake off the bad earnings report from Snap, which cast doubt on the health of the online advertising milieu.

And some of the big tech regulars are announcing hiring freezes.

Next week the big tech heavyweights will be rolling out their earnings reports.  That may likely set the tone for the week.

And the Fed will be meeting again.   

Gold and silver rose with the continuing Dollar drift lower.

Gold managed to hold on to some of its gains, but silver fell with equities and finished up flat on the week.

Most investors will find it more practical to play the long game with gold and silver, and hold it without leverage for the longer term. 

Wall Street is a corrupting and poorly policed casino.

Need little, want less, love more.  For those who abide in love abide in God, and God in them.

Have a pleasant weekend.