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These jokers really worked hard to squeeze out that new high, even on very light volume.
This is a monetary inflation rally.
I would not get ahead of it, but when this market does turn for a correction the momentum players are going to be piling on in a big way.
Look at how far the SP 500 has come without a major correction. That is how far it may fall.
But for now illusion holds the day. Illusion is all one has, when reform and leadership fails.
'Clay stealing clay.'
As one may deduce from the Commitments of Traders, some of the Hedge Funds and a couple of the Banks are playing the short side of the metals.
And as you may recall, today is the end of the quarter, as the markets will be closed tomorrow for Good Friday.
My usual take is that they are slamming the metals to make their mark to market look better for purposes of enhancing their results, and bonuses.
As Bishop Lazarus of Cyprus was said to have observed of a thief absconding with a pot, 'clay stealing clay.'
Bloomberg TV has been running a little show called "Is the Gold Bull Run Over?" They trotted out that crusty prune Jeff Christian, who declared that 'gold will be flat to down for the next two years.'
Let's see how all that works out.
In the meanwhile, the metals are under pressure, and the SP 500 desperately reaches for a new high.
With regard to the funds, we see the somewhat unusual event of a negative premium on CEF, and pressure on the metals overall.
Have a happy and joyous Easter. I may post the charts later, but will otherwise see you Sunday evening.
"In the century in which we live, the Democratic Party has received the support of the electorate only when the party, with absolute clarity, has been the champion of progressive and liberal policies and principles of government. The party has failed consistently when through political trading and chicanery it has fallen into the control of those interests, personal and financial, which think in terms of dollars instead of in terms of human values."
Franklin D. Roosevelt, 18 July 1940
Links For Today
Calm Gives Way to Tension As Cyprus Banks Reopen - NYT
Oligarchy Exists Inside Our Democracy - Walker
Speaking of Inequality - AngryBear
Why Won't Cyprus Obey Krugman? - EconoSpeak
Earthquake Tied to Disposal of Oil Extraction (Fracking) Wastewater
Is the ECB Misleading Us Over Who Is To Blame for the Eurozone Crisis? - Guardian
"Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.
When you won, you divided the profits amongst you, and when you lost, you charged it to the bank...You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out."
Andrew Jackson, Andrew Jackson and the Bank of the United States (1928) by Stan V. Henkels
I have concluded that it is almost impossible to understand what is happening in the precious metal markets without understanding that the world is in a currency war, And this includes how the currency war is being conducted, and why.
The US dollar reserve currency arrangement to support world trade was created in the waning days of World War II, with the demise of the gold standard and the ascendancy of the Pax Americana. It is called the Bretton Woods System. It evolved quite a bit since then, especially when Nixon closed the gold window in 1971 and declared the US dollar a purely fiat currency. Since then the world has gotten by on what some have called Bretton Woods II.
After sixty years, it is fairly clear that the dollar trading regime has had a good run, but has now outlasted its effective life span. The nail in the coffin is the economic instability in the US, and the need for the Federal Reserve to go to ZIRP and print buckets of money to support their domestic policy needs.
While this makes sense for the US, it does not make sense for the rest of the world. This is similar to the reason why the Eurozone is failing. The ECB conducts monetary policy to suit the needs of a few core countries, and the periphery suffers. And that monetary policy is covering up the rot at the core I might add.
The situation is similar with the dollar and world trade. The Anglo-American Banking cartel grew up around the US dollar reign, and is still very powerful, being supported by most of the systemically important international banks.
But all things come to an end, and the world is looking for a better solution to the world as it is now, not how it was sixty years ago. But change comes slowly and with difficulty.
I will be very surprised if gold and silver do not play a role in what is to come.
I did remark on this and also on bitcoin intraday. You can read it here.
Great changes are occurring, that cut across political and economic lines. And these are manifesting as a 'currency war' that is much broader than a mere race to devalue and manipulate national currencies to support industrial trade policies. Always keep that in mind.
Have a pleasant evening.
