SP 500 and NDX Futures Daily Charts - Stocks Close Unchanged, Feeling Confident?

The Street shook off some fairly lousy economic results from this morning, and managed to turn the losses to largely unchanged to a little green by the afternoon, when Asia and Europe had gone home to bed.

Stocks are still struggling here, trying to find a rationale for moving even higher than they are now.

It's not clear that they will find that, but with the Fed et al providing plenty of liquidity and outright purchases in come cases, and with the regulators turning a blind eye to the 'cup of courage' that the algos are dishing out to the banner headline indices on an almost daily basis, there is no telling where the equity markets may go.

In the end it will turn out badly, as it has done so twice now since the turn of the century. But that is a concern for another day, and for other people to clean up once the bonuses are banked, mostly offshore.

Have a pleasant weekend.

Pam Martens' Warning to the Fed and the Clintons in 1998 - And She Warns Them Again Now

It is the same players that we saw enabling reckless behaviour in 1998: Citigroup, the Fed, and the Clinton-led Wall Street Democrats.

And here we are again, almost eighteen years later, watching the same short term, selfish behaviour by the big money banks putting the entire economy of productive individuals at risk again.

"There’s something big and scary going on behind the scenes but, as usual, the public isn’t reading about it on the front pages of the newspapers...

Dodd-Frank was supposed to push the derivatives out of the commercial banks which hold the insured deposits to prevent another taxpayer bailout, the so-called “push out” rule. But in December of 2014, Citigroup was able to sneak legislation into the must-pass spending bill to keep the government running that overturned the push-out rule...

Using its insured bank’s balance sheet as ballast, Citigroup’s bank holding company now ranks as the largest holder of all derivatives in the U.S. According to the Comptroller of the Currency, the very bank that blew itself up in 2008 and received the largest taxpayer bailout in history, now holds $55 trillion in notional amount of derivatives.

But far more alarming is the type of derivatives Citigroup appears hell bent on gaining market share in trading. Last week we reported that Citigroup is plowing into credit default swaps, the very derivatives that blew up the big insurance company, AIG, in 2008 and forced a government bailout of AIG to the tune of $185 billion...

On March 8 of this year [2016], the Office of Financial Research, which was created under the Dodd-Frank legislation to monitor the buildup of systemic financial risks, released a study on Credit Default Swaps. Its findings were deeply troubling...”

You may read the entire article at Wall Street On Parade.

Gold Daily and Silver Weekly Charts - Late Day Selloff - Risk On But Stronger Dollar

Apparently the Street is looking for a good Retail Sales number tomorrow because it will include Amazon's 'Prime Day' promotion.

Gold and silver were hit by some selling later in the day on apparent dollar strength and a risk on attitude in the equities.

PPI and retail sales results tomorrow.

The Reserve Bank of NZ cut its key rate by 25 bp to 2%.

Singapore has cut the high end of its 2016 GDP forecast.

The Reserve Bank of Australia may be cutting its key rate to 1% over the next 12 months, and will be considering 'unconventional stimulus' to counteract a lagging economy.

Print on.

Have a pleasant evening.