skip to main |
skip to sidebar
Stocks came in weak on poor economic news. The professional funds and trading desks managed to buy the major stock indices on low volumes, allowing stocks to drift higher most of the day.
Hollow and cynical market, with very weak underpinnings. Handle with care.
The bounce in silver continued, with gold experiencing a little more capping today, and the dollar once again failed to obtain positive traction.
This market gives me a bad feeling, and I am tending to like bullion more than miners.
I took everything off the table short term today, and booked the profits.
What next? Obviously the next move in equities and the dollar are key to many things. The end of QE II, at least in name only, is at the end of June. The US is tottering towards a budget crisis on August 2.
The market does not seem to be pricing anything risk-wise in yet, and seems very hollow.
Intraday 24hour gold showed a remarkable gain in the deliverable silver inventory at the Comex. This is not squared up with the public numbers from the exchange, and so I wonder if this is a glitch. We'll know soon. If it is correct I think the site needs to explain their sources ahead of the market. But all things considered, I am skeptical until the numbers are 'official.'
Later: There is no such increase in inventory shown from the Comex per Harvey Organ's update this evening. I have sent another email to 24hgold and asked them to correct or clarify their chart. I think it is just one of those things and not true.
"Had I the heavens' embroidered cloths,
Enwrought with golden and silver light,
The blue and the dim and the dark cloths
Of night and light and the half light,
I would spread the cloths under your feet.
But I, being poor, have only my dreams.
I have spread my dreams under your feet;
Tread softly because you tread on my dreams."
W.B. Yeats, Cloths of Heaven
Futures were very weak overnight, and for the 10,001st time the bulls came in and bought the market back up on light volumes. I took my short profits in the first ten minutes and let the metals run into the last hour and took the miners off as well.
I just *hate* this market action.
Consequently I took almost everything short term off the table today and booked my trading profits. I want to see what comes next. I don't think the market will decline severely yet, but like most traders I have one eye on June and the nominal end of QEII.
After the bell the Freescale IPO priced at the bottom of the range, at $18.
The US has a three day holiday weekend (Memorial Day) coming up.
"Manipulating cash prices for a larger derivative payout is a regular feature in all markets. And $50 million is chump change compared to the billions being made manipulating the markets on almost a daily basis."
Bill King, The King Report
At least according to this update from 24hourgold it is crisis averted for Blythe and her Merry Pranksters, just in time for the May - June deliveries, as 37 million ounces of silver have been added to the dealer inventory at the Comex.
I believe that an addition of this size in one fell swoop, if true, might be called 'unprecedented,' at least since the benefice of Buffett supplied the silver for the newly forming SLV.
Such a huge addition, if true, is certainly worth some examination in what is known to be a tight market for physical supply. This inventory system does seem to move improbably large amounts of 'bullion' around like Tinker to Evers to Chance.
These are the saddest of possible words:
"Tinker to Evers to Chance."
Trio of bear cubs, and fleeter than birds,
Tinker and Evers and Chance.
Ruthlessly pricking our gonfalon bubble,
Making a Giant hit into a double –
Words that are heavy with nothing but trouble:
"Tinker to Evers to Chance."
It might even be just a 'data glitch' at 24hourgold since the public Comex sources do not yet confirm any such addition. (I have highlighted this caveat to prevent the 'I told you so' crowd from embarrassing themselves more than necessary.)
You just have to love these option expiration days in the metals.
I will have to take a look later tonight to see where it may have come from, and if it is even true. Or better yet, I will wait for either Danny Norcini or Harvey Organ to show their findings. Never makes sense to duplicate effort.
Wishful thinking from the bullion bears or real supply, we'll have to wait and see. But no matter how you wish to view it, Blythe, you're called. Let's see what you've got.
"He who sells what isn't his'n,
Must buy it back, or go to prison."
(or obtain a presidential pardon
for services rendered.)
Daniel Drew
