Gold Daily and Silver Weekly Charts - Epitaph to a Tyrant

"Perfection, of a kind, was what he was after,

And the poetry he invented was easy to understand;

He knew human folly like the back of his hand,

And was greatly interested in armies and fleets;

When he laughed, respectable senators burst with laughter,

And when he cried, the little children died in the streets."

W. H. Auden, Epitaph To a Tyrant

The hit on the metals last night was obvious and heavy handed.

There were some additional antics during the day.

Silver was more robust against this, most likely because it is in an active month at The Bucket Shop.

I think the stock market has reached at least a short term apogee, and risk is grossly mispriced.

 

This is how it goes sometimes.

 

The commentary about the precious metals this afternoon on Bloomberg TV was laughable for the most part.

 

Have a pleasant evening.

 

 

 

SP 500 and NDX Futures Daily Charts - Roll Over Beethoven

If you have not done so already, it is probably time to take profits in US equities.

The advance is so narrow it is almost chilling, with the upward momentum in stocks down to a handful of new era tech giants.

Down volume was almost double up volume on the broader market. The wiseguys were taking profits.

The Paypal 'ipo' was brought out today in the fluffy new era atmosphere, and did well. And this was probably the greatest motivator behind this latest 'rally.'

IBM beat EPS estimates but missed revenues after the bull. IBM is, alas, a once great company that is now a dead man walking, sustained by accounting theatrics at these price levels.

These jokers are financial TV are incredible. I watched CNBC this afternoon and I could almost feel my IQ declining. They could, and probably should, be selling blenders on the Home Shopping Network.

Have a pleasant evening.

Thousands of Gold and Silver Futures Contracts Dumped at Market Open

This calculated slamdown was a little enthusiastic even by current market standards, or lack thereof.

About seven thousand gold futures contracts, representing 21.8 tonnes of paper gold, were dumped at market in less than one minute driving the price down to $1,080.

Several thousand contracts were bought back in the following two minutes.

No legitimate profit-oriented sellers would operate in this manner, since they are selling against themselves.  You do not dump large volume without limit into a quiet market unless you are trying to disrupt the price.

A similiar operation happened in silver.

Who would suspect a thing?  Certainly not the regulators, or even some market 'reformers.' Not when something is so obvious.

Oh, well done.

Zerohedge thinks that it might be another HFT inspired 'flash crash.'

I think this is another conveniently timed, clumsy attempt to clear out more of the August open interest and give a nice shot to the gut for any foolish enough to still buy options on the Comex. The next precious metals option expiry is on the 28th July.