SP 500 and NDX Futures Daily Charts - Danger Zone

"Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.

When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin!

Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out."

Andrew Jackson, in a meeting with the Bankers, February 1834

Stocks sold off again, losing a little more than half of the recent rally which they enjoyed after the initial plunge in global equities.

It is foolish to talk about 'fortress America' and the imperturbability of the exceptional.  The derivatives market alone makes the entire financial system an accident waiting to happen.

The Fed has obviously, and in a calculated manner, allowed a financial asset paper bubble to be created in the long and almost unbroken run up in financial paper after the financial crisis of 2008,  and stood idly by watching a growing imbalance and inequality in the economy which they also helped to create.

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.

Median wage, and aggregate demand.

Maybe it is time to build a wall. Not a wall between the US and Mexico, or even the US and Canada.

Maybe it is a time to build, or rather to rebuild, a wall between the public money and their savings and the gambling Bankers of Wall Street, who keep the profits and give the public their losses.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Charts Undecided - Goldman Takes A Little More

"Don't get involved in partial problems, but always take flight to where there is a free view over the whole single great problem, even if this view is still not a clear one."

Ludwig Wittgenstein, Notebooks, Nov 1914

We say goodbye to August, and the active month for gold at The Bucket Shop, and welcome the first stirrings of September, which promises to be much more interesting for silver.

Prices were heavy for the metals most of the day, with silver showing a little more perkiness, but gold doggedly hanging on to close for a slight gain.

We have an interesting, if yet undecided, chart formation on the daily gold chart in a potential cup and handle formation that, if activated and confirmed, will target a minimum objective of around $1,255 and even a likely test of the big prior support from the trading range at $1,270.

To put this potential formation to 'work' gold must continue to hold its successful retest of 1120 on the 'handle,' and move to take and break the top of the cup at 1170.   This is no mean feat, since gold is being pressed upon so heavily by the meddlers in the forex crosses.  Despite the propaganda, it most certainly is a currency of the world.

Silver is just coming into its own and September will most likely to provide some fireworks for the beta rocket, depending on which way the black swans start coming home to roost.  We have already seen the first deliveries taken for September, as noted on the clearing report below, of about 835,000 ounces.

I keep hearing stories of retail shortages and premiums that are certainly interesting.  I will be more interested if we start seeing some pressures at the wholesale level.

Gold went out quietly, with Goldman stopping another 49 August contracts for their 'house account.'

I am hearing some talk about leaner times for gold bullion supplies at the LBMA for this booming physical gold market in Asia and India.  There is certainly not much bullion up for sale at these prices in NY. Perhaps the bullion banks will use a quiet September to regroup and reform, if they get a quiet month that is.

Better not to try and guess, and look ahead too much however.   These pool operations, which we are almost certainly seeing now in my judgement, take a long time to reach their natural conclusion.  But they always seem to get there one way or the other.

So perhaps we can use this time to get our own houses in order, to put our pieces on the board where we are sure that we will have them if things get more interesting.  I certainly would not wish to put them in an unallocated pile in some vault managed by the status quo, since possession is nine-tenths of the law to these jokers, as we saw with MFGlobal's default.

I am ambivalent about the miners here, mostly because I am in the position of owning some, which I have not done for quite some time.  But silver is too temping with its 77:1 ratio to gold, and the absolutely beaten down into the ground place of some fairly tempting mining stocks.

Oh well, let's see if we can get something more substantial to hang our hats on, like the activation of a chart formation or some especially bullion friendly news for a change.  The gold trolls were out in force today on the financial networks, so we will have to see what this means if anything.

There was a greater than usual amount of information about the metals posted over the weekend, so you may wish to scroll down and have a look if you have not done so already.   There are quite a few odd little things happening that seem to be missed by most.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - September Song

"The ideological and physical hold of American imperial power, buttressed by the utopian ideology of neoliberalism and global capitalism, is unraveling. Most, including many of those at the heart of the American empire, recognize that every promise made by the proponents of neoliberalism is a lie. Global wealth, rather than being spread equitably, as neoliberal proponents promised, has been funneled upward into the hands of a rapacious, oligarchic elite, creating vast economic inequality.

The working poor, whose unions and rights have been taken from them and whose wages have stagnated or declined over the past 40 years, have been thrust into chronic poverty and underemployment, making their lives one long, stress-ridden emergency. The middle class is evaporating. Cities that once manufactured products and offered factory jobs are boarded up-wastelands. Prisons are overflowing. Corporations have orchestrated the destruction of trade barriers, allowing them to stash $2.1 trillion in profits in overseas banks to avoid paying taxes. And the neoliberal order, despite its promise to build and spread democracy, has hollowed out democratic systems to turn them into corporate leviathans."

Chris Hedges, The Great Unraveling

US stocks came in a bit shaky this morning, but managed to rally back up close to unchanged during the day.

Alas, it was not to be, and stocks sold off in the afternoon, going out on the close at or near to their lows.

This is the 50% retracement area here from the recent big decline last Monday.

Stocks need to own this level, and start climbing back up to at least retest the prior big support area that had formed the bottom of the longer trading range.

If we get too sharp a rally higher that fails, let's say around a Fed rate hike in September or October, then it might be Katy-Bar-The-Door time, because a rally that fails after a steep decline in a long trend rally to these kinds of lofty heights is, in the words of classic technical analysis, 'bad news.'

But lots of things can happen between now and the end of the year.

I would feel better if I thought that the powers-that-be were doing anything close to some real solutions for the economy, and not just playing extend and pretend with an unsustainable quiet riot of upper crust looting and malfeasance.

But that is not in the cards it seems.  And most things tend to fill one with concern.

But nevertheless, let's see what happens.