Gold and Silver Charts; US Long Bond

Gold Daily Chart with Cup and Handle Formation

After three up days gold could be in for a bit of a pullback to test support at a little lower level and consolidate its gains. However, there is a whiff of hysteria in the air, and this could feed another advance or two. I do not like to see gold get ahead of itself.

But having said that, at some point it may just break away, and that will be that.

For now I like to hedge against the downside plunge in stocks that will become more likely after the US Labor Day holiday and we enter the period of highest risk, September to November.



Gold Daily Chart With 50 Day Moving Average

Gold has decisively broken through its 50 day moving average. This should provide support around the 1210 level for any pullbacks.



Gold Weekly

Gold is moving up to test the big resistance level again around 1255. I would like to see it approach that level with backing and filling, on a steady sustainable pace.



Silver Weekly

Silver is lagging a bit in its breakout and is facing determined resistance around 18.75 and then 19.50. The coming explosion in the price of silver could see daily gains hitting up limits, trapping shorts. But not yet. The big dogs are trying to back out of their short positions and cover their tracks without creating a buying panic. Silver remains more vulnerable to stock sell offs.



US Long Bond and Ten Year Note

Remarkable climb that probably signals risk concerns, even with the official buying support from the Fed and their friends. When the time comes it will be an epic short. But who can say when that will finally be.

"Do not be afraid of them. There is nothing concealed that will not be disclosed, or hidden that will not be revealed. What I tell you in the dark, speak in the daylight; what is whispered in your ear, proclaim from the rooftops." Matt. 10:26-27

SP 500 and NDX September Futures Daily Charts

The bulls are guarding the pivot points on these charts as though they mean something.

There are quite a few 'crash predictions' floating around. I think they are a bit early, as the period of greatest danger will be from Labor Day to Thanksgiving Day in the States.

There is a whiff of hysteria in the air, and people attempting to use fear to promote their own ends.

SP 500 September Futures Daily Chart



NDX September Futures Daily Chart

SP 500 and Nasdaq 100 September Futures; Gold Daily Chart at Week's End

Sleepy trade despite the almost 20 point range on the SP futures, and on a Friday the 13th no less.

Light volumes and trader's games.

SP 500



NDX



Gold

GM IPO Timed to Complete Just Before the November Elections

It will be a wonder if the stock market remains favorable to an IPO of this size by October.

ABC News
GM IPO Filing Delayed Until Early Next Week
By Soyoung Kim
August 13, 2010

NEW YORK (Reuters) - General Motors Co has delayed its IPO filing until early next week as it updates its prospectus with the recent CEO change and a management risk factor, a source familiar with the situation said on Friday.

The filing with the U.S. Securities and Exchange Commission was originally scheduled for Friday, sources said previously.

GM Chief Executive Ed Whitacre said on Thursday he would step down and Dan Akerson would take over, effective in September.

The source who said the filing had been delayed declined to be named because preparations for the IPO are not public.

GM's several-hundred-page prospectus will not provide the number of shares to be sold or the pricing range. It will cite the company's bankruptcy, steps completed in restructuring, financial projections, details of ownership, and a large set of risk factors, sources have said.

GM is now adding a new risk factor regarding the departure of Whitacre and increased uncertainty about the automaker's long-term leadership and the change is expected to take more than a day, the source said.

By filing initial paperwork with the SEC next week, GM is aiming to complete its IPO between late October and the U.S. Thanksgiving holiday, another source familiar with the matter said.

A successful GM IPO, which could be the largest ever for the U.S. market, would hand the Obama administration an important political win against critics of its controversial $50 billion bailout of the top U.S. automaker, analysts have said.

The automaker secured a $5 billion credit facility this week, two sources briefed on the deal told Reuters on Wednesday, clearing the last remaining hurdle toward an initial public offering of stock expected to make the U.S. government a minority shareholder.

Ten major banks have signed on to the $5 billion credit facility, committing up to $500 million each, but the individual commitments would be cut as GM adds more banks in other countries and emerging markets as part of its efforts to attract global investors, sources said...