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The ability of the Comex to deliver on the silver contracts continues to deteriorate.
Still running a long gold-short stocks pair. Added some silver long today, and doubled up the stock short, so the beta is leaning to the bearish side. I will adjust it tomorrow depending on how things look after the European close of trade.
The bullish case on these charts is for stocks to find a footing around the obvious support levels and create a slanted "W" double bottom with a nice summer rally back to the top of the channel trend resistance.
The bearish scenario involves a break of this support and a continuing decline into the Fed's decision on QE3 at the end of June.
Bernanke's waffling did not help stocks today.
I am still running the long gold-short stocks trade, but adjusted my beta and took the short position up a notch to a bearish lean.
The long gold - short stocks trade worked well today as stocks slumped yet again while gold held its own for a short gain on the bullion front.
The story is really in stocks, and whether they can hold key support levels, and not slip into a liquidation sell off.
Although the dollar crawled a little higher, there was no flight to safety into it.
Today we remember the Allied invasion of Normandy, a time when ordinary men and women did real, heroic things for the benefit of the many.
"Your task will not be an easy one. Your enemy is well trained, well equipped, and battle-hardened. ...The tide has turned. The free men of the world are marching together to victory. I have full confidence in your courage, devotion to duty, and skill in battle. We will accept nothing less than full victory. Good luck, and let us all beseech the blessings of Almighty God upon this great and noble undertaking."
General Dwight D. Eisenhower, 6 June 1944.
