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Gold and Silver continue to drift higher. The shares continued to outperform bullion today.
"When they (western central banks) report having 30,000+ tons, that is not true. They may say they still maintain ownership, but they do not have it and they will never get it back. It’s been sold, it’s gone into the market and it’s gone." John Embry
I am back down to a bare gold bullion position, and short the US stock indices. This will be my short term position until I see the stock market bounce and breakout of overhead resistance.
The equity market did not respond well to Bernanke's toothless jawboning today. The average person has not awakened from their slumber, but their sleep is not untroubled. The deception begins to unravel, slowly but surely.
Surprisingly sleepy day...
The miners were rallying with stocks and the metals today, as one might expect.
In the short term the markets will move on the Greek debt situation, the FOMC monetary policy decision tomorrow, and to some more individual extent the Russell 2000 rebalancing on Friday.
Gold looks to be on the verge of breaking out. Let's see if they can do it. A great deal will depend on macroeconomic and political events in the short term.
I have included a second gold chart which shows the chart formations should the breakout be confirmed after the July Comex options expiration, and the sturm und drang which follows for a few days afterward.
JP Morgan may wish to plug in a new 'cost of doing business' item in their budget for the commodities trading group. And Ben may need to keep a little 'walking away' money at hand for his cronies.
FT
JPMorgan settles SEC charges for $153m
By Kara Scannell in New York
June 21 2011 19:01
JPMorgan Chase agreed to pay $153.6m to resolve US Securities and Exchange Commission civil fraud charges that it misled investors in a mortgage-related security it constructed for Magnetar, an Illinois hedge fund.
The SEC charged JP Morgan with failing to disclose to investors in the collateralised debt obligation, a security linked to mortgage-backed securities, the role played by Magnetar.
The hedge fund helped select mortgages included in the CDO, named Squared, and was betting against them. The SEC alleged that investors were told that an independent firm, GSC Capital, had selected the portfolio.
JPMorgan agreed to settle and reimburse investors in the CDO without admitting or denying wrong-doing. The settlement also requires JPMorgan to change how it reviews and approves offerings of certain mortgage securities.
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A rally on very light volumes.
All eyes are on the Greek referendum after the bell, and on the FOMC decision tomorrow which is likely to provide some hint on the Fed's stance on continuing monetary stimulus.
Adobe turned in mixed results after the bell.
