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Stocks came in weak on poor economic news. The professional funds and trading desks managed to buy the major stock indices on low volumes, allowing stocks to drift higher most of the day.
Hollow and cynical market, with very weak underpinnings. Handle with care.
The bounce in silver continued, with gold experiencing a little more capping today, and the dollar once again failed to obtain positive traction.
This market gives me a bad feeling, and I am tending to like bullion more than miners.
I took everything off the table short term today, and booked the profits.
What next? Obviously the next move in equities and the dollar are key to many things. The end of QE II, at least in name only, is at the end of June. The US is tottering towards a budget crisis on August 2.
The market does not seem to be pricing anything risk-wise in yet, and seems very hollow.
Intraday 24hour gold showed a remarkable gain in the deliverable silver inventory at the Comex. This is not squared up with the public numbers from the exchange, and so I wonder if this is a glitch. We'll know soon. If it is correct I think the site needs to explain their sources ahead of the market. But all things considered, I am skeptical until the numbers are 'official.'
Later: There is no such increase in inventory shown from the Comex per Harvey Organ's update this evening. I have sent another email to 24hgold and asked them to correct or clarify their chart. I think it is just one of those things and not true.
"Had I the heavens' embroidered cloths,
Enwrought with golden and silver light,
The blue and the dim and the dark cloths
Of night and light and the half light,
I would spread the cloths under your feet.
But I, being poor, have only my dreams.
I have spread my dreams under your feet;
Tread softly because you tread on my dreams."
W.B. Yeats, Cloths of Heaven
Futures were very weak overnight, and for the 10,001st time the bulls came in and bought the market back up on light volumes. I took my short profits in the first ten minutes and let the metals run into the last hour and took the miners off as well.
I just *hate* this market action.
Consequently I took almost everything short term off the table today and booked my trading profits. I want to see what comes next. I don't think the market will decline severely yet, but like most traders I have one eye on June and the nominal end of QEII.
After the bell the Freescale IPO priced at the bottom of the range, at $18.
The US has a three day holiday weekend (Memorial Day) coming up.
