SP 500 and NDX Futures Daily Charts - Running out of Runway for The Recovery™

The FOMC announcement comes in tomorrow.

Earnings for big tech keep coming this week. Yahoo reported after hours, and the stock is selling off about 5% on the news.

The US economy is fundamentally broken at the distribution of wealth level. The Recovery™ has benefited the top one percent, because of the gaming of the rules and the profound influence that money has had on policy, both economic and fiscal.

We are seeing the classic situation of financial monopolies strangling themselves by killing off their customer base, an excess to which corrupted capitalism has been know to stray now and then. Their predatory desire to move offshore to fresher fields is being hampered by their reputations.

Have a pleasant evening.

Another Ten Tonnes of Gold Bullion Came Out of Comex Eligible Inventory at JPM Yesterday

"And we headed out of the hotel, went to the airport, got on the plane and, about halfway through the flight, I found myself alone in the President’s cabin with him. I said, 'Mr. President, you don’t have a cold. There’s something else going on.'

He said, 'You bet. There is something else going on.' And he said, 'When you find out, grab your balls [and run].'

Pierre Salinger, On the Cuban Missile Crisis

If I were short bullion I might consider squaring up and inching towards the exit, just to be on the safe side.

I cannot believe how little gold is left at Brinks.   They have gone from total ounces of about 650,000 at the end of 2012 to a little over 186,000 ounces now.

Brinks and JPM only have about five and one half tonnes up for delivery.   The two big boys are HSBC and Scotia, and they only have a little over six tonnes up for delivery between them.

That does not mean, however, that we will not see the usual shenanigans in the paper metals markets.

It's what they do, until they can't. And then they ask for a change in the rules, and a bailout.

Comex Gold Silver Product Calendars for 2014

By popular request.

Gold Daily and Silver Weekly Charts - FOMC Week Shenanigans

Gold spiked higher in the morning on a pure flight to safety, but was pushed lower as stocks attempted to rally. Reality versus liquidity?

The FOMC will meet this week, so we might expect the usual FOMC shenanigans, but bear in mind that the big traders are squaring off against the upcoming February delivery.

I do not expect any curve balls from the Fed which is now locked into its mild tapering. Their monetization has clearly failed, being a 'top down' approach to The Recovery, which has exacerbated the strains in the real economy versus the financialized, paper economy.

The gold/silver ratio seems rather high at 63 to 1, and that reflects the fact that gold has led silver up this month in the precious metals rally.  Once silver gets started higher, it may kick in some serious jets and catch up rather quickly.  But one step at a time.  

As solid and well-informed the Bloomberg print reporting may be, their television counterparts all too often have the depth of cackling chuckleheads, with a few notable exceptions.  Well, they do have nice smiles, and so forth.

It really is annoying, but alas, Fox and CNBC are little better.  I have never understood why the US treats visual financial reporting as light entertainment, as compared to Europe and Asia which have a more journalistic approach. 

Have a pleasant evening.