Gold Daily And Silver Weekly Charts - His Mills Grind Slow, But Exceedingly Fine

Today was gloom over Europe day, as concerns about European economic growth had stocks on the ropes, and a late day downgrade on the credit outlook for France had stocks selling off.

Traders are watching 1905 on the SP 500 cash very closely, because that is its 200 DMA. If we break it and don't bounce, the day after next could see a gap down open.

The Comex continues to be a showpiece, Madame Tussaud's on the Hudson, with little actual metal activity except for CNT which is providing bullion for the US government in their silver eagles sales, which are breaking records.

Jack Lew spoke to the IMF today, and had some hard words for Europe about doing things to stimulate aggregate demand.

Well considering that the Russia sanction which the US forced on Europe are hurting, and the austerity they imposed thanks to the massive control fraud perpetrated by the US based global Banks, I doubt the Europeans were taking his advice too well.

I might like to remind Jack that despite the lower unemployment rate that has the intelligentsia so mesmerized and happy, in fact the jobs being added are low wage, and overall the real median wage is falling.

In other words, Jack, unless you are one of the one percent, things do not look so good in the States either, and it is going to start showing through the threadbare sleeves of our real economy statistics beyond the accounting gimmicks.

I am keeping a very open mind on this, but to me the lower highs and lower lows that have been steadily hammering away at the precious metals are going to break down fairly soon, and the reaction might help us to forget some of the distasteful actions of our own guys in papering over their errors and missteps. And we ought not to forget. These half measures keep adding to the growing climate of moral hazard in the Western financial sector.

 

Party like its 1999

 

Here is an interesting article about IPOs and their financials.  Are we really at the threshold of a bubble?   I think we are beyond all that if you account for the real economy in this equation.

 

Let Wall Street tell us again that gold and silver are dodgy investments, but stocks and bond are such values?

 

Control frauds, leverage, counterparty risk, and other people's money, bitchez.   Mostly yours.

Have a pleasant weekend.

 

 

 

SP 500 and NDX Futures Daily Charts - Pop Go the Weasels

The theme I struck that the record Alibaba IPO might strike a high watermark given the extreme ramp higher in stocks that the wiseguys provided to get that pig out at a high price is proving a little more credible now.

I did not look up the statistic, but I heard that the 25 or so IPOs that have come out since then have all sold weakly to lower in the secondary market, and several are lowering prices to even get them out the door.

The market was trading weakly most of the day. The algos and trade monkeys are looking hard at the cash SP 500 and its 200 Day Moving Average which is now around 1905. We *might* see support and a bounce there if they have it in them next week. But if not, the next day may see a gap down open and some cascade selling until we reach stronger support and a capitulation of sorts.

Another interesting statistic I saw today is that on average the stock market corrects about 15% over time after the Fed ends a QE program.

Hey, we're almost there!  At least in terms of the calendar.  The market have another ten or more percent to go. 

The talking heads are busily assuring mom and pop to stay fully invested. I own no stocks myself, except for a small position in a silver royalty play.

I have included the news for next week in the calendar below. As a reminder Friday is also a stock option expiration for October, so we will most likely see some shenanigans before and on that day.

Earnings season continues.  Tech was leading the way lower today, so lets see if tech can get its act together and provide a typical short covering rally which is typical of this thin, technically traded market.

Have a great weekend everyone.

S&P Cuts France's Sovereign Credit Outlook From 'Stable' to 'Negative'

The US equity markets, which had been trading weakly all day, turned decidedly south when this breaking news was released, to the minute.  I happened to see the flash headline, but the story did not appear generally in the news.

I think this merely demonstrates how skittish and thin the algo-dominated US stock markets really are.

As a reminder the US Bond markets are closed on Monday, but the stock markets will be open.

Reuters - France outlook revised to negative. AA ratings affirmed.

France ratings remain supported by view of French economy's high income per capita and productivity, diversification, and stable financial sector.

French government's budgetary position is deteriorating in light of France's constrained nominal and real economic growth prospects.

Negative outlook indicates view that robust recovery of French economy could prove elusive and public finances could deteriorate beyond 2014.