Gold Daily and Silver Weekly Charts - Winning!!

"It is not so much anymore that the public does not trust their brokers. They do not trust the markets, the exchanges, or the regulators either. And why should they, given our showing the past few years?

To the public the financial markets may increasingly seem like a casino, except that the casino is more transparent and simpler to understand...

It is vitally important that we bring an end to this crisis of trust before it spreads any further. That we bring back order, fair dealing, and trust in the marketplace. The financial markets of ... the world's developed countries are at a turning point."

Thomas Peterffy, Founder Interactive Brokers

Technology is not the problem. Not at all. Technology is merely another tool, another means by which a financial system grown corrupt and wildly self-serving and pathologically deceptive can seek its own destruction through unbridled greed.

The US financial system is a disgrace, and the technology is just another instrument of their control frauds.  Thomas Peterffy, like too many others in that system, is too close to see the problem. It is a culture of criminality that keeps defeating those who would save it.  And it is spiraling out of control.

When the next break in confidence comes that cuts to the heart of the monetary system, they will act surprised, just as they did when the financial crisis brought the commercial credit system to the brink.  MF Global was a microcosm of the astonishingly frail nature of their pyramids of wealth.

Gold and silver were under some modest pressure today after the run they had on Friday.

There is still little substantial movement in the warehouses and a daily trickle of those standing for delivery on the April contract.

For those fans amongst us, the season premiere of Game of Thrones was last night, and off cable watchers swarmed the 'HBO TO GO' application bringing it to its knees for a time.

I am also informed by my studious children that George R. R. Martin has 'leaked' a new chapter from the much awaited Book Six for those who arereading the books on his website.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Rinse Cycle May Be Almost Done

Stocks continued to decline on mediocre economic news and international jitters. VIX rose a bit as shown on the chart below.

Even with the declines, led by the momentum stocks which are the agitator in the wash cycle, we are falling back to the lower bound of the upward trend channel.

I think that if this is going to be a major correction, which it is not yet but is still possible, we will have to see some serious support levels below here break down.

I would look at the techs to lead and SP to confirm downwards if this correction turns into something more significant.   And alternatively,  the SP to lead a rally back up with the techs confirming if that should happen instead.

Although it may look good, this market is like a piece of fruit going bad from within:  soft, unpalatable, and infested with vermin.

But for now this looks like a thorough rinse after a first quarter washing.

Have a pleasant evening.

Remembering the 46th Anniversary of Martin Luther King's Last Public Words

“The tyrant dies and his rule is over;  the martyr dies and his rule begins.”

Søren Kierkegaard

Martin Luther King gave this speech on 3 April 1968 at the Church of God in Christ, in Memphis, Tennessee.
 

On 4 April 1968, Dr. Martin Luther King, Jr. was assassinated.

"O Jerusalem, Jerusalem, you who kill the prophets and abuse those whom God has sent as messengers to you.

How often I have longed to gather your children together, as a hen gathers her young under her wings. But you would not let me.

As you willed, your house is now yours— but is made desolate.’”

Gold Daily and Silver Weekly Charts - Pop Go the Weasels - Thank You To Zerohedge et al.

Stocks dumped hard on post end of quarter selling, even though the economic news was not too hot and not too cold.

The metals came roaring off their oversold conditions with gold leading the push higher.

There was little activity in the Comex gold warehouse, and a few more traders stood for delivery.

I explained again the other day that not all those who stop a futures contract for delivery actually end up taking the physical gold. And further, if they do take it, that may not be reflected immediately in the warehouse report, because they take the title to the gold if you will, but may not move it or change its status right away. So we can see a lag, or even nothing.

But again, as I seemingly have to say again and again, the Comex setting gold prices is the tail wagging the dog. It is just that the tail is easier to see.

Gold is moving from West to East, and the glimpses we get of that trade confirms its size. And I think we understand why it is moving, because a great change is taking place in the world's thinking on international currencies.

It appears that the currency war may be heating up on a number of fronts:  Russia Prepares To Attack the Petrodollar. If someone is going to attack something, why would they preannounce it? Most likely in response to the threat of increased sanctions I would imagine. The US has expressed its displeasure that Russia is crafting a bilateral trade deal with Iran, and has threatened additional sanctions if they break the embargo on that country.

There are some increased international tensions certainly, and some of the most recent movement in gold, which is outpacing silver, *might* be due to a flight to safety or supply pressures in the markets where physical supply really makes a difference. 

This is playing out and we have to be patient in watching it, and try not to fill in the blanks too aggressively with what can be or might be. But as for what is, I think we have a decent idea of the longer term reasons why things are happening the way that they are.

I have included a special thanks to Zerohedge and the other bloggers in my stock market commentary today.  I started to thank ZH for publishing an interesting stock valuation chart from JPM, and then I started thinking about all the other sites I look at every day, and felt a need to just say 'thank you.'  They are included in my blogroll, and there are quite a few.  You can scroll down or simply click here for the stock market comments. 

It is easy for us to criticize each other, and find those areas where we might disagree, often on details and interpretations.   But I think we can all agree that without the internet, and the bloggers and columnists who work long hours for relatively little reward, the void created in the news by the mainstream media would be even more intimidating and daunting than it already is.

Have a pleasant weekend.  Spring is in the air.