26 May 2010

Obama Skips Presidential Visit to Arlington National Cemetery on Memorial Day


Obama to Skip Arlington Ceremonies on Memorial Day: Washington Post

At first I was just puzzled. Not only for Obama's disregard for one of the great American traditions, but even more, that I cared so much about it. I have visited Arlington cemetery several times, and each time the experience was moving. I especially like to visit the Tomb of the Unknown Soldier, and the humble grave of Robert Kennedy, and the more famous of his brother Jack.

But the more I thought about it, it seems like a shocking breach of protocol for a war-time President, the Commander-in-Chief, to skip such a high profile responsibility while brave men bleed for him overseas in his wars. For at this point in his term of office, they are undeniably his wars.

I think it speaks volumes about Obama's tin ear for the common American's sensibilities, another data point for his profile, and how he views things and his relationship to them.

I am sure there are many, many people who would like to be able to have family vacations this weekend as well, who will not be able to, because they have lost their homes, their jobs, their loved ones, and their lives, in the service of a small and increasingly out of touch clique of powerful elitists and oligarchs.

"As flies to wanton boys are we to the gods..."

King Lear Act 4, scene 1, 32–37
Postscript: After thinking about this further, I realized why it bothered me so much. My godson is visiting us, taking a little vacation after his high school graduation, and getting into shape, waiting for his 18th birthday in July so he can return home to Florida and enlist in the US Marine Corps. His obvious desire to serve his country, his knowledge of the Corps, and his devotion to his preparations is touching. With so many good people to choose from, why can't America seem to obtain better leaders?

It Doesn't Take a Whistleblower...


The most recent smackdown in Gold and Silver for the purpose of manipulating the price of metals for the COMEX option expiration was about as blatant and arrogant as I have seen. There was a big fat concentration of Calls at the 1200 strike price, and the temptation to make their expire worthless was an open invitation to the pigmen.

You do not need a whistleblower to spot these abuses. The banks and hedge funds are practically taking out billboards in their market price manipulation these days, and daring anyone to do something about it. Why are they so fearless under a 'reform administration?'

The gaming of the markets using derivatives and massed selling and buying, melt ups and flash crashes, is less a 'conspiracy theory' these days, and more like an IQ test.

And it's a damn shame. Especially when the enablers and the Wall Street demimonde ignore it and pretend it is not happening, or make up lame rationales attributing it to something else.

This sort of semi-official corruption grows like a cancer, until it subsumes all markets. And it has severe consequences in the real economy.

25 May 2010

Shortly After the Comex Close Gold Is Allowed to Trade Above 1200


Gold traded all day below 1200, at times rising to within fifty cents of the key strike price of 1200 where a large concentration of call options were clustered.

Well, since the call options at 1200 have expired worthless, why bother using the energy to continue to suppress the price?

Blatant and arrogant price fixing is done with the cooperation of the regulators at the CFTC who are willing to turn a blind eye to repeated price manipulation by insiders in the US futures markets in precious metals, stock indices, and several key commodities including oil and foodstuffs.

Here is some commentary from the April expiration in silver. Release the Kraken.

SP Futures Daily Chart: 1037 Is a Potential 'Double Bottom' with the February Low


Watch for the SP futures to form a 'double bottom' at its pre-market morning lows of 1036.75.

If that support gives way, the market will reach for a bottom, but with a 900 handle perhaps.

Still, the market is getting rather oversold here, and the techs are not confirming a break of their support in the trendline.

I remain on the 'Long gold - Short stocks' trade that was mentioned the other day.

Silver is starting to look interesting. Later this year I think it may show us an epic rally as the artificial short scheme collapses and retreats to a higher level in a short term buying panic.

It is very difficult to forecast the timing on such an event, so better to take small positions and throw them in a drawer to be looked at only on occasion. One cannot successfully trade the truly unpredictable except in their own selective memory. When will the CFTC and SEC act to create integrity in the US markets? That is why playing such a risk trade is best done with little leverage, highly discretionary funds, and long time frames.

The gold bears are mounting a 'goal line defense' just under 1200 as we are in option expiration.

Here is a look at the SP June Futures Daily Chart at 11:30 NY Time. 1055-1060 remains a key resistance point.



In the meanwhile here is a video interview with Eric Sprott on BNN regarding our farcical financial system presided over by the central banks.

And an interesting discussion about gold, naked short selling, and Goldman Sachs with Stacy Herbert and Max Keiser, with the engaging headline, Goldman Sachs: Undeclared Enemy of the State.