SP 500 and NDX Futures Daily Charts - Credibility Trap

"The fear of a backlash against the political establishment is absolutely palpable in Washington. Whatever they may dutifully mouth in public, even the professional denizens of the nation's capital really believe that there has been a recovery.  It is not difficult to believe in a recovery when your stock portfolio has been inflated by the Fed's QE. So, they are all genuinely mystified about why the common folk are restless."

Le Cafe's Samoan Attorney in Washington DC

Well technically he is Greek, but has a polymathic intellect of truly Samoan proportions. And he tends to hang out with the politicos, such is the nature of his business.

I have a real gut hunch that the glitterati, money boys, and Very Serious People are walking into a serious encounter with reality due in large part to their self-inflicted insularity, the herd mentality of the privileged few, hubris beyond all doubt, and of course the credibility trap and the wonderful ability of people to rationalize anything that favors them in the short term, without regard to future risks.

Maybe they will get the wake up call as the presidential race unfolds. One of my favorite bellwethers are the TV political talk show hosts, on Sunday morning and in the evening on some of 'those channels.' And brother, they could not buy a clue for the most part, and seem to be in intense shock and denial. Only Gene Robinson seems to get it, and he is playing it cool so as to not shock his brethern who are clinging to their sinecures and the 'old ways' of doing business.

Its a classic. Marie Antoinette times Tsar Nicholas in an inability to read the great changes of their times. Wha' happened??

We know that Hillary is carrying water for Wall Street and Big Pharma, but Greg Palast asks who owns Rubio, now that Jeb! is reverting to the mean?  

Stocks managed to fight back to near unchanged today, with a little help again from oil which held its footing.

Once again the financial data sucked out loud. There is no recovery, it is a vapor, a phantom, a creation of the great spin machine of the airwaves. Years of policy errors, abusive growth of monopolies, the overturning of sound regulation, and the coup de grace, the pervasive political corruption enabled by Citizen's United.

Tomorrow we get the Non-Farm Payrolls.  That is often a best-seller in the fiction category. Watch the prior report revisions.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Non-Farm Payrolls on Friday

"Even on the highest peak we will not be 'beyond good and evil,' and the more we experience of their inextricable entanglement the more uncertain our moral judgement will be... The wrong we have done, thought, or intended will wreak its vengeance on our souls, no matter whether we turn the world upside down or not."

Carl Jung

Gold in particular had a nice breakout on paper today, with silver following along but still a bit sluggish, and not reclaiming the 15 handle.

Friday will be the Non-Farm Payrolls report. Let's see what flavor of shenanigans we may enjoy. It may not be the usual vanilla scam topped with brazen sauce.

The dollar took a nose dive as you can see from the chart below. Keep in mind this is the DX index which is out of date in today's more globalized world.

There was another burst of gold action in the Comex warehouses yesterday, with the monthly total now a big 76,800 ounces of bullion 'delivered.'  It generally does not go anywhere, just a change of nametags for the most part.

You will know things are falling apart overseas, probably in London or Shanghai, when the registered gold dries up and even JPM cannot step in and easily cover the demand.  It will not be a default, but it *could* look like a run on the physical if the guys moving the shells and the pea slip up.

So let's see how we close the week.

SP 500 and NDX Futures Daily Charts - Risorgimento

After the bell they were missing earnings, or making the earnings and missing the revenues, or some reasonable facsimile thereof.

Stocks did a big midday turnaround off the lows, because 'oil showed some strength' and the dollar was taking the short term siesta and falling over.

Right now it appears on both charts that we have a decent chance of forming continuation patterns, either a bear flag or a symmetrical triangle. The bear flag has a higher chance of moving lower next, with the symmetrical triangle still bearish but not quite as much.

The economic news continues to stink up the place.

Today had all the hallmarks of a very technical move designed by the pros and algos to shake out the 'investors.' It is like Planet of the Apes, with the short term insiders as the gorillas, having all the horses and weapons, and spend their days hunting down the rest of us, the human beings.

They are not smarter. Don't give cheaters that kind of praise. This is not a market anymore; this is a carney sideshow, three card monty.  But they are not too lazy to steal, I will give them that.  Too bad they can stick their hands into your pockets via Washington even if you are not playing their games directly anymore.

Have a pleasant evening.