Stocks and Precious Metals Charts - Consuming Pagan Fires - Non-Farm Payrolls Tomorrow

"And you could say in some respects this 'shadow behind the power' that makes money off war, period, no matter who's the belligerent, makes money off that volatility now, especially with computers that are able to assist them in doing so, like currency manipulation, for example, or just general speculation.   And they don't care about what they're doing to the real economy, because they're raking in the dough."

Lawrence Wilkerson, former chief of staff to Colin Powell


"There are those contentious and disorderly people, who engage in useless speculation and deceptive talk, and focus on divisive points of dispute...  All things are good to the pure of heart, but to these corrupt and disbelieving controversialists nothing can be good, since both their minds and and their hearts are corrupted.   They may say that they know God, but by their actions they deny Him, being corrupt and disobedient, and of no use for any good purpose."

Titus 1:10,15-16

It is enlightening to see that even in the earliest of times there were those who made a trade out of controversy, and of spreading hatred and fear. There are those now who seek to inflame controversy, for their own purposes and those of their paymasters. Nowhere is this more apparent now than in our polarized political landscape, and most social discourse in the mainstream and on that modern public forum, the Internet.

Even those who think of themselves as good can get caught up in it. It is one of the greatest of ironies, that we become what we hate, because that is where we place our attention, and thereby our hearts..

There are sites and places that one can go to and be almost certain of a type of hateful and divisive focus, of easily provoked anger, and contempt for others, of incivility and almost childlike tantrums, with sweeping generalizations, conclusions and condemnations.  They are 'playing to the mob' and venting their own disquiet hearts.

This is not the same as reform, or of the calling out of injustice to the light.   This is the madness that makes a fog in the minds and the hearts, which serves one to escape the pain of thinking.

Why do we go to these sites, and listen to them, and repeat their deceptive assertions, if not for the thrill of a temporary distraction? And so often we excuse our participation, saying we only wish to 'inform' others, while poisoning the minds of our friends and our children.

The weather started getting rough...

But if we are honest, we know that there is no good in this, no good fruits, because there is no love in them.  It is difficult to see at times, because deceit can be cleverly phrased and our emotions are powerfully engaging.

When in doubt always step back and ask, if not of yourself then of the Lord, where is the love in this, where is the fruitfulness of good works?  Is this serving good, or passionate anger of the self and its wrath?

By their actions they show what they are. And these produce nothing good, but only add to the destruction and confusion, for money, or for the sick release of their own disturbed and disordered minds and hearts, with which they infect many.

Speaking of infections, the Fed's turn to dovishness has reignited the animal spirits of the Bubbleonians™.

Stocks continued moving hired, fueled by a renewed optimism of the 'Fed Put' which is another term for the official backstopping of speculation in financial assets.

The Dollar rebounded a bit in the afternoon and so gold and silver pulled back a bit from the highs.

Can you spot the little dog in the fold of our 'sherpa blanket'?

Gold in particular is just on the verge of asserting a breakout, but the Chinese week long New Year's festival looms large next week, right after the Non-Farm Payrolls.

The deliveries have started on the February gold contracts, and the clearing report for that action is below.   A large JPM customer was the selling, and the house accounts of Wall Street Banks were the stoppers at $1309.

But this is nothing compared to the big gold contract takedowns of the Goldman House account in the last contract month.  I wonder if they sensed the Fed's change of heart?

Non-Farm Payrolls tomorrow.  It will be interesting to see how the market reacts if it is overly strong, or overly weak.

The weather has turned brutally cold here last night and today.  At first light there were birds and squirrels scratching for food in the snow, and one could not help but be moved with compassion for them.   I put out a large amount of feed on the ground in the back yard, and the squirrels and chipmunks and birds were swarming it all day.  They will need it to fortify themselves for the cold we face again tonight.

Every time I saw their happy feasting I was glad.   The best way to shake off the cold and the gloom is to do something good for those from whom you expect nothing in return.   My old teacher and mentor used to call this a princely gesture.

I have a pot of beef bones soup on the boil in my Instant Pot for dinner this evening.  With some freshly made noodles it will be just the thing.

Dolly refuses to leave the warmth of our furry blanket after a very quick trip outside this morning. She won't even respond to suggestions of a walk, except with the most determined passive resistance.   Smart girl.

Have a pleasant evening.

Stocks and Precious Metals Charts - Roll Out the Barrel - Risk On, Bubble Up

"In the field of monetary and credit policy, precautionary action to prevent inflationary excesses is bound to have some onerous effects— if it did not it would be ineffective and futile.   Those who have the task of making such policy don't expect you to applaud.    The Federal Reserve, as one writer put it, after the recent increase in the discount rate, is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up.   But unless the business community, leaders in all walks, exhibit moderation, prudence, and understanding, then we will fail and deserve to fail."

William McChesney Martin, 19 October 1955

As I am sure you know by now, the Fed has switched off its interest rates 'autopilot' and has shifted to 'patient' which is code for easy-peasy.

And so the Dollar dived, precious metals jumped, and stocks took off higher.

After the bell earnings news tended to dominate, as Facebook beat and all was well with the world.

Have a pleasant evening.

Stocks and Precious Metals Charts - Gold To Run the Gauntlet - FOMC, Payrolls, and Chinese New Year

“There is a mysterious cycle in human events.  To some generations much is given.  Of other generations much is expected.  This generation of Americans has a rendezvous with destiny.

In this world of ours in other lands, there are some people, who, in times past, have lived and fought for freedom, and seem to have grown too weary to carry on the fight.  They have sold their heritage of freedom for the illusion of a living.  They have yielded their democracy.  I believe in my heart that only our success can stir their ancient hope.  They begin to know that here in America we are waging a war against want and destitution and economic demoralization.

It is more than that; it is a war for the survival of democracy. We are fighting to save a great and precious form of government for ourselves and for the world.”

Franklin D. Roosevelt

Stocks were wobbly again today, ahead of the FOMC announcement on interest rates tomorrow.

Gold and silver continued to move higher.

There may be brighter times ahead for silver this year according to Bloomberg.

"Silver Shortage Promises to Boost Price in 2019 - Think of it as a potential silver lining for investors. A burgeoning shortage of the precious white metal is promising to boost its price as 2019 rolls out. Silver surged 9.1 percent in December, its biggest monthly gain in almost two years.  This year, with miners avoiding new projects amid global economic uncertainty, the price could spike as high as $17.50 an ounce from about $15.87 now, according to a Bloomberg survey of 11 traders and analysts."

Gold will be passing through a kind of gauntlet for the next week or so, as it attempts to take on the long term resistance at $1310.

First we will have the FOMC announcment tomorrow. The market will be looking hard for an indication of the Fed's intentions about the unwinding of their Balance Sheet.

On Friday there will be a Non-Farm Payrolls report, and a 'hot number' will raise expectations of further action to increase rates and unwind the balance sheet by the Fed.

And finally, the celebrations for Chinese New Year, also known as 'Spring Festival', will be commencing quite appropriately for the Year of the Pig.

This is a multi-day celebration. For example, the Shanghai stock exchange will be closed for the entire week from February 4 through February 8.

This typically is a weak period for the price of gold because of the huge presence of China in the demand for physical gold bullion.

So let's see how gold makes it through this most difficult period.

It is very difficult to forecast these things in a 'managed markets' economy.   But the minimum measuring objective I have on a breakout is $1490 for gold.

Have a pleasant evening.